Finding Fact Through an Aggregate of Opinion

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As I wrote about last week, my interest in the Great Recession lies in exactly what caused the events leading up to the crash.  Now, I believe that most of my information will be derived from subjective feeds such as interview transcripts, court proceedings, and blogs about the crash.  The reason I believe this type of information is just as useful (if not more) than objective data because it incorporates a humanist perspective into the equation.  And really, if it weren’t for the inherent human flaws in the system, the Recession may have never of happened (plug for Adam Smith there). Continue reading

Further Research: Alan Greenspan’s Take on the Causes of the Recession

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In preparing to write the final paper I have come to the conclusion that I desire to focus on how the actions of economists and large firms like Lehman Brothers led to the current economic recession. My preliminary explorations suggested to me that both economists and Firms like Lehman brothers had a sense that the market was now safe and that they could predict its course of action with ease. As I mentioned in my post last week, the belief that the market had become “inherently stable” led market actors to make decisions that ultimately resulted in financial crisis. Moving forward, I want address the question of why they acted in the manner they did in a little more detail, but more importantly I want to understand how the actions of economists and large firms caused the market to collapse. In addition, I want to see if there was a chance to avoid this recession by looking at the case of Lehman Brothers and exploring their organizational actions prior to the recession; hopefully enabling me to identify points in time where actions could have been taken to avoid the downturn, what those actions were, and who should have undertaken them. However, to do so I still need to look more deeply into the causes of the recession.

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Whose Fault Was It? Reagan? Greenspan? Someone Else? Everyone?

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I really like that Jordi posted that first quote regarding history and those who do not know it are doomed to repeat it.  In fact, when it comes to the Great Recession as a whole, I’m not really concerned all that much about learning exactly what happened during the crash.  I think everyone is pretty well aware, having lived through it, what happened.  Moreover, as we fix everything over the next half a decade, people will be paying attention to what regulations are set in place and what other measures are taken to “prevent” this from happening again — or at least try to.  Continue reading

Brooksley Born: The Doomsday Theorist

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The recent cry for stronger financial regulation, to the surprise of some, is nothing new. While its typical of government to take a reactionary approach to any sort of  new regulation, more than 10 years before the financial meltdown there was one voice in Washington warning about an impeding financial collapse. As highlighted in the PBS Frontline Special “The Warning”, Brooksley Born, the Chairman of the relatively Continue reading