VOICED: LehmanÕs Collapsing, one year after

The transcript discusses the financial crisis triggered by the collapse of Lehman Brothers in 2008, highlighting the risks taken by investment banks on subprime loans. It describes the global market panic and the subsequent intervention by the US government and Federal Reserve to stabilize the economy. The transcript also notes the initial signs of economic recovery, such as rising global market trading and reduced jobless claims, while acknowledging ongoing consumer caution.

What was the primary cause of the financial crisis discussed in the first section?

• Heavy borrowing to invest in subprime real estate loans

• Overinvestment in technology stocks

• A sudden increase in oil prices

• A global pandemic

Which investment firm was not bailed out by the federal government, leading to its bankruptcy?

• Bear Stearns

• Morgan Stanley

• Goldman Sachs

• Lehman Brothers

How did the US administration and Federal Reserve respond to the financial crisis?

• By reducing taxes for large corporations

• By implementing strict trade tariffs

• By offering massive aid to banks and financial groups

• By increasing interest rates

What indicates that people on Main Street are still cautious despite the recovery?

• A decrease in jobless claims

• A rise in global market trading

• An increase in housing prices

• A plunge in consumer borrowing

What sentiment is expressed by traders regarding the financial markets a year after the crisis?

• Fear of another imminent collapse

• Indifference towards market changes

• Optimism about the rebound

• Pessimism about future growth