00:00    |    
Initial credits
00:24    |    
Introduction
02:22    |    
Economic bubbles
Beginnings
Prevention and collateral damage
Policy makers
Parallel situations to the Great Depression
05:53    |    
Experimental economics lessons
Consumer goods and service markets
Asset markets
Crisis of 2006
Market differences
Real world experience
13:57    |    
Economic bubble causes
Central economic policies
Predetermined government loans
Tax reliefs
U.S. trade deficit
18:34    |    
Economic bubble after 2000
Uncollateralized credit default obligations
20:18    |    
House price index
23:10    |    
Damage to the financial system by stock-market bubbles
Margin requirement rules
Housing mortgage bubbles
Mortgage loan tradition
Bubble impact on poor people
30:34    |    
Role of credit default obligations
33:28    |    
Problems of derivatives
35:13    |    
Flow of mortgage funds
Federal Reserve intervention
Net flow of mortgage funds
Foreign investment
40:38    |    
Mortgage fund flow in the 1900's
42:51    |    
Housing expenditures in the Great Depression
45:08    |    
Housing expenditures in 2007
46:32    |    
Conclusions
Economic experimentation
Erroneous economic policies
Depression similarities
Government intervention
50:52    |    
Question and answer period
How did greed affect the outcome of the current depression?
Would a more rigorous regulation by the government have prevented the crisis?
Do you think that Federal Reserve intervention may worsen the current crisis?  What do you think about the future of the dollar?
How do you simulate economic scenarios in laboratories?
What do you think the consequences will be regarding the enormous amount of money the FED introduced into the economy?
Where did you invest the money you earned by winning the Nobel Prize?
Do you believe it is a good time to buy a house?
01:11:34    |    
Final words
01:13:00    |    
Final credits



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The Housing Bubble and Crash that Engulfed the Economy: Causal Similarities with the 1920’s and its Aftermath

18 de junio de 2010   | Vistas: 14 |  

In this conference, Vernon L. Smith elaborates on the evolution of the 2008 crisis that shattered the world's economic system without warning, especially in the United States.  He explains why economic bubbles grow, based on his personal observations.  He demonstrates the future implications of premises that were set in previous decades in market policies imposed by central authorities such as the Federal Reserve.  Smith describes how other crises, such as the Great Depression, affected the American economy and he compares them with the current one using different indicators.  Smith proves that the constant intervention in the economy led to the great debacle that exploded in 2007 in the housing and stock market.  Finally, he describes the effects this crisis will have in the economy, and criticizes the solutions that the U.S. government has implemented to solve this problem.




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Universidad Francisco Marroquín

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