Debtfree Issue 202303 - DB SE
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problem got worse. As a result, a lot of houses<br />
went into foreclosure (then the property is<br />
repossessed). This caused the bank to end up<br />
with so many repossessed properties, and no<br />
one to buy them (because it had been over<br />
priced in the first place and because no one<br />
had any money to buy anything).<br />
When that happened, the value of those<br />
houses dropped suddenly, which meant that<br />
the investments Lehman Brothers had made<br />
in the housing market also lost value. This was<br />
a big problem for Lehman Brothers, because<br />
now they owed more money than they had,<br />
and they couldn’t repay it.<br />
As a result, the people and companies that<br />
had lent money to Lehman Brothers started<br />
worrying that they might not get their<br />
investments back. They started to pull their<br />
money out of the firm, which made it even<br />
harder for Lehman Brothers to pay off their<br />
debts. Eventually, the firm had to file for<br />
bankruptcy.<br />
That triggering a global financial crisis among<br />
banks and other investment firms that had all<br />
done the same, it was chaos!<br />
We are still feeling the effects decades later.<br />
Photo by David Shankbone used under Creative Commons Licence
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