Actually, it was the banks lending money to whoever was investing in the overvalued asset du jour and then not getting that money back that actually caused the

Actually, it was the banks lending money to whoever was investing in the overvalued asset du jour and then not getting that money back that actually caused the panic. In the days before the FDIC, any significant question that was raised as to a bank's solvency was a death sentence because depositors had to be among the first at door to get their money out or it was all lost.