Eleven years ago, the colossal bankruptcy of Lehman Brothers sent shockwaves in the U.S. economy, leading to the so-called "Great Recession." The people who worked at Lehman went from being the wealthiest people on Wall Street to flat broke overnight. The government stepped in to save Wall Street and the economy and that this was the best decision going forward.
But was it? Had the government not stepped in and let the economy work out the problems on its own (i.e., free market), the recession would have been far worse. However, I believe we would be much better off than what the government did at the time.
Today, questions remain whether this economy is recovering. If not, what is to follow? Another financial crisis will occur; it's just the timing (when it will happen) is tricky. Regardless, the next crisis will be far worse than the one in 2008.
Now is the time to prepare before the economy crashes big time and it'll be far too late.
