It’s five years since the “sub-prime crisis” began in earnest. Lehman Brothers filed for bankruptcy on 15th September 2008. The resulting financial meltdown lead to the first global recession in living memory, so causing countless job losses and widespread human misery.
Questions such as “what have we learnt?” and “could it happen again?” are of sufficient importance and complexity to fill thousands of columns inches, running to millions of words. I offer here, then, a necessarily brief explanation of why I believe the Western world’s policy response to sub-prime has been deeply flawed, and why we’re now even more vulnerable to another debilitating systemic collapse.