What event refers to the financial crisis where banks closed, leading to high unemployment?

The Panic of 1837 is recognized as a significant financial crisis in which banks failed, resulting in widespread unemployment and economic instability. This period was marked by speculative land purchases and the collapse of the banking system, leading to deflation and a significant reduction in commerce. Key factors contributing to the crisis included a lack of regulation in banking practices, overextension of credit, and a decrease in international trade. The aftermath saw a prolonged economic downturn, highlighting the vulnerabilities of the financial system at that time.

While other events, such as the Great Depression and the Stock Market Crash of 1929, also involved bank failures and significant unemployment, they occurred in different historical contexts and were driven by various other causes. The Banking Crisis of 1907, while also a significant financial event, did not have the same broad social and economic consequences as the Panic of 1837. Thus, the Panic of 1837 stands out as the event specifically associated with widespread bank closures and the resulting impact on employment during that era.