The Global Financial Crisis: Causes and Consequences

[exenrontexas]

My favorite Greenspan video clip is his testimony before Congress when he admits that his reliance on DEregulation and the myth that markets correct themselves was...WRONG. And since he was WRONG and IRRATIONAL on his reliance on OBJECTIVISM then MILLIONS of Americans and hundreds of MILLIONS of humans around the world paid a very heavy price.

[coflex09]

Greespan liar, crook, illuminatty bastard.

[auctionmusic]

this guy should have stayed a cobol programmer

[sem100brf]

The collapse of export trade worldwide made this a global phenomenon. Inventories skyrocketed and production stagnated. 17 trillion dollar decline in stocks in 6 weeks froze economies by freezing credit. The business community squeezed the labor narket to minimize expenses. The Central Bank needed to take sharge and infuse money that could be lent to promotoe growth. I understand.

[iflyboats]

what the hell happened to this fucking guy... ayn rand would disown him

[meushubris]

CFR is scum and should face traitors fate's.

CFR= One World Govt and the end to freedom in any form

Fuck you CFR

[Megamediaplex]

dot com

[shaylo2006]

Too bad,Peter Peterson was at one time very smart,looks like he has "gone to the darkside" with Greenspan.

Greenspan should be in prison!

Its funny how many "experts" are giving up explaining things with facts and are using words like,hope,belive,would-have,sh­ould-have,the math was telling the story if they had bothered to look.

[largo2001]

Greenspan the moron responsible for negative real interest rates leading to asset speculation.

[BottleCapsound]

coup de ta ....by bankers and dereg

just go ahead and give pelosi, gore etc all your money

[BottleCapsound]

@BottleCapsound

simple ....we have an oligarchy , off off shore bankers..men without countries I call them ...

this scumbag should just go away .

[hongster76]

it says a whole lot about the american people of the past century. overly righteous and towards the end of the last century, arrogant n stubborn. america and its people assumed that the world will go along with them as the rest of us are incapable of thinking ourselves. the 'altruistic' americans allowed the apparent imbalance of the global economy in the last century. we r sick of carrying the america burden

[patnais102]

What happened to america happened to every single empire before.When Athenian started preferring the paelasta to the agora it was the end of the athenian empire( Your republic died 40 years ago with the end of the draft, just like the roman).

[patnais102]

The american republic* just saw your page lol

[lordvalgarX]

Unfortunately this is NOT Capitalism, it is CORPORATISM, deregulation sped up our road to Corporatism. Its a great scam using invisible credit to buy out, gut and shut down your competitors creating monopolies. (GM and Opel is a fine example). then charge the taxpayers interest on the credit borrowed... heck yeah, you actually didnt think those with their hands in the TARP jar are actually going to pay it back right?

[patnais102]

You are right this is corporate welfare but don't think capitalist country are doing better. I've been in the developing world, where you can see real capitalism and believe me you prefer corporate welfare (which always existed by the way from royal companies to Microsoft)

[ThisWasBlank]

Where in the developing world were you? I see capitalism as a Utopian ideal, which has not existed in the real world (yet). I think there are economies that exploit its features to prosper, but in a limited sense and with set backs.

[patnais102]

Kenya , Cambodia ,Gabon and Mexico.Capitalism is more or less a phase just like.You can have competition at the beginning but at the end there is only an handful of company who survive and establish a cartel(oligarchy) or one (monopole). If you read people like Adam Smith you realize his idea can not be apply in our modern era. It base it self on false assumption (infinite resource and the omniscience of the elite (which are basically the invisible hand of the market).

[patnais102]

just like communism*

[ThisWasBlank]

In the ideal of capitalism, new companies are being created all the time in capitalism. The number of firms in an industry will continue to grow (despite many failing) until the industry as whole is earning Normal Profits (at which point the industry is 100% saturated). However, if at that point a few firms fail, there will suddenly be higher than Normal Profits being earned in the industry, and that will be an incentive for new firms to enter again.

[patnais102]

This whole theory of new competition goes against every logic. If a company or several companies earn higher than normal profits for a period of time it is clear to me that this or those industries will become in a situation of Cartel ( having much more resources than their competitor they can afford more promotion, more lost(disloyal competition, that's why the state use price floor), head hunting etc.)On the other hand you just described how bubbles are created.

[patnais102]

People see one industry doing good they all go into it but if everyone is doing it the gain will diminish and the last arrived in the party will pay the price.That's why crises are normal , with an uneducated mass who react like animals,people don't think by their self. They only look at others doing good and try to duplicate them instead of innovating and trying to think further , it lead where we are now. No evolution com from the private sector it all come from the public but get privatized.

[patnais102]

The private sector only add some useless accessory to make things flashy. If you take a product of the private sector , let say car.Have car innovated in the last 100 years? I would say no , yes they go faster and use less oil but the principle is the same after 100 years , they tried to made them change (who killed the electric car) but they didn't want to change they preferred keep it the old way, less expensive more profit. Our current system encourage stagnation.

[trevyn41]

@patnais102 wrong on every level. You can drive a model T if you think nothing has changed.

what causes innovation if competition doesn't?

[exenrontexas]

@trevyn41 Good question and here is an answer. It is not competition or even greed which drives innovation but rather curiosity and an educated mind having the time and resources to explore. Examples: Michael Faraday, Nicolo Tesla and Bill Gates. All never considered competititon as the motivator for their innovations but rather the question "What is the problem and how can we solve it".

[patnais102]

That's why the developing world is a good demonstration of capitalism.State don't intervene, the big companies come they eat the smaller and everybody have to work for international corporation until the wage got a little higher then they leave and let the people starve.That's pure capitalism , that's how we developed our society (with national industries so they can't leave , we closed our borders to foreign industries).We created union to re-balance things and they created globalisation .

[ThisWasBlank]

A cartel can come into being only if the gov interferes into this market-only process. Remember one of the defining features of capitalism ideal is Perfect Competition.

[schmazly2]

The concept of "Perfect Competition" never can exist, and is an idealist concept.

Doesn't say this in every introductory economics text?

[ryanonfire]

Yep.

[ThisWasBlank]

I meant, "until the whole industry is earning Normal Profits equal to zero." and "suddenly Normal Profits will be higher than zero in the industry." Sorry for the errors.

[patnais102]

Ron Paul is a lunatic. Capitalism is a pyramidal scheme everyone with a brain know it. Why everyone is working for peanuts while one person is getting 75% of the result?We all hope to be the one grabbing the big share ,while the other are sharing what's left, one day. There is a god and he made the son of a rich man (everything is relative but for common people between 5 to 25 millions is rich).Greenspan, Summer, Krugman,Stiglitz, Black they are all the same.

[OmarThePug]

you should just ask your boss for a raise dude.

[patnais102]

Bosses are for idiot just like dogs , sorry I got non of those.Un pug, quel crétin fini , chien écoeurament laid. Habituellement à l'image de son maître, aktemone.Ce que l'on ne sait pas ne fait pas mal ,mais peut nous tuer.

[speakupforjustice]

i wouldn't lump Krugman with those guys. I don't really consider him a free market capitalist

[patnais102]

Krugman is literally licking Ben Bernanke's balls.You could have said William K Black or Stiglitz at the limit but

Krugman is definitely part of the game.

[WWIIINIV]

A child understands that what has happened is the end of a Multi Level Marketing scheme. It will always collapse because the suckers at the bottom are left to hold the bag. Greenspan and his ilk will start the scheme over again under a new product, much like Vemma Extreme or any other fraud.

[WWIIINIV]

Ron Pauls book END THE FED is a must read for anyone who wants to understand what is going on. 

I expect Greenspan to just say "Wasn't my fault"