Ten Years after Lehman—Will It Happen Again?

In Analysis by Michael Rae

Robert Murphy has reminded us, ten years after the collapse of Lehman Brothers, what the real lessons of the financial crisis were. It now looks as if, having learned the wrong lessons, we might be headed for something nasty once again.
The original sin was the manipulation of money in the form of artificially low-interest rates following the bursting of the dotcom bubble. In the context of a fractional reserve banking system and of a world accustomed to easy money since the beginning of the 1980s, the incentives for too much leverage were irresistible. Artificially low-interest rates had another perverse effect—asset-price

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