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European banks gave loans to rulers for trading, exploration, etc.
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European and US intermediaries buy government debt and resell to investors for profit
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US Civil War and railroads are financed through bonds
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An economic panic swept the nation
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People weren't confident in the nation's currency system which kept the economic panic going
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The Federal Reserve Act was passed and the Federal Reserve System was established
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People kept buying stuff and banks kept using people's money to invest into the stock market
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Sooner or later the stock market crashed and people lost all their money and banks closed down
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The Federal Securities Act and Glass-Steagall Act was passed, then the Federal Deposit Insurance Corporation was established
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There were a lot of federal bailouts and an overall lack of consumer confidence because of a financial crisis