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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (71624)	10/11/2006 11:17:36 AM
From: Jim McMannis	Respond to of 110194

RE:"I attended college where the college chapel was in a state of incompletion that dated to a banking panic of, I think it was 1911." You attended college in 1911? WOW! <G>

To: Tommaso who wrote (71624)	10/12/2006 1:36:33 AM
From: JF Quinnelly	Respond to of 110194

There was a panic in 1911 and a much larger one in 1907. In the 1907 panic the Morgan bank acted as banker of last resort and the New York Clearinghouse issued clearinghouse certificates to supply liquidity to otherwise sound banks caught short of cash. JP Morgan was aware that the US banking system was becoming too large for a private bank to bail out in a panic. And while clearinghouse certificates kept the banking system working they were of dubious legality. A commission was formed to study the problems facing the banking system and this led to the end of the National Banking Era and the creation of the Federal Reserve.