Patrick Boyle explains “How JP Morgan Saved the US Economy” and explores the panic of 1907, a financial crisis that caused economic contraction in the United States. The panic was sparked by a combination of events, including an earthquake in San Francisco, an attempted short squeeze, difficult politics, and inconsistent banking regulation. These factors led to banks collapsing, prompting a group of business leaders, including J. Pierpont Morgan, to take action and calm the markets. The panic of 1907 played a significant role in shaping modern financial regulation and ultimately led to the establishment of the US Federal Reserve.
