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It was also driven by easy fed dollars and banks that knew they'd be bailed out.
by reedjosh 5y ago
It was also driven by easy fed dollars and banks that knew they'd be bailed out.
- rchaud 5y agoLehman Brothers didn't know, Barclay's acquired them for pennies. Same with Bear Sterns (JP Morgan acquired) and Merrill Lynch (BofA acquired). Also quantitative easing began as a result of the massive loss of trust between banks as a result of the crisis. Every central bank in countries with big financial centers had to follow a similar playbook.
- VHRanger 5y agoBanks didn't expect to be bailed out. That question has been studied Bank upper management just didn't care that they'd be bailed out or not because their incentives were on fairly short term horizons.