What caused the financial crisis, what are its implications and what should be done? Jon Moynihan, Executive Chairman of PA Consulting Group, spoke to the Massachusetts Institute of Technology (MIT) Club of Germany, discussing the issue of whether the current economic decline of the West was a secular, or a cyclical, phenomenon.
Click here to watch the speech on YouTube
The speech addresses the basic causes of the crisis and reviews the conventional view that easy money, bank imprudence and poor regulation were what led to the crash. Jon claims that the conventional view omits some key features and that three primary causes of the crash remain under-discussed.
Jon goes on to examine what Simon Johnson of MIT has called the 'banking oligarchy', challenging the role of the banks in the economy.
The speech also looks at the medium-term outlook and recovery scenarios, what will happen to prices and whether liquidity is easing or if it is still tight. Finally, Jon looks at the longer term outlook, which countries will emerge in better shape and what should be done – with capitalism's institutions, its economics, and personally.
View videos of Jon’s keynote speech on YouTube, on the MIT website or link to the individual 10-minute videos below:
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Introduction – what are the basic causes of the financial crisis?
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The banks – where do the banks fit into the picture?
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The future – what are the medium and longer term outlooks?
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Actions – what to do about the financial crisis?
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Audience discussion
Jon was speaking to MIT alumni in Frankfurt on 10 October 2009.
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