with Walter Simson
In the aftermath of the 2008 Lehman collapse, most banks froze lending and, in fact, requested their money back. At one point, 74.5% of the banks said they were tightening their lending standards. This caused a full-blown banking crisis, in which money was leaving the economy at an alarming rate. In human terms, there was a lot of distress — after all, every dollar going to repay the bank’s call notice is a dollar that doesn’t go into the purchase of goods and services.