Mad @ Mgmt

with Walter Simson

June 2015


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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