Rational Advisor

In the US US President Grover Cleveland had been in office for only a couple of months, as part of his second term when the May 5, Panic of 1893 began.

It happened on “Industrial Black Friday” when the Wall Street selling frenzy - sparked in part by the May 4 collapse of the National Cordage Co., a prominent rope trust - occurs. The panic is futher exacberaetd by a precipitous drop in the US gold reserves, and the result is a nationwide depression characterized by bank failures and unemployment.

For six years before that - it was called the “boomingest” place in the world, and nobody could have predicted that there would be a drastic drop. Much like these days the boomingiest place is Canada, India and/or China.

For more on the crash

http://www.historylink.org/essays/output.cfm?file_id=1972

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