One famous example of this is the Dutch tulip mania in the early 17th century, when the prices of tulips fell dramatically after an excessive speculative bubble period. Or, the collapse of Overend & Gurney bank in 1866 London, which triggered a series of bankruptcies of several smaller, but otherwise solvent British banks. We struggled, but came out stronger after each.
Credit market turbulence – a brief review As a point of departure, it would be useful to have a common understanding of the factors behind this summer's turbulence. I'll be brief here.