LEHMAN BROTHERS….I’ve now read in three different places credible suggestions that last week’s financial meltdown was caused not by generic “worsening credit conditions,” but by the Fed’s ill-advised decision to let Lehman Brothers go into bankruptcy. This led to a wave of defaults that rippled through the industry and eventually froze the credit markets.
Question: has anyone seen anything detailed and plausible that either refutes this or backs it up? I’m just curious. For now, I remain agnostic on the question.