1.Railroad Companies got greedy- they built railroads in places where no one even lived yet
2. Markets didn't keep up (the farmers are poor) so those companies went bankrupt
3. As companies folded, people panicked and ran to banks to demand the (gold) back
4. Banks get scared and won't loan money to anyone
5. More businesses go bankrupt
15,000 businesses and 500 banks had collapsed
1894 20% unemployment