Bernanke's biggest Lie, that letting Lehman fail was a mistake

Common knowledge in Wall Street is that Lehman Brothers was too big too fail.  It is sometimes abreviated as TBTF. Even though many say it caused financial turmoil, and of course it did.  But, it wasn't Lehman Brothers that caused the turmoil.  It was Lehman, which tipped off the market to the extent of the problem.  Via CBS:
"There were many people who said, 'Let 'em fail.' You know, 'It's not a problem. The markets will take care of it.' And I think I knew better than that. And Lehman proved that you cannot let a large internationally active firm fail in the middle of a financial crisis. Now was it a mistake? It wasn't a mistake for the following reason: we didn't have the option, we didn't have the tools. All the Federal Reserve can do is make loans against collateral," Bernanke replied.

The two most important when dealing with the Lehman Brothers non rescue are this: 

  1. How much money did we spend to bail out Lehman Brothers? 
  2. How many of Lehman's counterparties went bankrupt?
Of course the answer to both of those questions is zero.   

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