Mad @ Mgmt

with Walter Simson

June 2015

06/09/15

Making the case for another stimulus package

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.

Posted at 11:21 AM | Permalink | Comments: 5

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