The collapse of a credit-fueled housing bubble ... in 1837

From the website of the Chicago Public Library:

In early years, Chicago's economy was fueled mostly by real estate speculation. In the 1830 to 1837 period town lots were sold at ever increasing prices--sometimes doubling in a day. Financing was provided by: Easterners eager to speculate in Western Lands, banknotes of doubtful value issued by distant banks, and a variety of public and private debt loosely secured by Chicago real estate.

In 1837 a nation-wide financial panic resulted in a dramatic bust of Chicago real estate values. Easterners stopped speculating, attempts to redeem the notes of the distant banks proved that many of the banknotes were indeed valueless, Chicago real estate became impossible to sell and the debt secured by it worthless. ... the economy went into a nose dive for the next four years.

Plus ça change, plus c'est la même chose. The more things change, the more they stay the same.