Transcript
  • 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
    • , the movie
    • Quotes
    • 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


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

New Media  | 16 de noviembre de 2011  | Vistas: 45

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.




Conferencista

Gene Epstein is Barron's economics editor and author of the column…

IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín