A new book by Reinhart and Rogoff, “This Time Is Different”, makes a well researched case that over hundreds of years, not much really changes no matter what the crisis. It is never really different. I believe in many ways we can say the same for the past decade, and what we see happening now.

Although many strongly believe that letting Lehman fail was a terrible mistake, I disagree. It was absolutely the right decision and was needed. Had Lehman been subsidized and carried on the backs of the taxpayers, so would we have had to do the same for Merrill and others in a series of one off patchwork bandages. It would not have worked in the end, and there would have been a massive political backlash far worse than what Obama and Barney Frank have wrought. TARP was also the right thing, in that it was needed to save the system as a whole, instead of a lot of piecemeal fixes which would have failed in the end. We absolutely would have had a complete catastrophe without it. The politicians now campaign against TARP, they love to say it was a bailout of the fat cats on Wall St. In fact it was a bailout of the Main St banking system as we see from the fact that the taxpayers have been fully repaid by the big banks at a profit, and it is the small banks that still can’t repay.  

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.