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securities, tender option bonds and variable rate demand notes, had a combined asset size of roughly.2 trillion. World political leaders, national ministers of finance and central bank directors coordinated their efforts to reduce fears, but the crisis continued. For example, buying a CDS to insure a CDO ended up giving the seller the same risk as if they owned the CDO, when those CDO's became worthless.

This propagated the sub-prime crisis, through securitization, to banks around the world. "How Much Did Lehman CEO Dick Fuld Really Make?". Retrieved August 6, 2012. 214 The highly leveraged nature of its business led the bank to request security from the Bank of England. Bjørnholt, Margunn ; McKay, Ailsa (2014). Predictions from the man who forecast the meltdown. Let's hope they don't run out of paper.'. Investment banks such as Lehman would now be thrust into direct competition porn with commercial banks. In addition, governments enacted large fiscal stimulus packages, by borrowing and spending to offset the reduction meltdown in private sector demand caused by the crisis.

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September 16, 2008: The Federal Reserve took over American International Group.

They failed to 'keep an eye on these geniuses' to whom they had entrusted the responsibility of the management of America's great corporations. 260 Investment bank UBS stated on October would see a clear global recession, with recovery unlikely for at least two years. Financial institutions invested foreign funds in mortgage-backed securities. Retrieved November 5, 2010. Byrnes, Nanette (March 17, 2009). March 6, 2009: The Dow Jones hit its lowest level of 6,443.27. The leak was severe enough to prompt Japans Nuclear Regulation Authority to classify it as a level-3 nuclear incident. 83 During the two decades ending in 2001, the national median home price ranged from.9.1 times median household income. Max, Sarah (July 27, 2004).

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