Professor Elam

Click here to learn about several previous Panics .  The history of financial panics did not begin wtih this generation and will occur again after wer are all gone. This is a good article that recounts the Panic of 1837 as well as J P Morgan  saving the day in 1907.  As you will see the lack of a Central Bank in 1907 made his
intervention necessary. And note that it was the re assurance of an accountant, Strong, who swung his decision to intervene.  Anyway this led to the creation of the third Central Bank for the US, now known as the FED.  The FED or course failed to avert 1929, 1957, 1973-74, 1987, 1998, or the current sub prime mess. So why does everyone count on the FED?  They are poor students of history!

Read and learn.

Here is an update on the latest FED effort to help out.   Hmm bending the rules, is anyone surprised?  Interestingly J P Morgan’s namesake bank is still in the thick of things…..

Come to think of it, click here to read how the FED was created in 1913.    Andrews Jackson dismantled wth first Central Bank in 1836 leading to the Panic of 1837.  We then operated under a Banking System after the Civil War but its lack of power led to three Panics during the Period.  The Panic of 1907 resulted ina  move to recreate a Central Bank now known as the FED.