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Would somebody with knowledge kindly explain why was the 2008 Lehman Bros Fall so chaotic?

What happened and why are we still suffering the consequences. Thank you.

2 Answers

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  • 10 years ago
    Favorite Answer

    We are suffering the consequences of the housing bubble and all of the risks taken by financial professionals. The fall was chaotic because it could have spread to other financial institutions and caused the entire banking system to collapse. It was staved off when the investment banks joined forces with the commercial banks and the federal government bailed out AIG.

    This won't change for at least a few more years. We saw artificially agressive growth for the first half of the last decade (even before), which resulted in a housing bubble. Housing proces won't come back to normal until the job market returns, which might never completely happen.

  • 10 years ago

    some company's illegally invested behind the iron curtain. when the Soviet union imploded they were left holding the bag. lehman brother did no negotiable an got cot holding the bag Again.

    what makes it chronic is there no show.

    Cash

    bonds

    T-bill's & bonds.

    CD's.

    Communal property's [Bank's].

    there suffering the consequence of a no show.

    .

    Source(s): collage
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