The Panic of 1907: Lessons Learned from the Market's Perfect Storm

This paper, which is the introductory chapter in our book, "The Panic of 1907: Lessons Learned from the Market's Perfect Storm", from John Wiley & Sons, sketches the events of the panic and outlines seven drivers of financial crises. These drivers are apparent in this specific crisis, and they have been identified in research: 1) system complexity; 2) buoyant growth; 3) inadequate slack; 4) adverse leadership; 5) cognitive biases; 6) real economic shock; and 7) failure of collective action. The downloadable document contains the table of contents and introductory chapter.