Jess and Mitch talk about the bankruptcy of Lehman Brothers in 2008, analyzing the contributing factors and its impact on the global financial system. They highlight how Lehman's aggressive growth strategy, fueled by excessive leverage and reliance on risky mortgage-backed securities, ultimately led to its downfall. They both further examine the consequences of Lehman's collapse, including a global market meltdown and subsequent financial reforms, such as the Dodd-Frank Act, aimed at preventing similar crises in the future.
Disclaimer:
** The podcast audio is generated by Google AI.
** Image of Jess and Mitch by wayhomestudio on Freepik.
