Time Machine · September 2008
2008 Financial Crisis
The Big One
Step into September 2008 as Lehman Brothers collapses and the financial system teeters. The S&P 500 fell 57% over 17 months — the worst crash since the Great Depression. Buffett said 'Buy American. I am.' near the lows. What would you have done?
Hold through the worst, or run?
Enter the Time Machine and trade 2008 Financial Crisis with real historical prices. Time rolls forward on its own, headlines break as they did, and an AI coach grades every decision.
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What happened
On September 15, 2008, Lehman Brothers filed for the largest bankruptcy in US history. The next day the Fed bailed out insurer AIG, and the financial system looked like it might collapse.
Congress passed a $700 billion bank bailout (TARP), yet the market kept falling. The S&P 500 dropped 57% over 17 months — the worst crash since the Great Depression. In October, near the lows, Warren Buffett published a New York Times op-ed titled 'Buy American. I Am.'
The absolute bottom came on March 9, 2009, with the S&P 500 at 676. A $10,000 investment made at that bottom grew to roughly $50,000 by 2020.
By the numbers
−57%
Drawdown
17 months
Duration
~5 years
Time to fully recover
~80
Peak VIX (fear)
Timeline
Sep 15, 2008
Lehman Brothers files for bankruptcy
Sep 29, 2008
Dow drops 777 points — worst point drop at the time
Oct 3, 2008
Congress passes the $700B TARP bailout
Oct 16, 2008
Buffett: 'Buy American. I Am.'
Feb 17, 2009
$787B stimulus signed
Mar 9, 2009
Market bottoms — S&P 500 at 676
The lesson
Even the worst crash in modern history recovered fully. The bottom felt like the end of the world — which is exactly when the best long-term returns are made.
Real headlines
Period news breaks day by day as it actually did.
Fear gauge
The real VIX shows how scared the market was.
Coach & leaderboard
Every call is scored; climb the scenario leaderboard.