Lehman anniversary a nervous milestone in a fiscally dubious market

Back to school. Back to work. Back to reality. Back to facing the first anniversary of the collapse of Lehman Brothers.

There will inevitably be nervousness surrounding this milestone. Of course, there is absolutely no reason why the financial system should suffer another shock a year after the Lehman collapse, but there will be a lot of chat to mark the anniversary and much of that will be focused on why things are still very bad out there. Banks are not fully recovered, housing remains weak, bad debts are high and unemployment is still rising. The bond market is convinced interest rates will need to stay low for a considerable amount of time to come. There is a need to keep stimulus policies in place no...