Do You Know When Was the First Financial Crisis?

Do you know when was the first financial crisis recorded in history? No, it's not the 2008 nor 1981 (due to inflation from the early oil crisis) or 1939 (the biggest in our modern society). It happened in the Roman Empire in 33AD. Now, at that time Tiberius ruled from 14AD to 37AD, he was frugal with his wealth and expenditure which he never raised taxes during his time as emperor and helped province in Asia when a massive earthquake happen. This means Tiberius was not greedy and was not his greed that led to this crisis. Greed was not the primary cause compared to the 2008 crisis. Oh, and it's not the greed that drives the world but envy-Keep that in mind. Now at that time, they used similar policies that were used in our time to resolve and save the economy, such as quantitive easing, that's cool, right?

Let me explain what happened. It all began when the Roman world spread through the rest of the world when important firms of Seathes and son of Alexandria were facing difficulties due to the loss of three richly laden ships in a Red Sea storm, followed by a fall in the value of ostrich feather and ivory. And at the same time, the great house of Malchus and co. of Tyre partners with Anthioch and Ephesus suddenly became bankrupt due to the strike among their Phoenicia workmen and the embezzlements of a manager. This impact the Roman banking house and spread to other banking houses that were involved with the firm's wealth and assistant. Now all those banks where near the Via Sacra (the Wall Street of Rome). These firms who were affected by Malchus and co. and Seathes, looked to other bankers for aids.

Unfortunately, it did not happen. Instead, rebellions had occurred among the people of North Gaul needed their money back as a great deal of Roman capital had been invested and the government due to the crisis prohibited to give away their return, this augmented the crisis. At the same time, agriculture had been on the declines for years and Tiberius required that one-third of every senator's fortune to invest in the land to keep up the market trade running - but they fail to make the adjustment to invest.

When Rich noblemen such Publius Spencer requested 30 million from his banks saving and loan), they had failed. This result in a bank panic and closure of several banks along the Via Sacra in Rome. All those events that happened at the same time result in a financial panic.

To protect and save the banks, banks began calling in some of their loans, when debtors could not meet the demand of their creditors, they were forced to sell their homes and possession, the real estate price collapses as there were so few buyers. A full scale of panic followed. It spread throughout the empire. Now if anyone thinks that the financial markets are recently being integrated, well they clearly have not read their history. By nature, the financial crisis has always been integrated and are similar to today's world. Tiberius sent a letter around the empire to alleviate the crisis. 100 million (2$bill) sesterces were to be taken from the imperial treasury(fed) and distributed among reliable banked to be loaned to the neediest debtor. No interest was set for three years but property double value to avoid selling their estates at a low price and avoiding a lack of liquidity. Few banks went bankrupt but most continue business as usual. The crisis happened for a few weeks.

When Tiberius lowered interest rate to zero for three years, it's similar from the quantitive easing the Fed has carried out to keep interested rates low. The need for help from other banks is the same in 2008 when Lehman needed help from other banks such as JP Morgan.

Although, I'm still suspicious. When will be the next financial crisis? Will it be the same as the previous one by the use of quantitive easing to correct it? hmmmm

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