• 00:00    |    
    Initial credits
  • 00:24    |    
  • 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    |    
    • 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

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

New Media  | 18 de junio de 2010  | Vistas: 37

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.


Vernon L. Smith was awarded the 2002 Nobel Prize in Economics…


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