The Dow Jones industrial average was already fading when Lehman Brothers collapsed in September 2008. It had reached a peak almost a year earlier, closing at 14,164.54 in early October 2007 (the first dot on the chart). You can follow along from the Lehman collapse (second dot) through the other milestones that brought us to this week's close.
A sliding Dow began to slide faster
Sources: MacroTrends Historical Data; Yahoo Finance.
It was not the only market collapsing
Median home prices generally move seasonally and cyclically, and they had been trending up into 2007 when the real estate bubble burst and prices started a downward trend that took years to recover from.
- Nassau before Lehman
- Nassau after Lehman
- Suffolk before Lehman
- Suffolk after Lehman
Source: Multiple Listing Service of Long Island.
And jobs lost in certain sectors took years to recover
The five hardest-hit sectors of the Island's economy lost nearly 7 percent of their jobs within a year of the collapse. From July 2008 to 2009, the sectors (construction, natural resources and mining; manufacturing; trade, transportation and utilities; financial activities; and professional and business services) saw an estimated 45,900 jobs disappear. Other sectors, such as health care, picked up some of the slack, but overall jobs were down 3.3 percent.
- Before Lehman collapse
- After Lehman collapse
You can read more about the Lehman collapse here.
Source: New York State Department of Labor. Charts via amCharts.com