Streams

The Road to Financial Reformation

Monday, August 31, 2009

Henry Kaufman, economist and former Solomon Brothers President, explains what got us into our current financial debacle, what the consequences of it will be, and how to put our economy back on track. In The Road to Financial Reformation: Warnings, Consequences, Reforms he talks about why we should have seen the financial crisis coming and how we can keep another from happening.

Guests:

Henry Kaufman,

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Comments [9]

Jack

"There were SOME economists, such as Paul Krugman, who DID foresee the problems we're now experiencing, and did warn us. Why weren't we listening?"

This is laughable - Krugman and the other Keynesians were blindsided because they promote high government spending, something the Bush administration did a lot of.

Krugman also advocated the policies that caused the housing bubble. He has been seriously discredited in the academic community.

http://mises.org/story/3539
http://mises.org/story/3530

Krugman loves creating new bubbles to help out with busts (which were created by the bubbles he advocated last time to deal with the previous bust... and so on)

Oh yeah, and by the way, the Fed is not a libertarian institution - it's in the communist manifesto and creating new purchasing power is a property rights infringement. The Fed is also a price-fixer.

Sep. 01 2009 03:47 AM
Lori from Montclair, NJ

Good segment, thanks!

Aug. 31 2009 12:44 PM
Jennifer Hickey from Bayside, Queens

Can you ask your desk wny there has not been a push to change the business model of the rating aagencies, since as he pointed out, there is an inherent conflict of interest. It seems like that has been forgetton in any reform efforts.

Aug. 31 2009 12:41 PM
Calls'em As I Sees'em from Langley, VA

Mr. Kaufman,

How soon can the Republicans and Blue Dog Democrats undue the problems that TARP I and the Obama admin created when they take control in 2010 and 2012?

What are some of your suggestions for them?

Finally, why did Solomon Bros., sell the St. Louis Blues and did they regret it?

Aug. 31 2009 12:41 PM
David Kirschner from Highland Park NJ

There were SOME economists, such as Paul Krugman, who DID foresee the problems we're now experiencing, and did warn us. Why weren't we listening?

And... when will we admit that so many of our economic theories are pseudoscience, as clever and wrong as Phlogiston chemistry?

Aug. 31 2009 12:39 PM
George from Chinatown

It kind of upsets me that at least some of this is based on Ayn Rand.

Is there a way to get bankers and finance people to read better writers?

Aug. 31 2009 12:36 PM
Eric from MANHATTAN

what will happen to housing prices when the fed starts raising interest rates?

Aug. 31 2009 12:35 PM
hjs from 11211

isn't he the problem?

Aug. 31 2009 12:30 PM
hjs from 11211

Kaufman was named as a defendant in a lawsuit launched by New Jersey governor Jon Corzine on behalf of the state of New Jersey alleging fraud and misrepresentation associated with securities offerings undertaken by Lehman Brothers immediately prior to the firm's bankruptcy. The suit seeks compensatory damages of $118 million in addition to punitive damages.[

Aug. 31 2009 12:29 PM

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