RaiseCapital Blog
by RaiseCapital.com | Posted on January 30, 2009
With stock market down and the credit markets tight as a drum, it may seem that the current economic downturn is a once in a lifetime occurrence of epic proportions. And while no one should seek to minimize the pain being felt by those who have lost jobs or businesses in the current downturn, history teaches us that (1) the current crisis is part of the normal economic cycle and (2) it is almost certain to end by 2010. Moreover, amidst the rubble of a receding economy lies great opportunity.
The Panic of 1837
The Panic of 1837 had devastating effects on the banking community (sound familiar?). Out of 859 banks in the United States, 343 closed entirely, 62 failed partially. The Panic was caused by wild land speculation and rampant importation of goods from England. The Tariff of 1842 allowed the United States economy to rebound and by 1843 the panic was over.
The Panic of 1857
The Panic of 1857 was a recession that actually began in 1856. The recession followed a period of prosperity after the Mexican War and the discovery of gold in California. It was mainly caused by the collapse of the Ohio Life Insurance and Trust Company that led to the withdrawal of European (especially British) funds from American banks. Businesses failed and unemployment was high. The recovery began in 1858 and was fully realized by the start of the Civil War. Those who were able to stay the course emerged after Civil War ready to take advantage of the changes on technology that were fast approaching.
The Panic of 1873
Caused primarily by the collapse of the Vienna Stock Exchange and the failure of Jay Cooke & Company. Economists almost uniformly characterize the Panic of 1873 as a depression and it lasted until 1879.
The Panic of 1893
The Panic of 1893, like the collapse of the Vienna Stock exchange in 1873 was caused by the economic expansion of the 1880s, which drove investors to speculate in railroads. Railroads became vastly over-built. When the Philadelphia and Reading Railroad went bankrupt, the panic was on. Unemployment in 1894 is estimated to have been 15%.
Recession After World War I
Often forgotten in the history books, but as a prelude to the prosperity of the “Roaring 20s”, the United States entered a brief recession as war production ceased and soldiers came home looking for work.
The Great Depression
The Big One. Lasted ten years. This is the one we hope to avoid. However, as you know, we did recover.
Since World War II, the United States has had 7 recessions (1953 (Korean War inflationary period), 1957, 1960, 1973 (oil crisis, stagflation), 1980, 1990, 2001 (tech bubble burst) and the current recession. None of these lasted more than three years. It seems that the complexity of the post war economy (some might say government policy as well) has thus far prevented any of these recessions from lasting long or becoming a depression.
A fair reading of history should lead even the more pessimistic of us to have hope that this recession will be in the rearview mirror by 2011. And as history also shows, the shrewdest of entrepreneurs and businessmen view such downturns as moments of unique opportunity.
Yes, We have seen this before, ut it is different this time, it will be a lot worse if we do not act swiftly to correct several problems. I have the solution for The Fuel/enviromental crisis, I need funding to build my Tri-Metatron Magnetic Motor that will produce 25KW PLease view my youtube video; http://www.youtube.com/watch?v=LgY6UEhDX8U If you know of any serious investors, let me know..we need this machine NOW! Jeremiah The Future Now 360-376-2921 thefuturenow4u@yahoo.com
While I do not want to make light of the latest economic crisis, I agree that we see this every 25 years or so to one degree or another. Because of the changes we have seen in the business world during the last 10 years (traditional jobs shipped overseas, layoffs increasing, industries disappearing)in addition to the latest greed bleed, I have decided to say goodbye to tradition and start a home-based business. More and more people are joining me in making real money working from home, and soon this untraditional way of life will become the tradition of the future. Working from home has advantages over brick-and-mortar entrepreneurship. Obviously, the commute is no more. Another significant feature of working at home is the low startup cost of setting up a business; not to mention being responsible to only one person - yourself. I could go on and on. There are so many obvious benefits to a home-based business, and the trend will continue to increase every year.
Another comment from me. I've been inspired by the other comments on this subject. I know so many entrepreneurs in my business who are earning so much money they can spend it on whatever they want, including the products and services described in the other comments on this page. They are stimulating the economy because they have money to spend, thanks to their drive, their persistance, and the dreams that keep them going. They are the ones who inspired me to get out of the corporate rat race and live my dreams. To put my dream on the fast track, I am seeking $30,000 to increase my advertising budget and position myself to move like greased lightning toward my goal of $360,000 by December 2009. For more information, check out my website: www.libertyleague.com/freedom-123. I support all my fellow entrepreneurs in achieving the highest levels of success in 2009.
They are deceiving. When they tell you that they may give you up to 25% and the rest by outside sources, they make you think that they will find those sources. If I could get 75% I wouldn't need their lousy 25%. I hope they choke on the $250 I paid upfront for absolutly nothing
With such a tough economy, I am surprised so many people are asking for such high start up funds. It makes me question how many people are legit on here, and not here to just rip off private investors. I'm an at home mom with something to work hard for -- my family! I will do whatever it takes to succeed for them. I am looking to start a home-based and on-location children's photography business. As a social mom, I already have tons of customers waiting! My business has a very low start up cost of only $5,000. I want to do everything digitally so that moms can have edited pictures of their kids the same day! Also, a unique feature of my business is shared rights to the photos so that they can have the photos printed themselves wherever they choose. If you are interested in talking, please email me at sugarsnapphoto@gmail.com Thank you for your time and interest.
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Your article hits the nail on the head. This could be a long downturn and our business is getting people back to work, but to do that businesses have to hire. Money has to move. Credit has to loosen. We need capital too but to fix that, we need clients, businesses that are willing to hire, make a spot for someone. We are trying to do our part and we are willing to help jobseekers and employers. We are offering our service free for the first placement to registered clients. We feel that the clients will come back to us when they need to hire a second time. We just need for businesses to check us out. What do you have to lose? We are at www.c-srs.com