Unprecedented Times: Or Are They? Economic Commentary by Andrew J. Policano Dean The Paul Merage School of Business November 2008 These are unprecedented times. Or are they? Consider the following description of the overall environment we are experiencing today: A Republican is in the White House. War is fresh on everyone’s mind. Immigration is fueling dramatic changes in society. New technologies are changing people’s everyday lives. Business consolidators and their Wall Street advisors are creating large new combinations through mergers and acquisitions, while the government is investigating and prosecuting prominent executives. The public’s attitude toward business leaders is largely negative. The government itself is becoming more intrusive. Much of this is stimulated by an expansion that involved borrowers and creditors overreaching in their use of debt lowering the margin of safety in the financial system. Does this paragraph portray an accurate description of what we Americans are observing right now? You would probably agree that is does. However this paragraph is actually adapted from a description of the Banking Panic of 1907 (see Robert F. Bruner and Sean D. Carr entitled The Panic of 1907: Lessons Learned from the Market’s Perfect Storm). In fact, not only did a similar set of circumstances occur in 1907, but between 1814 to today, the U.S. economy has experienced no less than 14 different episodes of banking ...