September 14, 2018

The Boston Globe: 10 years after Lehman collapse, Washington is back to its old tricks

Ten years ago, Lehman Brothers collapsed and set off the worst financial crisis since the Great Depression. Over the next few years, millions of Americans who had worked hard and played by the rules lost their homes, millions lost their jobs, and millions lost their savings — all because Wall Street gambled with their families’ futures and lost.  

The damage was staggering. Congress put $700 billion publicly on the line and the Federal Reserve shoveled another $13 trillion through the back door to bail out Wall Street. In a single year, homeowners lost about $3 trillion in home equity. Even after the crisis passed, the residue was felt across the country: The financial crisis is estimated to cost the average American $70,000 over their lifetimes.

The story of the financial crisis didn’t just play out in stock exchanges and board rooms – it played out at millions of kitchen tables, where moms and dads stayed up late trying to figure out how to feed their families, send their kids to college, or save their home.

Read the full op-ed on the Boston Globe website here.

By:  Senator Elizabeth Warren
Source: The Boston Globe