The slow road to recovery for SA’s economy
This week marks the eighth anniversary of the collapse of investment bank Lehman Brothers. It was the largest bankruptcy on record – the bank had $690 billion in assets - and turned the one year-old credit crunch into a full-blown global financial crisis. With credit markets seizing up, especially interbank lending, the spill-over to the already declining US real economy was severe. Although the crisis was triggered in America, it spread worldwide, putting over-leveraged banking systems under tremendous pressure. Global flows of credit evaporated and the world economy went into a deep recession.