The company Jay & Cook closes down.

The financial company bankrupts and causes panic.

The 25 September of 1873 the american company “Jay & Cook” bankrupted beacuse they invested money paying a lot and they could not even recover the 30% of it. This company had experimented a sudden increase in their incomes but then hey reduced a lot. Finally they closed down beause they could not even pay their workers.

Nowadays lot of companies are experimenting a very high increase in production and they are renting more workers, buying more lands for building more factories and even rising the wages of the employers and improving their working conditions.

The company “Jay & Cook” had experimented this procces only a year ago, they were one of the most profitable companies of the USA but then their incomes finished to increase. They still were earning a lot of money but they had to cancel all their reforms. Then they started losing a lot of money and they have to close down the company.

A lot of people are naming this processes as “cycles” and they say that with a good organisation these problems can be solved while others argue that this is the end of the capitalist system. We have asked what do they think to the famous entrepenneur Henry Ford and the communist leader Karl Marx.

Ford said “This new companies that are to copy our new models are destined to the bankrupt since their opening. Without any knowledge about the market they will all fall.

Otherwise Marx argued “this is the fault of entrepeneurs that only want to win money and planify important issues the faster they can for winning money, lot of people are losing they jobs because of them”.

We do not know how all of this is going to end but it is a hard hit for the capitalist system