ON PUBLIC RADIO 89.5 HD1 – Marketplace Thursday, September 10, 7:00 PM
Host Kai Ryssdal reports on how the collapse of Lehman Brothers shook our belief in the financial system. Just one year ago, most Americans believed their money was safely invested in their 401K plans and their houses would be worth more every year. People on Wall Street believed that too, and they made big bets on mortgage-backed securities. No one believed that a financial powerhouse like Lehman Brothers could collapse.
Marketplace Money Saturday, September 12, 10:00 AM
Lehman Brothers and the rest of the financial system didn't collapse by itself. Individuals played a role: We overspent and undersaved, so when everything stopped going up, up, up we had little to fall back on. Since then, times have changed. The personal savings rate is now at its highest level in a decade. We have learned our lessons and understand the value of personal responsibility or have we? Did panic drive change and if so, what happens once the panic dies? When Newsweek declares the recession is over, why do we breathe a collective sigh of relief? At what point does "planning for the worst" shift to "assuming the best"? We'll put the question "Can a leopard change its spots?" to a variety of experts from a number of fields.