Boston Fed Paper Shows Similarities Between 1907, 2007 Crises

The Boston Fed has re-released a study about the Panic of 1907 that makes for interesting reading in its own right, but also highlights a lot of the similarities between financial crisis we’re just now recovering from and the one that preceded it by nearly a century. Fed: Speculating with depositors’ cash proves to be dangerous (again) The first similarity that should jump out at you is the explosive combination of rank speculation and everyday people’s deposits. The 1907 crisis was kicked off by F. Augustus Heinze’s scheme to literally corner the market on shares of the United Copper Company….