The history of banking in the United States is defined by sharp episodes of panic, in which legions of banks fail or are otherwise hobbled, intermixed with periods of calm and prosperity that last just long enough to dull any lessons learned in past panics.
Some of this is the inevitable result of the credit cycle, which, historically speaking, is as American as apple pie and baseball. However, some of it stems instead from a lack of appropriate context and perspective on the part of bankers and investors.
Read Full Article »