the visible hand

it is the theory which decides what can be observed – einstein

Posted by ecoshift on July 23, 2010

The Financial Crisis One Year Later: The More Things Change, the More They Stay the Same
Multinational Monitor Editor’s Blog

One year ago, Lehman Brothers declared bankruptcy, bringing to a head the growing chaos on Wall Street.

In the days and weeks that followed Lehman’s September 15, 2008, collapse, credit markets would freeze, the stock market plunged, the government took a controlling interest in AIG, Wachovia and Merrill Lynch merged themselves out of existence, the Congress approved a plan to spend $700 billion to bail out Wall Street, the Federal Reserve innovated an array of programs involving trillions of dollars worth of support for Wall Street and the credit markets, and the national economy — and much of the global economy — declined precipitously.

As the crisis unfolded, it quickly became commonplace to suggest that nothing would ever be the same, on Wall Street or in the national economy. The Wall Street goliaths had been humbled — and many had gone out of business, via merger or bankruptcy. Deregulation went out of style and even former Federal Reserve Chair Alan Greenspan indicated that the conceptual underpinnings of his deregulatory approach had proven flawed.

One year later, it is clear that the conventional wisdom emerging as the crisis developed was wrong.

read more…

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2 Responses to “”

  1. Dave said

    Just discovered your blog this morning and I want to tell you that it’s full of good reads. I’m linking your blog to mine (As It Stands)so I can continue to follow your posts. It’s always nice to run across an obviously intelligent blogger.

    good day,

  2. ecoshift said

    Thanks for the comment…. will check out your blog…

    ~e

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