The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad



This talk was given at a local TEDx event, produced independently of the TED Conferences. The Great Economic Myth of 2008, challenging the accounting to accounting principal.

Brian Wesbury is Chief Economist at First Trust Advisors L.P., a financial services firm based in Wheaton, Illinois.
Mr. Wesbury has been a member of the Academic Advisory Council of the Federal Reserve Bank of Chicago since 1999. In 2012, he was named a Fellow of the George W. Bush Presidential Center in Dallas, TX where he works closely with its 4%-Growth Project. His writing appears in various magazines, newspapers and blogs, and he appears regularly on Fox, Bloomberg, CNBCand BNN Canada TV. In 1995 and 1996, he served as Chief Economist for the Joint Economic Committee of the U.S. Congress. The Wall Street Journal ranked Mr. Wesbury the nation’s #1 U.S. economic forecaster in 2001, and USA Today ranked him as one of the nation’s top 10
forecasters in 2004. Mr. Wesbury began his career in 1982 at the Harris Bank in Chicago. Former positions include Vice President and Economist for the Chicago Corporation and Senior Vice President and Chief Economist for Griffin, Kubik, Stephens, & Thompson. Mr. Wesbury received an M.B.A. from Northwestern University’s
Kellogg Graduate School of Management, and a B.A. in Economics from the University of Montana. McGraw-Hill published his first book, The New Era of Wealth, in October 1999. His most recent book, It’s Not As Bad As You Think, was published in November 2009 by John Wiley & Sons. In 2011, Mr. Wesbury received the University of Montana’s Distinguished Alumni Award. This award honors outstanding alumni who have “brought honor to the University, the state or the nation.” There have been 267 recipients of this award out of a potential pool of 91,000 graduates.

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46 comments

  1. Als klant koop je 1 of 2 keer in je leven een huis de bank leent elke dag duizenden leningen aan klanten Deze meneer vergeet dat een bank een klant moet adviseren. Het uitlenen van geld gebaseerd op een rentevast periode van 5 jaar is een heel slecht advies als je er 30 jaar overdoet om het terug te betalen.

  2. Really? You think TARP passes and the entire system should magically respond to it? It's a complex system, it takes time to adjust. But that aside, what about Glass Steagal? The crisis can't possibly have anything to do with Clinton repealing it, eh? Can't possibly have anything to do with the private bankers creating derivatives that hid toxic assets in balance sheets across the entire financial system. No! Unthinkable! 😒

  3. "The real truth about the 2008 financial crisis"
    It was all TRUUUUUUUUUUUUUUUUUUUMPS FAULT, MAAAAAAN !!!

  4. Yes – that one is easy to explain. Give Yellen "the power" to destroy America and turn it into a Globalist cabal, she will do it in record time. Biden offered her a second rodeo and it took her a few months and she did it again. But this time way more efficient.

  5. Interesting talk, I would mention that the speaker repeats that the govt was trying to fix by doing stuff, I would suggest they were trying to prevent it from getting worse (i.e. prevented your chart from continuing downward, even though it didn't go up), and last I checked Rep. Frank was in the Govt, wasn't he?

  6. Bull, the banks allowed people they knew could not afford to borrow money to borrow money, interest rates were irrelevant, they are called liar loans for a reason.

  7. I was a little surprised not to hear how Frank-Dodd actually caused the 2007-2009 crash. They were the ones that passed legislation to loosen credit lending standards which allowed less than qualified buyers to purchase homes. Yes, some unscrupulous LO’s did bad things but without Frank-Dodd (Rep B Frank and Senator C Dod) most unqualified borrowers never would have received a loan. As he did say they were warned of the risk but ignored it as did Lehman. Watch ‘Margin Call’. It’s fairly accurate on how the bank approached and started the slide. But let’s give credit where credit is due and it’s the government. Housing, loans, education and on and in. Whenever the government/Congress gets involved in finances or markets they ALWAYS screw things up then blame it in someone or something else. My criteria? I had a 14 year Mortgage business. Walked away in 2007. Stayed in the fringes a little to help some friends but retired from that mess. Saw it coming in ‘06-‘07 as the New Century’s of the world would give a $500k loan to anyone that claimed to be breathing.

  8. I think he missed a key factor. Frank a few years before pushed through a federal program to encourage home loans to people regardless of ability to pay. That's what loaded up the sub prime market for problems.

  9. Did salesman go around to poor old people who owned their house get them in adjustable rates. For improvement.most lost their property.

  10. The presentation is a bit souped-up and self-important. Don't ask 55 questions and then giving a lame one liner as explanatoin… It's a bit reversed logic to say that the fed met 14 times so they made the crisis worse. Hm well in a crisis it's not that surprising that they meet more often is ist? And the stock market in crisis will not return to jubilant times just because of a fed meeting.. So a lot of the arguments are a bit upside down. But the mark-to-market is a real thing never understood those very pro-cyclic accounting rules that whack you over the head with a baseball bet just in the worst moment.

  11. Oh no that most of the bubbles are caused by the FED is a right wing conspiracy theory. What happened to the usually all globalist TED talk

  12. The only thing I understood is that when interest rates are higher people are more cautious on how they use their money lol

  13. Barney Frank and his ilk caused this mess by forcing banks to make loans that were never going to be paid back.

  14. Not a smart assessment. He points to the chart and asks if it looks like TARP was helpful. Since the chart kept going down he wants us to answer to ourselves, no. It looks like it might have gotten worse. What he doesn’t know is what the chart would have looked like without TARP. The fact that he doesn’t acknowledge that is essentially an insult to our intelligence.
    Epic Fail.
    And the other FAIL is his notion of, just have faith in the American Economy. Easy for you to say in hind sight buddy. The FED and the government had to act NOW. They didn’t have the luxury of waiting.

  15. The Federal Reserve is NOT the government! It's our banking industries board of governors, they elect a head that reports to the president but the president has no power to make them do anything. I don't disagree with the main premise that the FED did cause much of the problem during the 2008 crash as it has again, now causing a huge asset bubble that just popped after a near decade of Zero Interest Rate Policy (ZIRP). Biden just like Bush had little to do with it.

  16. Really really wish I saw this a year ago. I sensed it, but did not understand why the market was collapsing in a step down pattern followed by cliff dives

  17. The 2008 crash in USA was inevitable & foreseeable. Let’s hope the “regulators” of today have learned the lesson.

  18. If you believe Brian’s bull sh!t you would think the blame for 2008 lies solely on interest rates being so low, encouraging people to buy more homes than they could afford. He completely ignored the fact that mortgage companies were highly incentivized to write mortgages which were then sold to investment banks which then packaged them into securities and then issued bonds against them. Mortgage companies preyed on people who had low fico scores, little to no income, no understanding of how ARMs worked, etc. The banks allowed the conditions that created the crises. Brian, perhaps you should watch the Great Short – you might actually learn something.

  19. Check it out. This viseo has the highest number of thumbs down of any TED talk video. My hope for humanity has been renewed.

  20. This was like meeting my lawyer…full of double talk and I more confused than before.
    Horrible speach

  21. I was a loan officer/approval officer at a major CMBS lender at the time. This is not entirely accurate. The Loans that are in question for the housing market were never intended to be held on the bank's books for any length of time. Banks were writing loans with the sole intention of selling them every 30 – 90 days. Therefore, if the loans were NOT going to be sold and would have to be held on the bank books, they would have to be adjusted accordingly based on the shorter term underwriting parameters and pricing. Banks were not structured asset/liability wise to be making long-term, fixed rate mortgages. The beneficiaries who gained more on the other side of the Barney Frank law were given preferential treatment. That's why some large banks grew larger while other banks suffered. IMO

  22. I get his point that not all the blame should be tossed to the banks and none to the treasury, but weren’t the top treasury officials in making the decisions at the time ex corporate bank employees? Without a doubt it all individuals involved had ties to each other and vastly benefited from their little get rich quick scheme.

  23. That's true for new home buyers, but how do you explain housing values increasing 30%? Banks then floated loans against those fake valuations and people were left holding the bag when the bankers slipped out the back door.

  24. I'm always happy to hear the counter view but this was one of the most self serving viewpoints I have ever come across. The audience must be terribly naive to applaud such a talk.

  25. The war through out the Bush administration inflated fuel steel and some other things as well my guess is that the bushes made a lot of money on the sellout with some others and also if mining is slow they sometimes melt down change to put into the grid to make things look better then what they are and then try to find a way to make up for the melt down😳

  26. What Trump taught me is to buy in the housing market crash and sell when building materials are inflated with housing being burnt and wiped out by storms and being super inflated with great interest rates and then take all the profits and wait for the next crash to buy 😁

  27. This guy is one of the smartest people in the business about the real reasons it collapsed. However though, none of them are ever smart enough to realize that it all went south because no one had jobs to pay the bills. That's when cell phone companies started competing against one another and the prepaid market become so cheap and it has never been the same since. Just as an example. All the toys people had like dirt bikes and four wheelers and campers were lost and everyone couldn't get 40 hours expecting to make a living at a fast food job. You see, no one was smart enough to realize the real problem, and everyone paid way to much for gas which compounded the problem.

  28. You do not know the real truth about it, as the REAL truth is that money, stocks, bonds, funds, dividends, taxes, and all of their related ilk, regardless of their name, form, function, or method, are ALL artificial constructs that are also all given artificial values by the Luciferian globalist elite and the governments, trade exchanges, banks, government treasuries, and such that empower them, as well as the people that also work for them, are all a part of the largest, most successful, and longest lasting scam, or, more accurately, these scams are all parts of, the largest, most successful, and longest lasting scam of all time.

  29. The Corp's don't want to take the credit for their legislation Bush and Clinton were to blame …..

  30. Oh, oh, still the Feds, the bank's, investment … Yata… Now let's tell the truth 🙂, yes remember every action there is equal and it's who pays…. The American businesses passed a trade bill that in 1994-5, here they exported 5 million American Auto and related jobs to Mexico and China and Korea nothing went to Japan… I. These were well paying jobs with well established home's life styles. Then in 1996 they deregulated the American banking, Insurance's, Investment brokerage's …. Now the true effects didn't hit till 2003 when the lost jobs/income was draining on the US economy… 2008 was the actual crashed US Economy… So many Americans lost jobs, lost their homes the actual effect of NAFTA…… Corporations were making tons of money overseas…..

  31. The first time fed said gonna stop slow whatever,,,qe9, my verbil knew the sp would. Tank…he ,not the gerbil, is sposed to say "i give" gonna restart qe, i learned my lesson

  32. 2008 Financial Fictional Crisis
    This is partially correct. You could, during this time, buy real estate futures for 2 to 1 to collateral required. Also, they had contractor built homes that were 30 percent higher and funded over value. Yes, the government cronied money away because after the fall of the tech market many of the mutual funds and investors, many politicians, invested at AIG that had sold a lot of mortgage insurance on overvalued homes that went in to default were bailed out through the first 700B “too big to fail”
    There were a lot invested in destination areas with growing markets, many where insurance inequalities drive prices higher where risk of lose is lower.
    Frank pretty much directed his own home loan for he and his partner “green tree maybe” and manipulated Fannie and Freddie.

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