ha! That's absolutely wrong
Interesting IM exchange between John Carney and Felix Solomon debating whether it was a good or bad idea to let Lehman Brothers to fail.
Solomon: With hindsight, letting Lehman fail was clearly a mistake...because bank creditors realized they could be wiped out so no one wanted to lend to banks any more
including other banks.
Carney: That's good...Bank creditors need to be aware of risk...the main thing we need is less reckless lending...Your position is that we need more credit to solve problems of debt.
End note:"The view that we make the financial system more stable rather than less by propping up insolvent banks is the real disaster."
Solomon: With hindsight, letting Lehman fail was clearly a mistake...because bank creditors realized they could be wiped out so no one wanted to lend to banks any more
including other banks.
Carney: That's good...Bank creditors need to be aware of risk...the main thing we need is less reckless lending...Your position is that we need more credit to solve problems of debt.
End note:"The view that we make the financial system more stable rather than less by propping up insolvent banks is the real disaster."
About this blog
Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.
Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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