How Stories Drive the Stock Market

I came across this article today in The New York Times written by Robert Shiller.  Shiller is a Sterling Professor at Yale University who studies macroeconomics, behavioral economics, and public attitudes regarding markets, so he’s very qualified to discuss the role of stories in our economy. The general gist of the article, as I understand it, is that

The Panic of 1907

The Panic of 1907 crippled the financial markets, brought ruin to banks and trust companies, all but bankrupted the Treasury of the United States of America, and required the intervention of J.P. Morgan to end.  And it directly led to the founding of the Federal Reserve System in the United States, in 1913.  I was