Recession is a CRISIS, the result of Rightwing ideology-1/3

[TheNodnarb88]

I think the lesson to be learned from what's said in this video isn't that we need more regulation, but that gov't is incompetent of regulating, and when they try they distort markets and encourage risk taking. Remember that greed in a free market is accompanied by fear. What the gov't and federal reserve did during the Bush/Greenspan years was take the fear out of the equation with low interest rates and government guarantees. Had it been market oriented, fear would've prevented recklessness.

[SPS148669]

It;s funny that "Bolivia" that Native American country in the far south has the only growth in all of the Americas te last 4 years depite they are SO CALLED "Sovietism"

[christo930]

Health insurance, tuition, inflation... All problems caused by government. Why does the free market take the blame for this stuff? The fed creates inflation, gov programs drive up tuition costs, gov laws drive up health insurance costs and somehow gov is supposed to fix it all.

[edschaeffer]

The comment below was supposed to be directed at "dieonyourfeet"

[chadgresham]

I am truely scared for black and non-white americans. If this thing goes the way that I think that it is. Blacks better be ready because just like hurrican katrina when whites were shooting blacks on site it going to be that way again. You must arm yourself you must buy can goods water and first aid kits. Nothing I'm saying is racist but when things get really bad and whites get really mad with Obama who do you think they are going to take thier anger out on

[aeuiono]

Yes, once things get ugly, there is no doubt that non-whites like:

Michelle Malkin, Walter E. Williams, Clarence Thomas, Alberto Gonzalez, Condi Rice, Kathryn Jean Lopez, Thomas Sowell, Miguel Estrada, Shelby Steele, Michael Steele, Larry Elder, and John Yoo

will be target the rich whites who actually ruined this country:

Chris Dodd, Barney Frank, Ted Kennedy, Jimmy Carter, Bill Clinton, Bill Gates, Nancy Pelosi, Al Gore, Harry Reid, and Barack Obama.

[chadgresham]

I'm glad you noticed that Obama works for the elite I voted for the guy and I am black but I got caught up in the hype. I should have voted for Ron Paul even though he would not have won

[edschaeffer]

Ron Paul is an Austrian economic idiot who thinks the banks should've failed. Even though they would've pulled the entire system down. Ron Paul isn't all he's wrapped up to be trust me. Obama's and Bernanke's Harvard economic mind far exceeds Paul's. Just because he sounds like he knows what he's talking about and he looks like he's a nice old man doesn't mean he knows what he's doing. The "elite", the NWO, the CFR, the 9/11 conspiracy theories are all tied together and they are bullshit.

[christo930]

The banks should have failed, but more importantly, none of this would have happened in the first place if Paul's policies were followed. Remember, the sub-prime and alt-a and Americans bidding up real-estate into a bubble could not have happened without the fed pricing money far too cheap.

Instead, we have now rewarded all these banks for taking all the risks and gambling with our money and not surprisingly, they are doing it again.

History will not judge Greenspan and Bernanke kindly.

[edschaeffer]

A reduction of interest rates should happen in a recession, but you're right about the Fed not putting it's foot on the brake which caused house prices to plunge the way they did.

However, I refuse to accept the theory that 6% of mortgages (subprime and alt-a) could practically bring down the financial system. It was all the side bets and the $63 Trillion unregulated credit derivatives market. If this was just about mortgages, you wouldn't have seen no where near the same amount of carnage.

[christo930]

None of it could have happened without the fed providing the low interest loans. Do you think people earning 50k could afford a 300k mortgage without the fed pumping the system full of cheap money? Prices are set at the fringes. We wouldn't need regulations if there wasn't gov guarantees. Without gov guarantees, people would actually care what the bank was doing with their money. People put more effort into buying a tv set then they do putting their money in a bank.

[edschaeffer]

Well one of the country's foremost experts disagree with you. You are completely ignoring credit derivatives and other financial instruments and simply blaming the first domino to fall:

watch?v=0Y9A0C45KZI

I agree with you that cheap money caused the housing prices to fall, but look at the rest of it.

You and the people who believe you are driving gold prices through the roof. That bubble will soon burst and finally Peter Schiff and Ron Paul supporters will be silenced.

[christo930]

Cheap money didn't cause housing prices to fall, it caused them to rise.

Regulations are never good enough and they are never applied good enough, only the market can protect the market. The crazy leveraging would not have happened in a free market because people wouldn't subject their money to so much risk knowing they could lose it so easily. Tom Woods in a nobel prize winning economist that believes in and supports both Ron Paul and Peter schiff. It's Keynesian theory that doesn't work.

[edschaeffer]

I'm talking about the bubble when it bursted. Massive supply is driving house prices downward.

Tom Woods doesn't have a degree in economics and I don't even think he has a Nobel Prize. (where did you get that info?) Secondly, Peter Schiff said gold will go to $5000. I'm saying it won't pass $2000 and my target price for it is $1350. When it crashes hopefully you'll get over this crazy libertarian crap.

[christo930]

I stand corrected. Why do you keep referring to libertarian thinking as crap? The idea of freedom is crazy to you? The idea that we don't need our betters to tell us how to spend our money is crazy? Nobody is talking anarchy here, just the minimum gov needed.

Austrian economics fully predicted everything that happened, in detail and how. The same can be said about the 70's stagflation and how was that fixed? Do you remember? High interest rates.

[edschaeffer]

No, freak "libertarians" are generally considered farther to the right than conservatives. I'm sorry that you don't trust government, but I don't trust a world without it. If the last financial crisis was left up to the market's devices things would've been far worse than they are today.

Von Mises is to economics as Freud was to psychology. Both were studied in the beginning chapters, and both are outdated.

[christo930]

The financial crisis is a failure of government, not of free market. We don't have anything even close to resembling a free market. We have crony capitalism. None of this could have happened without the gov

1) Setting interest rates

2) Gov guarantees

3) Bailouts

I am not totally against regulation. We need sensible regulations. Things like the EPA, OSHA, FDA (although not in their current form) and sensible banking regulations such as maximum consumer interest rates.

[edschaeffer]

Why don't you just watch the video dude. You have the best minds telling you what happened (which was deregulation not failure of regulation) and you turn a blind eye in support of your idols.

[christo930]

I did watch the video and he even said that the gov failed to enforce it's regulations.

By bailout the banks, they have made them even bigger and have virtually guaranteed that they will be bailed out again.

I don't have "idols", but I do believe in Austrian economics and I certainly believe in personal freedom. I guess you don't believe in freedom? I guess you think we should keep growing gov and blowing people up all over the world? Keep locking citizens up for consent 'crimes'?

[edschaeffer]

Even broke clicks like Peter Schiff and Ron Paul sometimes tell the right time. However, they were right for the wrong reasons.

You should pay attention to the three parts of this video. As you can see Robert Kuttner correctly predicted the crash, and he definitely doesn't subscribe to the Austrian school.

The difference here is that these corporations found a way around "The State's" regulations (your wet dream) and exploited capitalism. This ultimately caused the crash, your ideology.

[christo930]

Gov regulation fails and that's the markets fault? OK.

Just take regular bank accounts. Do you know how your bank manages your money? Do you know what their debt ratios are? Do you care? Of course not, the gov guarantees your account. Absent the FDIC, services would exist which would rate the banks, banks would lower their debt ratios and you would care what they did. if they tried to leverage up and you knew you wouldn't get your money back, you'd withdraw it.

[xxlimpyleg]

shes hot

[chinasherry1961]

yes but I would bet shes a lesbian

[r1cash]

It's not the crime, it is the cover up of the crime "nixon"

[dieonyourfeetDEC16]

please democrats!! explain to me how this can be called a freemarket when you have a FEW GUYS arbitrarily and artificially increasing demand of imported and domestic goods,through easy consumer credit AND lending to the government.And also artificially increasing demand of loans for investement for businesses and stock investor and speculators through EASY MONEY.AND also increasing demand for dollar denominated assets by chinese since they have so many new dollars in there posession.freemarket?

[dieonyourfeetDEC16]

the problem is NOT the FREEMARKET, the problem is all these MONEY INJECTIONS by the FED that she is talking about.The job of the FED is to ARTIFICIALLY increase demand by creating new money when needed and DECREASING demand when prices start increasing too rapidly because of the excessive demand they created in the first place, you have some guy determining how much to expand and contract money and you get booms and busts,the ROOT of the problem, central control of the money supply.

[edschaeffer]

Nope. Wrong. Explore the Republican deregulation of 2004 of capital requirements and you learn the reason why AIG failed. Look at this: watch?v=a1lVOO9Y080 The financial crisis had nothing to do with the fed, other than their lack of involvement. Your repeating the bull shit spread by Peter Schiff and Ron Paul. I suggest you study something called Keynesian economics and watch this: watch?v=XoPy0J3Hj6s&feature=Pl­ayList&p=3FB52F7D033F084E&inde­x=0

[Stan1208]

I blame the liberal democrats. And if you think its bad now, wait till Obama and his nutcase preacher gets elected.

[blaaaaze]

nutcase preacher? anyone who speaks the truth is crazy? does the truth hurt you?

[MisterQuebec]

How can Bush keep his focus with all that f... noise made by the cameras???

[coach3sheff]

635 views?

[fefu23]

lol..its bushes fault everyone baught a house and escalade they couldnt pay for....blame it on someone else, the american way

[PatrickWJ]

you must not have watched this program if that's your reaction

[JUKIO01]

the economy is going to collapse, then the north american union wil come into play and the amero

[MisterQuebec]

Is the NAU and Amero going to help? Even so, how much good will it do?

[jasy221]

we are all going to starve to death like in the german weimar republic hyperinflation.

[uclaztec2]

There is nothing I disagree with in this video. CNBC doesn't want to talk about this matter, but want to focus on how the stimulus package is turning investment sentiments positive. CNBC's take is far from reality.

[JetMech72]

The cut worked too most global markets have been up for the past two days.