In an op-ed, Prof. Robert Engle examines systemic risk pre-financial crisis
September 21, 2013
Excerpt from the Institute for New Economic Thinking -- "On September 15, 2008, Lehman Brothers filed for bankruptcy and ushered in the worst part of the recent financial crisis. Today, we still discuss whether taxpayer money should have been used to rescue Lehman. My colleagues at NYU and I have developed measures of systemic risk, and this fifth anniversary affords us a good opportunity to look at what these measures would have indicated to Treasury Secretary Paulsen if they had been available at that time. The answer is quite surprising."