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alekssr [168]
2 years ago
15

Why does Prof. St. Clair argue that allowing Lehman Brothers Investment Bank to fail in 2008 (i.e., during the Bush Administrati

on) was a terrible decision?
Business
1 answer:
snow_lady [41]2 years ago
6 0

According to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 breached the Fed's primary mandate, and worsened the financial crisis of 2008.

<h3>What caused the Lehman Brothers' failure?</h3>

The main cause of the failure of Lehman Brothers Investment Bank was its involvement in the subprime mortgage market.

Lehmann Brothers recorded unprecedented loss due to the 2008 subprime mortgage crisis.

The investment bank held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.

Thus, according to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 was a terrible decision because its failure breached the Fed's primary mandate, and worsened the financial crisis of 2008.

Learn more about Lehman Brothers' Failure at brainly.com/question/7550583

#SPJ1

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set clear boundarys

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Explanation:

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Answer:

A. Realtors

Explanation:

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3 years ago
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3 years ago
If supply for a product is high but demand is low, what most likely needs to happen to achieve equilibrium?
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<span>If supply for a product is high but demand is low, the one that most likely needs to happen to achieve equilibrium is: B. The price of the product must go down. High supply of product will create an abundance in the market. By lowering the price of the product, it will attract more consumers for that product (icnreasing its demand) and will eventually lower the product abundance and bring the curve into equilibrium</span>
7 0
4 years ago
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Which of the following statements illustrates a rent ceiling​? A. The interest on mortgage loans has gone up to 4.87 percent in
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Answer:

C. Bluestone Properties is permitted to charge a rent of​ $2,350 for​ 2-bedroom apartments that would rent for​ $2,500 in an unregulated market. 

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Rent ceiling increases consumer surplus and reduces Producer surplus.

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Price ceiling is binding when it is set below equilibrium price.

I hope my answer helps you

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3 years ago
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