"The Federal Reserve System [...] was created in 1913 by the enactment of the Federal Reserve Act, largely as a response to a series of financial panics or bank

"The Federal Reserve System [...] was created in 1913 by the enactment of the Federal Reserve Act, largely as a response to a series of financial panics or bank runs, particularly a severe panic in 1907." http://en.wikipedia.org/wiki/Federal_Reserve_System http://en.wikipedia.org/wiki/Federal_Reserve_System So telling us that the Fed is the reason for the recent panic is ridiculous. Capitalism by itself is highly destructive. Without state interference you would have a famine in the US by now. [edit:] See also: http://money.howstuffworks.com/fed1.htm http://money.howstuffworks.com/fed1.htm