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Martin Gilbert: «The scale of the crisis should humiliate us»

Martin Gilbert: «The scale of the crisis should humiliate us»

The bankruptcy of the American investment bank Lehman Brothers symbolized the global financial crisis ten years ago. Investors could obtain important insights from the various phases of the crisis, writes Martin Gilbert finews.first,


This article appears in the category finews.first. In it, authors comment weekly on economic and financial topics. The texts appear in German and English. The selection of texts is finews.ch.


The first phase actually began more than a year before the fall of Lehman Brothers: the bubble burst in the American real estate market; the investors were gripped by fear. Interest rates have increased on the credit markets. This was followed by the collapse of Lehman Brothers, the first large bank that went bankrupt in September 2008. The problems in the banking sector were no longer sustainable, panic broke out and the entire financial system was about to collapse. Pessimism, even depression, was the buzzword of investors.

The recovery phase began when politicians were desperately looking for solutions to the drama that spread from the financial markets to the economy. In March 2009, the US stock market reached the bottom. A month later, investors began to regain confidence in the wake of the G20 renovation program.

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