17. More Bailouts Came After Lehman Brothers
With the failure of Bear Stearns and Lehman Brothers, the entire financial industry in the United States, and throughout the world, was in danger of collapsing altogether. Economists warned that the world was heading for another Great Depression that would take decades to recover.
The American government granted a massive bailout to struggling banks, the same banks that had caused the crisis by writing subprime mortgages to people who could not afford them. The alternative was to allow the country’s banks to collapse and destroy the economy.