This outlines the cyclical nature of financial crises, beginning with an economic expansion, evolving into euphoria and rapidly increasing asset prices, followed by a pause and eventual decline. This decline often triggers financial distress, characterized by investor pessimism, increased indebtedness, and a tightening of credit, as seen in historical examples like the 1929 US stock market crash and the 2008 global financial crisis. The document also explores the ineffectiveness of government warnings in dampening speculative booms and the various causes and symptoms of financial distress, highlighting how even minor events can trigger a market collapse. Finally, it details the mechanisms of crashes and panics, emphasizing the interconnectedness of financial institutions and the potential for a rapid loss of confidence and liquidity.