Global finance: Where’s the next Lehman?

Posted: September 6, 2013 in economy
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UK Only Article: 
standard article

Issue: 

Fight this war, not the last one

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Global finance

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Five years after the maelstrom of September 2008, global finance is safer. But still not safe enough

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THE bankruptcy of Lehman Brothers, an American investment bank, in 2008 turned a nasty credit crunch into the worst financial crisis in 80 years. Massive bail-outs from governments and central banks staved off a second Depression, but failed to prevent a deep recession from which many rich economies have yet fully to recover. Five years after that calamity, two big questions need to be answered. Is global finance safer? And are more crises on the horizon?
The quick answers are yes, and yes. Global finance looks less vulnerable because reforms to the financial industry have made it more resilient, and because America, the country at the heart of the Lehman mess, has got rid of much of the excess debt and righted many of the imbalances in its economy. …

via Economic Crisis http://www.economist.com/news/leaders/21584975-five-years-after-maelstrom-september-2008-global-finance-safer-still-not-safe?fsrc=rss

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