Understanding the Financial Crisis (Johan Norberg)
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- Опубликовано: 3 июн 2010
- www.cato.org/people/johan-norberg
"The story of this storm in the global markets is the story of how government intervention to solve previous crises laid the foundation for a new one," writes Johan Norberg in his important new book. Tracing the causes of our current financial crisis with liveliness and clarity, Financial Fiasco shows the mistakes made in Washington, on Wall Street, and in communities across America that led to the economic meltdown. While many analysts have placed the blame solely on Wall Street, Norberg exposes the crucial role government regulation played in creating the opportunities and incentives that led to the financial collapse.
In six concise chapters, Financial Fiasco tells the complex story of the crisis, showing how monetary policy, housing policy, and financial innovations combined to create financial catastrophe. The final two chapters describe the government's mismanagement of the crisis and how we are now dangerously repeating many of the very same mistakes that caused it. An understanding of the roots of the financial crisis is crucial for every American who has felt its effects-and would like to prevent the same disaster from happening again. Financial Fiasco provides that understanding, with great insight, clarity, and wit.
Just as important, the book serves as a profound warning against pursuing the wrong solutions. "After government authorities had helped create the worst financial crisis in generations, the climate of ideas has now shifted dramatically in the direction of bigger and more active government," Norberg writes. Financial Fiasco is the perfect antidote to those ideas, a cautionary tale on how to stop confusing the disease with the cure.
Johan Speaks the truth and has done so for many years.He is one of the brighest minds to come out of Sweden. I higly recommend following his blog at johan norberg .net
Excellent video.
Love all the Cato vids, wish we could get wider viewership. I send links but it seems most adults would rather watch a kid blow up a coke bottle or fall down a flight of stairs with their RUclips time than learn anything.
@aaron0883 Lol. You're right. How horrible though. I would love to have been there. I'd stay in that auditorium all day so long as they had speakers.
@classicalbunny realistically the majority of people do not want to work in a field in which they can be sacked at any given time do to free market comp.. they still have families to look after and job security (unions) offer this even at the risk of halting creativity and advances...
@classicalbunny either way when people gain resources (money) it isn't hard for them to implement tactics to limit comp and continue to grow...usually with govt help... and these practices often lead to an effective transfer of wealth from poor to rich leading to social democracy and a quasi socialism (since the marginalized workers never do own the means of production).
@philliproemer21 well thats a whole other debate.. i personally think like everything political or any other organized institution how it acts, is exactly how it was intended to work and if the naive public thought it would perform in some pure, idealistic, fair, and just method they are sadly mistaken and obviously to indolent to research the nature of the institution... power doesn't corrupt. power is corrupt!
@drkevincampbell - I don't know. Both the case for deflation and hyperinflation have been made. Deflation would demolish the US gov, but I see that hyperinflation is more likely, because it can be used to keep the debt in check, though it would really, really piss off the chinese.
@ST0orz lol, it's the 'we need less government' "plan"
@slightlyndifferent - They won't bury it, because it tells them what they want to hear. It tells them that government spending is good for the economy. It lets them spend other people's money to buy power for themselves.
the problem with capitalism is that it leads to socialism... bailing out big business socializes business and then u have socialism but socialism doesn't lead to capitalism who knows what America will become it's military still allows it to physically destroy any potential rivals.. the problem with short term govt each worries about pushing the collapse onto the next leader instead of dealing with the issues...
@classicalbunny i'm after a dignified existence for everyone. freedom to pursue any interests barring they don't infringe on others.. it's either grovel to a government or grovel to some unaccountable lawless corporation.. i'm not a fan of big govt but the continual abuses perpetrated by big business will force govt to expand to regulate.. pursuit of profit is not moral or considerate of the finite world. as a result greed and corruption are synonymous with profit. the black market is an example
The audience reaction is hilarious in this video.
I thought that CATO Institute believed in voluntary interaction. At 2:32 it seems they must have violated their beliefs. There is no chance those people are their be their own volition
Jag har Johan's autograf :D
@classicalbunny this discussion is getting of topic... "meaningless..." in order to understand this you must have an understanding of negative externalities, planned obsolescence, dated industries, the true amount of production which is trash, manufactured consent... aside from that most mall jobs that marginalized teens do are meaningless. capitalism fails in that it forces people to have perpetually destroy natural resources for sake of creating profit/surplus.... infinite vs finite
Ok, where's the next part where he solves the problem?
The solution is very easy, as Johan said many times. Give individual rights and ownership, step away the government from private sector, low regulations mush as possible.
The only role of the government in private sector should protecting individual right and ownership.
In his video "India awakening", showed very good examples how India in less than 20 years, decreased the extreme poverty from 45% to something around 20%, thanks to free entrepreneurship even for the lowest caste Dalits. This is mainly because of new law who give ownership and individual rights for the Dalits.
@UBSCARED By all means, explain what's called the housing bubble? Let's not resort to ad hominem. That's a sign of the absence of intelligence. Either way, GSE's are in the water, because like ALL government entities there is no mechanism that accounts for efficiency and overspending. And yes, corporatism was also a prime cause.
Bankruptcy is part of capitalism. Capitalism without bankruptcy is like Christianity without hell, then nobody would take responsibility for their own acts. I oppose to bail-out by my taxes for someone which messed up by own fault. The government should not interfere with economy, especially not guarantee in case of failure, it just makes worse.
P.S. Johan was right in one thing, today's western societies borrows money at expense of our children and children's children. That is much more immoral, than low wages. Many liberals tell me the GDP is rising in EU countries, then I asked them, then why their debts rise faster than GDP. Typical example was Greece. Thank you Keynes for destroying entire Western civilization. His model prolonged Great Recession in USA in '30, even some claimed it was stopped after WWII. His economic model in practice shown as unsustainable, and much worse than socialism.