Friday, September 23, 2011

Elizabeth Warren - The Daily Show with Jon Stewart - 01/26/10 - Video Clip | Comedy Central

Elizabeth Warren - The Daily Show with Jon Stewart - 01/26/10 - Video Clip | Comedy Central:


Really really torn on including this one. It is clearly biased, but so are most things one way or the other. It is well done (maybe too well done since it makes one side look too bad.)

Elizabeth Warren stresses the urgency of Wall Street reform




The other side:


Issuing riskier mortgages allowed more home ownership. We can not have it both ways. Making stricter mortgages, will result in lower home ownership and less lending. So long as people understand the tradeoffs they are making, I am fine with whatever they decide, but Warren makes it appear that more stringent rules come at no cost. They do not.

She mentions how there were no serious market collapses from Depression to the 1980s, well, that is true, but the world suffered from lack of growth.  Opening up markets, increases risk, but also increases the benefits that markets bring.  Again, this is not reported.

Getting bailed out must come with a significant cost, else it leads to a horrible incentive structure where risks continue to increase (morale hazard).


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