Lehman Brothers and the 2008 Financial Panic: Learning the Right Lessons

This week marks the 10th anniversary of the collapse of Lehman Brothers, the pivotal event that serves as the official starting point of the financial panic of 2008. Officials in both the George W. Bush administration and Ben Bernanke’s Federal Reserve did not let that particular crisis go to waste, but instead rescued Wall Street from its reckless behavior as the U.S. Treasury Department infused equity capital into major banks and the Fed began its “Quantitative Easing” programs, whereby it bought trillions of dollars worth of “toxic” mortgage-backed securities.
In the wake of Lehman’s collapse, a familiar refrain from government officials,

Read more at The Independent Institute