How could the real estate market in only four key states in the US have caused the Global Meltdown of 2008? How could an overinflated stock market in the US in 1929 have caused the worldwide Great Depression of the 1930’s? How can small bubbles in any asset base take down an entire global system?
It only really happens when the banking system buys into the bubble, and then grows Too Big to Fail!
In this episode of Straight Talk Wealth Radio, host Bruce Weide explores what has changed in the US banking system since the 2008 Meltdown, and (shockingly) what has not. He turns to four uthorities who have studied the banking meltdown extensively, from the inside and out.
FEATURED ON THIS EPISODE, the words of:
Sen. Elizabeth Warren (as interviewed by Charlie Rose on the release of her new book, A Fighting Chance): One of the most outspoken prophets of the 2008 Banking Crisis and the risk that the mortgage industry was involved in, she is a current co-sponsor with Sen John McCain of national legislation to bring back the Glass-Steagall Act of the Great Depression era which placed a virtual firewall between commercial banks and investment markets.
David Stockman (as interviewed by Bill Moyers) Former White House Budget Director under Ronald Reagan, and recent author of The Great Deformation: The Corruption of Capitalism in America, he is an outspoken critic of the Federal Reserve Bank’s massive money-printing experiment.
Gretchen Morgenson (as interviewed by Bill Moyers): N.Y. Times reporter and author of Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon. She has exhaustively investigated the role of Fannie Mae and Freddie Mac in the Mortgage Meltdown of 2008.
William Isaac (as interviewed on Newsmax TV): Former Chairman of the FDIC (appointed by Ronald Reagan), the very agency entrusted to regulate bank risk. Author of Senseless Panic: How Washington Failed America, Mr. Isaac gives a deep, insider’s view of effective bank regulation in a free market economy, and how the mistakes made in the Panic of 2008 failed to reset our economy.
What’s most amazing among these authorities from both the Left and the Right, is how much they agree! Hear this Straight Talk Wealth episode today, before it becomes tomorrow’s lead economic news story in the next meltdown!
Photo credit: JR F on Flickr