EDITORS' PICKS: Financial crisis
In times like these you need analysis from names you can trust. Click here for coverage on the international financial crisis from Alan Kohler, Robert Gottliebsen and Stephen Bartholomeusz.
Liquidity is no longer just a state of mind for the denizens of the shadow banking system. Investors are shooting first and asking questions later, which is precisely why now is a good time to lay low.
Liquidity is not the antidote
A concerted action from the world's central banks won't be enough to restore confidence in a system undermined by a series of toxic financial products designed to perplex and bewilder.
Why Lehman was allowed to fail
The fact that the US government didn’t help Lehman suggests a perversely reassuring conclusion – that its improved knowledge of the 'shadow banking system' suggested that the market could handle the collapse.
Why AIG was saved
The US authorities were forced to rescue AIG because unlike Lehman its collapse had the potential to threaten the stability of financial markets and produce a sustained disruption to the US economy.
History's lessons for this crisis
Panic is the natural reaction to a collapse of the magnitude of Lehman Brothers, but to emerge from this market turmoil in the best possible shape, it is necessary to understand it in the context of past crashes.