Lehman Brothers collapse: What went wrong ten years ago?

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Lehman Brothers collapse: What went wrong ten years ago?

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Күн бұрын

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Ten years ago this week, US investment bank Lehman Brothers collapsed, unleashing a global financial crisis. In this special edition of the show, we focus on that crash and the slow climb back to normal. We look back at the economic crisis with Adam Tooze, the author of "Crashed: How a Decade of Financial Crises Changed the World".
September 15 marks the ten-year anniversary of what became known as "Lehman Weekend", when US investment bank Lehman Brothers collapsed in the thick of the 2008 subprime mortgage meltdown. It was the biggest bankruptcy in US history, leading up to the world's worst economic crisis since the 1930s Great Depression.
After the peak of the 2008 financial crisis, millions of people lost their jobs and many also lost their homes. More than three million foreclosures took place in the US, and many more around the world.
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Пікірлер: 197

@3vimages471 5 жыл бұрын

I lived in the only Western country that suffered no recession and my house value didn't drop a penny. Thank you wonderful Luxembourg.

@3vimages471 5 жыл бұрын

You are correct. It isn't the most exciting country on earth but it is very prosperous, safe and clean. That goes a long way. @Shaswata Chatterjee

@zhitomirnedyalkow1666 5 жыл бұрын

You are lucky that's why

@NorwegianKicks 5 жыл бұрын

same

@HOMEP_1 5 жыл бұрын

3Vimages Well i live there too and its a lie we got hit. Its just that the demand for housing was so high that nothing would decrease the value if you own property in a favorable location. You could put your house on sale now and by the end of the day you would have 30 phonecalls and in 2008 it wouldve been 60. Also the salaries didnt drop because Luxemburg has such an important role that its the last place in Europe where companies are relocating from. Its not luck the people made it this way.

@johnwebb5775 5 жыл бұрын

Umm. Australia did not suffer a recession. In fact Australia has been recession free for almost 3 decades

@IvanPavlov 4 жыл бұрын

2008: This is a global economic collapse! 2020: Hehehe. Hold my face mask.

@joaomanuelaraujo250 4 жыл бұрын

The Trump Pump fixer it

@alexm566 3 жыл бұрын

2021: Hold my GME shares

@royslapped4463 2 жыл бұрын

We haven't collapsed yet. Maybe 2022 will be the year!!

@AlonsoRules 5 жыл бұрын

lots of assets does not mean lots of money

@liengandriod55 3 жыл бұрын

Love it. Even if I don't really understand but, l learn so much.

@optimistic5778 6 жыл бұрын

They securitiesed extremely high risk loans.

@marekkolenda4030 6 жыл бұрын

Future known Makes not any difrence 2008 and now just difference bank gone collapse.

@Nadeldrucker 5 жыл бұрын

They also had derivatives to secure their cash flows, sold off tranches to individual and institutional investors, and found companies who were willing to rate CDOs, CMOs, and a bunch of other collateralized instruments favorably... Also, the US government wanted to encourage home ownership (partly to support the economy after 2000/2001), supporting the extreme blow-up of home financing. It's a very complicated mess. By the way, it's still not over.

@kevinbrown4073 5 жыл бұрын

That is true but the real problem was that high risk assets were what was left in 2006 and 2007

@cl1524 5 жыл бұрын

asdqrs wasn’t just that. Go to the source. All you had to do was not give out high risk loans to people who didn’t deserve it. People who could not afford luxury were given loans to live that life and it was idiots like that who crashed it, banks just watched it happen

@debasishraychawdhuri 5 жыл бұрын

If businesses simply concentrated on making the most amount of money in the long term, this would not have happened. The problem is not morality, the problem is short-termism.

@okay1775 2 жыл бұрын

What should they have done

@DeRussellMasina 2 жыл бұрын

Combo of the two

@lug.5329 2 жыл бұрын

Nah, capitalism is the problem

@Wall2000x 5 жыл бұрын

How do we know she really is in Paris? She could be in her mom's basement for all we know.

@sniperbojy 5 жыл бұрын

😂😂😂😂😂

@jimdavis2385 5 жыл бұрын

How do we know your name is Beverly or that you have anything to do with sewing and vacuuming?

@israelkandetu6947 4 жыл бұрын

@@jimdavis2385 😂😂😂

@dinochic654 4 жыл бұрын

Her mom’s basement in Paris

@mullerstephan 4 жыл бұрын

dude its corona time.... she probably is in her basement

@screenapple1660 5 жыл бұрын

2008 was terrible year. Stockmarket fell many times.... Ponzi, Barnie Madoff, Subprime Mortgage crisis, NINJA loans, scams, college inflating costs, etc.

@HappyMarshmallowGamingComedy 2 жыл бұрын

2022: Allow me to introduce myself

@marekkolenda4030 6 жыл бұрын

Next financia collapse gone be much bigger then 2008 .

@John-yg2rt 6 жыл бұрын

BTFD

@dereksbooks 5 жыл бұрын

Yep. Bankers already got a free get out of jail card in 2008, so why would they not do it again?

@mjo3275 5 жыл бұрын

Financial**

@BG_Low 5 жыл бұрын

Than**

@nickl5658 4 жыл бұрын

And this time China won't be riding into the rescue.

@unorthodox5171 4 жыл бұрын

The number of people in charge who turned a blind eye on this when it happened is ridiculous.

@JoTheSnoop 4 жыл бұрын

2008: I was on my way to my then home after a day at a book keeping course at TAFE (technical college) when news broke out in the afternoon (Adelaide time) that Lehman Brothers had collapsed. 2020: Found out Australia has 'officially' went into recession for the first time in almost 30 years after I had a Political Economy tutorial at uni. That is just so weird.

@Quaid44 4 жыл бұрын

11:23 "CEO Dick Fold" lol

@GeorgeFitness-yo8bl 2 жыл бұрын

The Big Short was brilliant!

@nohopeequalsnofear3242 5 жыл бұрын

Dick fuld did very well for himself. He lost money for others, but got rich for himself. He still has his mansions.

@pcdispatch 5 жыл бұрын

Lehman bought too much crap from other bankers.

@crustydinglecherry3451 4 жыл бұрын

Fuld is a great man

@sweetlildevil7597 5 жыл бұрын

Banks should not be allowed to be publicly traded corporations. It forces them to look for new ways to constantly increased the share of stock for the investors and eventually they will get desperate. Banks should be private. If they fail then it doesn't wipe out the entire economy or create a domino effect.

@sukhmaidickoff 2 жыл бұрын

There just has to be a certain level of regulation, problem solved. Don´t overcomplicate things.

@seferino 6 жыл бұрын

American greed

@_Tovar_ 5 жыл бұрын

How?

@krismine99 4 жыл бұрын

@@_Tovar_ they don't know, it's just a catchy slogan to them

@pandapanda5105 4 жыл бұрын

"I don't think morality is part of the business people"

@MPrae 3 жыл бұрын

is it for non "business people" ? is the percentage higher there?

@wallflower1852 2 жыл бұрын

China's Eergrande's next

@JoeyKO757 5 жыл бұрын

I can't help but think that home buyers defaulted on the mortgage is because there job left the country, 2019 i still see companies like GM closing assembly lines and leaving the country, no job, no money, no home.

@carlista2010 5 жыл бұрын

When you don't have anything ....these things don't effect you...because you have never had anything 2 lose.Even though this was a national crisis....not very many people can tell you what really happened or how it even got 2 that level.

@sandippradhan9809 5 жыл бұрын

When the government bailed out the companies, they should also have bailed out these people. That would have resulted in less inequality.

@dereksbooks 5 жыл бұрын

Two wrongs do not make a right.

@sno_au 5 жыл бұрын

@@dereksbooks the bankers got billions of dollars to stimulate the economy and whatd the bankers do? give themselves 100 million dollar bonuses in 2008.

@snieves4 4 жыл бұрын

Sandip Pradhan didnt the gov creare a refinancing program for people to save their homes? And also allow them to default and hold their homes until they refinanced?

@fireball0762 3 жыл бұрын

didn't congress force banks to give subprime loans to blacks even if some couldn't afford them?

@sukhmaidickoff 2 жыл бұрын

Imagine going short in all the stock indices in the weeks or months before September 2008. Boy ohhh boy. Unfortunately back then I was too young to do that

@danielbuezo9910 2 жыл бұрын

I don’t think the average participant of the stock market would have the balls or the knowledge to short.

@TARmedia 4 жыл бұрын

Nothing about our system was corrected. We're headed towards 2008 act 2, and I have a feeling it might actually wake people up to the fact that speculation can no longer control our economy.

@LandonBain 3 жыл бұрын

i’ll tell you what went wrong, there’s no money in my pocket

@johnfoley2067 5 жыл бұрын

Did anyone ever get jailed for this

@ahockeyfan3155 4 жыл бұрын

Actually, one person did go to jail. A trader for Credit Suisse, a Swiss investment banking firm, went to jail for artificially inflating subprime mortgage prices

@johnfoley2067 5 жыл бұрын

American greed I nearly got a 120 percent mortgage in 2006 from Northern Rock thank goodness I didn't

@seanm3226 5 жыл бұрын

Why thank goodness you didn’t?

@mfranks4731 5 жыл бұрын

@@seanm3226 120% mortgage on a 250 000 dollar house would be 20 000$ a month for 25 years? give or take

@johngrieve2868 5 жыл бұрын

I did get a NR mortgage ..done me well..sold at top..although can not afford for now to buy another house :9

@BlueCollar850 6 жыл бұрын

I despise human greed

@dereksbooks 5 жыл бұрын

Is there any other kind of greed? Animals aren't greedy.

@mrearlygold 5 жыл бұрын

Actually many animals are very greedy

@poland440 5 жыл бұрын

@@mrearlygold like squirrels lol

@sabar2453 5 жыл бұрын

Animals usually 'take' what they need and nothing more, a natural order. They don't deal with interest and usury.

@jeremyshearer3885 6 жыл бұрын

There was a lot more to the story then housing loans people took out loans for a lot of stupid stuff like cars to TVs to computers furniture etc

@pearlgrover1317 5 жыл бұрын

This is still happening in India and at a very large state

@gunawanleonardy 5 жыл бұрын

🤔 How come Lehman brothers weren't saved in the 2008 bailouts but Goldman Sachs Were.

@thomaskauser8978 5 жыл бұрын

Former treasury Secretary Hank Paulson didn't let a feud and a financial crisis go to waste?

@youtubsuck Жыл бұрын

4 years over due. Hello 2023!

@marekkolenda4030 6 жыл бұрын

Now JC .Morgan gets colapse .What's the difrence 2008 and now.Nothing just much bigger.

@ijoithegreat-nl4nm 4 жыл бұрын

Ni zaman DSN jadi PM kat Malaysia, dia berjaya menyelamatkan Malaysia dari terjerumus dari krisis ini... Rindu zaman Dato' Najib ☺️☺️☺️☺️

@todakking5016 4 жыл бұрын

Hahahahaha... Apahal komen najib pun ada cni..

@ijoithegreat-nl4nm 4 жыл бұрын

@@todakking5016 takkan pedih hati kot RBA 🤣🤣🤣🤣

@thomaskauser8978 5 жыл бұрын

Front of yield curve- stolen income from worker Tail end of yield curve - assets being liquefied and Bill to worker being tabulated?

@loucontino4804 2 жыл бұрын

"Morality is not a part of the calculus of Business People." - A. Tooze

@bobsmith2886 5 жыл бұрын

They are doing this nowadays with junk bonds and leveraged loans

@jeffreyrichardson 5 жыл бұрын

This is the pits.

@yggdrasil9039 5 жыл бұрын

So Dick Fuld folded, while Madoff made off with other people's money.

@ashishkhanduri1327 3 жыл бұрын

Nobody is smiling in thoes anecdoted interview s😂😂😂😂😂

@Ramy-ql3tr 5 жыл бұрын

Greed.

@kapetannemo 5 жыл бұрын

THIS IS NOT GREED ! THIS IS CRIMINAL !!

@davidroberts5958 4 жыл бұрын

I’m High A,F, ! Legal 420 now !🇺🇸

@krismine99 4 жыл бұрын

They talk about it like I would expect non Americans to. Condescending towards republicans and exacerbating the conditions of people through the use of words like entitlement

@Saila36 2 жыл бұрын

How about this time, 2022?

@pyroromancer 4 жыл бұрын

don't bail out the banks, bail out the people that owe the banks.

@richardfuller3156 4 жыл бұрын

Interesting that the graphics for subprime people are all white but the reality was they were mostly black and Latino.

@AHandful 2 жыл бұрын

KZfaq recommending this is sus.

@vaidaanshshekhawat9287 4 жыл бұрын

THE BIG SHORT

@1p4142136 3 жыл бұрын

Proof intelligence and making money don’t necessarily go hand in hand or what’s worst they knew and let it happen.

@BunneRabb 5 жыл бұрын

Unabated, thieving greed, revolting avarice, and unmitigated hubris. Next slide, please.

@abdilbajrami9116 2 жыл бұрын

-Answer: Nothing!

@johnbatchler8551 3 жыл бұрын

All those banks involved insolvency mortgage back securities should have been bailed out by global governments so they don't create a economic colkapsed

@adebiyial 5 жыл бұрын

Risk not morality. Is this to say you really can't make clean money without being dirty?

@mahendrarimal6178 4 жыл бұрын

What happened to it's investors

@austin3154 3 жыл бұрын

Get ready, Citadel is next 😏

@SriramKumar-vk2jj 4 жыл бұрын

human greed..nothing else!!

@jmacquenzey3531 4 жыл бұрын

How the scandal happen? Anybody can help me it's our assignment plss help me.. Thank you

@mastour722 4 жыл бұрын

Read about Rebo 105 . Accounting frauds

@Walter-jv5kr 10 ай бұрын

Lemon Brothers

@AldiTVFan Жыл бұрын

u can do some research what went wrong in 2022 when all colapse remember me

@eboooo 5 жыл бұрын

This anchor has a strange accent

@AdrianDucao 4 жыл бұрын

we made a lot of money that day.

@RasPutintheGreat 5 жыл бұрын

These are the masters of us politicians and the owner of the country!

@kalpanadas45 4 жыл бұрын

What a ridiculous name? CEO Dick Fuld .

@TheArtPerspective 4 жыл бұрын

Hmm.. maybe they were drugged and injected with 'something' by aliens? lol.. sci-fi movies

@K0236yhhuuu 4 жыл бұрын

bad !

@lameshane1 5 жыл бұрын

So someone explain to me why they collapsed and what they did wrong

@YoungMarv 5 жыл бұрын

Shane Brock this entire video is based on explaining your question..

@lameshane1 5 жыл бұрын

@@YoungMarv but I asked someone else too.

@syedshabazs1036 4 жыл бұрын

2008 credit crisis: Covid: okaayyyy baybah how are we doing today....

@GiantEagle610 4 жыл бұрын

Bail out using taxpayer's money

@4thgradedropout980 4 жыл бұрын

It would've cost more to eat millions of subprime loans than to bail out the banks.

@GiantEagle610 4 жыл бұрын

@@4thgradedropout980 instead of using the bank own money or selling their own assets, they used taxpayer money

@maxphil2465 2 жыл бұрын

China: *ok my turn*

@sukhmaidickoff 2 жыл бұрын

I agree, people should really not underestimate what is currently going on in China in the construction- / housing industry

@williamneumyer7147 2 жыл бұрын

Here's this Tooze, conscientiously bringing out the racial talking points. They go with the beard and the open collar. Oh, he's so smart!

@truthseeker3397 4 жыл бұрын

I love how this nice video totally avoids taking about how the government made housing a 'right' thus forcing banks to give loans to people who would not normally qualify. If the banks didn't then they would be called racist and be fined.

@truthseeker3397 4 жыл бұрын

@Valentino Smilezz yeah it's another sad story of so called good intentions that hurt the poor and many blacks

@ivancvik 4 жыл бұрын

American history ...one of 300 country have more crisis than own history. 😆

@NYRM1974 5 жыл бұрын

You would think after the 1929 crash banks would stop with speculation in their investment strategy. And to leverage in an uncertain situation is a clear road to failure...... Look at the history the panic of 1876 1893 1929 1987 2008 when will banks get it together?

@Dustinwhy8 3 жыл бұрын

It happened cause ppl took home loans they couldn’t pay. It wasn’t the banks. It was the buyers who can’t balance a checkbook/make a budget.

@sukhmaidickoff 2 жыл бұрын

Unfortunately there are MANY people who are TOTALLY incapable of handling their own economy - they basically can´t even calculate a percentage of an amount.

@Dustinwhy8 2 жыл бұрын

@@sukhmaidickoff ignorance does not waive financial liability. I’m not blaming them…just stating the facts.

@sukhmaidickoff 2 жыл бұрын

@@Dustinwhy8 I never claimed you were blaming them, I´m merely stating that I find it tragic how so many people are totally ignorant when it comes to understanding money and economics.

@LizardVideoDude 2 жыл бұрын

It was people _and_ banks, plenty of blame to go around. People took loans they couldn't afford, some because they didn't understand finances, some seeing an opportunity they only previously dreamed of (owning a home), some just being greedy. But banks were also really encouraging people to take loans they _knew_ the people couldn't afford, giving them bad loans on top of it, so they could make more $$ profit $$. The banks were more at fault IMO, because they knew full well they were setting people up for failure, giving loans they should not have, and ignoring basic responsible lending practices (literally their own rules). They were blinded by big short-term profits and figured they could offload the bad mortgages by bundling/repackaging them & selling it to others.

@raymondwhitehouse9922 5 жыл бұрын

I love the crash of 2008, it's in my top 20 of event's in my life time I know that sound wrong but it's with 911, Mike Tyson, Steve jobs, Facebook, ect ect.... I'm 45

@navyamehrotra3615 4 жыл бұрын

What?

@Ewang2727 3 жыл бұрын

lol "threatening the end of the world" Talks about US and european banks. the caucasity

@okay1775 2 жыл бұрын

It affected Asian countries hard

@charlespappas9917 5 жыл бұрын

Accounting snaffus and exchange problems. One if the great many firms and companies to work at in NYC. Obama and aggressive Democrat tax policies ARE to blame.