Financial Crisis
QUOTES from Aisha Irum
“...If you look at mainstream economics there are three things you will not find in a mainstream economic model - Banks, Debt, and Money.
How anybody can think they can analyze capital while leaving out Banks, Debt, and Money is a bit to me like an ornithologist trying to work out how a bird flies whilst ignoring that the bird has wings...”
“If one sentence were to sum up the mechanism driving the Great Stagnation, it is this: Recent and current innovation is more geared to private goods than to public goods. That simple observation ties together the three major macroeconomic events of our time: growing income inequality, stagnant median income, and the financial crisis.”
“The people who would praise you for living lavishly, would be the same ones to laugh at you if your were to find yourself in the pit of financial crisis.”
― Edmond Mbiaka
“And the banks - hard to believe in a time when we're facing a banking crisis that many of the banks created - are still the most powerful lobby on Capitol Hill. And they frankly own the place.”
“The warning signs had been there since the crash of 2008, but after the initial shock, nothing had been done to correct the problem. Banks had been trading over $7 trillion in risky derivatives daily, as well as fixing interest rates and making bets on the rigged games. There was an ever-growing gap between the elite and all the rest of the people which had continued to develop even after the 2008 crash.”
“Financial illiteracy is like being in a rain storm and trying to jump in between the raindrops... eventually it all catches you at the same time.”
"Not taking risks one doesn't understand is often the best form of risk management." Raghuram G. Ragan, Fault Lines: How Hidden Fractures Still Threaten the World Economy
Excessive rural credit was one of the important causes of bank failure during the great Depression. Raghuram G. Ragan, Fault Lines: How Hidden Fractures Still Threaten the World Economy
The picture of bankers slavering after bonuses soon after they had been rescued by government bailouts was not only outrageous but also pitiable-pitiable because they were clamoring for their primary measure of self-worth and status to be restored. Raghuram G. Ragan, Fault Lines: How Hidden Fractures Still Threaten the World Economy
Could the increased borrowing by the low-income households have been driven by need? After all, I have argued that their incomes were stagnating or even falling. It is hard, though, to imagine that strapped households would go out and borrow to buy houses. The borrowing was not driven by a surge in demand: instead it came from a greater willingness to supply credit to low-income households, the impetus for which came in significant measure from the government. Raghuram G. Ragan, Fault Lines: How Hidden Fractures Still Threaten the World Economy
SEE ALSO: My post on WEA Pedagogy Blog: Quotes Critical of Economics