Summary of The Panic of 1907

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The Panic of 1907 book summary
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If you compare the 1907 crisis that struck U.S. and European financial institutions with 2008’s economic emergencies, you will discover striking similarities. (In fact, the uncanny parallels have made this fascinating book a bestseller.) Strong interconnectivity between financial firms meant that trouble at one migrated to others. Both crises involved serious credit and liquidity concerns. Both provoked populist attacks against Wall Street. In part, the trusts hit trouble in 1907 because of insufficient regulation. The 1907 crisis started on Wall Street, and quickly jumped to European institutions. In 2008, the trajectory was even more global. Of course, marked differences also separate these episodes. In 1907, fabled financier J.P. Morgan exercised remarkable leadership to end the crisis, and to reassure depositors and investors that their savings and equity holdings were secure. Morgan calmed the waters so the panic would not spread. “This is the place to stop this trouble,” he said of the Trust Company of America. Robert F. Bruner and Sean D. Carr explain why the 1907 panic occurred and use it as a valuable case study for understanding other monetary crises. getAbstract is confident that history lovers, businesspeople, financial executives and anyone who enjoys a well-told, real-life drama will love this book.

In this summary, you will learn

  • What caused the 1907 financial panic;
  • What its effects were;
  • How J.P. Morgan helped solve the crisis; and
  • What crucial lessons this debacle teaches.
 

About the Authors

Robert F. Bruner, a dean and professor of business at the University of Virginia, has written more than 400 business case studies, and other books. Former journalist Sean D. Carr directs corporate innovation programs at the University of Virginia’s Batten Institute.

 

Summary

A Shock Wave from the West
The April 1906 San Francisco earthquake did not just destroy the U.S.’s western financial capital, it also sent enormous fiscal shock waves across America and around the world. Immediately, New York stock prices plummeted by $1 billion. U.S. and British insurance...

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