Apropos of our last post, a dozen of you (1st in: Scott Frew of Rockingham Partners) directed our attention to David Einhorn’s presentation at the Annual Graham & Dodd Breakfast.
I previously mentioned The Panic of 1907: Lessons Learned from the Market’s Perfect Storm by Robert F. Bruner and Sean D. Carr, in a linkfest a few months ago.
I found the book, published exactly a century after the original event, to have some rather interesting parallels to today.
The significance of the 1907 Panic as an economic event went far beyond the mere crash and recovery. It eventually led to the creation of the U.S. Federal Reserve.
There is a video excerpt from the book here.
The authors point out the following Déjà vu — 100 years later: "War was fresh in mind. Immigration was fueling dramatic changes in society. New technologies were changing people’s everyday lives. Wall Street was wheeling and dealing . . ."
They also name 7 factors are required to develop a financial panic: Buoyant Growth, Systemic Architecture, Inadequate Safety Buffers, Adverse Leadership, Real Economic Shock, Fear and Greed, Failure of Collective Action.