As I’ve said before, the Fall of 2008 is seared into my brain. I remember the exact moment when I heard that Greenspan said we were looking at a “once in a century” financial crash. I remember Lehman going down. I remember Goldman being saved. I remember when AIG which reinsured much of Wall Street was commandeered. I know it was a dark time for everyone but trust me, in the financial sector it was absolute insanity.
One could feel how fast and loose things got all of a sudden. In the “Great Blackberry Panic” as David Stockman refers to it, the rules were thrown out the window. The Fed did what it wanted. The Treasury did what it wanted. And in the chaos Wall Street saved itself at the expense of the rest of the economy. Fall 2008 on Wall Street was a cocktail of desperation and opportunism.