What Would JP Morgan Do? Remembering The Panic Of 1907

But I am thinking of a financial crisis 101 years ago, the "Panic of 1907," as it was called.

In late October of that year, the greatest banker of his day, and perhaps any day, JP Morgan, 70 years old but at the height of his power, returned early from a meeting of Episcopalians in Virginia to gather titans of Wall Street together in the red room of his famous library. He was suffering from a bad cold, but got through the following days and nights on heavy doses of Havana cigars.

All around him markets were crumbling, venerable companies were going into receivership, banks were about to go under as crowds of people lined up to get their money out before the entire edifice collapsed.

President Theodore Roosevelt's secretary of the treasury, George Cortelyou, went up to New York by train, but he was to play a minor role to Morgan's.

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Comments

[sparkey]

J.P. Morgan would be kicking himself for not buying members of the senate and congress to use the citizens of this country to bail him out of a mess he created.

[larry278]

A trickle down or a windfall, whatever, it's a golden shower if it's warm. Take the money & run. There will be more from the same sources.

[Velocitor]

We already know what he would do: he would go down to Jekyl Island with several other privite banking insiders, draft a bill to establish a Federal Reserve, which sounds like a public entity, but is really a privitely held for-profit institution. He would get a corrupt Congress and a naive President named Woodrow Wilson to make it law (the 16th Ammendment). The privately-owned Federal Reserve would print up money at practically NO COST, and would charge the American people interest for use of the money. To pay these privite bankers, a national income tax would be imposed. Over the years, the bankers would create boom-bust cycles by controlling both money supply and available credit. Buying and selling, shorting and going long at the optimal times, these insider traitors would concentrate an immense amount of wealth at the honest taxpayers' expense, until eventually in 2008 the system began to break down.... yeah, that's what J.P. Morgan would do...

[Rule Of Law]

Great summary. These families take the long view and will work toward their goal over generations to achieve it. They have a tenacity and cunning that simple honest people will never possess. That is why we need laws that cannot be subverted and an armed populace that cannot be subjugated.

[LesserOf2Evils]

Great comment Velocitor.

[dgscol]

I do not believe JP would have had the audacity to ask Congress to turn over all their money to him.
He saw the necessity of having the federal system aid their capital system. These bankers today, do not see really any benefit of the US government to them, except as an account to plunder. They are part of an international cartel.

[MetalCanuck]

This is one of the guys who are responsible for the FED and the total Nightmare you will be living. Spit on his memory.

[MyTake]

This writer obviously did not know Morgan was a Freemason who, each summer, went overseas to visit the Rothschild international banking syndicate to plot ways to create financial chaos in order to steer the U.S. into setting up what is now known as the Federal Reserve system which has never been publicly audited since it's inception in 1913.

Nor does this writer know that Morgan banked the Rockefeller monopolistic wealth or that it was Rockefeller's Senator Aldridge that sponsored "The Aldridge Bill" in 1909 which was that same Federal Reserve banking system but it was defeated.

Nor does this writer know that it took 2 years worth of Rockefeller bribe money to politicians to have the Federal Reserve Act passed in 1913.

Nor does this writer know what is sitting on Rockefeller's grave as shown here: http://www.flickr.com/photos/52886825@N00/1426407762/ which looks darn similar to that thing that sits in the middle of Washington.

I wonder if that writer can connect-the-dots of the corrupted U.S. history which is now taking this country down?

[Velocitor]

Excellent post! People are starting to wake up, but is it fast enough? People need to VOTE OUT EVERY SINGLE INCUMBANT THIS ELECTION, AND VOTE FOR THE LIBERTARIAN OR CONSTITUTION PARTY CANDIDATES... Democrats and Republicans are not acting in good faith with the American people. Democrat and Republican politicians have been bought and paid for by narrow private interests- mostly banking and defense industry concerns.

[Rule Of Law]

Your link doesn't work...

[Rule Of Law]

And that "Panic" in 1907 and the other half dozen panics between then and the printing of Greenbacks by Lincoln during the Civil War, up to and including this one, were orchestrated by whom?

The Lincoln greenback issue not only offended the eastern bankers in this country, but their superiors in England. The European money power (essentially, the Bank of England), feared the greenback. In fact, it almost threw the weight of the British Empire behind the Southern cause. The need for access to cotton was not the only interest England had in the Confederacy.

" 'The great debt that (our friends the) capitalists (of Europe) will see to it is made out of the war must be used to control the volume of money... It will not do to allow the greenback, as it is called, to circulate... for we cannot control them' " (from the Hazard Circular, of the year 1862, quoted by Ezra Pound, page on 104 of Impact).

[kaski]

And it was the Russians that came to the norths aid by blockading many ports from the British in joining the south.
Both Lincoln and JFK tried to rid our country of private bankers from owning our country thru debt to them, the Bank of England (owned by the Rothschilds) then the Federal Reserve. Does anyone else out there see any similarities between these two Presidents? What's it going to take to rid ourselves of these bastards, another revolution?

[Yermammy]

Them Gold Certificates didn't circulate long after JFK was killed, did they?

[TrooAmerican]

What would JP MOrgan do?
ahahahahaaa,
Dude, they're doing it already.
These guys have been practicing the same kinds of predatory business practices that got Morgan rich back in the days when there was no media to go out and spread around leaked documents.
Heck back then if a media person got too close while investigating, they got "found in an alley, mugged, and stabbed to death".
And no one really cared to find out what really happened

[Rule Of Law]

Working hand in glove with the Bank of England, Morgan was just seeing through a policy of debt and destruction begun a Century before by the banking interests. This article re Lincoln's greenbacks shows just how frightened the banks become when we threaten to run our own economy.

Shortly after that happened (the printing of US greenbacks), "The London Times" printed the following: "If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all coun­tries will go to North America. That govern­ment must be destroyed, or it will destroy every monarchy on the globe."

[The Hedonistic Pleasureseeker]

Let me see if I understand the author correctly: He's pining for the days of the robber barons? Is he high?

Gee, what would JP Morgan do. Let's see:

"Capital must protect itself in every way¦ Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd."

- JP Morgan

[mergina]

Haaaaaaa. The very people who have had all politicians in washington in bed with big business since the mid 19th century? SHUT UP AND GO TO BED AND SLEEP IT OFF AUTHOR GUY.

[Rule Of Law]

And it you read the Trilateral Commission's report called, Crisis in Democracy, and printed in 1957 at the request of the Rockefellers who founded the Commission, you will read, spelled out in great detail exactly every step needed to crush the middle class and cement the power of the elites. No conspiracy talk. You can actually Google it, buy it, own it, read it.

Those who say that the banks and government are not in collusion are the delusional ones. Dumbing down education, killing the Unions, making home ownership impossible, lowering the wages of working people and unlimited illegal immigration are all outlined in this paper. I ain't makin' it up...I don't have that good an imagination. But the Rockefellers, Henry Kissinger, Zbrenski (sp?) and other wealthy and politically connected oligarchs like the Morgans, do have the imagination, and the will, and the money.

[kaski]

This is a sad fairy tale. JP Morgan among others caused the panic depression of 1907 so that they could create and own the Federal Reserve thus owning America. Wake up and learn the truth or make yourselves sheep. The Federal Reserve is NOT a government agency or government central bank. It is privately owned by the Rockeffellers, Morgans, Warburgs... The Federal Reserve is as much a part of our government is as Federal Express is. "Permit me to control the money of a nation, and I care not who makes its laws." Mayer Rothschild. Where do you think the Rockeffellers, Morgans, Warburgs,aka. the Robber Barons, got their money? The Rothschilds, thru their agents in America, have been trying to own our banking system ever since we won our Revolutionary war. They finally succeeded when in 1913 the Robber Barons convinced Woodrow Wilson to illegally sign into law the Federal Reserve act. Wilson later regretted what he had done to our country. To truly prosper as a free people and achieve peace in this world we must reverse the law that created the privately owned Federal Reserve!! They control America thru and because of our debt to them. I highly recommend reading, "The Web of Debt" by Ellen Hodgson Brown and learn.

[Rule Of Law]

People without homes will not quarrel with their leaders.

J.P. Morgan--

Look around you.....Do you see what has come to pass? Jobs gone, home ownership gone, wages lowest in decades, education--what education? Stolen elections, stolen money and the dismemberment of our Constitution--the only thing that stood between us and Slavery to the Oligarchs, the ultra-wealthy, the Neo-Monarchists, the enemies of Freedom and to justice.

What would Morgan do? Are you serious Mr. Greenway? He would roll over this country like a giant bulldozer and laugh in the telling of it to his Robber Baron buddies over cognac and cigars that night!

[Rule Of Law]

Add this to your reading libraries--"The Creature From Jekyll Island" about the secret meeting that created the so-called "federal" reserve. More scary than science fiction.

[FogBelter]

The only thing of value to know about JP Morgan is that he is dead.

[Chavez08]

Channel the robber-barons! So what if we're slaves to a handful of bankers, Capitalism rocks!!!

[doogiedude]

The legend lives on...(excerpted,link to full article below)

"Late last week, I wrote about a very strange occurrence " the reporting of J.P. Morgan "transferring" 138 billion dollars to Lehman, after Lehman had already filed for Chapter 11 bankruptcy early last Monday morning.

This bears repeating.

The advance was reportedly "to allow" Lehman to settle securities trades with clients. J.P. Morgan was then immediately reimbursed by the Federal Reserve for the same 138 billion.

What was not originally reported, or likely not understood at the time due to the types of securities that Lehman did most of their business in [Credit Derivatives], it is a virtual certainty that J.P. Morgan [the largest derivatives player in the world with 8.1 Trillion in Credit Derivatives alone] was the "client" [the other side of the Lehman trades that needed to be settled].

The critical piece of information that completes the daisy-chain: The world only learned about J.P. Morgan"s 138 billion advance from a bankruptcy court document, where Lehman was asking the court for the authority to give the settlement of claims of J.P. Morgan "special status.""



http://www.financialsense.com/Market/daily/monday.htm

Just sayin

[undecider]

"In a time of deceit telling the truth is a revolutionary act" G. Orwell watch America Freedom to Fascism.
http://video.google.com/videoplay?docid=-1656880303867390173
Even Dodd says if we give them a bailout the people will start a revolution.

[UnknownSoldier]

Follow me on this one people if you would. This Bailout is more Trickle Down Economics, simply put they are telling us that if we bailout Wall St. that will TRICKLE DOWN and save Main St.

I say No Deal, we need to bailout Main St. and let it Trickle Up to Wall St.

This is just more of the same BS policies that got us here in the first place.


ENOUGH!!!!

[middleoftheroad]

That"s not what they are saying. They are saying if this does not go through, banks left and right will fail. NO credit will be issued. Business will stall. MASSIVE amounts of jobs lost. We could have a run on banks. Personal savings, 401Ks, etc will be wiped out. It's not the same policies that got us here...Which was a combo of lower lending requirements and low interest rates.
ALSO, it's not a 700 billion loss...there is an underlying value to this paper. We could lose 1 or 200 billion or make 1 or 200 billion...not 700 billion.

[ConCreteHead]

I would be the first to agree with you if the legislation proposed would have the oversight on the retention and auction of said assets. The problem is there will be no one, and I do mean no one what-so-ever, watching the store. These assets are losing value because of how they were bundled in the first place and are now no longer geographically viable in terms of how volatile the real estate market has become in certain parts of the country (San Francisco, Miami, ... ). They thought by bundling them they would reduce risk but as certain parts of the country crashed and as credit got tighter the bottom fell out with good assets still on the books bundled with the incredibly poor ones all intermingled together with no chance of sorting them out.

So what they are basically proposing is to take all these "SECURITIES" and have the government buy them up. Then sort the good ones from the bad ones and try to figure a floor on them all prior to auction (with no oversight) so they can be sold back (with the money and tax breaks we just gave them) to the exact same people on Wall Street so they can make that profit back on their poor decisions. Then we are all holding the bill with our dollars being worth even less. Not to mention the GOVT will be left holding only truly worthless properties.

WAKE UP PEOPLE !!!

[UnknownSoldier]

I'm not going to break apart your statements one by one, yet I will just appeal to the commoness of your sense.

I assume you understand that there is a difference between Commerical and Investbanks. The 700 Billion is a bailout for the Investment banks, NOT the Commercial Banks.

I will assume you understand what Fraud is. The Fraud took place when the Rating Agencies aka Moody's and Fitch etc..... Gave the Bonds issued by the Investment banks AAA Credit Ratings, Those Bonds were backed with risky mortgages. Example its like selling what you know is RAT Meat as Prime Cut if a supermarket did that someone would be going to PRISON.

The Investment banks tried to sell these Bonds to investors and clients. They looked at the books and said No Deal, now the Investment banks are left holding the worthless Bonds and they want us the TAX PAYERS to come buy all the WORTHLESS Bonds while they keep the good ones. Now you are spitting out Media Talking Points about only losing 1 or 200 Billion dollars. YOU MUST THINK EVERYONE is STUPID.

This is Trickle Down economics, which part don't you understand, they are talking about Given 700 Billion or MORE to the Super Rich Banks and telling us that it will fix all the problems in the economy. Does that not sound familiar to you.

.

[Yermammy]

They're going to fail anyway. Time to stop dreaming. Bad times are coming and they're just delaying this. Let it come. The sooner, the better.

[Pdubya]

J.P. Morgan started to rally the inside tycoons in the late 1800s to create a Federal Reserve. The barons were facing market corrections in the early 1900s and POOF, enter the Fed. He rescued his cronies.

Sound familiar?

visit www.silverbearcafe.org to examine the history of the Fed and read The Creature from Jekyll Island and decide for yourself.

Paulson says the problem is systemic. Well f*cktard, you ARE the system.

Return to competing currencies, abolish the Fed and only have Congress issue money.

If this is a threat to our Constitution (as it has been for 100 years), then lets return to it!