Comments on: Lehman Brothers, One Year Later http://weakonomics.com/2009/09/17/lehman-brothers-one-year-later/ Everything That's Wrong With You And Your Money Wed, 08 Feb 2012 22:32:00 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: Rob Bennett http://weakonomics.com/2009/09/17/lehman-brothers-one-year-later/comment-page-1/#comment-2984 Rob Bennett Fri, 18 Sep 2009 13:31:29 +0000 http://weakonomics.com/?p=3037#comment-2984 <i>Many wonder whether we would be in as bad of shape if Lehman had been bailed out too. Investors wouldn’t have lost nearly as much confidence and the resulting sell-off of stocks would have been greatly diminished.</i> If it hadn't been the failure of Lehman that had caused investors to lose confidence, it would eventually have been something else. Stocks were selling at insanely dangerous prices prior to the crash. Those prices were not sustainable, and sooner or later investors were going to catch on. The root cause of the crash was the hundreds of million of dollars that have been spent promoting the Passive Investing concept, the "idea" that the price we pay for stocks doesn't matter. Rob .-= Rob Bennett´s last blog ..<a href="http://arichlife.passionsaving.com/2009/09/18/podcast-153-contrarian-investing-almost-works/" rel="nofollow">Podcast #153 — Contrarian Investing Almost Works</a> =-. Many wonder whether we would be in as bad of shape if Lehman had been bailed out too. Investors wouldn’t have lost nearly as much confidence and the resulting sell-off of stocks would have been greatly diminished.

If it hadn’t been the failure of Lehman that had caused investors to lose confidence, it would eventually have been something else. Stocks were selling at insanely dangerous prices prior to the crash. Those prices were not sustainable, and sooner or later investors were going to catch on.

The root cause of the crash was the hundreds of million of dollars that have been spent promoting the Passive Investing concept, the “idea” that the price we pay for stocks doesn’t matter.

Rob
.-= Rob Bennett´s last blog ..Podcast #153 — Contrarian Investing Almost Works =-.

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