London Panic of 1825

English stock market crash based on speculative Latin American Investments including the imaginary country of Poyais

More About London Panic

  • Stock market crash that started in the Bank of England
  • Arising in from speculative investments in Latin America, including the imaginary country of Poyais
  • Mostly impacted England
  • Closed six London banks and sixty country banks in England
  • Also felt in  Europe, Latin America, and the United States.
  • An infusion of gold reserves from the Banque de France saved the Bank of England from complete collapse.[1]

Notable Firsts
  • Referred to as the first modern economic crisis not attributable to an external event, such as a war, and thus the start of modern economic cycles