Financial Crisis Has Globalized, Expert Says

NEW YORK (CBSNewYork/AP) — Sunday marked the fifth anniversary of the collapse of the Lehman Brothers investment bank collapse, and one expert said the situation has not really improved.

As 1010 WINS’ Gary Baumgarten reported, there are those who believe a slow and steady economic recovery is under way. But Danny Schechter, who in a documentary predicted the financial collapse two years before Lehman Brothers fell, said the situation remains bad in the U.S. and worse around the world.

“What’s happened is our financial crisis has globalized and spread around the world, so that people who were living on $2 a day are now living on $1 a day,” he said.

Schechter said other, but not all, analysts – including the chief economist at Bank of America – agree.

The Lehman Brothers collapse was the largest bankruptcy filing in U.S. history, and its demise marked the beginning of the global financial crisis and was a major catalyst of the financial meltdown.

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