Market Valuation Crisis
Peter discusses how the combination of government policies and lack of market valuation led to a crisis in the investment banking industry. Privatizing profits and socializing losses created a moral hazard, impacting accountability and calculability. The need for market transactions to determine asset value is emphasized.In this clip
From this podcast
EconTalk
Peter Boettke on the Austrian Perspective on Business Cycles and Monetary Policy
Related Questions
What role did regulation play in the financial crisis of 2008 as discussed in the episode Arnold Kling on Credit Default Swaps, Counterparty Risk, and the Political Economy of Financial Regulation and the clip Greenspan's Worldview, as well as in the episode Russ Roberts on the Crisis and the clip The Collapse's Underlying Causes?
What role did regulation play in the financial crisis of 2008 as discussed in the episode Arnold Kling on Credit Default Swaps, Counterparty Risk, and the Political Economy of Financial Regulation and the clip Greenspan's Worldview, as well as in the episode Russ Roberts on the Crisis and the clip The Collapse's Underlying Causes?
Why is the financial sector hard to regulate?