Bank panics are inherently deflationary, so the Fed rate cut was needed.

FORBES: Beltway Keynesians

In desperation, individuals turned to scrip during the bank panics of 1893, 1907 and 1933, when towns, schools and other government bodies issued large paper certificates that could be used as cash substitutes.

FORBES: Substitute Money

Previous terms for these episodes were bank failures, financial panics, runs on currency, debt crises, liquidity runs, national defaults, bubbles, hyperinflation.

FORBES: The Futures Of Money

Next to keeping its currency stable, the critical mission of a central bank is to stem financial panics, something Walter Bagehot wrote eloquently about more than 130 years ago.

FORBES: Magazine Article

That made them more vulnerable to panics which, like bank runs, are self-fulfilling.

ECONOMIST: Economics

As taxes go, a VAT is one of the least offensive, and a levy on bank balance sheets that penalizes excessive risk can in principle reduce the likelihood of panics.

FORBES: The U.K. Austerity Plan Is a 77% Solution