Dean Baker - The Rise and Fall of the Bubble Economy

CEPR Co-Director Dean Baker discussed and signed copies of his new book, Plunder and Blunder: The Rise and Fall of the Bubble Economy.

For the second time this decade, the U.S. economy is sinking into a recession due to the collapse of a financial bubble. The most recent calamity will lead to a downturn deeper and longer than the stock market crash of 2001. Plunder and Blunder chronicles the growth and collapse of the stock and housing bubbles and explains how policy blunders and greed led to the catastrophic–but completely predictable–market meltdowns. An expert guide to recent economic history, Baker offers policy prescriptions to help prevent similar financial disasters.

William Greider, National Affairs Correspondent of the Nation and author of One World, Ready or Not: The Manic Logic of Global Capitalism, had this to say:

"Dean Baker warned us what was coming. Alas, the government and most economists ignored him. They denied that a housing bubble existed and would soon collapse with devastating consequences. Now we can read why Dean got it right when so many experts were blind. The story is intriguing–and deeply disturbing."

Category:

News & Politics

Tags:

• dean
• baker
• economic
• crisis
• growth
• recovery
• housing
• bubble
• stock

[lordennis01]

Chomsky keeps refering Baker in his speeches. It seems he has done so rightfully.

[urdu034]

I don't think anything will change until things get worse, much worse. unemployment is high, but folks can still watch "dancing with the stars" etc. the people are hypnotized by entertainment and also the vague idea that they can themselves somehow get to the 'top', think 'Running Man'. the key for the elites to con us is that we think we have 'opportunity', that we have a real chance of 'making it' --this means a series of bubbles, only the elites actually profit- PONZI

[hymnofashes]

@chocobosage420 He's an awesome guy. I think he glosses over some issues about inflation, but I've agreed with everything else I've heard him say so far.

[chocobosage420]

its funny though he looks a bit like bernanke

[chocobosage420]

chomsky sent me here this baker seems like a pretty cool guy

[thomasst2]

First, true free market economists have been advocating a gold standard, which would vastly LIMIT the money banks get to speculate.

Second, they advocate getting rid of fractional reserve banking, which respects property rights and prevents banks from "rent seeking" from other people's money (property)

Third, where did banks/speculators/mortgage lenders get the money from to leverage? From the Fed massively expanding the money supply to lower interest and encourage credit growth.

[modernmariorc]

only 681 views and this was posted in march 2009?

[christo930]

This guy is an ass. He is saying you should save (not invest, save in cash) and in the same breath he says it's a good thing for the dollar to fall! He also doesn't seem to realize that the deficit is creating an intrest payment that if it goes to 10% would be 1.1t in intrest alone and 20% (it's been there before) 2.2T JUST IN INTEREST!

FED: Congress had NO authority to create the fed in the first place and congress should re-assume the fed's role. Not congress or the fed should control interest

[cs925]

LOL!

I totally agree!

I watch BookTv everyweekend and it happens a lot and when it does, I always think the same thing that you wrote.

[marcus3379]

It's so annoying when people use the question time to ramble on about their crappy opinions that nobody cares about.

[JessLaJess]

That's right, pass the message on!