35 Burst results for "Financial Crisis"
The Federal Reserve Is Thinking About a Digital Dollar
"Maybe it's just me. I don't know but it kind of feels like the news center of gravity shifting back to the political and away from the economic so we are going to set that street right now. Genus new york times said he brady is at politico. Hey you do so gina. Let me start with you. If i could and the minutes of the federal reserve's most recent meeting which were out this week in which They said that they are ready to start talking. About talking about withdrawing support for this economy. I need you to help folks understand why that matters. What the effect might be right. So one important detail here is that it was a number of fed officials saying that they were thinking that if we saw rapid progress in the economy in the coming weeks and months that it would be appropriate to start a conversation about pulling back on by and so i think that the things synthesize are. It's a number. It's not all of them until we're not sure how. Widespread this agreement is and it seems like it. Probably doesn't include. Jay powell the fed chair. That's been important caveat. That said it's clear that there is some portion of the committee and substantial portion of the committee given the qualification number That is kind of getting ready to sort of dial back these bond purchase and that's really important because they have not only helping the economy but really been propping up asset prices and helping the stock market and so i think when you see that conversation start that it's very attuned to sort of hinting. It's coming hinting. It's coming and getting people really ready for it again. So that the bottom doesn't fall out from under market like we saw in the paper trim episode after the global financial crisis when benn banenky kind of intensity. We're going to talk about. They bring and markets went nuts. Basically trying to avoid a repeat
How to Audit Your Website for Accessibility With Bet Hannon
"I want to bring on bet hanan ben. Hanan is the ceo of bet hanan business websites and we are going to be talking about their website. Accessibility sampling audit In earlier episode. I spoke to amber hinds about accessibility in general their tool the accessibility checker. Now we're going to learn how in agency actually goes about doing an audit and helping their clients Not get sued and having more accessible website. So bet how are you today. Great glad to be here. Thanks for coming on the show for those of you who are not build something club members be and i had a fantastic pre show conversation about craft beer. If you are interested in that you should become a build something club member over at build. Something dot club But for now but before we get into the nitty gritty. Why don't you tell us a little bit about who you are and what you do great so i run it agency. As that's focused on wordpress. I got involved with wordpress in about two thousand eight after i had worked for fifteen or so years in nonprofit management and doing some techie things for the organizations that i served but my position got downsized in that financial crisis and kind of stumbled into starting to do a little freelancing and then develop that into an agency and ben love and i love problem solving for people. Every projects like a little puzzle
Crypto to Replace Dollar as Worlds Reserve Currency?
"What's going on guys. It is tuesday may eleventh. And today we are talking about some fiery comments from billionaire investor stanley druckenmiller about how the dollar will lose its reserve currency status first over. Let's talk about why we're dedicating a whole episode to one investors comments. There's a tendency. Thanks to modern media to over valorize things that rich guys say it's easy it gets clicks and views in downloads however bitcoin crypto show more than basically any other industry in history. How often it is the a nonce in the plebs who have the right of the way. The world is changing far before the beneficiaries of the old order feel the sand shifting under their feet that said even acknowledging that we still live in a world where traditional finance is dominated by trends pointed out by these seminal figures amplified through traditional outlets aka financial cable news for that reason when a storied investor makes a big proclamation in both the world's most renowned economics newspaper and on whatever you would call cnbc it suggests that the arguments contained within our more broadly resonant in the markets than we previously knew. Indeed we saw this all too well. Last year twenty twenty. It was a huge inflection. Point for many investors. We'd been living with the legacy of the great financial crisis for a decade and while many were concerned about the long term fallout of what they saw as artificially low interest rates and perhaps overly involved fed. They had to acknowledge that the consumer price inflation that they had feared had failed to materialize. There were of course. Other strange dislocations asset prices most notably but up until last year there wasn't a great fear when the entire world responded to the covid nineteen crisis with massive monetary and fiscal intervention. This started to shift and those concerns came roaring back. Here's how paul tudor jones. Put it at the beginning of his. Seminal great monetary inflation note. Last may
Habima to Be Owned by Tel Aviv Municipality Following Financial Crisis
"Come to promised cast brought to you on t. v. One the voice of the city that this week announced that it is taking ownership of the national theatre habima and in so doing taking on one hundred million shekels in debt that habima has run up over the past years and in doing all this bringing to a happy conclusion a crisis that we first became aware of a year and a half ago in november twenty nineteen when a man named core case safron sued demanding that the company liquidated its assets and use the proceeds to pay the four million. It owed him for telemarketing services provided to habima by his company. Power dialing at the time the press made saffron out to be a grinch like figure shutting down the world's oldest hebrew theatre for something as unexhausted money filthy lucre. But the fact is you have to do a lot of power dialing. Run up a tab of four million shekels and it's like the old saying goes don't the cold call if you ain't got the windfall. It's the saying. I've heard a lot of people say that anyway. During the hearing it came out that the national theatre was much worse debt than anyone knew so much that that it was like an iceberg and the four million telemarketing chuckles. Were only the small little point. You see above the waterline. Which debt of course only got lots worse during the pandemic and of course the national government has an approved a budget since march twenty eighteen. Meaning that it would be complicated. And maybe even impossible for the treasury and ministry of culture in jerusalem to bail out the theater even if they were of a mind to do it and finally tel aviv mayor room the stepped up and negotiated a deal whereby the theater would become a municipal corporation like the art museum and the land of israel museum in the cinematheque and the camera theater. The director general of habima. A man named noam semel who was hired just over a year ago to steer the national theatre through its financial crisis said quote the tel aviv. Municipality is the mother and father that the bima has never had and quote
Healey leads AGs, calling Biden to cancel student loan debt
"Up to $50,000 in student loan debt for federal student loan borrowers. Senator Elizabeth Warren added her voice to that call canceling $50,000 of student loan debt. As a matter of racial justice. It is a matter of economic justice. It is a matter of generational justice. Congresswoman I enter presently emphasized that student loan debt disproportionately holds back minority student loan borrowers. We cannot afford to make the same mistakes of the past. During the 2000 and eight financial crises. Lawmakers build out Wall Street and abandoned black and brown communities who lost everything on Beacon Hill. Mike Macklin WBZ Boston's his radio on
Fed to end relaxed capital requirements for large banks
"The federal reserve is restoring capital requirements for large banks the supplementary leverage ratio requires large banks to hold capital equal to about three percent of their assets five percent for banks deemed most important to the financial system the rule was adopted after the two thousand eight financial crisis to ensure banks kept enough capital on hand to survive market meltdowns but the fed relax did in the early days of the corona virus pandemic aiming to bolster the financial system is banks were having to suddenly right down billions of dollars of loans and dumping treasuries and other bonds to raise cash now the fed says the market for treasuries has stabilized and it will not extend relief from the requirement past March thirty first Ben Thomas Washington
Tech Stocks Sink in Early Trading as Bond Yields Climb Again
"Let's get over to Dave Wilson. Right now. He is in the studio with a look at stocks. Dave We're not seeing a lot of movement on the index is, but what do you see under the hood? Well, I mean, you've kind of got big tack on one side and big banks on the other. That's how things are kind of lining up in early trading. So you look at what's lower in the S and P 500. You see technology Chris Apple Microsoft fitting in their communications services, Google's owner, alphabet as well as Facebook, and then that consumer discretionary category where you find Amazon dot com and Tesla's so you know, that's one side of the coin. The other side's what's going on with the banks. You know, we're seeing Bond yields move up and bank stocks kind of going along for the ride, and we should point out yesterday. KBW Bank Index, which tracks 24, the largest U. S. Lenders, broke a record that had stood since February. 2007. So it's like the banks are finally getting out from under the shadow of the financial crisis. If you look at their share prices, and by the way that KBW index is up 2% today, and we're seeing gains of on that magnitude from JP Morgan Bank of America, Citigroup, Wells Fargo and Maura's, So you know, it looks like You know, we kind of got, you know, the kind of classic on the one hand on the other going on in early trading. And what you get out of that, in terms of the broader market is not a whole lot of direction mean some weakness, But you know, the S and P 500 actually coming off its early lows at the moment. Have to have a guess. What we've seen today is another example of that trade We've seen recently. You know what bond prices trade off interest rates push higher, and that brings the NASDAQ down with it. We're seeing that again today. Oh, yeah. I mean, that's you know, sort of how things are lining up at the moment on them beyond that, though, I mean, you look at utilities in real estate, you talk about the areas most sensitive to higher rates. They're actually up a bit. In early trading. You look at their S and P index is higher by three tents for percent. So you know that's kind of uninterested contrast and you know, they kind of puts them in the metal, arguably between big tank and big banks and big tech
Casting the net wider: remaking the welfare state
"Good evening my fellow americans to light. I like to talk to you about where we are as we mark one year. She's everything stopped because of this pandemic last night. President joe biden spoke to america in primetime address from the white house for the first time since taking office he promised to direct states to make all adults eligible for covid vaccine by may and discussed the bill he had just signed into law. The american rescue plan one point nine trillion dollar stimulus program extends unemployment. Benefits it helps. Small businesses lowers healthcare premiums for many it provides. Food and nutrition keeps families in their homes. America's not the only country that's responded to the crisis with increasing generosity. I kind of went in. It was like a state of panic. That i honestly i can't tell you day-to-day thoughts were because they were just scrambled. Like what am i gonna do. What am i gonna do. How am i going to survive. How am i going to what. That's more good. Hope a fifty. Seven year old self employed chef based in canada when the pandemic swept away all of her work. She didn't expect much outside. Help after alberta's oil crash in two thousand fourteen. She received no government support and had to close her restaurant. But this time around with covid nineteen. The federal government included the self employed in. Its rescue package. I honestly i couldn't believe it. Until i saw myself until i filled out the application i pressed met and two days later. There was money in my bank account. And i was absolutely shocked across the world from america to canada to western europe. The pandemic prompted a shift in thinking about the role governments can and should play in crises. The greatest expansion of the wealth estate in living memory in this past yet social nada is our public policy editor. She's been tabulating that expansion which currently stands at nearly sixteen trillion dollars. That's more than four times. The support that countries provided during the financial crisis of two thousand and seventy thousand nine. And it's a shot departure from the pas not just in size but in shape too and because of that this could well mark the start of a new chapter for the welfare state. How do you mean how was this response. Different from what came before significantly. I think it mocked a risk shift from individuals to the state with governments essentially bailing out the people say things like schemes in britain and much of europe as well as cash gifts and in unemployment benefits in america what lawsuit of the state stepping up and taking a lot of risks that otherwise would have fallen onto households and individuals that is a sharp contrast from what we've seen over the past couple of decades when risks such as example being replaced by an algorithm or foreign worker had actually increasing been offloaded from governments and employees own individuals and you saw a lot of countries just for pragmatic reasons really move to universalism so with government prefers blanket benefits instead of fussing of eligibility. Or what's the basis of the way that it was before the pandemic the risen one model of course of welfare state but if we take as a starting point side of a social contract where there is a certain amount of poverty relief and social security that is supplied by the state to go back to suit of the early twentieth century. So the great depression in america really triggered the idea of we need some social security and in europe of course in the second world war was reading the moment when people started to realize that there were these collective big risks that they wanted to ensure against and then the big shift in both sides of the atlantic ready staw in about the seventy s and the welfare state becomes leaner and more focused on getting people into jobs and so benefit make order to get the incentives work or boosted welfare in many countries become stigmatized and at the same time. The labor market is made. More flexible has made easy to fire people. And you really see particularly from the early ninety s on more and more risk being shuffled back to individuals but even before covert hit there was talk about a need to change things right absolutely as with so many things covid nineteen has really shown quite a start light on the flaws in the traditional model and although the lessons are different for every country there are a few general ones. The welfare state on the hall was built around yesterday's worker middle skilled work who today is increasingly. Rare will become even rarer we've seen the labor market polarize over the last couple of decades in rich countries. The sheriff skilled in high-skilled workers growing whereas middle skilled and indeed middle income jobs have been falling and will continue to fall and the pandemic also related to that highlighted. How little job. And income security many of our essential workers indeed have because they fall into that low paid bracket low security bracket and then the other thing that covert has exposed is the vulnerability of work with kids of course when schools closed. There was suddenly this extra job that needed to be done. The situation has put childcare which we knew was an issue before the pandemic but it sort of forced onto the agenda and one of the encouraging things. I think that might be coming out of this. Is countries making better plans for things like child benefit. So part of the coronavirus relief plan. Joe biden will temporarily raise the child tax credit quite significantly and democrats already whispering the really like to make this change permanent. And do you think we'll see that pattern more. Broadly a will to make permanent to the kinds of changes. The governments were essentially shocked into by the pandemic. The will is that. I think it's too early to tell but the demand is clearly. Then that's an important start. Say lots of people. Such as mrs hope who we heard earlier have experienced vulnerability that can come with the show but also have seen how the state can help these moments of shock. And i think it would be very hard in a next crisis for states to roll out similar policy bazookas to help the people so i think on the demand side and again this is something we already sold before the pandemic domon strengthening for better more generous safety nets are that will only grow on the back of the pandemic experience whether the will is that is launching a political question and it's also a fiscal question but i am carefully hopeful because this past year has provided a live experiment of all sorts of policies that otherwise would have taken years to get the political backing for and so after all this experimentation. What are the lessons from the pandemic that you think should last. I think the most important goal here is just to ensure or cushion workers against certain shocks and just to make that a bit more practical and most of communists have argued that covered his shown the generosity of benefits should be pegged to the state of the economy so that when indeed were going through a mass period of shock and it's much harder to actually find a job benefits should be more generous. And when the economy's healthy again then you can make them a bit. Less generous against more flexibility in the welfare system to short revamped post covid social safety net would on the one hand provide enough flexibility to incentivize work but also have a state that wasn't afraid to step in when disaster hits and crucially estate that would also invest in human capital in childcare in health in educating the next generation as well as rescaling older workers today and that second element is important because just bringing out a huge umbrella on the stormiest days won't be
House Nears Vote to Pass $1.9 Trillion Covid-19 Aid Bill
"We begin in washington where the house is expected to pass the one point nine trillion dollar co-pay nineteen relief bill as soon as today. If passed the bill would then go to the white house. President biden signature. The package includes three hundred dollars in weekly unemployment benefits through september six as well as sending fourteen hundred dollar direct payments to many americans. Progress on the stimulus. Package may be one of the reasons. We've been noticing. Bond yields inching upward on monday. The ten year yield briefly rose as high as one point six one percent in the morning. Let's get some further insight with wsj markets columnist. Mike byrd in hong kong. Glad you're here mike. Good morning. Mock how does this all relate to fiscal policy and a stimulus that were expecting to be passed this week. Fiscal policy and the stimulus program is pretty central to this. So it's a big point of debate. Among economists and analysts and investors about what precisely the impact of these measures will be. It's a very large stimulus relative to what was passed immediately after the financial crisis in two thousand. Eight two thousand nine. Some people think it will overheat the economy for example that you'll see significant inflation after that some people very much disagree with that move. They think there's enough slack in the us economy right now to accommodate the stimulus an obviously depending on whose correct that. He's close to correct. That will have a big impact on asset prices as well and mike how are the rising yields viewed by the fat. And how can it impact future decision making. Well i think this is. The other component is adding a lot to the uncertainty here so the fed has framed changed. Its framework slightly. It's tweaked its framework towards called average inflation targeting which suggests that it's going to have a little bit more leeway in terms of not hiking interest rates. Alsacien flation approaching. They're allowed to be a little bit more balanced little bit more patient with that but markets on quite used to this framework yet. They don't really know how patient the fed will be some people. Don't trust that if the floods seed feds. He's inflation coming though really polls and not hike. Interest rates so the uncertainty on the fiscal side and the uncertainty on the monetary side is. What's contributing lot of this. Sort of volatility to the uncertainty that investors have
CBO expects federal debt to double over next 30 years
"The Congressional Budget Office estimates persistent budget deficits will cause the federal debt to double in size over the next thirty years the government's relied on borrowing at low interest rates to help during a financial crisis but as the economy heals the office is forecasting that interest rates will rise and so will spending and this is excluding president Biden's one point nine trillion dollar cope with relief proposal the CBO predicts publicly held debt would equal one hundred two percent of this year's gross domestic product but fast forward three decades and the accumulated debt would grow to two hundred two percent of GDP on the plus side the budget office foresees higher payroll tax revenues and forecasts that social security has another year to twenty thirty two before it's trust funds are exhausted Jackie Quinn Washington
"We're going to start in the early nineties back before this shift. When the old rules about government borrowing still applied. Bill clinton had just been elected president. He appointed an economist named laura tyson to be one of his top advisors and she looked at the economy and she saw this glaring problem year after year. Both government deficits and interest rates. Were going up and then he said omega if we don't get a hold of this federal deficit than that trend will continue. Those rates will continue upward. That was a very significant concern. Higher interest rates were concerned for a couple of reasons for one thing. Obviously they meant that the government had to pay more to borrow money but also when interest rates for the government went up. Interest rates also went up for everybody else. And that's it up this whole cascade of problems so we're people won't buy as many houses. There won't be as many houses constructed in their wealth as much capital equipment invested in and investments in important part of the Economic growth in your all sorts of every interest sensitive part of the economy the way the government runs a deficit. The way it borrows money is by selling bonds treasury bonds. The government says to really anybody. Okay lend us whatever one hundred dollars and in say ten years we will pay you back with interest will pay you back one hundred twenty dollars. The bond is basically the government's i. Iou you that it will pay back that loan with interest and during the clinton administration because of that link between deficits and interest rates. Everybody in the white house talked about treasury bonds about the bond market time. James carville was a political advisor to president. Clinton was just an obsession. In the early days of clinton's everybody say what's the bond market could house bot mocking react to hell multiple. i don't know it just became this omnipresent. The heart of every conversation. James carville was not an economics guy but as he spent time at the white house he realized that sort of bizarrely all these people who worked there making policy the people who had what seemed like the most powerful jobs in the world. We're in fact terrified of the bond market so when a reporter from the wall street journal called up carville to talk about the bond market. He came up with this line that became sort of famous or at least bond market famous kid. I wanted to grow up with four hundred hitter. The pope and the president. But i just want to be the bond. Market's gonna scare the hell out of everybody pleat. What did he say. A what a hundred hitter like in baseball pope the president baseball. I cannot tell you how many times he said that's me. Every meeting every meeting a lot of my memories are about carville sort of making jokes about you. Know you issues as a bond trader bond traders. These are the people who work in finance all around the world who manage a bunch of money. Generally other people's money pension funds or college endowments that kind of thing and every day they decide what bonds to buy and what bonds to sell what companies and countries to lend to and what companies and countries to not lend to to stop lending to and like with any lender bond traders worry about lending more money to a borrower who is already borrowing a lot because all that borrowing makes it more risky and so to compensate for that risk bond traders demand a higher interest rate. They stop lending until rates. Go up and this bond traders demanding higher interest rates when the government is borrowing more money. This is the scenario that everyone was so worried about people. Were so afraid of this that there was even a special term for the bond traders. Who do this bond vigilantes. Bill clinton has convinced. The bond vigilantes are scary and in fact he decides the us needs to bring the deficit down. He decides to build a whole economic plan around getting rid of the deficit. One of the economists he brought in to make that happen was jason and a central argument. That we made was if you do this. It will lower interest rates and interest rates are lower will have more investment and more economic growth and sort of amazingly. All of this happened. They did raise taxes and cut spending and get the deficit down. In fact by the end of the clinton administration the deficit felt all the way to zero. And what came next was sort of a golden moment for the economy in silicon valley. There was the dot com boom but really the whole economy was doing great businesses of all kinds. Were doing well. Ordinary workers were getting breezes lower deficits lead to lower interest rates which led to more investment. And that was good for basically everybody. The system was working. The next big moment in the story comes right after the financial crisis of two thousand eight and this is the moment when everything is about to change when this big shift in the way the world works is about to happen but nobody quite nosy yet. Brock obama has just been elected. President obama brings in clinton's guy. Jason furman as one of his economic advisors and ferment. Goes into this meeting to discuss. How big of a stimulus. Bill obama should push for as he takes office. We met with the president-elect december sixteenth two thousand eight and we're all crowded together in a conference room. I think it was in a law firm in chicago and he wanted it to be big. He wanted to be bold but there was this worry. The stimulus was going to be funded with deficit. Spending government was going to borrow the money. And some of obama's own economic advisers worried that borrowing and spending too much money might actually harm the economy for that classic reason
Seeking Refuge On The Open Road
"When we reached bob wells. He was camped out of the grid in his white. Gmc savannah van in the middle of the california desert. Some twenty five years into his experiment in mobile living. How did this whole journey start for you. What was your life like before you discovered this this lifestyle while i was either very very lucky or very unlucky depending on your point of view it was the winter of one thousand nine hundred five. Bob was living in anchorage alaska where he'd worked for over two decades in a union job at safeway saint job. His father had worked until his retirement. At the time bob was going through a divorce and after alimony and child support payments. He says he was no longer making enough to clear his rent. He was desperate and that is when he noticed old beat up box banned for sale on the side of the road for fifteen hundred dollars and he decided he had to go for it. That was all the money. I had left in the bank. But i had to have a place to live and so i bought it and That night through a backpacker. Sleeping bag. Down and i began my van dwelling adventure in the winter and the cold van and i That first night. I cried myself to sleep. I literally cried myself to sleep. Or when you're going through a divorce you you cry yourself to sleep on a pretty regular basis ends but sure just of course greatly compounded here. I was homeless bomb living in a van on the streets. And how much lower can my life get. But bob done a lot of camping in his life and you had to make a small space cozy and after a few weeks eat figured out how to cook and stay warm deal to bed and cabinets used his gym membership to shower. Figured out how to make it sustainable. And the money. He was saving on rent. Meant he didn't feel like he was always on the knife's edge it slowly and subtly shifted from. I despise my life to. This isn't really that bad to hey. Every month i keep the money and put it in my pocket to. I kind of really really liked this. And that's the way it's been every sense. Was it difficult at all to kind of switch. Grand narratives about What trajectory you're supposed to take as a productive member of the economy absolutely it was a traumatic transition you know. We are trained from birth to death. Our purpose in life is to be good productive citizens and so it made me question everything i had done. Exactly what society and told me to do. I'd gotten a job. I wanna house. We'd had kids. I was following the american dream to the best of my skill level and ability. As i could and then i was forced into living what society told me was the life of total failure homeless in the van and for the first time in my life i was happy well that raises a lot of existential questions and when i looked around at all the people i work with work eat sleep. Working sleep work. Eat sleep. I said what society told me it was not true. I've finally found a way. That's happy for me. Let me try to understand that. My life and for the life of others a few years later bob had saved up enough to quit his job at safeway and by supplementing his union pension with seasonal stints as a campground host. He was eventually able to take to the road as a full-time nomad in two thousand five about a decade. After he moved into the van. Bob decided to pay forward. Some of the techniques developed the started a website called cheap. Rv living the serve as a kind of resource for other people interested or in many cases forced to move into a vehicle. I started the sole intent of letting people know there wasn't on alternative. You didn't have to live under the tyranny of the marketplace and the way to do that was to eliminate your biggest cost in life. Which is your housing with cheaply. Live frugally and then you can live well for a long time the site just kinda mosey too long picking up you know few page views here and there in two thousand eight happened. Bob says in the wake of the financial crisis. He was inundated with desperate messages. Have lost my job. I we moved in with my family now. My family is lost their job. Now we're all losing our own. What are we going to do. And that was the question. I got over and over and over again. Even after the economic recovery started to pick up the number of inquiries and page views and people in the community continued to grow. Fueled partly by the rise of social media. Bob started his cheap. Rv living youtube channel in two thousand sixteen and has since become just one of many popular nomad influencers but unlike a lot of the glossier more glamorous content associated with the hashtag van live crowd. Bob's videos are all about helping people struggling to keep their head above water financially and they're filled with the nitty gritty details of living behind the wheel. Today we're gonna talk about heat today. We're gonna talk about taking showers. The topic of today is poop. You can cut your behinds. Not one of them. You want that thing to be clean all the time. Bob also does these little interview profiles of people living in different kinds of vehicles cars to trucks to buses. Welcome back fellow nomads. Today we're going. Meet a new friend of mine. Joe sale load everyone relax. They're really out. There doesn't look like there's a bunch of people out there. Yeah thank you that video for the record. Two point five million views and counting. Bob says his videos have become so popular that he's now making more money than ever before. I think eventually the second break but it gets great reviews on amazon which is why i'm recommending ads in affiliate marketing. Help him bring in over one hundred fifty thousand dollars a year. Bob makes enough to have two full time assistants helping him with his work and because he says he never plans to live in a house again. He makes a very healthy profit. I'm make much more money than i ever thought. I could possibly make in my life. And i live in a van. My expenses are pretty darn low with that extra money. Bob started a nonprofit homes on wheels alliance to support people transitioning into living in their vehicles. They've started to outfit and give vance to people in dire need of a new vehicle. And bob says he saving up to buy a plot of land for an in person resource center. It isn't clear how many people are living on the road at this point. But in two thousand ten when bob started this annual gathering van and car dwellers in the arizona desert called rubber tramp rendezvous it had a few dozen attendees by two thousand and nineteen. They had an estimated ten thousand people show up and as a central node in this growing community. Bob has had a kind of front row seat to the massive disruptions of the past decade. And he's watched as certain demographics have borne the brunt of those changes. It's a surprisingly large female. Contingent older women in their sixties and seventies. When they were girls they were told get married. Stay home raise a family and so they never go up so sturdy and then now they're living on five hundred to eight hundred dollars a month so skirt and he cannot live in this country on five hundred two thousand a month so sturdy and live in house and you just can't do it and so they all desperately needed the solution as well and i told them all. If you move into your plan you can live reasonably well on that. You won't be rich but you won't eating dog food and there's hope bob says he has seen an uptick in views and inquiries about van dwelling over the last year. But so far he says the stimulus checks and the nationwide moratorium on evictions have slowed. The number of new nomads. Still he says as the baby boomers continue to age into social security and as the effects of climate change intensify bob expects the movement towards van life to surge and he sees it is his mission to try to help however he can. I've got a string of lifeboats. And i want to get as many as i can into the lifeboat and i think the hammer blow of two thousand eight really put a crack in people's confidence and i think when you combine that with this cheers a natural disasters and the epidemic. I think people are just going to be abandoning the american dream in droves. That's all i'm trying to do is get people out
The Dollar Privilege
"Federal reserve is taking sweeping him trying to protect the economy from the corona virus. Fed chairman jerome. Powell announced interest rates will be drastically in one of the biggest bet moves since two thousand eight financial crisis in china has a huge vested interest in the american economy because it holds them almost twenty five percent of all four. No us us sanctions against iran over nuclear program were reintroduced iran's economies in freefall soaring inflation and push comes to shove all the world's reserve currency to start off what is a reserve currency. And why does it matter. So i think the first thing is to explain what a currency is before we get to reserve currency. This is sebastian. Mallaby a senior fellow for international economics at the council. You may remember him from our episode on the economic side of the kovic. Pandemic currency has a few different uses. One is that it's a unit of account. It's a way of putting a measure on what something might be worth. The second is once you've decided what it's worth that you should be able to transact transactions are the second idea that you can go buy stuff with the currency and a third idea is that you can use money as a store of value before you transact you can save up this currency and then transaction the future so for those keeping track at home money does three basic things. It lets us agree on prices. It lets us by things and it lets us save up so we can buy other things later now. The same three things that currency does for people reserve currencies do for entire countries pricing buying and saving so neutrally a reserve currency is the cars you hold in reserve s. So it's very linked to the last idea. I mentioned of a store of value and in particular we think of reserve banks central banks global central banks which hose currencies in reserve to protect their economies against there is kinds of financial or economic shock so a reserve currency really has a couple of different functions. One is to cover the need for future imports. If a country for example doesn't have its own energy. Supply needs to import oil. You might want to hold donaldson reserved to make sure that you can buy oil. You need in the future. The second reason central banks hold foreign currency reserves is because of the possibility of a financial crisis. And there again don't as a very useful because most institutions borrowing donna's so in a financial crisis they gonna need donna's to help them pay for fan. Central banks have the unique power to print money but in many other ways they're kind of like a scaled up version of an ordinary bank. Your local bank needs to have enough money to lend to people if they want to buy a home or if things get bad and they need to take some out a central bank needs to be able to do this to but for an entire country in order to be prepared for the future. They need to store up a significant amount of cash that they can trust. Foreign currencies are often a safer bet than a local currency especially in countries with weak or unstable economies. The safest bet of all is the us dollar. What role does the. Us dollars serve in the global reserve system. Will your stone. Now is the largest single reserve. Currency economists estimate that approximately sixty percent of foreign reserves around the world are in us dollars. This is roger ferguson. He is the president and ceo of ti which manages over one trillion in retirement funds for more than five million teachers government workers and well me turns out. Roger was also vice chairman of the board of governors of the federal reserve from nineteen ninety nine to two thousand six. This means he helped determine the supply of us dollars to the country and the world. The euro is about twenty percent the yen. The japanese currency is about five or six percent of british pound also about five or six percent until the us by way of the most important reserve currency. But it's not the only currency it's held in reserve by other economies. The chinese i think would like to see their currency. The renminbi become a larger currency in terms of its holdings as a reserve currency around the world than yet out in terms of reserves. They number four number five. When listed only about two percent. I can definitely remember going to europe at a time. When the euro was way up in my money didn't go as far and you're like damn i time. This really poorly are other countries literally buying dollars the way that i exchange currency when i visit a country. And where do they buy them from. It's not quite the same because they're not collecting lots of five dollar bills to put into a wallet in their belt. They're holding huge amounts and said what they do. is they earn. Us treasury bombs or other kinds of easily traded dollar denominated guns and that could be mortgage bonds as well but you know. Us government debts the most popular instrument to
U.K. Economy Suffers Biggest Slump in 300 Years
"Britain's economy suffered its biggest decline in more than 300 years in 2020 as the Corona virus pandemic closed shops and restaurants devastated the travel industry and curtailed manufacturing. Official data released today shows that the economy shrank. 9.9% last year, more than twice the figure for 2009 at the height of the global financial crisis, the drops the largest since the years. 17 9 when a cold spell known is the great frost devastated what was then a largely agricultural economy. The data comes as Britain's economy remains shackled by restrictions designed you combat covert 19 Sally Paterson reports from London. Unprecedented slump in the UK is gross domestic product. It's largely caused by the Corona virus pandemic on two national lockdowns. Newly released figures from last year are worth nose during the 19 twenties recession where mass unemployment and economic depression so G D people by 9.7% chance all over. She soon acts that the economy had experienced a serious shock as a result of the pandemic.
Mario Draghi Is Asked to Form Government in Italy
"We begin. Today in italy where mario draghi. The former chief of the european central bank has been invited by at least president cemetery to form a unity government following the collapse of the coalition talks among italy's political parties late last night in rome. The political tumult in italy was sparked by the resignation of his prime minister. Giuseppe comtesse last week and a little earlier today. A europe editor at large at stalker gave us this. Rundown of how events unfolded in rome after those coalition talks broke down yesterday evening now after that happened the president mattino della addressed tv cameras and said basically. There were two options. One would be go to early elections. That would be two years early. Because i not scheduled till twenty twenty three or he could cool together at this technocrat government. Basically an institutional government made up of known politicians. Now the reason. He said he's going to do. This is because italy is really into difficult situation. There's a health crisis and economic crisis financial crisis he. He basically listed a host of reasons. Why it would be a bad decision to call early. Elections the fact that the government wouldn't be executing its food functions during campaigning. The fact that everyone would be out on the streets trying to win votes at stockholm articles. Europe editor at large speaking to us from milan a little earlier today at kiara as described italy's president has effectively removed the politics from italy's government by instituting the so-called technocratic government. How remarkable to give a bit of a longer view on this or a move. Is this in the recent history of italian politics. and what do you foresee the political implications. I suppose of this move might be in italy in the months to come well thomas. I think it's an interesting way to put it. That president material has removed the politics from this because yes he is proposing technocrat but i think his decision is very shrewd political. Move actually You know we've talked on a monocle minute about the importance of the role of montana. And all of this you know. We focused a lot about squabbles between different parties and former prime ministers and future prime ministers. And what's going to be but actually at centro vitale is president. La la la who has made a very very intelligent move in completely. You know upending. Everybody's expectations and bringing mario draghi to the table. This is a name that a lot of parties will find difficult to say no to but that certain parties will feel almost impossible to approve and in order to understand that you have to know a little bit about the background of the last ten years of italian. Politics really is a long game. The relevance of this moment actually goes back almost a decade and it goes back to. Mario monti's government in twenty eleven ha de italian history of technocratic governments and how relation feels about them. It goes back to the fact that it's virtually the rise of the technocratic government supported by establishment. Parties sent left center right to the essentially boyd. The extreme success of movements like moving five stars the moon five stars was born out of dissatisfaction with the establishment and establishment is the pd. The establishment is better screenings party and is the technocrats the people coming from europe who are immediately resonate with this idea of steady and finance and banks. Which doesn't actually go down very well done throat of italians that were really really badly scarred by the financial crisis i think when you look at the last decade of italian politics you look at a real series of governments to have an lasted very long and remote qabli. A lot of them governments that were directly elected by the people. You know we've had technocratic governments we've had really you know we've had coalition governments where you know the majority of was really really tight whack. Coalition talks went on for ages. We've had internal betrayals and you know people come to the fore. Even though they hadn't really been selected by a popular vote. So i think what this might do for the overall mood of of the population is bring back all those feelings off just simply not really having a political choice in all of this and may actually give more fire to all of these populist parties that made their fortune out of the situation like this in the past and if we do come to early elections which has not yet. A possibility is completely off the cards. It may actually paying favor in on those populist parties which we saw in coalition government a couple of years ago three years ago. Now but that never expressed a proper. I guess prime minister political prime minister. Let's remember that the content much as we think about it now as appropriate political figure he was also a lawyer by profession. He was chosen by the moving five stars as a relatively neutral name. That would put together a coalition between moving and lega. But we haven't really had a party leader as prime minister in quite a long
EOSfinex's Steven Quinn on What is Driving Recent Crypto Price Action
"The audience a quick kind of like high level. The top two or three bullish tailwinds. That are really driving this price action. We've seen again a a really bloody three year. Bear market start there. Really kinda come to a solid close and there's a lot of really interesting things happening in the world. That are driving crypto adoption. What are what in your mind. You give the most weight to I guess what everybody's talking about right now like the general situation in global markets ride and Well so first of all. I'd say like general generally the global markets a think another one would be Institutional adoption is really starting to pick up and that's where use next hopefully will have some some some work to do about that's really were bit fanatics shines You know it's the destination for really serious institutional traders run and then third i guess would be The radius now being you know there's significant developments in real world use cases ride like we're getting closer to not much about what's possible rushdie. Starting to do things ride so you have a global market stuff. I mean i'm sure this is talked to death with With you guys than with everybody listens to you right so we don't have too much but all i can say is i guess. Bitcoin crypto in general really. Couldn't ask for a better. It's more like a vantage pretty. Yeah couldn't ask for anything better like you know like it's exactly what everyone was waiting for. You know you go right back to the white paper for bitcoin We're just seeing that again. It's repeat of the great financial crisis except even more extreme. And you know. Bitcoin is redesigned the shine along with all the so that. And then i guess Yeah the institutional adoption you guys might have seen the news today about. is a quite large publicly listed company on nasdaq. I think the colts microstart bits microsystems. Yeah so they've just allocated two hundred fifty million to fifty million yet they got balance-sheet of one point two billion and then they put Two hundred fifty million dollars of their cash reserves into bitcoin which is a little over two thousand bitcoin super wild. Yes absolutely wild. But you know it's it's really again it's It's everything that people were. Were hoping for what we were talking about. Happening is starting to happen and say it'll be like you know slowly slowly a person than all at once
Job losses from virus 4 times as bad as '09 financial crisis
"New data on the economic impact of covid. Nineteen has confirmed what many have been thinking. Workers haven't been hit like this in generations. According to the international labor organization ilo people trying to earn a living suffered massively in two thousand and twenty after the corona virus started spreading globally. Early last year. Ilo director-general guy. Ryder told journalists on monday that the impact has been four times worse than the last major financial crisis over a decade ago. This has been the most severe crisis for the world of work since the great depression of the nineteen thirty its impact is fault greater than that of the global financial crisis of two thousand nine when comparing with the law school Twenty nine teen. We now see that eight point. Eight percent of global working hours will lost in the course of the year. And that is the equivalent of two hundred and fifty five million full-time jobs. These lost working hours came from reduce time at work or what is called unprecedented levels of unemployment that affected one hundred and fourteen million people. The said that pandemic restrictions may have accounted for the bulk of these people leaving the labor market either because they were unable to work or because they stop looking the un body said that these massive losses resulted in an eight point. Three percent drop in global income from work equivalent to three point seven trillion dollars or four point four percent of the world's economy not taking into account cash subsidies for workers.
Job losses from virus 4 times as bad as '09 financial crisis
"The corona virus is destroying a historic number of jobs when you when expert says the corona virus pandemic has been the most severe crisis with the work world since the Great Depression of the nineteen thirties it crushed work hours around the world destroying what amounts to two hundred fifty five million full time jobs who took the biggest hits women and young workers the U. N. expects jobs to bounce back in the second half of this year but it says that depends on the coronavirus fading and vaccines working I'm ready to fall lay
"financial crisis" Discussed on The Journal.
"When a company wants to expand its business or acquire another company. One tool they can lean on is a so called leveraged loan. It's like a corporate version of subprime mortgage. These loans are riskier than typical loans. The company's financial health can be distressed often. The companies already have a lot of debt and sometimes the loan size exceeds the company's earnings. And because of all that the loans come with a higher interest rate in recent years the market for leverage loans has been growing at the beginning of thousand fifteen there was around eight hundred billion. And now we're at one point two trillion so the market has actually increased by fifty percents in size in the last five years. And that's highly unusual. You don't tend to see that happen and financial markets it's really exponential growth. These high risk loans became really popular in the early two. Thousands of companies were getting acquired at record. High dollar amounts in the tens of billions of dollars and to purchase these companies private equity firms and other buyers started borrowing. Huge sums of cash. Economy was going very very quickly and it was kind of what me worry. Time in the debt markets. You started to see a lot of really big deal. So Tilton was sold for twenty billion Energy company new sold for thirty. Two billion. The market was going really fast and there had not been a big blow up yet. These loans may have been risky but with the economy booming. It was a risk the banks were willing to take because they could get a high rate of return for the money. They loaned out and for the companies that borrowed the extra cash allowed them to supercharge their growth so they could easily pay off high interest payments to banks and still make money then two thousand eight. Now it's official. We are in a recession started in real estate and he started with subprime brought down by bad mortgage investments. Liman which has twenty five thousand employees will be liquidated. The market is not functioning properly. There's been a widespread loss of confidence and major sectors of America's financial system are at risk of shutting down the money stopped flowing and some of these companies defaulted on their leveraged loans that created a ripple effect throughout financial markets. They get big banks. They had ensured they hit hedge funds. I started hit. Mutual funds and the markets came to complete hall defaults on these corporate loans added to the growing mortgage crisis making the financial crunch at banks even worse and it leads some of these companies to file for bankruptcy like the Casino Company's caesars entertainment and the energy company Txu and so in the fall out of the two thousand eight crisis. Regulators wanted to do something about leveraged loans with legislation. Like the Dodd Frank Act would dodd-frank did and some other regulations did is. They made it much harder for banks to extend these loans. The government effectively got banks out of the business of holding. These risky loans on their balance sheets stopped for all intents and purposes. But it didn't put an end to this kind of risky lending no it did not because the US government different parts of the US government mainly the Federal Reserve and the Treasury. We're doing something else at the same time with companies throughout the US hurting the government lowered interest rates to help spur economic activity. But those low interest rates. Hit An unexpected side effect. They also created a surge of appetite for leveraged loans returns on safer investments like government bonds had gone down making the high interest rates on leverage loans. More attractive most banks were no longer holding onto leverage debt but they were still facilitating these deals and selling the debt to investors so US government essentially created demand among investors to buy these risky loans. Because they weren't getting returns anywhere else they were desperate. Desperate for yield these were pension funds that had for example in order to meet their future liabilities in order to pay out the pensions that they had for workers that were starting to retire. They needed to make six percent per year and the only game in town for that was highly risky. Investments like the leverage market so investors were encouraged star buying risk your debt. That's like a water balloon like basically like if you think about risk taking and the debt markets and think of it as like a water balloon regulators. Kinda squeeze down on one side of the water alert. Which was the banks may squeeze the risk out of that part of the balloon and at the same time they pushed it to another part of the market. And that's the thing about markets and capitalism. They tend to find a way and that is why we saw the market grow from around six hundred billion in two thousand and eight to around eight hundred billion in. Two Thousand Fifteen as these leveraged loans were making a comeback in the twenty tens Matt says that alarm bells started going off in financial circles. I remember talking to a lot of investors are like. I can't believe that these deals are happening again. Like they so clearly don't work. These companies shouldn't have this much debt. Market doesn't really have a reason to exist to the extent that it does. It doesn't make any sense. But despite the concerns investors kept taking the chance on these high risk loans. This is kind of like a product that just it's like the energizer bunny just keeps on going coming up how that energizer bunny is. Pushing one company to the brink.
"financial crisis" Discussed on The Indicator from Planet Money
"Support for this podcast comes from the John S. and James L. Knight Foundation helping NPR advanced journalistic excellence in the digital age. These days we think of the economy as something to be managed so for example if the economy starts slowing down going into a recession we want policymakers to give give it a boost historian. Colin Elliott says that is not really how the Romans thought of the economy. They don't seem to have actually conceived of the idea of an economy to me as kind of external thing that needs to be stimulated or that can become You know that can run rampant. That has booms and busts but collins says that the ancient Romans and did at least have a banking system and they did have lending and credit it systems mostly for elites for people who already had money and status Colin refers to it as a relational banking system the banking institutions. Were for the most part quite personal. That is these are individual families or even in many cases just individuals else who have access to capital or they have quite good social relationships but on the whole the it is elites that are that are using the vast majority of the credit system and that is because security in the Roman world is primarily land the crisis of eight thirty three happened under the watch of the Emperor Tiberius serious. He was the second Roman emperor after Augustus. And here's what you need to know about him about Tiberius. He kind of nailed it in. Tiberius is Quite distant as an emperor he spends the latter years of his reign in kind of voluntary exile at the island of Capri. He is somewhat disinterested and and Uninvolved in in Roman Politics Tiberius left Rome for Capri in a D. Twenty six collins says this created a power vacuum in Rome it especially among the elites and the Roman Senate the Senate kind of is is headless and is is acting in sort of confused and incoherent way. And so all these elites these senators. They started backstabbing each other trying to position themselves for advancement into better jobs within the Roman government for example Collins says that even though Rome was by yeah then in empire the Roman Senate still mattered a lot and there were a lot of public jobs still had to be done that were important in which also granted a lot of prestige to the people who got those jobs. For example there was a job of overseeing games and festivals in Rome or the job of managing the courts in the city or sometimes leading armies. And those jobs. Were only the middle rungs on this ladder of honors as it was called and then at the very top of the ladder was the consul ship and there were two Roman consuls. That ruled the the Roman state they had the a power called imperium which was really the right to give a command and expect immediate an an automatic compliance. They had the power over life and death of an individual outside the city of Rome. They could manage courts they called assemblies. They led army's they were sent off after their one year term in office to go and govern provinces so basically these senators and other Roman elites were jockeying for these great jobs jobs sometimes accusing each other of treason to the emperor and again the emperor was not there himself to judge these accusations. He was on the island of Capri and so it was all just a mess. And then some of these elite Roman senators as a way to target their rivals came across an idea they look on the books and some of them them realize that there are these laws that have been on the books for for decades. That are That are that require them to not lend it interest and also require them to to have their land portfolios dominated by land in Italy and they so some senators and other elites a landowning elites had just outside of the Senate are using these laws to bring each other to trial in hopes of knocking their rivals. Down A peg. This sudden force of these two laws which had been ignored for decades is what plunged the Roman empire into a financial crisis. Here's how settle in the bankers. who had lent out money? They demanded they be paid back on all of their loans immediately as they believed was required by the law the problem was that the people who owed the money had already invested that money in land so they had to rush out and sell that land to pay back the loans and when everybody is selling land at the same time the price of land of course collapses and making things worse the Romans who had lent money to the banks now also needed cash themselves to buy land within Italy so that they would be in compliance with the law except the banks. Were not getting their money back fast enough. So there was a kind of ancient run on the banking system. There was a shortage of cash. Nash Land Values collapsed. Fortunes were being lost and even more important to the Roman elites their status their reputations hung in the balance but wait enter Tiberius key orders a bailout. He makes a hundred million sister sees available to be lent out by the government to the elites. Who Need It? And don't worry one hundred million sister sees just take our word for it. It's a lot of money loans. This out interest free to fellow elites for three years so that they can pay back their debt. What they have to do insecurity provide some land as security to the state? So that if they don't won't pay back those loans The state would then presumably confiscate their land and it worked basically the bailout was an injection of money for the people who needed had to pay off their loans to buy them time to comply with the law which is exactly the stabilizing economic policy. That Roman leads needed from their main policymaker the emperor her so land prices stabilized themselves reputations. Were preserved. It's true that it solved this financial problem in in that it allowed elites to To pay back their debts and then private lenders were eventually found as well and the credit market itself Alf was restored feed as was restored but of course also the status of these elites was restored. And that's what this crisis crisis is all about. Colin says people who try to draw modern lessons from this Incheon crisis to argue for example. That injecting money into the economy when there's a bank run on or when loans are being called in or there's a bubble crashing. They're not necessarily wrong. But they're kind of missing the point back then. Tiberius wasn't trying to stabilize this thing. We now referred to as the economy. He was trying to help out his fellow elites and in doing so maybe reminding everybody that he himself was the most elite Roman of all and I think what I think is really important about this crisis is that we remember that that was its principal. Aim that was the principal. Aim of the rescue package. It was not necessarily to restore the entire financial system so into us sort of modern jargon. This was not a Keynesian countercyclical policy. This was bail out for the Roman one percent it was and it it was a status bailout. It was it was a financial base bail allowed but it was also a and most importantly a status bailout. This podcast was produced by Darius roffe on edited by Paddy Hirsch Indicators of production of N._p._R...
"financial crisis" Discussed on Animal Spirits Podcast
"Is a younger student going through getting a finance degree what do you make of this is a finance to college degree still good option that's the next ten years go by I guess I didn't see this one the take and we've probably said this team times before and I know what you're say what say it advice no no no complete with finish each other's sentences I day anything that can be automated we'll be automated so if you're looking I was way off via I gave you an effort but so if you're getting into something that you that is going to be replaced by computers than yeah then you're degrees worthless but how many people go into a jobs thinking I'm going to get into this job that I know is gonNa be replaced but a lot of people argue that advice can be automated I mean certain things can be automated I think the great thing about finances there are a lot of different areas you can go into you have to pigeonhole yourself into one specific area and I think if you are willing to learn and not just pigeonhole yourself into one specific need sure whatever that you can find your way around your career especially as a young person who you don't know what you WanNa do so yes I still think a finance degree is is a worthy option and they're still still three and a half percent right now like okay any day in any day now robots I mean you know the unemployment rate for robots zero okay you got me now well maybe you know when you only have to check our your robot or not on the computer thing right like they can't do that job right can they the I'll be worried when they can check a box okay how's that sound that's when is gonNA take over okay any recommendations I know that you saw another movie by yourself this week so false actually wait wait which movie joker yeah you see a movie by yourself no joke around with I went with front thoughts thoughts I think that this is definitely a polarizing film I have a question though all the stuff about the controversy and it being pulled all the movie was not political or I mean it was just a movie but Anyway Question Better Joker Joaquin Phoenix or heath ledger they were both excellent bic one no you can't make me you're not my boss okay so you think they were they were relatively equal boy you really good on the takes today investors aren't better or worse view very memorable scenes okay movie was about twenty five minutes too long how long two and a half hours or so it was like just over two hours okay he was amazing he should win an Oscar I think.
"financial crisis" Discussed on EconTalk
"We can have that it just is it it's so it doesn't have to go into crisis to crisis. When we see that. It's wrong crisis an inflection point. But this is unhealthy every single day because they are loans that are made there might be too much. There might be loans that are not made all of these things are invisible about the the distortions of this system. So I think crisis is is not a system like this can can persist for longtime, and the crisis is just when you know, it's if you you're burning your engine driving it to one hundred miles an hour, and you know, you might fall off the cliff, but you might make it, you know, along just living dangerously. So I think we just. Live dangerously, and we and we're lucky look I start the presentation by Jamie Dimon, telling the financial crisis inquiry commission that he told his daughter who was I think in the lamentably school who asked him, you know, daddy, what's financial crisis. He said to her. It's just stuff that happens every three five seven ten years. So now when I talk about it, I say, oh, it's been ten years. So what is where's it gonna come from? And I give these headlines in the that, you know, one is about the alot one is about Italy one is about cyber security. You know, the July thirty first two thousand seventeen financial time to sequels the financial crises here, then we have, you know, the crisis is closer than you think, you know, you've been have people saying crisis coming and then they're going to be heroes when he does come. But people are saying that Italy political crisis hits financial crisis. This is just not financial markets just now, so maybe it'll come from Italy from your zone, imploding again or something like ceelo's. So what you said ceelo is is collateralized loan, which is a close cousin of see deal collateralized debt obligation in financy, often just change the names, and it's the same thing. So Cielo CD. Oh, it's they're basically the same collateralized loan ably. Gatien's that's the leverage loans that I was discussing earlier. And so, you know risky, you know, risky debt, opaque, securitise all of that. And you know, the crisis would come from somewhere. We don't know. And we're going to say, you know, we didn't see coming. But I think again focusing on crisis prevention alone is is not is not really where my problem is what I noticed, and we are now running out of time to talk too much about corporate governance is I mean, you know, once you have status where you can't fail..
"financial crisis" Discussed on EconTalk
"Why was financial crisis so harmful and in comparison to to the dot com collapse, which just do set it up more as a contrast that dotcom collapse involved a lot more? So to paper losses. What you were just referring to meaning collapse in the value of of certain of certain companies, indeed their their demise, in many cases in the financial crisis that started with subprime defaults. The underlying losses were actually much smaller. And yet they harm was so large. And and what it is about a lot of it was about the nature of the system. Indeed, the reach of the system, and and and the fragility and passively of this system. Item. They way that it controls important sort of infrastructure, like the payments system related to whether your money's in the and and await became Sobel in so connected. And then so incredibly Fredge, and that that fragility creates all these contagion processes that did not exist in the dot com. Which was just a contained system with where equity values dropped here. You had equity values dropping in a very highly indebted chain of highly indebted companies that. Where their counterparties really weren't quite sure how to analyze who's who's really sound not. And that created many mechanisms that, you know, in our book, we call financial banking dominoes to describe it. So we agree on that. And we certainly agree that I know we both agree because I've interviewed twice in read your book, the the role of leverage of borrowed money as opposed to equity and just a quick review for listeners inequity, you a stock stock can go really really high, and it can go zero with with debt,.
"financial crisis" Discussed on Masters in Business
"Yeah. No people Ben Bernanke. He said Ray Dali's book is the most read is a must read for anyone who aspires to prevent or manage the next financial crisis. Larry Summers terrific piece of work by one of the world's top investors who has devoted his life to understanding the markets and demonstrating that understanding by navigating the two thousand eight financial crisis. To guide ner said it's announced ending history of the financial crisis, including the devastating crisis of two thousand eight that's an amazing list of people who were actually actually there, and and running this and Hank Paulson is another person who who had some common. So Senate way they. I think it's I think it's accurate and the most important thing is in the book, the most important thing that I'm really trying to get at is the mechanics of the disease has described here because if we can understand and agree on the mechanics of these things we make a giant leap forward, a lot of the mechanics are not agreed to and they're not studied they don't look at cases. For example, at the time. There was a lot of argument that printing money would bring back a lifer inflation. Yes. Right. But which which showed a fundamental misunderstanding of what show to fundamentals misunderstanding? Because when when more money comes into the system at the same time as credit is contracting, the eventual mount of purchasing power is not rising. And so what causes on flation is. When more money is spent than goods and services are produced. Okay. And what's happening at these times is that money creation is making up for the contraction and credit. So you're you're jumping ahead to the beautiful delivering, let's go through the six steps as you outlined in the book and just a quick overview. The early part of the cycle the bubble the top the depression, the beautiful de leveraging the pushing on a string, and then normalization is. Did I get that more or less, right? That's right. And. In both Szekely most cycles work the same way. But there's when you hit zero interest rate, then you have the big one, right? Okay. So what happens is in the early part of the cycle, the amount of.
"financial crisis" Discussed on The Energy Gang
"There were a hundred countries with some kind of ambitious policy target at that point or promotion policy for renewable energy and many of these policy developments were a direct result of the financial crisis. So the question I have is would would those ambitious investments from governments even have happened had the financial crisis not taken place. That's the that's the misnomer. Right. The financial crisis OSA counterfactual for sure. Like, there's no way to prove. I don't think it's a counterfactual. I think we can prove it, right? I mean, ultimately, the the renewable energy industry got all of the support that got because it was ready for it. Right. The industries that weren't ready for it were excluded. Right. Remember during the financial crisis. People were looking for shovel ready projects. We were all shovel ready. We had already created these huge markets in Germany and Spain Italy, and we were, you know, like growing tremendously in California, and then we were setting up new programs, and Maryland, and DC and other places. So so we were already ready for it. And that's why we were given the money. Same thing's true in China. Same thing's true in India that we had already gotten the policies set up an India before. You know, premise or moody was elected, right? So that's why you know, he embraced it so quickly because the it was already set up. All he had to do is say, yes, but a nearly two hundred billion dollar influx of capital from from governments. I don't I mean, that's us an extraordinary amount of money and sure the industry might have been ready, but that doesn't necessarily mean they would have gotten that level of support. Oh, we would have gotten it. Anyway, we already on track. Like, we already had Goldman Sachs. Wells Fargo Bank of America, you know, AllState northwestern mutual mass mutual they were already all lined up to do it. Right. When the financial crisis hit. This was my biggest gripe around the loan guarantee program. Right. Everyone's like the loan guarantee program save.
"financial crisis" Discussed on BizTalk Radio
"And welcome to the royal to your programme here within a decade since the financial crisis and many americans are still lying themselves about what impact that crisis since hat on their investing in particular the younger investors everybody welcome it's great program are standing by for another hour of money power and it's going to be a pretty on as i get a chance to address many issues that i've had on my mind eight four four raise show is the number eight four four seven to nine seven four six nine if you'd like to call you can do that right now otherwise email me realtycom ari y l u c i a dot com click on the ask gray button so america saying they're so over the financial crisis but not really sent back folks relax i'm going to try all about that and explain to you why this whole idea of stocks being risky in your portfolio in particular your retirement portfolio is bogus information when you take a longterm perspective and you actually look at the numbers you see it all sounds good on paper that yes as i get older i should have less money in the stock market but that may be true if you're flush with cash it may be true.
"financial crisis" Discussed on KMET 1490-AM
"Financial network and dumb pray financial law lending is that what it is a party financial network yes that that we have uh we have a couple of different origination channel that we do we run out of our calabasses profit okay excellent this is pete roeszke who's the director wholesale lending for them and i really appreciate him coming on the show to his first time on the show when in a way as i say i knew how busy you guys are especially the year and how you guys doing while krakatau yet play here tip beyond today uh it's interesting when you get some months and that iran typically uh business gets a little bit slow for whatever reason this particular year we we've seen a very steady a steady flow of business we've been very pleased as the usual he's an old drop off hasn't been there and uh there's probably a couple of pretty good reasons for that we're we're we're pleased though that we don't have to usual seasonal fall off well that's you know wouldn't sneak some use the different by each company has their own niche by which they can either prevent that war he adds to its what are you guys doing did you think might help you guys breach from this slow time through the you know the next boom next year dear obviously you're doing something right what is it hair whoa whoa we're really in a transitional fate at the mortgage industry it right but i agree that it we haven't this financial crisis hit the the lending standards of really were really withdraw and and there was the focus on the very high quality lander in a very very low risk loan bought as anybody who's out there who's tried to buy a house or refinance recently understands the dot everybody in the universe has perfect credit or a rapidly ascetic valuation in their home and the regulatory changes left a lot of borrowers of a lot of wouldbe homeowners uh on uh on the side of the road at now we're starting to see is these new products are coming out yeah day uh a at least for some people a uh a stronger reliance on the economy or less stress about the economy and they're they're more relaxed their more likely to make a uh a.
"financial crisis" Discussed on Stansberry Investor Hour
"Uh dis is different in that to the data is not held in one server it's held on every single server every single computer on the network so that it is harder to manipulate the data if you get your hands on it so that's the most it it and i don't even think i'm i'm kind of explaining in a way that makes it is clear how groundbreaking this is um this is an idea of taking control of these networks away from central i servers and moving them out to eat decentralised network and that is sort of uh i could be again is an experiment if it works but if that works it really could be sort of a uh a seachange in just how we how we record data how we stored data who has control over that data and i use a personalize information better and for me the better analogy price is what happens in the financial system because that's where bitcoin comes from it was an idea of getting around banks where you have a situation where bank wchs ours to you know this is what led to the financial crisis banks or trading he these exotic uh securities that nobody has any real information on and they manipulated the data and they did it to a terrible degree and we had a huge financial crisis with this decentralised database nobody could would be able to do that every all the information would be in a public sphere all the information would be instantly verifiable by anybody on the network and it just creates a very different dynamic than what we're used to.
"financial crisis" Discussed on The Majority Report with Sam Seder
"We we came through this a financial crisis or we're still in the wake of this financial crisis there was all these pushing for austerity which i think i i hope at least a now has been largely debunked as a response uh to to uh to dealing with this big output gap right i mean because we we we we we didn't have the what happened is the demand basically went away in that instance and so uh what we should have been doing during that time and i would argue probably still is increasing demand in so so tell us how that would i mean how would the with the knowledge of modern monetary theorty theory how would we have responded to this crisis differently well i'm not even sure that you need modern monetary theory to get the right uh policy response i think you know just understanding essentially keynesian economics the the philosophy there would be what you just said which is if you've got an output gap be the indication is that there is not enough total spending in the economy to buy all the stuff that businesses are capable of producing if you want to get back to full employment you've got increase spending um and so where mmt comes in handy i think is in allowing you to recognize how much policy spaces available so that you don't out of one side of your mouth talk about advocating for more spending get more aggressive fiscal policy in out of the other side of your mouth your worrying about what's going to happen to the deficit and you know talking about the need to balance budgets longer term so um you know looking at the economy and what happened after the great recession you're seeing an economy that was hemorrhaging jobs i mean.
"financial crisis" Discussed on KQED Radio
"Financial crisis of two thousand eight the sore of razors they were used to and especially night late 1990s just haven't happened in the wake of the great recession and so for a lot of people whether they're making the median or or just under a hundred thousand they feel like hey mike quality of life is not advancing nearly as fast as i think it should be based on what i've seen attack asked and people in america don't have a lot of savings do there they don't we've seen the savings rate drop overtime we see that there are a large number of families who can't even get by they've missed two paychecks this is a problem that that predates the recession um it's actually been a problem throughout the 2000s where people borrowed and they overspent perhaps relative to what they should have been saving just to keep pace with again with those quality of life improvements that they had been accustomed to in the past one of the things that these families talk about is the expenses that they can't really mitigate childcare medical expenses and those are expenses that we see in particular policymakers now being more interested in trying to figure out solutions for whether those her marketbased solutions to get more competition whether they're government solutions to help people whether through subsidies or other ways of of bringing down those costs education childcare these are things that have been increasing faster than overall costs in the economy and they are very visible cost to working families and i think that's why policymakers or so tuned into now how does this fit in with what we're seeing now we see the stock market at record levels on the economy is picked up again it's growing a we see unemployment at very low levels what does that mean for the average family well i'm going to do something that economics reporters and particularly of this economic order don't often do and and be a little bit optimistic here for a second we know that things get better faster for families and working families when the economy is in what we call full employment when unemployment is very low when there's a lot of pressure on companies to raise wages to keep workers and so if we can maintain that period for awhile again liquid in the late 90s that would be great for these families they might actually starting to see faster and sustained wage increases in a way that.
"financial crisis" Discussed on KQED Radio
"Of the financial crisis and there was a lot of distrust of wall street and the big banks but also of central banks and here uh this was introduced as a new form of money that it could exist independent of all of these that people were so skeptical of baghdad civic the people who created decline because it grew out of a movement wanted privacy but it and mitra exactly where the line is routine privacy and secrecy but there's been a lot of secrecy surrounding the use of vedeno uh was the underground market light on the dark web the black markets on the dark web selling drugs and sex right right for sure i mean the line between privacy and and secrecy is always very very fuzzy and i think that a lot of the technologies that are out there to provide privacy are so sore abused on the other side from people wanting to do things that they don't wanna got to be watching and so so yes i mean bitcoin sort of came out of this idealistic impulse agd now through was announced by the the creator vic this this after known as the toshinaga komodo it's sort of stumbled along for two years and then you could you could send bitcoin around but they really weren't worth anything at that point and it really kind of gained its first reason for being with the creation of the serb vote was this a you know online black market uh bay where you could buy drugs amazon it the silk road the created the silk road realized that bitcoin made this possible for the first time it was it was it frankly quite hard to buy drugs online on before this because if you did the police would just go asked pay pallor visa uh you know who had sent this money to buy this uh baggio winner or marijuana and pay pow would give those records over and the person we get arrested with with dick coyne you could send that money and nobody would know where the money came from and.
"financial crisis" Discussed on TEDTalks (audio)
"Think of the last financial crisis or the dotcom crash so here's my concern we could have a tipping point in global food and agriculture if surging demand surpasses the the agricultural system structural capacity to produce food this means at this point supply can no longer keep up with demand despite exploding prices unless we can commit to some type of structural change this time around it won't be about stock markets and money it's about people people could starve and governments may fall this question of at what point to supply struggle to keep up with surging demand is one that started off as an interest for me while i was trading and became an absolute obsession it went from interest to have obsession when i realised through my research how broken the system was and how very little data was being used to make such critical decisions that's the point i decided to walk away from a career on wall street and start an entrepreneurial journey to start grow intelligence a grow we focus on bringing this data and doing the work to make it actionable to empower decisionmakers at every level but doing this work we also realized that the world not just world leaders but businesses and citizens like every single person in this room lacked an actionable guide on how we can avoid a coming global food security crisis and so we built a model leveraging the pedal bites of data we sit on and we solved for the tipping point.
"financial crisis" Discussed on The Majority Report with Sam Seder
"A without um collecting savings festival they do that if you like they create credit to finnet um so um so the problem with w happened with the financial crisis was that there's very little understanding of finance and of credit and um and for that and then i'm because this misunderstanding people were blinded couldn't see what's the proper morris couldn't defend what the problem was in the problem and being financial deregulation you know throughout history we've had chiefs well priests all people of distinction in our communities that have managed op promises to pay and what happened with the deregulation of the financial system in the '60s and '70s were the banker said we don't need a chief or a priest or a over or a as a securities and exchange commission oil you're not a regulatory body to tell us how to do i business the market will do this the market will discipline us if we go wrong um you know the market knows fast so it's a i mean i don't know if we will see now i'm hope people watch the big short which is ready one of the best movies about the crisis airbus and the scene where the wall street uh wall street guy goes to florida to examine the subprime a housing market and they're in the nightclub one nights in the poll done through swing around the poll and he says to the poll down so have you got a mortgage.
"financial crisis" Discussed on Business Daily
"I don't know if the lessons remain learned you know i thought in two thousand nine in two thousand ten i thought for sure the one thing that everyone would agree on is that the world view that says that ripping up the rules of the road is always better for the market that that worldview would be dead that it would be dead as long as any one that was alive for this financial crisis was still alive that it would not be back and yet somehow you're seeing the president of the united states literally saying that regulations are those source of our financial problems repeal doddfrank go back to system that we had is it's almost unbelievable to me we had a absolute life threatening crisis to the financial system of the united states if not the world and at the center of that was a total lack of trust in what the other financial institutions were saying and at the depth of the crisis i would just point out the highest interest rates of all the least willingness to lend of all were the banks unwilling to lend to one another because they knew perfectly well what was being hidden in those other banks because they knew what they were hiding that we would voluntarily go tear up the very rules that we put in place after the last one less than ten years after that last one happened while i really don't understand that the thoughts of professor of economics of former obama adviser austin goes be that's it for business daily today backed amara join us then.
"financial crisis" Discussed on Bloomberg Radio New York
"The financial crisis and it wasn't information knew we could use to address ahead was commissioned didn't come from models and provided insight thing i think pop real policymakers wanted to be taking account of as many models listen carefully because there are a lot of things that nuts too like that the models on picking up fetch right and the motivations that people have the often come across to you or kick these things to really think about what is going on why why would people be anything in this way and right none of this citizen are models an down that we'd have been collected the better anticipating wall didn't that happen well i think i think we wouldn't have been unfortunately insights were a little bit too late i'd say now in the aftermath of the crisis we're trying to do things like that in a more systematic way we've started up a new division focuses on financial stability and the people who were connected vision aboard in in the reserve bank's we really ask them to go out and think outside the box took to people talk to people in different pieces the financial sector think about all the things to could conceivably go wrong that are not in models be contrary and then you're thinking right down all the for the risks let's see where that in so i mean that is less than i think from the crisis that's the see that that move to a second question which is around where those big traumas can come fall and the inherent instability of banking systems and basically it's very simple them you give your money to bank and the bank promises you can back any time and then it goes and puts it longterm on the best cold that investment projects or whatever it might be house and it's paul a friend of cold essentially coming to the promises that you can have it by any time yellow it really is go that got it and they'll give it back to you but it isn't because it's been used in a different way which is inherently illiquid and therein lies the stability a bank don't go away because it's in the logic if we had.