Could someone explain Lehman Shock to me in terms of Japan?
I was talking to my Japanese friend on Skype and she is doing job-hunting at the minute. She said it is very hard to find a job there because of the effects of Lehman Shock and that they have to apply for more than 50 jobs. I don't really know what Lehman Shock is and she couldn't explain it in English. I tried looking it up but there was so much information on the Lehman Brothers Collapse that i couldn't really find exactly what i was looking for.
So basically i was wondering if someone could explain what it is to me in simple terms and how it affects Japan?
Thank you in advance!
- heikaLv 68 years agoFavorite Answer
I took a quick look in Wikipedia about Lehman Brothers. It appears that when they folded it caused some tremendous losses to Japanese banks and investors. It may be that in certain areas of the Japanese economy there is a certain amount of concern about future investments. If this is so, then many companies might be reluctant to add new employees to their roster. Traditionally the Japanese companies hire employees for life and try to avoid layoffs at any expense. Most Japanese also EXPECT lifetime employment. It is probably the conservative thing to do in the face of financial distress. -Just a guess- It has been many years since I lived there.Source(s): Lifes experiences
- thecheapest902Lv 78 years ago
Lehman Shock is a name Japanese people use to call global financial crisis in fall of 2008.
It directly means the collapse of Lehman Brothers in September 2008 and subsequent stock crash in October.
"the effects of Lehman Shock" is severe recession after September 2008 in Japan and in the world.
It's simple, isn't it?
Japanese economy came to the bottom after that. I feel like we live in a different world, lol