How did JP Morgan save the economy?

Answer 1

J.P. Morgan played a crucial role in stabilizing the U.S. economy during financial crises, most notably during the Panic of 1907. He organized a coalition of bankers to provide liquidity to struggling banks and businesses, restoring confidence in the financial system. His efforts prevented a complete economic collapse, leading to the establishment of the Federal Reserve System in 1913, which aimed to provide a more stable monetary framework. Morgan's decisive actions highlighted the importance of central coordination in times of financial distress.