The lack of confidence extended to the entire financial system, and its capacity to appropriately assess the proper value of assets and liabilities. The attempt to reduce risk and leverage resulted in an excess of supply that led to a sharp reduction of asset prices.
Some investors tried to move to other markets, such as primary commodities, creating a bubble which, over the summer, brought oil prices to over USD 140 per barrel. An inflationary shock was thereby superimposed on the financial crisis, further weakening the confidence of households and companies. The failure of Lehman Brothers delivered the final blow, with a general contagion to all markets.