Project2 (3 points)
Please read the articles, watch the videos, and post your comments in your group. The grading of discussion is based on how the posts by all your group members have addressed the discussion questions collectively. Each group member is required to participate in the discussion and make posts. Group members will get the same grade.
- Read the article of “The Lehman Brothers Collapse and How It’s Changed the Economy Today” from Thestreet.com by Anne Spaders September 12th, 2018 at https://www.thestreet.com/markets/lehman-brothers-collapse-14703153 and watch the video “Lehman Brothers collapse: What went wrong ten years ago?” at: https://www.youtube.com/watch?v=01xYpDhYwGg and answer the following questions.
a. Please summarize the reasons why Lehman Brothers went bankruptcy?
b. Why the Federal Reserve didn’t bail out?
c. What are the impacts of the firm’s failure on the US economy?
2. Read the article “Lesson One: What Really Lies Behind the Financial Crisis?” at https://knowledge.wharton.upenn.edu/article/lesson-one-what-really-lies-behind-the-financial-crisis/ on Jan 21, 2009 and watch the video “How the 2008 financial crisis crashed the economy and changed the world” at https://www.youtube.com/watch?v=fXkeh8jiMdk.
- According to Dr. Siegel, what are the two interlocking issues that caused the credit crisis in 2008?
- Why federal officials were blamed for the crisis?