Old News

This is definitely old news, but I just watched this documentary about the latest financial crisis and I liked it (most of it). Besides being well made on a filming level, it does a great job of explaining the financial products that were being traded and gives a good glimpse of the corrupt relationships that exist between the banks and the treasury/central bank.

An unfortunate reality is that many people still think that this crash was primarily a product of capitalism. This couldn’t be more wrong. Peter Schiff, in his latest book, The Real Crash, has it right when he explains that the willingness to exploit the financial system is always present and it is the people who enable that behavior that should be blamed, i.e. the central bankers and government. In other words, incentives drive the economy (is this new?) and if someone knows that very risky behavior has no downside, then they will act accordingly. This is not capitalism. Capitalism does a much better job at restricting reckless behavior because the potential for major loss is real.


Update: The video is no longer streaming for free. That is why the video is not working. If you want to check to see if it comes back, you can check here.


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