00:00    |    
Initial credits
00:06    |    
Introduction
00:15    |    
Great Recession of 2008-09 in the US economy
00:56    |    
Aftermath of the Great Recession
01:25    |    
Definition of capitalism
02:08    |    
Definition of crapitalism
Key examples
04:53    |    
Austrian perspective
Austrian School
07:04    |    
Failure of crapitalism
Main factors that caused the meltdown
07:41    |    
Enabling factor: Central bank's negative interest-rate policy, 2002-05
Quotes "How did Economists Get It So Wrong," Paul Krugman
US economy as a free market economy
Neo-Keynesian economics
Alternative view
Quotes Jeffrey Sachs
Negative interest rates
Banks lending money at below the rate of price inflation
Quotes "Monetary Policy and the Housing Bubble," Ben Bernanke
Quotes "House Prices and the Stance of Monetary Policy," Marek Jarocinski and Frank R. Smets
Misquoting sources
18:38    |    
Propelling factor: U.S. government's housing policy beginning in 1992
Quotes Raghuram Rajan
Inside Job, the movie
Quotes Housing and Community Development Act of 1992
Mid-2008 breakdown of the high risk mortgages
House prices (inflation adjusted)
Rising market
Quotes "Fannie, Freddie and You," Paul Krugman
Fannie Mae and Freddie Mac into conservatorship
Subprime lending
31:05    |    
Precipitating factor: Replacement of mortgage bankers with casino capitalists
Private sector
Why did the worst get on top?
Factors involved
Quotes Angelo Mozilo
Other factors involved: Threats of lawsuits over racial discrimination
Accusation made by the Boston Federal Reserve
Banks shifting policies and abandoning principles
Deposit insurance
Quotes Franklin D. Roosevelt on deposit insurance
42:03    |    
Aftermath
Most aggressive fiscal policy in history
Most aggressive monetary policy in history
Other consequences
44:24    |    
What is to be done?
Radical solution
44:51    |    
Proposals for radical reform
Fixed interest-rate on federal funds
Abolish deposit insurance
Allow financial institutions to own concentrated shares in banks
Abolish government involvement in mortgage market
Suggested readings
Less government regulations
52:09    |    
Aftermath of the Great Recession
Why has the recovery been so slow?
55:03    |    
Question and answer period
What do you think about the moral hazard regarding the bailout of the private sector?
Argument for bailouts
Strands to the creation of crony capitalism
Mutual and pension funds
Funds exposed to the housing bubble accelerated the process of the downfall
Hedge funds
Systemic problem that fuels a bubble
01:09:53    |    
Final credits



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Austrian Perspective on the Great Recession and its Aftermath (Socratic Seminar)

16 de noviembre de 2011   | Vistas: 40 |   Austrian School Of Economics Capitalism Crisis Crony Capitalism

Gene Epstein talks about the Great Recession of the US for the period of 2008 and 2009 and its consequences. He mentions three main factors behind the meltdown and describes important concepts, in order to guarantee a better understanding on the subject, providing as well, an analysis from the Austrian perspective, pointing at the failure of crapitalism as the main cause of the the Great Recession. Epstein ends the conference discussing what is to be done in the United States' economy and lays out his proposal for a radical reform to offer a solution to the problem.




Gene Epstein is Barron's economics editor and author of the column "Economic Beat". Previously, he was senior economist at the…

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