And Again History Repeats Its Self

"Van Buren devoted his Inaugural Address to a discourse upon the American experiment as an example to the rest of the world. The country was prosperous, but less than three months later the panic of 1837 punctured the prosperity.

Basically the trouble was the 19th-century cyclical economy of "boom and bust," which was following its regular pattern, but Jackson's financial measures contributed to the crash. His destruction of the Second Bank of the United States had removed restrictions upon the inflationary practices of some state banks; wild speculation in lands, based on easy bank credit, had swept the West. To end this speculation, Jackson in 1836 had issued a Specie Circular requiring that lands be purchased with hard money--gold or silver.

In 1837 the panic began. Hundreds of banks and businesses failed. Thousands lost their lands. For about five years the United States was wracked by the worst depression thus far in its history.

Programs applied decades later to alleviate economic crisis eluded both Van Buren and his opponents. Van Buren's remedy--continuing Jackson's deflationary policies--only deepened and prolonged the depression.

Declaring that the panic was due to recklessness in business and overexpansion of credit, Van Buren devoted himself to maintaining the solvency of the national Government. He opposed not only the creation of a new Bank of the United States but also the placing of Government funds in state banks. He fought for the establishment of an independent treasury system to handle Government transactions. As for Federal aid to internal improvements, he cut off expenditures so completely that the Government even sold the tools it had used on public works."
http://www.whitehouse.gov/about/presidents/martinvanburen/

I wonder if President Obama is familiar with this bit of history.
Hopefully, he won't make the same mistakes.