Lehman Brothers Collapse 10th Year Anniversary: How financial conditions have changed

The collapse of the 158-year-old Lehman Brothers on 15th September 2008 remains the largest bankruptcy filing in U.S. history and it triggered a 1-day drop in Dow Jones of 4.5%, the LARGEST since the 11th September 2001 terrorist attacks. Let's take a look how the financial conditions have changed on the 10th year anniversary of Lehman Brothers collapse.

U.S. Stock Market


Since 9th March 2009, this U.S. bull market is now the LONGEST on record, surpassing the length of the previous record run from October 1990 to March 2000 leading up to the NASDAQ bubble. S&P 500 has now skyrocketed 335% since the lowest of 666 and is still going strong.

US$ Index

US$ Index, which tracks the US$'s performance against a basket of foreign currencies, last traded at 94.93, up 20.3% from 78.91, where it traded on 15th September 2008. The currency is heavily influenced by monetary-policy shifts and rising rates tend to push the greenback up too.

U.S. 10-year Treasury Yield

The U.S. 10-year Treasury note yield closed at 2.99%, 10 years after it closed at 3.47% on 15th September 2008. A decade ago, the Fed slashed its overnight interest rate to almost zero during the aftermath of the Global Financial Crisis. The central bank also began buying sovereign government bonds and mortgages, a practice called Quantitative Easing (QE) designed to help the financial system by flooding it with money.

Crude oil

Crude oil prices was declining from a high of US$147/barrel and closed at US$95.71 on 15th September 2008. It is down 28% over the past 10 years and have taken investors on a wild ride during that time. After trading in a range between US$80/barrel and US$110/barrel between 2011 and 2014, West Texas Intermediate (WTI) plummeted to around US$26 in February 2016. Crude has surged 165% since then but has failed to crack above US$80/barrel.

Gold

Gold prices are up 52.6% since 15th September 2008. Since hitting a high of US$1,923/ounce on 6th September 2011, gold prices have since fallen 37.5% to last settled at US$1,201.

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