FInancial Crisis Debate (2 of 13) Niall Ferguson

[theoriginalskytag]

He seems to willingly ignore the reality that even risky mortgages are not a problem as long as their risk is known. The subprime mortgage crisis was the result of concealing that risk by bundling them into securities falsely rated as triple-A securities when they clearly did not warrant that rating.

[thewalrus22]

You are right, he is for NO intervention. The bubble was a form of intervention. I think he is still where he has always stand; no intervention for better or worse. Usually the worse cause by intervention.

[tairanotomomori]

Is he a serious scholor?? Seems more like a celebrity historian now. I heard some books he wrote long before he became famous were good though.

[spacerumsfeld]

With the revelations of distinctly predatory behavior on the part of investment banks (i.e., loading up synthetic collateralized debt obligations with toxic assets, selling them to investors, then betting against those investors), I wonder if Niall or anyone in favor of the motion might now change their mind.

[ANTIDALLARD]

I think Ferguson is trying to divert HIS responsiblities. He has been a cheerleader for the thatcher / Reagan doctrine of no regulation, or interferance in economic markets. Now hes saying the govt ALLOWED a housing bubble to inflate.

Cant have it both way. Hypocrite.

[tradertype]

@ANTIDALLARD Are you an idiot? He didn't say the government allowed a housing bubble to inflate, he's saying the govt CAUSED a housing bubble to inflate.

[emangi1]

He appropriately identifies the fed reserve. This however is a contradicting argument as the Fed is independent, unconstitutional and never been properly audited. Not mentioned is the colossal amount of influence the bankers have on government (ie: Goldmansachs being an essential money fountain for Obama's campaign).

Google Ron Paul.

[spacerumsfeld]

@emangi1 Can you tell me how $994,795 (the amount Goldman Sachs donated to Obama's campaign) out of a war chest of over $700 million is somehow "essential"?

[emangi1]

@spacerumsfeld i'll amend my words: "...ie: goldman sachs being among the essential contributors..." I'm happy to do so because it doesn't affect my position in any way.

[bonfirejovi]

@emangi1 It isn't contradicting. Explain how a Federal Reserve would exist in a free market? Government intervention.

[emangi1]

@bonfirejovi but at least the government is somewhat democratically accountable. In my opinion it's 100% better than what exists today.

[bonfirejovi]

@ANTIDALLARD The government caused it through easy money and low interest rates. Bubbles occur in markets even with symmetric information but bubbles this huge require assets prices to be way above their fundamental value and thanks to easy money and low interest rates it was. Who do you think supplied the leverage into the system?

[johnnydrysider]

@ANTIDALLARD The govt encouraged subprime loans.. Fannie and Freddy started it all and it was locked in by Bush. All because they wanted higher percentage of the people owning homes. Meaning... subsided housing.. Credit default swaps and derivatives followed ..Allowing people to get loans that shouldn't.. Canada didn't do any of that.. So the Banks there were unscathed..Housing percentage was gonna go up anyways, it just wasn't fast enough to buy more votes for the politicians..

[ANTIDALLARD]

@johnnydrysider That is a load of bullshit. YOU would like for people to believe that because it deflects blame. But the truth is, neo liberal economics has been a disaster, and has brought America and the west to the brink of collaps

[johnnydrysider]

@ANTIDALLARD So that's a load of bullshit cus you say so.. Sweet argument.. SOunds like you're deflecting the facts. The Banks were partly to blame, everyone is to blame.. But the system was set up by whom? deflect blame? What the hell has the government been doing? I believe that cus all that actually happened, where were you Peter Pan land you kid.. The real truth is "neo" government economics did it. you can call it liberal, conservative, it's all the same. They all follow Keynesian

[theoriginalskytag]

@johnnydrysider Your assessment of what happened is not even remotely accurate. Freddy and Fannie most certainly did not start it; quite the opposite, in fact. The practice of selling risky mortgages by using them to back securities was a direct result of the fact that Fannie and Freddy would not buy those mortgages. The subprime mortgage crisis was created entirely by the private sector. Government only role was its failure to intervene and stop irresponsible behaviors.

[RedTyphoon1]

@ANTIDALLARD Watch he's other videos he has stated there's no such thing as an unregulated market. You need the right regulations - you need a balanced system. Watch his other videos before you criticize.

[acmedressform]

i've come across banking types, they can go screw themselves because most of them are snobbish brown nosing ass holes. So they can deal with a lot of opprobrium, it will take them down a few effing pegs.

[acmedressform]

how about also blaming individuals, also advocating an ethos of personal responsibility. when you borrow money know that you can repay it, and learn how to save.

[madzion50]

if this guy was more of a independent.. i would take him more at face value , But i remember him saying.. don't believe the hype, the clintons will beat Obama , Then when Obama won the nomination... he then said Obama doesn't stand a chance in the election.

He seems better at reciting HISTORY than forecasting, and lets face it anyone can read up can DO THAT.

[bettertobealive]

Yeah, it's that simple...

Thats why he works at Harvard, and you work at Burger King.

[madzion50]

Yes! its thats simple , I can get into detail of many of his pathetic forecasting and predictions ...but iam only allowed so much space.

what has he written that was fresh and original ..NOTHING!,

he bites from other talented authors to piece together his books.

BTW.. your take that I work at B.K is some real Pulitzer stuff.

Now run along you simpleton

[bettertobealive]

"He seems better at reciting HISTORY than forecasting"

He's not really "reciting", he is looking at evidence using analytical skills, which you seemingly don't posses. Do you know how much knowledge you need to make a "forecast"?

None whatsoever, it's a bloody guess.

[Fimbulfamb]

Yeah... well, he's a historian, so I guess that's what he gets paid to do. Also, I happen to know that compared to you, he's positively genius.

[cghslaxforce]

wow man that was really good

[cameron6136]

Why do they always find a way to blame, in some part, minority home owners? The welfare queens are now corporate America.

[bjan87]

What a speaker.

[jvittetoe]

Dude kilt it.