Monday, September 14, 2009

Meltdown Monday: 12 Months Later





Who's Too Big to Fail? (Wall St. Journal)
Government's Trial and Error Helped Stem Financial Panic (Wall St. Journal)
Lehman's Collapse, on the Front Page (Wall St. Journal)

Stiglitz Says Bank Problems Bigger Than Pre-Lehman (Bloomberg)

Higher Taxes Are Coming. Are You Prepared? (Wall St. Journal)
France's Sarkozy: Crisis Forces Us To Go Beyond GDP (Wall St. Journal)

"The meteorite has landed. The world has changed... Lehman dies. Merrill is next in line."

"You're going to send the entire banking system into a meltdown and you have 'press releases'?"

"I guess this is goodbye."

31 minutes past midnight on Monday, September 15, Lehman Brothers Holdings files for bankruptcy. When the news breaks, markets go into freefall. No more banks are allowed to fail. As the crisis develops, millions of jobs are lost in the U.S. and around the world.

-- The Day That Lehman Died (BBC World Drama)

The Most Damning Internal Emails Of The Financial Crisis (Huff. Po.)

B.R.: "We have to go back to the way it was after the Great Depression in the '40s, '50s... when banks were boring, when investment houses 'made money the old fashioned way,' the commercial says. They didn't take wild risks and tremendous speculation, and expect the taxpayer to cover it when the bets come up snake eyes."



D.R.: "As a country, we must...stop serving those whose business models are based on systemic theft and start serving those who seek to create value for others -- the workers, innovators and investors..."

-- Americans Have Been Taken Hostage (Huff. Po.)


(Fast forward to 2:07)

T.P., Oct. 16, 2008: "From 2002 to 2006, I am not quite sure what the financiers were doing. Or rather, I am not sure that the services provided by insane trading volumes and real estate derivatives were worth the price tag."

"Economic growth in the 1960s was outstanding, but seemed to require little financial intermediation. Finance grew quickly in the 1980s while the economy stagnated..."

"So it is certainly not true that a large financial sector is required for sustained economic growth (see the 1960s)."

-- The Future of the Financial Industry (NYU Stern)
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