The Panic of 1907

There was a financial panic in 1907, 100 years ago, that shook the financial foundations of the U.S.

It was so severe, even the U.S. government couldn't deal with it. Only the world's richest man, J.P. Morgan, could (and did) step in financially to stop the panic. 

Behind the panic, we believe, was the outdated 19th century financial infrastructure unable to cope with the new financial issues of the 20th century. As society moves from one economic age to another, the infrastructure is outdated, including the financial infrastructure.  The inevitable result is a financial collapse and the need for a new financial infrastructure to cope with the new financial realities.
   100 years later, we probably have another financial "panic" on our hands. Coincidentally, the Treasury Secretary came from MORGAN & Stanley.  (phone of JP Morgan)

Comments

[Thom Lowther]

Who hasn't followed the stock market this month? (August 2007) Looks like a roller coaster! Where is JP Morgan?

[John Carney]

I can see this happening this Century as it did in the last. I think our system is optimistic that these are just natural "bumps in the road" and not what they could be saying, which is below the bumps are huge sink holes.