Panic of 1907

The Panic of 1907 was a financial crisis that happened in the United States in 1907. It started when one of the country's leading banks, the Knickerbocker Trust Company, ran out of money. People heard about this and got scared that their banks would also run out of money. This made people start taking their money out of the banks, which made the banks even more likely to go bankrupt. To make matters worse, the banks had been lending out lots of money to people who wanted to buy stocks, so when the panic hit, those people had to sell their stocks in order to get money to pay back their loans. This caused stock prices to go down, which made people even more scared of losing their money. The panic ended when some of the wealthiest people in America put their money into the banks and bought up stocks to help the markets recover.