Risk and Hubris
Arnold Kling discusses the belief among banking executives that they were not taking on as much risk as they actually were, leading to the financial crisis. He argues that there was a divide between the executives and the technical experts who saw the risks. Despite warnings from economists and experts, both in the private and public sector, no regulations were put in place to prevent the crisis.In this clip
From this podcast
EconTalk
Arnold Kling on Credit Default Swaps, Counterparty Risk, and the Political Economy of Financial Regulation
Related Questions
What caused the 2008 financial crisis as discussed in the episode Russ Roberts on the Crisis and the clip Uncovering the Mortgage Market?
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?