The fall 2008 panic was probably not caused primarily by the Lehman Brothers bankruptcy: the major market movements (S&P 500 dropping 28% in three weeks, surging money-market spreads, global export collapse) occurred at least 10 days to two weeks after Lehman, coinciding with the government publicly warning of disaster to sell the TARP program, which itself scared markets.
causalpending
Speaker
John TaylorEvidence Quote
“you had a huge drop in stock markets the S&P 500 goes down 28% in three weeks you have huge increase in interest rate spreads in the money markets most of those movements occurred at least ten days or two weeks after the Lehman Brothers bankruptcy and they also occur at time at a time where the US government at least is out there saying we need to intervene with a tarp program or the will be disaster”
Created: 6/15/2026, 9:20:12 AM
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