TEDxDartmouth - Bruce Sacerdote - The Causes of Financial Crises

Prof. Bruce Sacerdote presents on some of the causes of the recent recession and its predecessors, at TEDxDartmouth, April 17, 2010. www.dartmouth.edu/~tedx/bruces...
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[@marksletters]

Loved it !!!! Thank you !!!!

[@thomasbotch1744]

Re: San Fran - Gold doesn't need to be shipped it just has to be held in reserve to back up the paper currency. If the Insurance houses were properly insuring they would have gold in their vaults backing the total real estate value less an invested amount to earn a return to run their business in addition to insurance fees collected. Since they needed only pay dollars to the fire victims they could have sold bonds for currency in Europe and backed it by the gold in their vaults and wired or shipped dollars or foreign currency to support new construction - surely in a paced way. Fractional Reserve Banking may soon find itself short both paper dollars and gold because neither no longer satisfy, nor represents the total value of dollar denominated electronic created fractional reserve debt. Best to have a mixed standard financial system and not let Insurers financially rape people.

[@gerhardkutt1748]

This is a good presentation - unlike some others like by Brian S Wesbury - which was atrocious as he based his talk about how the crash happened because of meetings the Fed had. One positive mention about Barney Frank was OK.

[@tugboat2030]

They met and everything went to crap! What were they doing????

[@bigbenhebdomadarius6252]

The problem with Wesbury's argument is that the fact that things went to crap after the Fed met is not proof that the Fed's actions were the problem. It's equally possible that if the Fed hadn't acted as it did, the crisis might have been even worse. Wesbury's argument is like saying that just because I walk into a bar and the building collapses five minutes later, I caused the building to collapse. Maybe I did, but maybe I didn't. Proof has to come from elsewhere; my entrance and the building's collapse are not _necessarily_ connected.

[@saeedbaig4249]

Fairly detailed mainstream explanation of how the GFC worked. Be aware, however, that there is a lot of technical assumed knowledge in this talk, so you better have some sort of background knowledge about the topic first before diving head first.

[@losraiders34]

Why continue to use a system that we know will perpetuate a "financial crisis"? Albert Einstein said it best "Insanity: doing the same thing over and over again and expecting different results."

[@LyubomirLalovMulti]

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[@Rob-fx2dw]

So Bruce states that we don't need a gold standard. But then describes how JP Morgan solved the crisis of 1907 in a very short time without a Federal Reserve and without a fiat system. But before that explanation he is adamant that the gold standard is a bad idea. One has to ask Why if such a huge crisis can be solved in a very short time by J P Morgan and yet the GFC extends for at least 8 years with a greatly reduced standard of living for most and a huge shift in income and wealth for the middle class. Given this talk was in 2010 he need a re examine his thinking and revise his conclusions given the extended effects of the GFC.

[@travisbrewer5391]

The real unemployment rate was 20%. The official rate doesn’t count those who leave the workforce.

[@antonioherrera1324]

Wow, that's a good talk, if u wanted to sugar-coated, good talk, also fascinating ending, solved the crisis 🤣🤣🤣🤣🤣🤣

[@elik.webber7630]

question is where did the tarp money go .

[@ROCEMPOWERMENT]

Danny tanners life after full house

[@tylorcheatham945]

Hahaha yes

[@paulfur21]

Who is we?

[@cosmicmariner6621]

You mean you didn't get your dividend check in the mail? Call your senator.

[@drewconway7135]

You lost a lot of credibility at 9:54 when you called TARP the “Troubled Asset Repurchase Plan.” It’s the “Troubled Asset Relief Program.” How can you not know this? In order to “repurchase” something you have to be the one to have sold them in the first place, like when a company “repurchases” its own stock on the open market. The government, which was buying the toxic assets, was not the original seller; the financial industry was.

[@mr7clay]

Update: As of Oct 2015, we've made $68B profit on the bailouts. projects.propublica.org/bailout/ Those promising huge losses (like this speaker) were thankfully wrong.

[@MM-ik7ko]

We? Where is this 85 billion give me a eice

[@Yotraj]

I just want to know... if we made sooo much money... then how come the National Debt is still so freaking high? And don't forget... it takes $1,000 Billions to make only $1 trillion.

[@Yotraj]

according to some estimates I have heard from those on high... before it's over it's supposed to look more like $23 Trillion. But my point remains... if they've paid back all the money we loaned them... where is it? Our national Debt. show's the increase in debt... but not the decrease of payback... so where'd it go?

[@cosmicmariner6621]

Here's an even better question. Why should anybody pay back with interest a bunch of little "0" keystrokes on a computer? There never was any money, get it? Its all a big scam. Ireland is now the 4th single largest holder of U.S. debt. Now where did the sheep herders get that money? They ain't got oil, gold, or diamonds -just sheep. Answer, the U.S. Fed reserve loaned them the money. Because the world is catching on that you don't want to own fake debt (T-bills) So, they make it look like there is a buyer so interest rates don't have to climb in search of a real buyer. PONZI...

[@mulllhausen]

libertarian bent??? this is one of the least libertarian opinions i have heard on this topic

[@sylpolak9851]

Prof. When next collapse, please

[@tpitrone]

So much of what this fellow says is wrong. The Treasury didn’t liquidate AIG. And AIG paid the taxpayers back with interest. Besides, his clothes are atrocious.

[@OutSideTheBoxes]

his Mother bought him the shirt, daughter the tie, the pants are from Home Depot

[@po3-doc159]

Whose mans is this?

[@yofed2]

maybe the most intellectually dishonest Ted talk ever. almost hilarious. I love how he starts in the middle of the story and praises the initiators of the entire fiscal circus that was the housing bubble with "fixing it".... what a joke this talk, and this guy is.

[@whitetigr8337]

yofed2 I know nearly nothing about economics. Please, enlighten me about what's so dishonest about his talk.

[@antonioherrera1324]

​@@whitetigr8337 it's so so simple, I hope by now u had a spare time to just look up the interviews of those who were there,