Little by little, business is enlarged with easy money.
With the exhaustless reservoir of the Government of the United States
furnishing easy money the sales increase, the businesses enlarge
more new enterprises are started,
the spirit of optimism pervades the community.
Everyone is making money, everyone is growing rich.
It goes up and up,
…until finally someone whose judgment was bad,
someone whose capacity for business was small
breaks,
and as he falls, he hits the next brick in the row,
and then another
… and down comes the whole structure.
That is what happened to greater or less degree
before the panic of 1837, of 1857,
of 1873, of 1893 and of 1907.
Elihu Root
US Senator, Nobel Laureate
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