How to Ruin the Economy in Seven Easy Steps – Johan Norberg
Complete video at: http://fora.tv/2009/09/01/Financial_Fiasco_The_US_Infatuation_with_Home_Ownership
Author and historian Johan Norberg gives an abbreviated version of the events that caused the housing bubble and primed the financial crisis.
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How was it possible that in a world where thousands of people regulated financial markets the whole system crashed down? And should we now give more power to central banks, government agencies, politicians, and regulators? Isn’t that what brought us here in the first place?
Financial Fiasco digs deep into the foundation of the economic meltdown, revealing how it was the product of conscious actions by decisionmakers in companies, government agencies, and political institutions, and by consumers. Financial Fiasco tells the compelling story of how rate-cutting by the Federal Reserve inflated the real estate market and fueled increased risk-taking in the financial markets; how new government policies to promote home ownership blasted air into the credit bubble; how new financial instruments, credit-rating requirements, and accounting rules intended to prevent cheating backfired; and much more. – Cato Institute
Johan Norberg is a senior fellow at the Cato Institute and a writer who focuses on globalization, entrepreneurship, and individual liberty. Norberg is the author and editor of several books exploring liberal themes, including a history of liberal pioneers in Swedish history. His book In Defense of Global Capitalism, originally published in Swedish in 2001, has since been published in over twenty different countries.
Norberg’s articles and opinion pieces appear regularly in both Swedish and international newspapers, and he is a regular commentator and contributor on television and radio around the world discussing globalization and free trade. Prior to joining Cato, Norberg was head of political ideas at Timbro, a Swedish free-market think tank, from 2003 to 2005.
Duration : 0:2:45
March, 31st 2010 at 8:27 am
In varied parts of …
In varied parts of Ohio: women who only appear to be wearing panties can set their price. America’s elitists {Luciferians} have their digs below ground, as did the Morlocks in the 1960 movie, starring Rod Taylor: “The Time Machine.”
In disparate particles called Cleveland {whereat non-Ohioan land is at a premium during negotiations} women with untethered mammae are of indefinable value. They too may set prices soaring.
March, 31st 2010 at 8:27 am
I see a lot of …
I see a lot of Republican versus Democrat arguments as though either side has anything to do with our interest rates or economy LOL. All i know is there are a few Rich men who really want a global currency and if you have to go hungry then so be it a few serfs are expendable. How can a government official or beurocrat decide how much mu hour of labor is worth?
March, 31st 2010 at 8:27 am
I’ll probably get …
I’ll probably get back in line and shut up like most other Americans. I might move. I might louder than I usually do. It’s easy to conjecture from my asschair but I don’t really know what I’ll do until that situation arises.
March, 31st 2010 at 8:27 am
You probably won’t …
You probably won’t vote republican, so you’ll try a third party, and if they fail you too, as they most likely will, will you move out of the states? Just curious.
March, 31st 2010 at 8:27 am
Well its none of my …
Well its none of my business who you support, and you have every right to but the one thing I learned since a young age (and this is why i registered Independent) is that everything a candidate says is just for votes. I have never seen once in my life is one of them live up to what they said. I haven’t seen many presidents, but you don’t need to in order to catch a hint…lol
March, 31st 2010 at 8:27 am
I’m giving the …
I’m giving the democrats one last chance before I jump ship. If Obama doesn’t bring everything he promised and a bag of chips, the democrats can kiss my after this election cycle. But I have hope for now and I am holding my breath.
March, 31st 2010 at 8:27 am
lol wow I was going …
lol wow I was going to comment on this, and will but first. I live in your listed hometown… weird. As for voting Republican….I see you haven’t realized Bobbie that it is a 2 headed 1 party system yet. If you want change, and I mean real change….Vote 3rd Party. Independent, Constitutional, Libertarian….Anything except the 2 headed political monster I like to call Demorepublicanism.
March, 31st 2010 at 8:27 am
@mushmouth4life: …
@mushmouth4life: Haha what? Sweden hasn’t got a resource based economy. Unfortunately Sweden is a capitalist country run by capitalist pigs just like your country.
March, 31st 2010 at 8:27 am
The whole crisis …
The whole crisis revolves around what the U,S, dollar is worth. To you, to me, to Chinese, to Arabs, It is only worth what we “think” it is worth. It is a crisis of thinking. So delude yourself, world, and all will be fine
March, 31st 2010 at 8:27 am
so it wasnt …
so it wasnt Sweden’s resource based economy or independence from the Euro that saved its bacon?
March, 31st 2010 at 8:27 am
I have seen several …
I have seen several vids that have done a wonderful job of illustrating how eactly the crises unfolded
This is not one of them
March, 31st 2010 at 8:27 am
It’s hilarious how …
It’s hilarious how brilliantly this proves the Austrian business cycle theory. But hell, don’t listen to those kooky Libertarians.
March, 31st 2010 at 8:27 am
hogwash… but yes, …
hogwash… but yes, under Clinton the Glass-Steagal Act was repealed, yet most droids blame deregulation on Republicans. Democrats also pushed for the simultaneous government backing and deregulation of Fannie Mae and Freddie Mac – two of the favorite piggy banks of the Democrats. We could also discuss the inflation under Jimmy Carter, but I think it’s more fun to talk about the blood on his hands since he (knowingly) supplied the weapons used in the genocide of East Timor. Both parties suck
March, 31st 2010 at 8:27 am
The economy tends …
The economy tends to fair a bit better under democrats but that whole deregulation thing Clinton did at the end was a fairly dick-move. I wonder why more people don’t call him out for it.
March, 31st 2010 at 8:27 am
You are somewhat …
You are somewhat correct at a superficial level (though a little off on your empirics..). When the coercive state subsidizes or funds anything, whether it’s nominally ‘public’ or ‘private,’ regulation may help deter the moral hazard and perverse incentives of that coercively attained input. However, the root problem is what caused the moral hazard and perverse incentive in the first place – the coercion itself, the ’state.’
There is no “left” or “right.” There is coerced and there is voluntary.
March, 31st 2010 at 8:27 am
jonnniefivemiles, …
jonnniefivemiles, States around the world which had regulation in place did not suffer a banking collapse. Sweden for instance had recently socialized her National bank, then floated it on the stock exchange with tough regulation, it suffered no problems.
Although these economies have now been pulled into the recession, it was right wing policy
March, 31st 2010 at 8:27 am
yes, or democrat… …
yes, or democrat… both parties designed for mindless droids
March, 31st 2010 at 8:27 am
Republican= …
Republican=Democrats=Banksters=New World Order=All the same Bullshit!
March, 31st 2010 at 8:27 am
…or democrat.
…or democrat.
March, 31st 2010 at 8:27 am
Seven? Pfft. You …
Seven? Pfft. You can do it in one: vote republican.
March, 31st 2010 at 8:27 am
funny stuff eh, …
funny stuff eh, except millions of lives are destroyed….they need to pay for their greed.