Crisis on Wall Street (Princeton Panel feat. Krugman)

[Ashy Larry]

Run time: 69:59 https://www.youtube.com/watch?v=Wj_JNwNbETA   Posted on YouTube: September 26, 2008 By YouTube Member: Views on YouTube: 0   Posted on DU: September 26, 2008 By DU Member: Ashy Larry Views on DU: 531

 
Princeton economists review recent events on Wall Street and assess the implications for the economy and public policy.

Panelists: Hyun Shin, Professor of Economics and associate chair of the Department of Economics; Markus Brunnermeier, Professor of Economics;
Harrison Hong, Professor in Finance;
Paul Krugman, professor of economics and international affairs; Alan Blinder, Professor of Economics and Public Affairs and co‐director of the Center for Economic Policy Studies.

Sep 23, 2008 at Princeton University

[Dudley_DUright]

1. Thanks AL

Great panel. Paul Krugman is always worth listening to, but especially now in these perilous economic times.

[aein]

2. Great discussion...

I didn't think Krugman was as compelling as the first 2 guys--in any case, they seemed to have all completely missed the implication of the first question from the audience. They failed to really drive the point that one of the reasons we had this bubble is because the incentive structure in the large public corporation is terrible. These CEOs have all the incentive in the world to disregard maturity and liquidity risk because they get millions of dollars in salary when times are good, and millions of dollars in golden parachutes when times are bad. There is no incentive to control risk. The CEOs knew the risks, they just didn't want to acknowledge them.

[slipslidingaway]

3. Kick for later, thanks. n/t