The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad
Economy | Information | History | Online | Facts | World | Global | Money
This talk was given at a local TEDx event, produced independently of the TED Conferences. The Great Economic Myth of 2008, challenging the accounting to accounting principal. Brian Wesbury is Chief Economist at First Trust Advisors L.P., a financial services firm based in Wheaton, Illinois. Mr. Wesbury has been a member of the Academic Advisory Council of the Federal Reserve Bank of Chicago since 1999. In 2012, he was named a Fellow of the George W. Bush Presidential Center in Dallas, TX where he works closely with its 4%-Growth Project. His writing appears in various magazines, newspapers and blogs, and he appears regularly on Fox, Bloomberg, CNBCand BNN Canada TV. In 1995 and 1996, he served as Chief Economist for the Joint Economic Committee of the U.S. Congress. The Wall Street Journal ranked Mr. Wesbury the nation’s #1 U.S. economic forecaster in 2001, and USA Today ranked him as one of the nation’s top 10 forecasters in 2004. Mr. Wesbury began his career in 1982 at the Harris Bank in Chicago. Former positions include Vice President and Economist for the Chicago Corporation and Senior Vice President and Chief Economist for Griffin, Kubik, Stephens, & Thompson. Mr. Wesbury received an M.B.A. from Northwestern University’s Kellogg Graduate School of Management, and a B.A. in Economics from the University of Montana. McGraw-Hill published his first book, The New Era of Wealth, in October 1999. His most recent book, It’s Not As Bad As You Think, was published in November 2009 by John Wiley & Sons. In 2011, Mr. Wesbury received the University of Montana’s Distinguished Alumni Award. This award honors outstanding alumni who have “brought honor to the University, the state or the nation.” There have been 267 recipients of this award out of a potential pool of 91,000 graduates. About TEDx, x = independently organized event In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.* (*Subject to certain rules and regulations)
Comments
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THIS IS TOTAL BULLSHIT -- ANDY MORON COULD SEE THAT....
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Nothing new here. The OECD wrote this in 2008 about the mark to market part. But this guy gets the facts wrong and limits the size of the threat on mortgages only, ignoring CDOs and Morgage backed securities. This is a guy trying to sell his anti government talking points. I wish TedX would have some quality controls because this guy is a hack.
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This video is a crock. The crisis was caused by insane levels of private sector debt and by erosion of underwriting standards. It wasn't because of mark to market, or from the CRA. The speaker also seems to ignore credit default swaps.
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Historically interest rates do not affect the volume of money lent. Firstly, interest rates set by the Fed are not passed onto the consumers. The reason for this is that the published interest rate is not the interest rate set on private bank loans, but on central bank money that is lent to the private banks for use only inside the central bank to settle accounts between banks. Secondly, private banks, who create money out of thin air when loan agreements are signed, ration money into the market - it is not a free market. The only mechanism that increases or decreases the amount of money being created by private banks and lent out to businesses and private individuals is the level of confidence of private bankers and occasionally when governments set quotas for loaned money. The reason for the financial crisis is very simple: private bankers were allowed to do what the hell they wanted by elected officials, mainly because those elected officials have been utterly corrupted by donations and lobbying. The answer is very simple: either one regulates the market to death or you nationalize the entire banking and insurance sector. Countries that have predominantly state owned financials services such as India and China do NOT have booms and busts. And if the idea of nationalizing the financial services sector sounds like Socialism (a swear word in Merica), well it is. So what do you think happened between 2008 and 2010 when the government bailed out the PRIVATE financial services sector? It was the largest single SOCIALIST act in human history. Trillions of dollars of Socialism for the Capitalists - and who pays for it? That's right: the people. The USA is way more communist/socialist than any other nation on earth. The biggest hand out in history - and it was to the most privileged on earth.
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The free market in my 24 years of life never once provided me a good paying job or education to get one. It failed me every step of the way. But please keep being a free market apologist even though the market it completely owned by the Federal Reserve and everything that happens inside the bank is owed to them in interest. LOL
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First the stock market went down in the late 90s/2000s. Then the economy went down in 2008-09. Next its time for the fraudulent worthless dollars they print to be taken down.
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wow...1/2 million words is a strategy to be ignored. who reads it ? not the weak and passive media
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I feel as if I always had to get approval of home loans, and much of that approval depended on my ability to pay for that loan. I have always had to prove my ability to pay back money I have borrowed. I have always 'assumed' that the people who loaned funds to pay for my home checked to see I had the ability to continue to pay. I spent a great deal of time proving that every time (just a few) I have bought real property. That didn't happen during the time prior to the collapse of 2008. If financial institutions denied the need to exert their fiduciary role and instead approved loans that would not have been made in prior years (in order to derive profit) and those who act in judgement of the appropriateness of those loans ignore their fiduciary role, who is the referee? When those same financial institutions lend monies that have not been used for many years (Due to Glass-Steagall rules) there is a diminution in the ability to pay creditors the funds due to them! Whether the amount is relatively small compared to the size of the Gross Domestic Product matters less than the effect than the fact that financial institutions are insolvent an unable to make appropriate payments.I assumed I would hear some sort of revelation about the cause of the 2008 crisis that America and the entire world had to deal with. Instead, I am hearing an explanation of how the ship of the economy was able to right itself. It matters less that millions of individuals were harmed greatly by the crisis and the financial institutions ignored their responsibilities? While those financial institutions paid employees bonuses for NOT doing their jobs entirely, many others lost their life savings, homes, careers and self respect because of it? Creating the stability was a project given to the public when those financial institutions were actually responsible for not doing their jobs as expected. That is why the financial institutions are given responsibilities - but in this case acted VERY irresponsible.
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the solution to problems caused by unregulated marketing is........free markets ! what utter bullshit !
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I think t'he government has Lost the control of the economy few years ago. Just one thing: the European Bank that provides loans and this stuff to places like Greece is a private bank. Yes, a private make gives money to a democratic government. Further, de democracy is over. A private bank is ruling European economy. I think it's not much different in America,
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The Stock Market crash was planned in advance by the people who benefited. It is no accident that the Stock Market fluctuates by that great an amount, and it has consistently fluctuated by that great amount for the past 150 years. Everyone knows this and yet everyone acts surprised when the market crashes once again for one more time. Suckers. We are all suckers for the cheating and the lies.
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To avoid boom bust cycles of economic growth we need more conservative regulation and less unregulated growth. Too bad.
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We need to discuss the interest rates and money supply in the 1980's and the 1990's to have any real meaning. Nice talk about the last minute "short term" results of long term behavior.
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Anybody heard about Countrywide? Greenspan was a brilliant man with a ridiculous ideology. Ayn Rand? Really? It's not the Great Recession, it's the Great Swindle. Clinton and Greenspan opened the doors for savvy predators. After that disaster Obama got through a stimulus plan that went almost entirely to government workers.
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Why couldn't you stick with cool gadgets and technology, tedx?
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so banks were not responsible for essentially robbing people blind? coercing ratings agencies to rate their products to a high standard when they were selling people shit to the nth degree? and then better on whether or not they failed or not, hedging their bets by selling those bets and so on? no regulation and in the end knowing the ordinary tax payer would pay for it while they go home scot free or get fired but with multi million dollar bonuses?
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the "real truth" rather than just the truth?
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I want you to know that this man has given you the straightest diagnosis of this subject that you're going to get. Mr. Wesbury I thoroughly enjoyed and appreciate your speech on TEDx. Thanks for posting on Youtube.
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You can't blame Government, as big buisness put people in power to do there bidding. Banks only have themselves to blame for the financial nightmare they created.
19m 26sLenght
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