Can we learn about future financial crises from those of the past? Our researchers consider economic models to compare the recession of 2008 to the panics of 1873 and 1884, the Barings Crisis of 1890, the subsequent panics of 1893 and 1896, the panic of 1907, and the real estate crash of 1921.
Financial Panic of 1907: A six-week stretch of runs on banks in New York City and other American cities in October and early November of 1907. Triggered by a failed speculation that caused the bankruptcy of two brokerage firms. But the shock that set in motion the events to create the Panic was the earthquake in San Francisco in 1906. The devastation of that city drew gold out of the world’s major money centers. This created a liquidity crunch that created a recession starting in June of…
the morgan interests took advantage to precipitate the panic of 1907 - Google Search