INET: Financial Instability Mini-Documentary

Financial stability, or the lack thereof. Leading thinkers speak out on what they feel is at the core of the problem.

Featuring: Joseph Stiglitz, Gillian Tett, David Tuckett, Stephen Kinsella, John Kay, David Weinstein, Steve Keen and Dirk Bezemer.

Directed by Four Corners Media | www.fourcornersmedia.net

• Category

  News & Politics

[abdullahnoorani]

Basically gambling game going around the world economies.... creating reason to crush economy and then stabilized with related reason creation... actually the passion game runs of ego and greed . In olden era people do real business like related manufacturing etc. Now economy of air exist with not solid growth only gambles such as hedging.. forward trade

[AnniesEggs]

John Blatt showed in 1983 in his book "Dynamic Economic Systems" that a model of a very simple economy (specifically one without private debt) where the entire output of the previous period is available as productive inputs in the current period and all will actually be used for that (i.e. market clearing) could move further from equilibrium if set-up at a position only close to rather than actually at equilibrium.

[chima chibi]

Thanks for posting this. I ennjoyed it. This thing, economics, it reminds of the worldview of autistic people.

[ApocalypticAang]

"Money and goods in my possession is the only thing with value. "

Money exists as a form of credit in most economies-- notice how the value of fiat money or currencies can go to zero when an economy implodes.

[ApocalypticAang]

"Economics tends toward equilibrium. "

And where, pray tell, does this "economics" that you speak of-- where there is no fraudulent or government action-- exists?

[cyrusp100]

Check out Steve Keen's lectures on endogenous money creation. Commercial banks can create money out of thin air without the FED. In fact, banks have been creating money since 1500AD - long before central banks existed.

[WillOrng]

Surely confidence is simply a function of the recent state of the economic cycle, like credit it exaggerates the booms and busts?

Tell people you're going to slash and burn scorch earth the economy with austerity when they've got a heavily debt and un/employment constrained budget is like hang, draw and quartering the confidence faerie.

[frank H]

The people in this video are totally and I mean totally lost. Economics tends toward equilibrium. It may never reach an equilibrium, but will always be moving towards an equilibrium. The problem is the FRAUDULENT fractional reserve banking system (read the "mystery of banking" free online). It is not deregulation that is the problem,, but deregulation in a world where the government (through deposit insurance) guaranteed that you privatize the gains and socialize the losses

[Jason Yip]

"...a credit crisis is always preceded by deregulation..." 5:56

[cskipper65]

Maybe it is regulation that is the problem. It seems that the government has regulated and allowed the FED to create money. In someways it seems that classical economics makes perfect sense on a broad scale and x does mark a general area not the spot. They did make a good point that the chasing of equilibrium is continuous when the money supply and credit continually increase. We need to continue the talk of why we support a private monetary cartel that contributes to reckless behavior?