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30 March, 11:56

Why did the panic of 1907 happen?

Why did big businesses start to lose stock if the economy was doing so well?

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  1. 30 March, 12:23
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    The primary cause of the Panic of 1907 was that banks and investors lost faith in the economic means and credit of many investors, and pulled a lot of money out of the money supply, causing people "run on the banks" and withdraw their funds.
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