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Did you know in 1907, the U.S. money supply was so scarce that a wealthy business man named JP Morgan offered to prop up the failing American economy by supporting banks with money he manufactured out of thin air?
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The Full Story
Bank Panic of 1907
The 1907 financial crisis was a result of the collapse of highly-leveraged speculative investments propagated by easy money policies pursued by the Treasury in the previous years.
This led to runs on New York banks and trust companies that had financed these risky investments.
Without a central bank to fall back on, leading financiers (most notably J.P. Morgan) stepped in, offering to bail out the surviving Wall Street banks and other financial institutions.
Bank run in New York City, 1907 caused by a shortage of loans and money being given out due to poor investments banks had made.
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