September 15th, 2008: financial services firm Lehman Brothers files for Chapter 11 bankruptcy protection, marking the largest default in U.S. history and the beginning of the Global Financial Crisis (GFC), the most severe episode of financial instability and economic contraction since the Great Depressions of the 1930s. From the end of 2006/early 2007 – when the first elements of the crisis started to emerge, until September 2008, the distress was mostly confined to the financial sector, with little impact on real economic activity. After the Lehman’s collapse, the crisis becomes truly global: a number of economies enter a severe recession in 2009, from which they will emerge only a number of years later profoundly transformed. The consequences of 2008 GFC will go far beyond the financial industry and the real economy: new political movements emerge, and a world-wide retreat of globalization begins, in a process that is still ongoing and whose eventual outcome is still unclear.September 15th, 2018: ten years after Lehman’s collapse, we analyse once again what went wrong and what lessons have been learnt to prevent another crisis of similar proportions to emerge again. We discuss this with Nouriel Roubini, one of the few economists widely credited for having predicted that crisis and how it would have unfolded. And with Brunello Rosa, a scholar of Minsky’s financial instability hypothesis and of financial fragility theories since the late 1990s, when they were still considered highly heterodox. Nouriel Roubini and Brunello Rosa have been closely working together for the last few years and are now business partners in their new venture.Angela Antetomaso, a long-standing financial TV Anchor, who has worked at CNN, Bloomberg and currenty at CNBC, interviews Nouriel and Brunello on occasion of the 10th anniversary of the Global Financial Crisis.
Systemic Risk Centre Special Papers SP 15