The Economic Consequences of Mr. Paulson
Republicans are people who believe that government doesn’t work, and get themselves elected to prove it.
—P. J. O’Rourke
HE COLLAPSE OF LEHMAN on September 15, 2008, was the financial heart attack that turned a serious but manageable ailment in the U.S. mortgage market into a near-death experience for the global economy.1
Even before that fateful day, many banks and borrowers were in serious trouble, but the situation seemed to be improving and certainly not spinning out of control. The credit crunch that had begun in early 2007 could still be viewed as a severe but fairly normal cyclical correction, reversing some excesses in bank lending and property speculation that the world had seen ...