While doing some research on past market “panics,” I came across a wonderful article in the NY Times archives, written by Roger Babson and published on December 25, 1910. Babson, the founder of Babson College, was a pioneer in keeping market statistics and financial history. He wrote a series of articles outlining the path of recovery from prior panics — following in the wake of the Panic of 1907, this was no doubt a hot topic. The article detailing the recovery from the “Panic of 1837” is available online (click here, and a pdf file will open). This is a great reminder that, although in distant memory, we’ve survived panics before, just as we’ll survive today’s. And speaking of keeping perspective, the year the article was written, the Dow Jones Industrial Average was still below it’s 1906 peak and had fallen 17.8% over a volatile year — ending at 81.36 — today the market closed at 9,180.69.
This article caused me to look up the bio of Roger Babson, of whom I knew nothing — his is a wonderful, and very American, story of entrepeneurship, overcoming adversity, and generosity — found here on Babson College’s website.
Tags: panic of 2008