The Panic of 1907: Why the US Federal Reserve Exists

There are plenty of kooks in the United States who believe the U.S. federal reserve is evil. There are some more mainstream thinkers who oppose the existence or function of the federal reserve, notably proponents of little or no regulation -- followers of Ayn Rand's philosophical/economic ideas for one.

The history of the federal reserve is interesting; this article at Smithsonian discusses its genesis in the Panic of 1907. The Panic arose from the attempt of colorful cooper baron Augustus Heinze, his brother Otto, and financier Charles Morse to do a short squeeze on the holders of short positions on the stock of Heinze's cooper company. The squeeze backfired -- the Heinzes and Morse had far underestimated the amount of stock -- the cooper company's stock price plummeted, and a run on banks and trusts began, sending the Dow plummeting, risking the financial solvency of New York, and severely damaging the national economy. It's an interesting story. Article link via Neatorama.