On September 14, 2009
Should Lehman Have Been Saved?
Many retrospectives of the year since Lehman’s collapse are focusing on whether we’ve learned any lessons from its loss or whether it’s human nature to create economic bubbles. But we’re also seeing some revisionist statements about whether Lehman should’ve been bailed out or not. At the time, there was widespread belief that Hank Paulson had made the right move. But while it wasn’t the cause of the recession, Lehman’s fall sent the markets into freefall, not simply because of the complex web of deals it had with global institutions, but on a human level, because it was considered too big to fail. Looking back, was Paulson being prudent or politic? In last week’s BBC documentary on the days preceding…
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