By Miguel Perez-Santalla ……….
Reflections on Precious Metals on the 5 Year Anniversary of the Collapse of Lehman Brothers
Five years ago, on September 15, 2008, Lehman Brothers collapsed and the entire U.S. financial systems threatened to go with it. In record numbers, investors looked to gold as a hedge against a plummeting stock market and shaky world economies.
The demise of Lehman was preceded by the Federal Reserve bail out of Fannie Mae and Freddie Mac. AIG, Bear Stearns, Merrill Lynch and the like found homes or benefactors and in essence were rescued. Lehman was allowed to collapse. Why? Some say because Lehman held a great proportion of foreign assets that were not as necessary to the US economy. Others say it was banking politics.
At that time gold was trading near $900 per ounce. I believed this to be on the high side and expected gold to trade down to around $700. Even though the injection of capital through Tarp should have given me a tip, I had no clue what the Fed was about to do.
Read the entire story at CoinWeek.
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