Banyan Hill Publishing’s Ted Bauman says that a number of lessons were taught to people by the 2008 financial crisis. It was 10 years ago on September 15th that things went south. The impetus was the financial giant Lehman Brothers collapsing causing the global economy to tank. This company, which had been around for 158 years, didn’t have any way to say itself. Barclays was prevented by the British government from buying it while Bank of America wouldn’t take the risk unless the federal government lent a hand. Washington D.C. decided that another hated bailout wouldn’t be tolerated and so Lehman Brothers was out of options and went under.
Once this occurred investors panicked. The Dow Jones fell 508 points in a single day and the S&P 500 dropped 4.7 percent. Ted Bauman, who is an economist, isn’t so sure that the lessons from that day have faded away in the ensuing years. He says that the “can’t fail” way of thinking seems to be making a return to Wall Street. The Bankers are getting the huge bonus checks they used to get before the financial crisis hit. The average person on Wall Street now gets $184,220 as an annual bonus.
Ted Bauman points to a huge amount of corporate debt, taken out while interest rates were historically low, as possibly a huge threat. As interest rates rise in the United States this debt will become increasingly expensive and hard to pay back. He says that the amount of this debt is three times that of the global GDP which should ring alarm bells.
Over the course of his career, Ted Bauman has been to over 75 nations. He was a consultant who provided economic guidance to organizations including the United Nations, the government of South Africa, and the World Bank. He writes about building wealth and protecting assets in financial publications put out by Banyan Hill Publishing. One way he does so is by letting his readers in on his innovative financial strategies that take place outside of the global stock market which can allow people to grow their money safely and quickly.