The Liars' Poker: Economists Explain Why Hints of the Economic Crisis Eluded Them

[sang3Eta]

Looks like a big racket to me, you create the problem (bad loans) and sell the solution (AAA rated debt swaps) everyone inbetween is making fees. RICO law was created to jail gangsters who ran such racketeering.

[pretorious700]

PBS is a joke.

[t4705mb6]

PBS is a gatekeeper network for the left. They lie outright and they lie by omission.PBS gets it's marching order from the world elites, same as the other state propaganda machines. They are experts at twisting and stretching reality to fit their target audience. Good examples of the control NWO masters have over PBS is their incessant repeating of the Warren and 911 Commission's findings - KNOWN lies! What you ACTUALLY get is FOX "NEWS" but with chocolate syrup and a cherry on top.

[RuggedLike]

Problem = short termism incentives within financial sector.

[therealcaptobvious]

i dind't have the software prior to this year.

I'm not sure if you have been paying attention. Any random person called it out when the average real estate in one city is valued at $500,000 and the average annual household salary there was $47,000.

After the dotcom bust.

Also, in one of the video about Lehman Brothers one guy wrote that we all saw it coming.

We saw the foreclosures start after Bernanke raised the interest rates.

You don't need to be a soothsayer to see it.

[ozdillon]

As you saw this coming you must of made a fortune. Did you buy some CDS in Lehman Brothers.

[therealcaptobvious]

let's put it this way. I avoided A LOT of trouble that many of my peers got into.

I avoided that ring of fire like the plague.

[Berialavrenti]

are there studies showing the relation between housing prices and the economy in the sense what level of economy can carry which housing prices?

[JBfan88]

I really hate the editorializing in this vid. Unless of course the poster has a PhD in economics, or at least a masters.

[therealcaptobvious]

I have the latter. Do you have anything to say about the content? I'd be interested in hearing it.

[JBfan88]

Not particularly. It's certainly interesting. I'm not an economic expert. I do have to ask, given the point of this video, did you predict the collapse?

[therealcaptobvious]

I along with every other business and econ grad I worked with predicted this.

The only one that would tell you otherwise might be a polisci grad.

Look at real wages, the cost of living index, the trade deficit, the declining value of the US Dollar and look at the real estate market. Anyone with a brain could've told you that it was a bubble. Bernanke lowered interest rates after the dot c o m crash which along with ARM loans sent the RE market soaring. It was obvious.

[JBfan88]

It seems odd that all the grad students saw this coming, but the PhDs were mostly blindsided. What happened in those extra years of schooling to make them not see this coming?

[therealcaptobvious]

actually there were economists who saw it coming. They were hushed, the "reports" is a sales pitch.

The media is paid to promote.

These "experts" had incentives to lie. Watch what they're selling, Real estate backed investments, derivatives, REITs, Real Estate, nothing but real estate... investors were investing in gold and foreign stocks and commodities.

Business grads had nothing to gain by lying about it.

[therealcaptobvious]

It depends on which PHD you heard. most of them aired on MSNBC and the like are Sr Advisors for JP Morgan. Note, they were working for JP Morgan and trying to sell investments.

[ComradeSephiroth]

As wages stagnate and home prices soar, more and more people will be priced out of the market. Normally this would kill demand and prevent a bubble. But thanks to bad lending/borrowing practices and speculative home buying, it was allowed to go on to ridiculous levels.

[miniccc]

actually valhala, if you look at the famous hockey stick graph, an increase in CO2 happens after an increase in temperature, not the other way around. So in fact, you got it backwards.

[mandatum]

Good, God. Most economist are idiots! Pathetic.

[pretorious700]

@mandatum No, most keynesian economists are just tools of the state. They say whatever the government wants them to say.

[miniccc]

This ideological blinder spoken about at 5:28 by Darity is the same kind of blinder that the global warming enthusiasts are imposing on the scientific community to this day. Go read about solar activity and the possible coming ice age.

[valhala56]

I think you got that backwards, the denial is refusing to admit when you increase Co2 into the atmosphere this causes Greenhouse effect, uh look at Venus for runaway greenhouse effect.

Now personaly I think this is pretty much the same as the economic collapse, people like you turned it around backwards and demanded free markets,didn't want to hear the warnings, then you want to cry about the castrophe and say you weren't warned.

[therealcaptobvious]

what we're experiencing isn't a free market. Consumers have little power to stay unaffected by the bubbles. I'm totally not sure if I believe the global warming thing. The biggest concern I have is that air pollution causes asthma and breathing problems in children.

[miniccc]

I couldnt watch this past 3 mintues it infuriated me so much.

[julianhpike]

Sounds like they're talking out of their asses... Peter Schiff, Ron Paul, and many others from the Mises Institute have been saying this for years. Joseph Stiglitz cleary doesn't get it; the government and the intervention by the Federal Reserve are some of the main reasons the bubbles are created.

[therealcaptobvious]

couldn't imagine that the SAG agents want anything to do with these people. Look at the body language, the way they phrase their arguements...terrible actors.