Five years ago, this week, the world of finance and economics changed forever.
At least that’s the story.
It started with a sad milestone in Wall Street history: the fall of the House of Lehman.
Between Sept. 13 and Sept. 20, 2008, Lehman Bros., the legendary 158-year-old Wall Street firm, wobbled, stumbled and finally ceased to exist. In the conventional narrative, the failure of Lehman and the equally storied trading outfit Bear Stearns was part of an epic, once-in-a-generation meltdown in which global financial markets collapsed simultaneously in ways that nobody could have possibly foreseen.
But some people did foresee the disaster.… Seguir leyendo »
Regardless of how the Libyan revolt plays out, in the global economy the humanitarian crisis is just one deadly aspect of the fighting. Thousands are believed dead, and the fabric of society has been shredded in what has become a civil war. But to the nations of Europe that have come to rely on a steady flow of oil and petrodollars from Moammar Kadafi’s nation, the destruction of what could be called Libya Inc. is likely to be the most painful blow.
When the United Nations lifted sanctions on Libya in 2003, after Kadafi’s regime accepted responsibility for the bombing of a Pan Am jet over Lockerbie, Scotland, many European countries rushed to do business with Kadafi, despite his erratic history.… Seguir leyendo »