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What Goes Up, Must Go Down: Too Big to Fail, Too Big To Jail

  • Broadcast in Politics



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June 2007, two Bear Stearns hedge funds are forced into bankruptcy -- they had invested in AAA-rated mortgage-backed securities whose value had plummeted.  2008 began with another ripple, as the stock market began to downturn.  The National Association of Realtors stated "the first price decline in many, many years and possibly going back to the Great Depression".  The woes of Countryside, the insolvency of Bear Stearns and subsequent purchase by JP Morgan with a federal incentive all foreshadowed what was to come.

In the dog days of August 2008, it became apparent that Lehman Brothers was on the verge of bankruptcy.  Backroom deals to find a purchaser looked grim.  September began with the take over of Freddie and Frannie by the federal government.  Lehman Bros. was allowed to fail, forced to file for bankruptcy on September 15, 2008, the largest ever in the U.S.  On the coattails of the Lehman Bros. bankruptcy, the market began a horrific free fall.  The stock of AIG, the world's largest insurer, began to plummet forcing the federal government to intervene.  The financial meltdown of epic proportions began.  Over four years later, we are still reeling.

Join Fred and Marg on "What Goes Up, Must Go Down: Too Big to Fail, Too Big To Jail, Part I, Saturday, March 30th at 2:00 pm EST (1:00 pm Central, 12:00 pm Mountain, 11:00 am Pacific and 3:00 pm Atlantic) discussing the world's largest financial meltdown since the Great Depression.  Part II, Too Big Too Jail, will be featured the following week.