The Collapse of Lehman Brothers

The Collapse of Lehman Brothers - A Simple Overview

Рет қаралды 1,181,455

Күн бұрын

The Lehman Brothers bankruptcy is the largest one of all time and it helped spark the 2008 financial crisis. The subject can be a bit complex but given that it's such a historical event, I think it's worth learning about. In this video, I did my best to give a simple overview of the situation.
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Company Declines:
Kmart: • The Decline of Kmart.....
Blockbuster: • The Decline of Blockbu...
RadioShack: • The Decline of RadioSh...
Solo Cups: • The Decline of Solo......
Toys "R" Us: • The Decline of Toys R ...
hhgregg: • The Decline of hhgregg...
Pan Am: • The Decline of Pan Am....
ESPN: • The Decline of ESPN......
Gibson: • The Decline of Gibson....
iHeartMedia: • The Decline of iHeartM...
Bon-Ton: • The Decline of Bon-Ton...
Kodak: • The Decline of Kodak.....
General Electric: • The Decline of General...
Woolworth: • The Decline of Woolwor...
Dell: • The Decline of Dell......
Sears: • The Decline of Sears.....
Payless: • The Decline of Payless...
Hostess: • The Decline of Hostess...
Redbox: • The Decline of Redbox....
Nokia: • The Decline of Nokia.....
JCPenney: • The Decline of JCPenne...
Quiznos: • The Decline of Quiznos...
GameStop: • The Decline of GameSto...
NASCAR: • The Decline of NASCAR....
Shopko: • The Decline of Shopko....
MoviePass: • The Decline of MoviePa...
Reebok: • The Decline of Reebok....
The Gap: • The Decline of The Gap...
Pier 1 Imports: • The Decline of Pier 1 ...
Sbarro: • The Decline of Sbarro....
AOL: • The Decline of AOL...W...
Long John Silver's: • The Decline of Long Jo...
Chuck E. Cheese's: • The Decline of Chuck E...
GNC: • The Decline of GNC...W...
Hertz: • The Decline of Hertz.....
Steak 'n Shake: • The Decline of Steak '...
CiCi's Pizza: • The Decline of CiCi's ...
Boston Market: • The Decline of Boston ...
Yahoo: • The Decline of Yahoo!....
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Пікірлер: 2 000

@doomerboomer4148 3 жыл бұрын

I remember when I went to see Despicable me the Bank of Evil was formerly known as Lehman Brothers. I was the only one in the theater who laughed at that joke.

@joshuajoe1419 3 жыл бұрын

That was the only good joke in the entire franchise.

@FriendlyTume 3 жыл бұрын

@@joshuajoe1419 actually the first movie was pretty good because Illumination didn’t know that they could put in no effort and break 32 records

@joshuajoe1419 3 жыл бұрын

@@FriendlyTume yeah, after that movie, Illumination basically turned into a money maker with no character

@PP-xs7hu 3 жыл бұрын

Nerd

@the1tacoirvin 3 жыл бұрын

@@FriendlyTume and

@formulahank1250 3 жыл бұрын

"Cotton was a big deal back then, especially in the South" might be the gravest understatement this channel has ever made

@flynn659 3 жыл бұрын

He ain't wrong, the South was one of the biggest exporters of cotton that Britain(sort of) sided with the Confederates as it effected their economy, and the Ottoman Empire showed much support for the Union since they were competing with the South over cotton.

@iankamau222 3 жыл бұрын

*Cough 😒

@troy8763 3 жыл бұрын

@@flynn659 I think you missed the point my friend...it rhymes with bravery lol.

@flynn659 3 жыл бұрын

@@troy8763 What's wrong with Bakeries?

@NYCBG 3 жыл бұрын

@@flynn659 They “effect” affect

@ItsBobbieDrake 3 жыл бұрын

I moved to NYC fresh out of high school and the first job I had there was working at a restaurant right across from Lehman Brothers that always had their executives in there. We knew they were going down from as early as February from hearing all the chitchat. It's crazy much 'the help' learns from just staying quiet and listening.

@javajav3004 3 жыл бұрын

So did you buy puts?

@cinemaparadiso5402 2 жыл бұрын

I just want to warn everybody: it's ANTI-SEMITIC to criticize ANY BANK, INSURANCE INDUSTRY, FINANCIAL SERVICES, CASINOS, HOLLYWOOD OR WASHINGTON.

@jackslepowron5905 2 жыл бұрын

@@cinemaparadiso5402 oy vey

@Kazaam818 2 жыл бұрын

@@cinemaparadiso5402 BAHAHAH

@gp10020 2 жыл бұрын

@@cinemaparadiso5402 very funny, very true! i was always remember hearing - in washington you could say anything about anybody - but if you say anything negative about israel, you're career is over

@Castrohelena-qf1wo Жыл бұрын

Since the beginning of the year, I have purchased a few equities, but nothing significant. Why am I being so unkind to this? The fact that others in my field make six figures per piece, nevertheless, motivates me to want to be the first member of my polygamous family to earn a million dollars. I am fully aware of the expense of working more to earn more money.

@charlotteflair1043 Жыл бұрын

I experienced the same thing; within the year, my growing tech portfolio was completely destroyed.

@marcelrobert9569 Жыл бұрын

You're not doing anything incorrectly; you simply lack the expertise to capitalize in a down market. Professionals with extensive expertise who must have witnessed the 2008 crisis are the only ones who may profit significantly during turbulent times like this.

@marcelrobert9569 Жыл бұрын

@@lucid480 You may locate Julie Anne Hoover using a search engine, of course. But I'm not sure if I have authorization to talk about this. She received a lot of media attention in 2020. She manages my portfolio and serves as my mentor.

@neoxyte Жыл бұрын

Scam thread

@Cameroonian Жыл бұрын

All the above "people" are scammers.

@AdjectiveOtter 3 жыл бұрын

I want an episode on the Company that Company Man get all his stock photos and B-roll footage from.

@Rainb0wzNstuff 3 жыл бұрын

Bro fr

@NickHazletonMusic 3 жыл бұрын

Pexels and unsplash

@SimonVanliew26 3 жыл бұрын

Shutterstock? No thanks man

@WDCallahan 3 жыл бұрын

Video blocks, most likely.

@Kleavers 3 жыл бұрын

I cant watch these videos anymore because of the terrible stock footage. After 5 minutes I just shut it off. Its better to just listen.

@danjones2164 3 жыл бұрын

Note to self: Don’t play Monopoly with Company Man.

@Rainb0wzNstuff 3 жыл бұрын

Yo can i take that note with me. Autully i wanna see someone play monopoly with him.

@vend3ttaverano778 3 жыл бұрын

he didn’t like it, we have a chance

@possiblyrei 3 жыл бұрын

I challenge him.

@Itsbully06 3 жыл бұрын

i prefer, uno

@possiblyrei 3 жыл бұрын

@@Itsbully06 I beat me dad 5 times in a row at bts uno

@KB-sg7tv Жыл бұрын

My dad passed away during the same week all of this happened in September 2008. I remember watching the news and it was absolute chaos and pandemonium, plus the recession and lack of jobs. With the death of my dad at the same time, it felt like the whole world was crashing down. I was 16 years old, trying to find a job during a recession, everyone was poor, people were losing their homes, and I couldn’t even find a job at a fast food joint. What a depressing time period. (at least for me)

@khalilflier1538 Жыл бұрын

Glad you made it through man

@KB-sg7tv Жыл бұрын

@@khalilflier1538 I’m a woman but thank you I appreciate it. Definitely in a better place now.

@hasnainfareed9629 Жыл бұрын

I want to talk to You about this, can I have anything to contact You please.

@1234KeithB Жыл бұрын

@@KB-sg7tv I can relate. To your name anyway

@Marc98338 Жыл бұрын

Wow what a time that must have been. Hope youve a less stressful life now.

@paigeconnelly4244 3 жыл бұрын

Imagine being a company SO HUGE that your bankruptcy causes recessions in the most powerful economies around the world, and the total collapse of many others...

@martinduran9523 Жыл бұрын

Absolutely disgusting. These companies have no right to cause recessions that hit poor people the hardest through their stupid decision making. Banks should have tighter regulations.

@Laotzu.Goldbug Жыл бұрын

Well this is a significant exaggeration. Lehman Brothers going under was certainly a very Infamous result part of the 2008 financial crisis/recession but absolutely not the thing that caused it or the major driver.

@staringcorgi6475 Жыл бұрын

@@Laotzu.Goldbug other banks did the same

@aleksamarinkovic355 Жыл бұрын

This company absolutely did not cause recession on its own, it was an industry-wide problem, and all of the firms were doing the exact same things which caused this huge crash, it was not one decision or two, it was a bunch of bad decisions across the whole industry that piled up over the years like influencing government to keep derivatives deregulated, giving risky house loans to people who have bad credit scores, etc. this is much bigger than one company. They made these decisions because it made them so much money short term. Lehman Brothers is purposely being singled out and portrayed as a bad guy so all of you people who don't understand what happened can have someone to blame. And thats why the government didn't bale it out. In reality, the government itself was strongly prohibiting regulation of derivatives, not looking into risky loans and agencies that rated securities, and is to blame for the same amount as all of the other investment banks, the problem is that all the people who had the power to do something were paid off in hundreds of millions per person, so that's why nothing was done.

@brianmulholland2467 3 жыл бұрын

My favorite thing about the Lehman story that didn't get mentioned in that internal memos showed that when the crunch started and Bear-Stearns got bailed out, Lehman's executives response wasn't 'Oh, wow, these things are risky. We should protect ourselves before we get into bad shape!'. Instead, their reaction was 'If the Fed is going to bail out Bear-Stearns, which is tiny compared to us, they'll DEFINITELY bail us out. Let's buy more!!!!' Lehman Bros is Exhibit A as to why bailouts are ALWAYS bad ideas.

@yuridavila6095 3 жыл бұрын

No bail outs, just let them fail. If something is too big to fail it shouldn't be allowed to grow so big in the first place.

@daviddl3926 3 жыл бұрын

I'm not a fan of huge companies but if they don't get bailed out, lots of people would lose their jobs.

@yuridavila6095 3 жыл бұрын

@@daviddl3926 It doesn't matter, companies are supposed to fail, it's creative destruction. Fired workers will then be employed by companies that have better management and didn't take bad risks.

@brianmulholland2467 3 жыл бұрын

@@daviddl3926 Well, Lehman WAS allowed to go bankrupt and it's pieces were (reluctantly) bought up by other banks. It's contracts were serviced by the purchasers. What I'm talking about is not bailing out Bear-Stearns which was small by comparison, would have been EVEN MORE EASILY bought by another concern but would have scared larger banks like Lehman into pulling out of their nose-dive. But even GM was a case study in why NOT to bailout large companies. It got bailed out and then went bankrupt anyway. But despite going bankrupt, the mythological supply chain collapse that the disaster preachers warned of never materialized. In reality, companies can continue to operate under bankruptcy. The catastrophic outcomes of letting companies fail NEVER turns out to be as bad in reality as claimed. But the downside of signalling to every other company of similar size or larger that the taxpayer's checkbook is open and ready for business has both fiscal consequences and moral hazard.

@daviddl3926 3 жыл бұрын

I was also thinking that bailing out big companies is unfair for both the consumers and the competitors of that market. Because pretty much they're immune to failure if the government keeps bailing them out...

@TristanSamuel 3 жыл бұрын

Do the Dutch East India company! If you are gonna review the world's largest bankruptcy, you should review the world's first company, plus they invented the stock market!

@danilobaudelair 3 жыл бұрын

they were the biggest slave traders to the american continent :( i hope he mentions it

@brettrobinson9713 3 жыл бұрын

bump

@noel3700 3 жыл бұрын

G E K O L O N I S E E R D

@classified150 3 жыл бұрын

G E K O L O N I S E E R D

@jarumboy1 3 жыл бұрын

@@danilobaudelair incorrect, that was the West India Company. They actually were different companies.

@jellybr3ak 3 жыл бұрын

Economics Explained: Take a break. Company Man: Look at me. I am the explainer now.

@alexdaly8360 3 жыл бұрын

"By the turn of the century the cotton business wasn't quite what it used to be" True, I feel like you are leaving out some context there though...

@bk2les 2 жыл бұрын

Lol right I’m like uhh.

@rolexomegaspecialist9411 2 жыл бұрын

White-Apologist Alex?

@LS-gl1ro 3 жыл бұрын

I'll never forget being called to a last minute all hands meeting in 2007 just to tell us that we were being laid off in a few weeks. We knew it was coming because we monitored a website that tracked all of the other bank closures and we had just opened a branch only to be told that one would closing too.

@ginettep904 3 жыл бұрын

Did you use to work for Lehman Brothers?

@RamenBowl2.0 3 жыл бұрын

@@ginettep904 No, he worked for Pizza Hut. That's why he was commenting about being laid off on a video about the Lehman Brothers

@ginettep904 3 жыл бұрын

@@RamenBowl2.0 🤣🤣🤣🤣🤣😅 good point!

@katerinapeklenk2016 3 жыл бұрын

:'( That's so sad.

@andrewbuhman1066 3 жыл бұрын

Yeah, getting laid off sucks. Been there and done that...

@therobotdevil2284 3 жыл бұрын

I've never heard someone explain the housing crisis so succinctly, go company man!

@ginettep904 3 жыл бұрын

Go watch the movie...the big short

@therobotdevil2284 3 жыл бұрын

@@ginettep904 I've actually seen it, it's a good one! I more meant like I've never heard someone explain the whole ordeal so well in a matter of seconds. Go company man!

@companyman114 3 жыл бұрын

Thanks you very much. That was the whole reason I was apprehensive about making this video.

@Britspence381 3 жыл бұрын

I agree 100%. I had read some things about the housing crisis but Company Man did a great synopsis.

@charlescox290 3 жыл бұрын

@@companyman114 I don't here where you mentioned the government was forcing banks to approve many of the subprime loans.

@gregsmith1548 3 жыл бұрын

4:51 “by the turn of the (19th) century the cotton business wasn’t quite what it used to be” major understatement lol

@kazak8926 2 жыл бұрын

Turn of the 20th, not 19th. 19th would be 1800s, 20th would be the 1900s.

@sliphstream4927 2 жыл бұрын

Important aspect to note; AIG insured these subprime mortgages so that banks would have a safety net when investing in them. Problem was, AIG didn't have enough liquid assets to cover them all when many of the loans went into default. Lehman Brothers was one such a bank that had the rug pulled from under their feet when the safety net didn't catch everything.

@msbae 3 жыл бұрын

Sounds like they put all their eggs in a very poorly made basket.

@setcheck67 3 жыл бұрын

More then that, they essentially made the same mistake all those sub-prime mortgage buyers made. They took out loans they couldn't pay with the idea said loan would be less than the amount they gained. Talk about karma... The sad thing is we STILL see housing markets exploding in value now because people keep trying to use it as a get rich quick scheme. It's probably already due for another crash in certain states where the average wage absolutely cannot afford housing there.

@MarsJenkar 3 жыл бұрын

@@setcheck67 Especially since a lot of younger people have been perpetually priced out of the housing market. Essentially taking the brunt of what is now _two_ major economic crashes has lasting effects.

@Shenaldrac 3 жыл бұрын

@@MarsJenkar And the "best" part is that we younger people get to be told that we should stop complaining and just pull ourselves up by our bootstraps! Y'know, because outside circumstances don't ever prevent people from being successful. If you fail, it's on _you._ /s

@angolin9352 3 жыл бұрын

@@MarsJenkar 4 major economic recessions. There was one in the early 1990s, another in the aftermath of 9/11, the 2008 one this video talks about, and the 2020 one caused by the disease KZfaq won't let people say (and the pathetic government response to the disease).

@JohnSmith-wx9wj 3 жыл бұрын

@@MarsJenkar I'm trying to understand why anyone is expected to perpetually prop up a bubble.

@missarielle2 3 жыл бұрын

I bought my house in 2007. I was a first-time homebuyer with no savings. Banks were throwing approvals at me for loans so high that my mortgage would of been 60% of my gross pay. I made the smart financial choice to buy something far, far less than I was "approved" for and I'm glad I did because I would of been one of the folks to default too when 2 years later the worth of my house was half what I paid for it. It was an insane time that took over 10 years to recuperate from

@robertgibbs6154 8 ай бұрын

That's the exact same story as my own. Yeah, it took 10 years to break even, but I still have my home. I'm soooo glad that I paid attention to the math and didn't fall for the glitz at the time.

@carsoncordelli9557 2 жыл бұрын

The real estate industry crackdown clipped Evergrande's wings, stopped it taking on more debt and had the flow-on effect of forcing it to sell apartments at a discount so cash would continue rolling in.

@hassanzackir3949 2 жыл бұрын

Evergrande is worried it won't be able to sell apartments quickly enough to meet its debt repayments.

@goergejones6861 2 жыл бұрын

Real estate makes up a substantial share - more than a quarter - of China's economy, which is the second largest in the world.

@luriabenson2376 2 жыл бұрын

@@goergejones6861 What is really happening to the world Economy? Economy crisis everywhere🤦‍♂️.

@ebonicalbert5711 2 жыл бұрын

@@goergejones6861 Australian iron ore is exported to China to make steel, much of which is used for for construction, so a crash in property sales and apartment developments could hit our exports. The world needs to know this.

@donaldrounds1408 2 жыл бұрын

For context, the Department of Foreign Affairs and Trade says Australia exported almost $85 billion worth of iron ore and concentrates to China in 2019-20.

@JoakimKanon 3 жыл бұрын

So the Bank of Evil started with the ”cotton industry”? Yeah, checks out.

@brmolnar 3 жыл бұрын

Lehman was huge. In 2013, I moved into an apartment complex that ended up getting sold a year or so later. The apartment complex was owned by Lehman and it took 6 or 7 years after they went bankrupt to sell off this asset.

@bjbell52 3 жыл бұрын

That would be around 2015. I still own $100 of their stock. It's probably worthless by now.

@justbuggin67 3 жыл бұрын

“The real estate market may have been overinflated.” California enters chat

@darnit1944 3 жыл бұрын

*Homeless rate angrily types*

@jamesbaxter222 3 жыл бұрын

I don’t know if this is the case though. Since California serves as the portal to large East Asian economies(China, Japan, South Korea, India) wouldn’t Californian real estate be highly valued. Especially since China, India, and South Korea are all growing economies.

@darnit1944 3 жыл бұрын

@@jamesbaxter222 They are too highly valued, due to regulations, that basic housing could cost a lot. That's why people usually cant afford housing if they are not rich.

@FishFind3000 3 жыл бұрын

1 million, for the same house that here would cost 300k MAX in a nice area. When it’s $600 per sqft I think it’s a bit much.

@ayleentrujillo2736 3 жыл бұрын

Miami entered the chat

@jonathanlevoir4998 Жыл бұрын

At the time I worked for the bank that “took over” Lehmans operations in Europe (Nomura) - I was one of the first people onto the trading floor at their Bank Street offices in Canary Wharf. It looked like most of the traders had left in a big hurry actually ripping open most of the computers and removing the hard drives. Not sure if this was in an attempt to make it more difficult to “unpick” the portfolios or concerned at what Regulators might find ? Many of the traders doubled down and went to work for Lehman Brothers Administrators, who better to unwind a bank than the people who made the mess in the first place !

@b-id5wq Жыл бұрын

Interesting, still in the business?

@MartynThomas1 Жыл бұрын

I worked for LB in their Bank Street office. I was let go in the 2nd (of 3) round of redundancies, in the March (LiFo). I still work with a guy who was there until the end. There were stories of people taking home the artwork hanging on the walls of the management floor. There were lots of assets like Blackberrys that were not returned and Season ticket loans that were never paid back. Mind you a lot of staff received annual bonuses in shares and so most staff lost 10s if not 100s of £1ks

@Caffeine_Addict_2020 Жыл бұрын

I know a decent amount of investment bankers and that sounds like something far beyond their capabilities. That sounds to me like the move of someone higher up taking them all out to destroy them, as you say

@husaindaud5569 2 жыл бұрын

For a below average person in understanding such concepts, at the end of your explanation I was able to grasp a lot. Not only that , but I also explained this to my colleagues , most of them were impressed.

@mbralliable 3 жыл бұрын

In Japan, people call the 2008 financial crisis "Lehman shock".

@jon7911 3 жыл бұрын

That’s awesome.

@IgorDimitrov 3 жыл бұрын

probably more like "Rehman shocku"

@pinkywinky911 3 жыл бұрын

Yep 😑

@waterandwater6617 2 жыл бұрын

Boi.....

@tonypaella 2 жыл бұрын

@@IgorDimitrov that made me laugh

@Markimark151 3 жыл бұрын

Lehman Bros. acted a lot like Bain Capital in the 2000s, company man should do a video on Bain Capital, one of the worst companies that lead to multiple bankruptcies of retailers and restaurants!

@Starry_Night_Sky7455 3 жыл бұрын

Yeah that one. Do a video.

@Markimark151 3 жыл бұрын

@@Starry_Night_Sky7455 I want him rip on Bain Capital and Sun Capital Partners, since they had people from Lehman Bros.

@devingiles6597 3 жыл бұрын

I can see it now. Bain Capital - Why They're Hated.

@BiroZombie 3 жыл бұрын

It seems that they're the "bain" (bane) of everyone's existence.

@Markimark151 3 жыл бұрын

@@BiroZombie literally, that company has done so much damage to stores like Toys R Us, Gymboree, regional department stores, even iHeart Media!

@Rossturnerphoto 3 жыл бұрын

I think you did a pretty decent job of explaining the process. I was working for a mortgage lender during the financial crisis and while I didn't understand everything that was happening, I saw its effects on our company firsthand. I didn't realize that Lehman Brothers was involved in the mortgages, but that's essentially the same thing that my company did.

@13SScorpio 2 жыл бұрын

My mother used to be an investment Banker. Nowadays she works at a commercial bank though. After 2008 I (as a kid) didn't really understand what had happened. She explained most of what led to the 2008 crises in a manner impressively understandable for a kid.

@hashslingingslasher8001 3 жыл бұрын

That Monopoly metaphor was spot on, never thought of explaining it that way!

@maric7558 3 жыл бұрын

This just proofs that anything can happen to anything, even if its a big thing.

@MandrakeFernflower 3 жыл бұрын

Dr. Strange: I went forward in time... to view alternate futures. To see all the possible outcomes of the coming conflict. Peter Quill: How many did you see? Dr. Strange: Fourteen million six hundred and five. Tony Stark: How many did we win? Dr. Strange: ...One.

@somedude9528 3 жыл бұрын

What is it with brother duos in business and major screw-ups?

@ineedspace128m2 3 жыл бұрын

Unless your name is Disney

@alexs5744 3 жыл бұрын

If a young angry punk named Gavrilo Princip can shoot a prince and his wife and start all the mayhem and carnage that to this day that we are still reeling from I’m sure just about anything can bring down an empire.

@DoomFinger511 3 жыл бұрын

And things can happen when other things happen at anytime for reasons!

@crashryanphoto 3 жыл бұрын

Great video. I was working for another financial firm across the street from Lehman Brothers, and had a front row seat to the TV cameras and reporters that parked outside their building. Rumor was that our company was the biggest holder of Lehman stock. I think you can see where this is going. Everyone panicked. A month after Lehman fell, hundreds of people were let go, including me.

@steinravnik8692 3 жыл бұрын

I enjoy the channel and glad to see the companies at the center of the 2008 crisis being reviewed. I worked an inside central role when this all went down.

@Je.rone_ 3 жыл бұрын

If you would like this and haven't seen The Big Short then you're missing out

@AxxLAfriku 3 жыл бұрын

KAKAKAKAKAKAK this is wonderful! PRANK! It is terrible! I looked in the mirror and saw something UNPRETTY: my face. KAKAKAKAKAKA! But I am happy agayn because I have TWO HOT GIRLFRIENDS and I use them to get views on my videos! KAKAKAKAK!!! Good day, dear vito

@ExPwner 3 жыл бұрын

Meh it was okay but full of agenda and political bias. Misleading at some points. Would not recommend for trying to educate yourself using Hollywood as the educator.

@alloe6609 3 жыл бұрын

That movie is about how Batman got rich!

@higorcarvalho920 3 жыл бұрын

Great movie!

@Curryboikutty 3 жыл бұрын

@@AxxLAfriku what rhe fu-

@TristanSamuel 3 жыл бұрын

I've never even heard of Lehman Brothers. To think that they were this large while and I didn't even know about them.

@_.Leo_. 3 жыл бұрын

Because you're peak poor.

@angelsaavedra633 3 жыл бұрын

@@_.Leo_. rude

@funnyitworkedlasttime6611 3 жыл бұрын

Were you an adult in 2008?

@clp275 3 жыл бұрын

@@funnyitworkedlasttime6611 I certainly wasn’t, so I didn’t know anything about money or finance

@sabrina.natalie 3 жыл бұрын

Tristan Samuel - Oh really, wow. That’s surprising. The collapse of Lehman Brothers was all over the news, so I’m surprised you’ve never heard of them. I enjoy watching the news, keeping up with politics, the economy, etc - so if you’re not a fan of that stuff, I can see how you can miss it. If you’re interested in learning more about the Lehman Brothers, I would recommend watching a documentary called: “Inside Lehman Brothers” on Amazon Prime. I would also recommend watching , “Inside Job” which is a documentary that covers the 2008 financial crisis. (And I love how MGMT is playing during the end credits.) You can rent Inside Job for $3.99 on Amazon Prime or on KZfaq. Charles Ferguson, the director, has a few documentaries, that are good that you should check out. You can also watch the documentary called “Too big to Fail” on HBO. It also takes a deeper dive into the 2008 financial crisis, that Lehman Brothers was a part of. You can watch it on Hulu, if you have HBO Max. Or if you have HBO on your cable subscription package. Another documentary that I really love is this one: kzfaq.info/get/bejne/h9WqeraEnLe9j4k.html I love documentaries. So I hope that helps! 🤍

@Quantum-1157 2 жыл бұрын

Well done. Just one suggestion: you should have added 2 minutes on how all of Wall Street was ‘in on the game” by paying handsome fees to credit rating agencies to ‘rate sub-prime MBS’s” much higher than they actually were. Also some investment banks were selling these mbs to their clients (with the inflated ratings and liberal assumptions in the analysis) while at the same time selling it in their prop books and prop trading desks ! This was going for months before the bubble burst.

@antoniab1037 2 жыл бұрын

This is the best analysis of the Lehman Bros collapse that I have seen that describes the events leading up to the collapse in a way that a non-financial expert can understand. Great Job!

@richardburns420dale3 3 жыл бұрын

funny that the company beat its competitors by dealing in risky industries and they ended up going down doing high risk business.

@txbased1659 3 жыл бұрын

Virtual hugs to early squad

@maric7558 3 жыл бұрын

@xxvictoryxx7723 3 жыл бұрын

@Tattootin 3 жыл бұрын

Feel the love from here man. Love it.

@zippinghen 3 жыл бұрын

thanks for hug

@PrydeWater901 3 жыл бұрын

Virtual hugs are the only ones allowed these days.

@johnnyonthespot4375 3 жыл бұрын

Having lived through the nightmare of that real estate devastation and the painful learning curve that came from it you actually clarified the Lehman collapse a bit for me. I was not aware how deeply they were in in Real Estate.

@marioman8419 3 жыл бұрын

From all the clips I’ve seen about the 08 crash you helped me understand it the best. Thank you

@jonathankessler7436 3 жыл бұрын

lehman brothers engaged in fraud and crimes on a large scale. there's nothing sad about a business like that going under, even if it was around since 1850.

@AmateurContendr 3 жыл бұрын

SERIOUSLY. That remark bugged me. To shed a tear for an old school establishment company like this was really strange. I'd legit would rather feel bad for the woes of Walmart or Amazon than these people.

@AmateurContendr 3 жыл бұрын

@@girlgreenivy I got a kick out of how he acted like it was an odd, random thing. "Believe it or not but shockingly the southern US had a thing for cotton before the civil war. It sounds silly, I know. Like why might that even be, it's so strange and random."

@iman5147 3 жыл бұрын

@@AmateurContendr I think it was on purpose. Just dry humor at its finest

@flakgun153 3 жыл бұрын

There was no fraud or crimes. People call every single financial company's issues fraud sound like idiots. They literally didn't do anything wrong other than trust the system.

@raptorfromthe6ix833 2 жыл бұрын

@@AmateurContendr because a lot of people who had nothing to with fraud got screwed over ie worker and besides if you started a company and some dumbass successor ruined it all wouldnt you be pissed

@28ebdh3udnav 3 жыл бұрын

We're still waiting for the next video. *KZfaq - Why They're Hated*

@valmarsiglia 3 жыл бұрын

I had an interview at Lehman HQ in NYC with their graphics department just a couple of months before all this happened. Talk about not getting a ticket on the Titanic.

@naomigarciagomez7890 3 жыл бұрын

Excellent video! Honestly I been up looking for a great exp explanation of the 2008 meltdown and you summarized it very quick and easy to understand what happened. Thank you so much!

@ShockwavesFTW 3 жыл бұрын

Hands down one of the best business channels on KZfaq. It's almost a crime that these videos are free.

@patrickmdunn 3 жыл бұрын

Man I almost forgot this firm existed its been so long. I like vids like that is about older companies, keep up the good work.

@inNYCC 2 жыл бұрын

Great breakdown. This is such a complex event its difficult to explain in a few minutes, but I think u did a great job explaining everything about the bankruptcy.

@hitmangfx7162 3 жыл бұрын

Nominating this channel as one of the best on KZfaq. SO MUCH good info. Thank you!

@The105ODST 3 жыл бұрын

The Bank of Evil (Formerly Lehman Brothers)

@nick5422 3 жыл бұрын

Thought of that too lol

@theshadowman1398 3 жыл бұрын

Goldman Sachs now has that crown

@mrnemo204 3 жыл бұрын

Literally profited from Slavery!

@marnicles333 3 жыл бұрын

I was too young at the time to really know about the Lehman Brothers or pay attention to what was happening in 2008, so imagine my surprise finding out they were so huge! Great video :]

@whitesky18 Жыл бұрын

You did very well in explaining "all of that".

@wtgardner6914 3 жыл бұрын

This was very well put together. Thank you. Keep up the good work!

@doclank3d6 3 жыл бұрын

Ah, 2008. Another dumpster fire year like 2020.

@bananya6020 3 жыл бұрын

get ready for a lot more of them lol

@Umbrax9063 3 жыл бұрын

Imagine 2028

@brandonsaquariumsandterrar8985 3 жыл бұрын

@@Umbrax9063 PANIK!

@mattyian1208 3 жыл бұрын

2008 and 2020 were the worst years in modern history since World War II.

@ObsessedCollector 3 жыл бұрын

2008 WAS PURE TRASH! I'll take 5 2020's over one 2008. It was THAT bad

@halvey8518 3 жыл бұрын

The Big Short is one of my favorite movies and really tells 2008 in the light that it should be. Banks didn’t care and thought the train would go on forever, the government agencies that were supposed to oversee them didn’t, and then the middle class and poor people’s tax dollars bailed out the banks while losing their homes.

@shawnmoney8055 2 жыл бұрын

One of the biggest crimes that people seem to forget smh

@mohammadaaziz 3 жыл бұрын

Great video very good pace and understanding, also great explanation and keeping it simple. I think videos like these is it most default to keep it simple to understand. great job

@HeilKromdor 3 жыл бұрын

You honestly did a great job explaining. I almost didn’t watch because I thought I knew the he whole story but you certainly surprised me with some more details I didn’t know. Thanks, as usual, for the well researched content. Cheers!

@KingLeonidus117 3 жыл бұрын

I went in knowing nothing and came out thinking I could give my two cents on the subject if it came up in casual conversation. So yeah, really good job explaining it.

@ryferguson9733 3 жыл бұрын

I spent eleven years in financial services as a graphic designer, but I did proofing and EDGAR S.E.C. filings as well. I was working on-site for a "too big to fail" bank as a vendor the day Lehman failed. I didn't think the crisis would go so bad, due to seeing all the raw data. It was a huge "cup and ball" game. Other companies fell and my team was just happy to get them off our back. Then we got outsourced. I went from the 27th floor in the Boston financial district to temping. I work in continuing legal education. Now I don't feel bad for what I did for a living.

@NotaLoca12341 2 жыл бұрын

First video I saw of your channel... instantly subscribes! Great content. I love the simplicity and entertaining way you explain things. Keep it up!!

@Burkutace27 3 жыл бұрын

"We had some really good models, we just didn't factor in greed and panic."

@SnoopyDoofie 3 жыл бұрын

The achilles heel: selling overhyped stuff to people who couldn't afford it and then being left with the cat in the bag.

@iLLWiLL173 3 жыл бұрын

I used to work for Lehman brothers,meryll lynch ,citigroup etc doing office relocation and stuff like that as a private contractor...I remember when they went bankrupt..it was crazy...alot of those people had no where to go...some were hired by Morgan Stanley (who I also worked for) ...I didn't completely understand anything that was going on until I saw the Big Short years later...this definitely help understand it a bit more...thanks for this video👊

@bloqk16 3 жыл бұрын

Lehman Brothers always struck me as a title more appropriate for a chain of men's clothing stores.

@likebot. 3 жыл бұрын

The fist week of September in 2008 I changed my RRSP (see 401K) from a conservative portfolio to aggressive and about three weeks later, when I lost a significant percentage of my retirement fund, I thought it was a disaster. But I left it and learned over time that investment brokers capitalize on difficult times and it turned out to be more fortunate for me in the long run. And 2020 has been another boon to my fortune when the Sock Rocket caught Covid-19 and my retirement fund took another roller-coaster ride.

@richardm123 3 жыл бұрын

You did an amazing job explaining the Lehman Brothers collapse by describing their sector exposure as well last the economic conditions that led to the asset bubble. Great job! I would say though, that the situation was far worse than just "buying lots of houses, and houses went down in value". In fact, most of their assets weren't just in MBS, or real estate, but as the contract holders of CDS (Credit Default Swaps). That's just fancy wording for insurance on housing bonds. So what really blew them up, is that they were on the hook to pay the buyer of their insurance contract billions of dollars, on contracts that they sold for pennies on the dollar. It magnified their exposure far beyond what their stated exposure was, and simply was impossible to liquidate without a buyer for these "toxic assets". (the insurance contracts)

@LoserBroProductions 3 жыл бұрын

THANK YOU. I like videos that explain parts of the Great Recession, it’s a topic that I know very little about but would like to know more about

@gokeanu8917 3 жыл бұрын

The Big Short is a great movie to explain this period of mortgage lending. It's entertaining yet shows what happened leading up to the financial crisis.

@charaznable2009 3 жыл бұрын

I worked at Lehman from the early 90's (High School) in the mail-room when it was partnered with American Express. Than I went back to work for them after college 2001-08 in the IT department (I still have my ID badge ...LoL) . The trade floor was getting smaller and smaller after the saving and loan crisis. It even wiped out whole floors that was dedicated to real estate loans. In the final days some people had to be escorted out by security because they couldn't believe that the job they where at for years was suddenly over. Some of the people I worked with was phased into the Barclay's company that took over. All I can say is Dick Fuld the ceo was truly a dick. He came out of this fine with a golden parachute.

@wanfu5634 3 жыл бұрын

Shortest analogy: They tried to juggle lawn darts and water balloons and got all wet as a result.

@Drone86 3 жыл бұрын

I’ve been trying to understand the crisis for a while, and the monopoly analogy made it very clear.

@sachariel6951 3 жыл бұрын

I've seen a few videos on the matter, but I never actually understood whatever they were talking about when it came to losses. All I understood from those videos was "economists try to talk the CEO out of some sorta investment that was going bad, but CEO go 'hehehe, no', and went on to destroy the company as a result in 2008" Your vid actually explaining what created/led to that was more accessible to people who don't have the strongest understanding/largest knowledge when it comes to economics, including me. Good job!

@TheGIGACapitalist 3 жыл бұрын

>Break the law and get paid for it! I wish I was a bank.

@ltoe199 3 жыл бұрын

"cotton Farmers"

@Alice-od3bw 3 жыл бұрын

also know as slave owners

@Meton2526 3 жыл бұрын

@@Alice-od3bw Not all of them. The big plantations of course required slave labor, but if you're trading cotton at a dry goods store, you were probably a small subsistence farmer that was just growing whatever could buy some beans to eat.

@ericbosken3114 3 жыл бұрын

I was thinking, "He has to know, right?"

@russianbot8576 3 жыл бұрын

literally my thought too

@rxzaya 3 жыл бұрын

@@Meton2526 required isn’t the right word

@juliet7703 3 жыл бұрын

Enjoyed it. Very informative. It was explained in a way I could understand it because he always broke down the certain parts of the story. 👍🏾wouldn't mind seeing more of those type of videos.

@henrydaubresse9652 2 жыл бұрын

From the standpoint of having spent 25 years in the "Trust Me, I have an Expensive Suit" Business, I commend you on the job you did with this. Hope you're making copious notes for your upcoming coverage if the "Bitcoin Collapse". (ps: got my entire Client List out of Lehman in the $70-$75 range in July '08.)

@willpitts5223 3 жыл бұрын

Never clicked on a CM video so fast.

@jeremyud 3 жыл бұрын

I took out loans for college with Campus Door during the 2006-07 school year, and again for one semester in Fall 2007. They were owned by the Lehman Brothers, and if I remember right, my loans were switched to PNC when everything collapsed, and then finally ended at Wells Fargo.

@JeffWarrenAnderson 2 жыл бұрын

Ah ha... so you are coming clean at last. Very noble good man. Well now we know that Jeremy here is THE domino which precipitated The Investment Banking's Disaster upon exposure of Fractional Leveraging mechanic which caused The Crash of The Real Estate Bundled Derivatives of 2008. You're a good man. for real. cheers:)

@lucaspoteet1611 3 жыл бұрын

I love the content man, esp when a company like this requires so much context.

@steelerfaninperu 3 жыл бұрын

Great job explaining the financial crisis in the fewest words possible. I don't think I've seen anyone sum it up quite so succinctly. It's a hard topic to cover and I imagine you had to take at least a few stabs at the script, so good work. I do wish though that there was a little more of a "moral" to the story when covering the crisis. So much of it was enabled by the repeal of government rules, rules that have since not been put back into place.

@MasterCrafter02 3 жыл бұрын

This video just makes me want Company Man to review the movie The Big Short

@sarsaponia 3 жыл бұрын

when you’re very early but cant think of anything to say 😔

@ilikelamps1126 3 жыл бұрын

Personally I just watch the video

@Bisgaard91 3 жыл бұрын

Then dont say anything...

@supercarspotter743 3 жыл бұрын

Just stfu then

@sarsaponia 3 жыл бұрын

yeah understandable i normally dont but might as well attempt at getting a comment that has more than 1 like :/ edit was fixing has, accidentally wrote had instead

@abddub 3 жыл бұрын

Same

@Whiteboybeats1968 2 жыл бұрын

You did a great job explaining their downfall. I clearly remember the 2008 financial debacle, and you pretty much nailed it.

@812guitars 3 жыл бұрын

This is got to be the best explanation I've heard yet. Some other program doing the same they've had some kind of financial connection. It's as if whenever they talk about businesses in money they become very cryptic so you don't quite understand what's going on. Of course people in this kind of business have been getting caught with their pants down. Look at what happened with that hilarious disaster of gamestop. I'm sure the financial guys of Wall Street never expected to be taken down by a bunch of nerds on Reddit they could claim that they got hit by hackers the reality is, they just got outsmarted. Anyway, great video keep up the good work!

@TaxEvasionUS 3 жыл бұрын

"Cotton farmers" is a nice way to say slave owners

@nyki7fykxtjxyi 3 жыл бұрын

Slavery still exists today in China

@neetloop173 3 жыл бұрын

James Lane in the middle east and Africa too. The kafala system is basically slavery. Hopefully one day they get up to speed on human rights

@jonc6157 3 жыл бұрын

Many were Not, some were, Mr. Virtue Troll.

@LondonWalkability 3 жыл бұрын

@@nyki7fykxtjxyi who cares about China were talking about the US

@xlixity 3 жыл бұрын

@@LondonWalkability Who cares about the US this about banks.

@davidpowell3347 Жыл бұрын

Actually the real estate value didn't have to drop to break the pyramid,all that had to happen is for it not to keep going up so fast. So that "equity" in the houses didn't increase because of price appreciation. And so when the balloon came due the home "owner" wasn't able to refinance to a new balloon loan and reset the payment clock.

@rajesh_404 2 жыл бұрын

Your way of narrative is impressive and I love it!

@peters6591 3 жыл бұрын

Excellent job of giving us the main features of their demise and the comparison to other bankruptcies was a shock also.

@Ricky-ci4jx 3 жыл бұрын

I feel like this video painted the company in too much of a positive light.

@ArnulfoSalgado 3 жыл бұрын

Did you expect him to paint them in a negative light? It’s an objective business analysis, not a subjective moral review. I admit he missed details but he does mention that he prefers to do more overview-like commentary to keep the videos short. Which I disagree with, but whatever

@Ricky-ci4jx 2 жыл бұрын

@@ArnulfoSalgado My point is that the video wasn’t as objective as you suggest. For instance, he says: “it’s sad to see something so old go down like that” (2:43). That’s a subjective statement. Maybe it would be sad if the company helped society, but Lehman Brothers brought this on themselves, and regular people paid the price.

@raptorfromthe6ix833 2 жыл бұрын

@@Ricky-ci4jx regular people did work in lehman brothers

@QuinctiliusVarus 2 жыл бұрын

Companies like Lehman Bros are essential. They provide liquidity to the marketplace.

@rolexomegaspecialist9411 2 жыл бұрын

It's called the HUMAN condition Ricky: and EVERYONE'S shyte stinks...

@kidamazin 3 жыл бұрын

"Cotton Farmers" is one way to call it I guess.

@billpiechocki 3 жыл бұрын

@Nigel Robinson, I see what you did there.

@bilboswaggings1826 3 жыл бұрын

My sentiments exactly kinda disappointed how laissez faire he was about it but hey..

@PrydeWater901 3 жыл бұрын

There was a whole thread about this particular subject that just up and magically disappeared. 👻

@jonusjonus9271 3 жыл бұрын

@@bilboswaggings1826 disappointed?? oh yea, he should have spent at least 10 minutes talking about slavery in the south...cause that's what this video is about...

@bilboswaggings1826 3 жыл бұрын

@@jonusjonus9271 this thread isn't for you clearly enjoy your video

@stephanimahl 8 ай бұрын

I loved your explanation! You did so well in dedicating to contextualize the antique era for us of today. It brought me a lot of understanding, mainly, INFO, and English is not even my 1st language. But the most special part is that you asked the question: WHY? in today’s fragmented society, this has often been left aside, so I value twice the ones who hold on to it.

@DomDomChekwa 3 жыл бұрын

Good job on this video! It explains a very complicated topic very simply.

@BrysonAndrewDavis 3 жыл бұрын

I would imagine this was a difficult episode to do. This is such a complicated thing that people still talk about and analyze. You did a fantastic job of making it informative but understandable. Great job as always.

@companyman114 3 жыл бұрын

Thanks Bryson. I did my best with it.

@MG42is Жыл бұрын

History always repeats itself.

@abandonedmuse 3 жыл бұрын

This is the first time in a decade I actually understood what happened. I was working as a photographer for a real estate company at the time and it hit us all pretty hard.

@bluecrabnitroracing4499 2 жыл бұрын

I think you did a great job explaining it, for a simple construction worker. I understood it completely which before I had no idea how all that mess started back then. Thank you

@ksway8471 3 жыл бұрын

"Real estate was seen as a great investment" Society never learns

@SnoopyDoofie 3 жыл бұрын

Well now that Covid has caused many to work from home and this will remain permanent for many, there is less need for office space. Building owners will either not be able to pay their mortgages and default. If that happens, the rich will buy up those properties from the banks at a low cost and possibly convert them into apartments. Or, they will buy up those buildings and wait it out until years after Covid has passed and people flock back to the city to work in the offices. In both cases, someone is going to make a lot of money on empty office buildings.

@itsimbatime 3 жыл бұрын

@@SnoopyDoofie office buildings converted to apartments? 🧐 sounds like it could be chíc

@KeiNovak 3 жыл бұрын

@@itsimbatime it'll basically be a high-rise apartment/condo. Nothing fantastic. There are lots of them overseas by necessity. The one I'm keeping an eye on are the conversion of the abandoned sprawling malls into "community spaces" where they both live and work (and shop).... something like an urban village. Especially considering that quite a few younger people are forgoing owning vehicles and the McMansion lifestyle (assuming they could even afford it).

@crow9149 3 жыл бұрын

@@itsimbatime Sounds kind of bad really.

@joego7924 3 жыл бұрын

Forgot to mention, the federal government wanted everybody the be able to afford a house, especially minority's, so they pressured banks to relax their rules to qualify for loans! The subprime loans were born to satisfy the government requirements!

@ancientflames6679 3 жыл бұрын

I think when covering 2008 it’s also important to mention how much to blame both the U.S. government and the Federal Reserve were to blame for everything that happened, as well as how the expectations created by both directly contributed to the poor decision making of Wall Street as a whole. Too often the issue gets painted as a sole result of corporate greed and bad management, and while that was a major issue, it didn’t occur in a vacuum.

@Air_OK 3 жыл бұрын

Been waiting for this video since you were still running your basketball channel (miss that channel lol). One of the most significant events in modern history

@yusukekaga3565 2 жыл бұрын

Recently, in China, similar scenario happens in the real state market, thus I wanted to review the 2008 financial melting down. I deeply appreciate this video to explain that with full clear and concise.

@KordellCaldwell 3 жыл бұрын

Great video! This comment is a bit off topic but it's crazy to realize the 4th largest investment bank literally got its start using currency that was the direct result of slave labor. Slavery had such a big impact on the financial situation of the country even today.