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>2008 was different. After Lehman collapsed, the government had to make it's initial intervention overnight, and the full package took weeks to put together, no
by pedrocr 16y ago
>2008 was different. After Lehman collapsed, the government had to make it's initial intervention overnight, and the full package took weeks to put together, not months.
Looking this up in Wikipedia it seems the crisis started in early 2007 and Lehman collapsed in September 2008. So there was a year and a half to plan a response.
http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#Financial_market_impacts.2C_2007 http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#Financ...
- nl 16y agoYes and no. Yes, there were plenty of signs of the sub-prime crisis. However, no one expected it to cause an investment bank like Lehman to collapse. It wasn't until the day of the crash that the people begun to dig into how the mortgages had been repackaged and sold, and it still wasn't widely know how badly the ratings agencies had failed in their analysis of this. (Ok, so it seems likely that Goldman had a fair idea and possibly went short Bear Sterns based on their exposure, but they weren't exactly spreading that information around)
- bradshaw1965 16y agoRight, the famous Subprime Mortgage Problems Contained... http://archive.newsmax.com/archives/ic/2007/3/28/110709.shtml http://archive.newsmax.com/archives/ic/2007/3/28/110709.shtm... March, 2007