An article in the economist referred to the prospect of


In the fall of 2011, investors began to fear that some European governments, particularly Greece and Italy, might default on the bonds they had issued, making the prices of the bonds fall sharply. Many European banks owned these bonds, and some investors worried that these banks might also be in financial trouble. An article in the Economist referred to the "prospect of another Lehman moment." The article noted that: "Governments are once again having to step in to support their banks." What did the article mean by another "Lehman moment"? Why might European governments have felt the need to support their banks to avoid another Lehman moment?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: An article in the economist referred to the prospect of
Reference No:- TGS01370103

Expected delivery within 24 Hours