There’s been a great deal in the media recently, the radio, the television and newspapers, about the financial crisis of 2008-2009- since it’s 10 years since the demise of Lehman Brothers, the investment bank.
I was in Dubai at the time, and suddenly our pay was cut somewhere between £2000-£3000 a month. It was then denominated in pound sterling rather than UAE dirhams, even though we had never agreed to the change. That seems to be the way companies are nowadays- domineering and bullying. Employees are only seen as a cost.
At the same time, the financial crisis coincided with the property crisis in Dubai- too much property and not enough investors. Blame the financial crisis, not government policy.
Here’s an article by Ben Bernanke, former chairman of the Federal Reserve, published by the Brookings Institute.
At the height of the financial crisis a decade ago, economists and policymakers underestimated the depth and severity of the recession that would follow. I argue in a paper released today by the Brookings Papers on Economic Activity (BPEA) that remedying this failure demands a more thorough inclusion of credit-market factors in models and forecasts of the economy. I also provide new evidence that suggests that the severity of the Great Recession reflected in large part the adverse effects of the financial panic on the supply of credit. In particular, the housing bust alone can’t explain why the Great Recession was as bad as it was.