Ban those dirty banks!!

In 1837 America fell into a 'panic'--or a 'depression'. During the years prior to the panic, many states had opened banks for the sole purpose of providing funds to the dominant political party of that state. The management of these banks was stacked, of course, to ensure loans were given to that particular party. And, of course, the banks got 'breaks' because of the political interests of the state gov't--run by the dominant party. These banks operated almost exclusively in states dominated by the Jacksonian party--it was their system.
(The Jacksonians were the early Democrats).

When the Panic of 1837 set in, these banks couldn't hold up and many collapsed. The Jacksonians were so burned by this, that in some states they banned banks altogether. The economy inevitably revived by itself, but the states where banks had been banned--by the Jacksonians--hung in bankruptcy. One of these states was Missouri which resorted to using fur as currency during that time because there was no money.

Let's recap--the Jacksonians spend years setting up state banks for the purpose of supplying themselves with money--these banks then fail in a bad economy because they operated on political whims and not market principles--so the Jacksonians ban ALL banks and this ban further inhibits economic recovery? It's interesting--isn't it?

Are there institutions operating under political whims now? Unions? Freddie Mac? Fannie Mae? Banks? Automobile industry? Whether it's through stacked management or intrusive regulations--it's the same. Are some of these institutions now failing because of the political hands that have been messing with them or running them altogether? Are guilty parties trying to cover up their ineptness (or corruptness) by going after the 'crooks' with show stopping fierceness? Are bailouts about helping the American people or about covering up failed schemes because the sooner they correct it the less we find out?

In light of all that is going on right now with the housing crisis, failing corporations, bail outs, claw backs, salary caps, and 100% taxation on bonuses, this historical account gives me pause. Is history repeating itself? Did someone get burned in their schemes?

Ban those dirty banks!