In order to learn the lessons from the financial crisis, we need to understand its causes, its implications and what the future holds. Jon Moynihan, Executive Chairman of PA Consulting Group, addressed these questions in a speech to the Massachusetts Institute of Technology (MIT) Club of Germany.
Click here to watch the speech on YouTube
The speech explores 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 argues that the conventional view omits some key features and that three primary causes of the crash remain under-discussed: the West has been living beyond its means; the banks are taking too much out of the economy; and jobs and investment are moving to the emerging economies.
The combination of these factors is leading to the economic decline of the West.
Jon goes on to examine what Simon Johnson of MIT has called the 'banking oligarchy', challenging the role of the banks in the economy. He also discusses 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 picture and examines which countries will emerge in better shape and what should be done to respond to the changed global economy.
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.
To find out how we can help your organisation respond to the continuing effects of the crisis, please contact us now.
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