They Knew: Toxic Assets Almost Crashed Our Economy 10 Years Earlier

November 9th, 2009

Derivatives, credit default swaps, toxic assets or whatever form these over leveraged, wall street, backroom financial instruments come in, where nothing new to bankers, regulators or Congress.

A Lehman Brothers/Bear Stearns style collapse happened in 1998 and was only saved with a commercial bailout (as opposed to a government one) to keep it from melting down the whole economy.


Nonetheless, a market of toxic, over leveraged, unreported and unregulated financial instruments based on institution’s unbalanced betting and hedging was allowed to continue.

They all knew empirically that this was coming, because it had already happened. Yet, not only did they not put a stop to it, it was allowed to grow, expand and become even riskier.

Watch the PBS - Frontline documentary The Warning. Skip to part 5 by clicking the 5th dot in right bottom corner of the player if you want to go to the specific reporting on this near previous collapse:

You should watch Inside The Meltdown to understand how our current financial collapse came about; especially if you want to see how the 1998 almost collapse was nearly identical.

When Genius Fails is a book written about the LTCM collapse. It should be called When Pride and Arrogance Fails (as it almost always does in the long term)
Long Term Capital Management



posted in Education, MSNBC Videos, Socio-Economic | | | View blog reactions |


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About The Blog

  • D. Yobachi Boswell

  • Yobachi Boswell is creator and publisher of BlackPerspecitve.net. I’m a writer, activist and political watcher based in Nashville, Tennessee. I’ve also been know to do some spoken word and MCing in my day.

    I created this site to give new voice to socio-political issues that are in need of thoughtful consideration and redress.

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