This Goldman Sachs Chart Explains the 2008 Financial Collapse and Why Wall Street Is Still a Dangerous Casino

by Pam Martens and Russ Martens
Wall Street on Parade

If you want to very quickly understand why banks stopped lending to one another in 2008, credit markets froze, bank stock prices collapsed, and the Federal Reserve secretly pumped $16 trillion into banks, just take a few moments to study this chart from the Financial Crisis Inquiry Commission of the derivatives casino that Goldman Sachs and the major banks on Wall Street had become in June of 2008. Wall Street banks knew they had created a collapsing house of cards but they didn’t know just how much exposure each bank had or which bank would fail first, so they simply stopped lending to each other, causing a run on the banks.

Continue Reading at WallStreetOnParade.com…

Comments are closed.