
How one bank’s failure triggered the Panic of 1857 - jackgavigan
http://libertystreeteconomics.newyorkfed.org/2015/10/crisis-chronicles-defensive-suspension-and-the-panic-of-1857.html
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russnewcomer
As I read this it strikes me how much even the height of capitalism is a
participatory, integrated, community-based culture. And how much the actions
of a few can arbitrarily affect so many.

Interesting lesson for the startup scene of today, (which I am not a part of,
so I don't really know) is what would happen if a large fund (Say, a18z)
suddenly looked for exits for ALL of their portfolio companies. Would Silicon
Valley see a similar crash to the Panic of 1857?

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fiatmoney
A VC firm typically has many "funds" that are locked up for particular lengths
of time. Since that money is locked up & they are taking a percentage off the
top, as well as a portion of any profits on exit, there is very little
incentive for them to liquidate & take a loss early, unless the invested-in
company is close to going bankrupt anyway.

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Eyght
Tangentially, you can read about the bank crisis that spawned the worlds first
central bank.

[https://en.wikipedia.org/wiki/Stockholms_Banco](https://en.wikipedia.org/wiki/Stockholms_Banco)

