The 1819 Panic was a significant economic crisis in the United States that marked the first major financial depression in the country. It was triggered by a collapse in the real estate market, leading to widespread bank failures and a sharp decline in the value of land. Many people lost their jobs and savings, resulting in increased poverty and social unrest. The panic was exacerbated by the overextension of credit and speculative investments in land, particularly in the western territories. The economic downturn led to a contraction in the money supply, which further deepened the crisis. This event highlighted the vulnerabilities in the early American financial system and prompted calls for reform.