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Tag Archives: 2008 financial crisis

Brad DeLong — Rob Johnson and George Soros: A Better Bailout Was Possible

Rob Johnson and George Soros: A Better Bailout Was Possible: "A critical opportunity was missed when the burden of post-crisis adjustment was tilted heavily in favor of creditors relative to debtors.... When President Barack Obama’s administration arrived, one of us (Soros) repeatedly appealed to Summers... [for] equity injection into fragile financial institutions and... writ[ing] down mortgages to a realistic market value.... Summers objected that ... such a policy reeked of socialism and...

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The Lehman 10th Anniversary spin as a Teachable Moment

Michael Hudson was one of the few that predicted the crisis. He explains how the foundation for the next crisis was laid by the bank bailouts by rescuing creditors instead of debtors.Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismThe Lehman 10th Anniversary spin as a Teachable MomentMichael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the...

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Barkley Rosser — The Minsky Moment Ten Years After

… as Neil Schirmer in The Alchemists (especially Chap. 11) documented, the crucial move that halted the collapse of the euro and the threat of a fullout global collapse was a set of swaps the Fed pulled off that led to it taking about $600 billion of Eurojunk from the distressed European banks through the ECB onto the Fed balance sheet. These troubled assets were gradually and very quietly rolled off the Fed balance sheet over the next six months to be replaced by mortgage backed...

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Bill Mitchell — Precarious private balance sheets driven by fiscal austerity is the problem

The media has been giving a lot of attention in the last week to the 10-year anniversary of the Lehman Brothers crash which occurred on September 15, 2008 and marked the realisation, after months of denial, that there was a financial crisis underway. Lots of articles have been published recently about what we have learned from this historical episode. I thought that the Rolling Stone article by Matt Taibbi (September 13, 2018) – Ten Years After the Crash, We’ve Learned Nothing – pretty much...

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Jan Kregel — Minskyan Reflections on the Ides of September

Good article on Minsky from an MMT understanding.Multiplier EffectMinskyan Reflections on the Ides of SeptemberJan Kregel | director of research at the Levy Economics Institute, director of the Levy Institute master’s program in economic theory and policy, head of the Institute’s Monetary Policy and Financial Structure program, and professor of development finance at Tallinn University of Technology

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Matt Taibbi — Ten Years After the Crash, We’ve Learned Nothing

In Too Big To Fail, the “superstar” chief of Goldman, Lloyd Blankfein, along with “smart” Jamie Dimon of Chase, “fighter” John Mack of Morgan Stanley, and other titans brokered the deal of deals, just in time to stave off a Mad Max scenario for us all.The plan included a federal bailout of incompetent AIG, along with key mergers – Bank of America buying Merrill, Barclays swallowing the sinking hull of Lehman, etc. With respect to the fine actors in the film, the legend is bull. There are...

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