On the upcoming 10th anniversary of the collapse of investment bank Lehman Brothers on Sept 15, 2008, which deepened the Great Recession, what lessons can we draw that might be relevant for Singapore?
The Great Recession was the longest and worst economic downturn since the depression of the 1930s. It lasted 18 months, from December 2007 to June 2009. Output, consumption, investment and employment dropped far more than the comparable figures for all other recessions since 1945. Close to nine million jobs were lost in the United States alone, in just two years. Recovery was painfully slow. It took 53 months before employment recovered to its pre-crisis level.