10 Things People Still Get Wrong about The Financial Crisis
The comments below are an edited and abridged synopsis of an article by Barry Ritholtz
Even a decade after the financial crisis of 2007-2009, many people still cling to false ideas about the underlying causes (there wasn’t just one) of the crisis. What follows are the author’s 10 favourite flawed memes, misunderstandings and outright falsehoods about the financial crisis and its aftermath:
- 1. Lehman’s collapse caused the crisis.
- 2. If not for X, we would have been ok.
- 3. Repeal of Glass Steagall.
- 4. Bailouts were the only option.
- 5. Taxpayers were repaid in full and even made a profit.
- 6. No one went to jail because stupidity isn’t a crime.
- 7. Borrowers were as blameworthy as lenders.
- 8. Poor people caused the crisis.
- 9. The Fed made a mistake by stepping in when Congress refused.
- 10. Lehman could have been saved