The Fed and Lehman Brothers: Setting the Record Straight on a Financial DisasterIn September 2008 Lehman Brothers failed, setting off a disastrous and deep credit crunch that threatened to tip the world economy into a depression. The bank was not saved by the Treasury or the Federal Reserves and officials have since insisted that a bailout was not legally possible.
When an economy is purring, profits go up, as do asset values. Credit becomes easier to obtain, spending rises and the boom intensifies. Investments come to seem less risky. But when the mood turns, the feedback loop reverses direction. As asset prices fall, banks grow stingier. Firms feel the pinch, fall behind on repaying their debts and sack workers, who then struggle to pay their debts. The desperate sell what they can, so asset prices tumble, worsening the crash. Mania turns to panic.
, known as “Fred the Shred”, was the chief executive of Royal Bank of Scotland, briefly the world’s largest bank, before it collapsed into the arms of the British state in the country’s biggest bank failure. The anecdotes packed into the book show a man who was compulsive about small irrelevant details, yet who was never fully able to grasp the risks his bank was running or how dangerously thin its cushion of capital was.
The essence of the banking crisis is that your economic system is no longer able to find projects with considerable returns!
Gaslighting / Grooming by the Central Banksters 🤡 This next BankingCrisis is being orchestrated by globalists to try to push us into CBDC & DigitalID Agenda2030 SDG GreatReset WEF ESG DowdEdward mtaibbi naomirwolf AGHuff
Surely just a means to getting global digital currency? Or be bailed out by governments. If ALL account holders called their bluff, and withdraw every penny that would be interesting 🤔
Or read an analysis of bipartisan US reactions to security shocks, causing defense spending increases, funded by US gov borrowing, except Korea, causing procylic boosts to US business cycle credit expansions and contractions. auspol nitv genfd
The only thing you need to read rig by now is the charts. *** All banks are insolvent. They have been issued low rate bonds & securities for 15+ years. 😬
Derivatives are the cause of the crash. The banks can only stay over leveraged by 30:1 as long as the citizens have money. Cost of living inflated too fast and took away their money. Word is out about the fragile state of banks and a bank run is on April 1st. How did I do?
afoviedog
FrankPartnoy wrote a marvelous book on this topic: Infectious Greed.
The place where banking crises are generated is not Wall Street, but DC. Deregulation’s karma is a bitch.
The Big Short. Laugh them out of our lives.
Greed and folly. Reading economics magazines doesn't help either.
We need to: Print more money Spend more money Re-elect an octogenarian kick the can down the road. Let future generations deal with the mess
One to read, would be ' The Bitcoin Standard', as bitcoin was created immediately after this particular, bailout of banks, in order to offer a different option, as to how to do money.
Read.