Three Unlearned Lessons From the Financial Crisis
This article is for subscribers only.
Sept. 26 (Bloomberg) -- There are three straightforward andrather obvious lessons from the collapse of Lehman BrothersHoldings Inc. five years ago: The financial crisis wasdevastating; we haven’t ended the problems associated with “toobig to fail” financial institutions; and we must force thebiggest banks to break up -- or risk dire consequences.
The crisis had huge costs, in both economic and humanterms. Almost every official and politician understates thesecosts, though fortunately Tyler Atkinson, David Luttrell andHarvey Rosenblum of the Federal Reserve Bank of Dallas haveproduced a definitive accounting.