The dangerous myth still believed about the Lehman Brothers bust

Re:The dangerous myth still believed about the Lehman Brothe... by lordnacho on Saturday September 29, 2018 @03:16AM (#18099116)

This is basically right. It's a myth that anyone believed in any of the stronger forms of efficient markets. The interaction of ineffective regulation and political lobbying had a lot to do with the crisis.

Related myth is the idea that nobody saw it coming. I went to a luncheon at Goldman's in 2006 where they announced things would start looking rocky in 2007 and the big whammy would be 2008.

[ Parent | on HN ]

Re:The dangerous myth still believed about the Lehman Brothe... by hardlianotion on Saturday September 29, 2018 @07:18AM (#18099799)

Yes - the Associate class training of Lehmans in 2005 had a few speakers that were warning of an oncoming crisis. And the folk on the mortgage desks had early view of the problems that were becoming unmanageable.

[ Parent | on HN ]

Re:The dangerous myth still believed about the Lehman Brothe... by philipodonnell on Saturday September 29, 2018 @03:53PM (#18102424)

Is there any sense of something like that happening today?

[ Parent | on HN ]

Re:The dangerous myth still believed about the Lehman Brothe... by hardlianotion on Sunday September 30, 2018 @01:54AM (#18104689)

I work far away from that sort of thing now.

[ Parent | on HN ]