the fresh prince of wall street: an educational rap by: josh lacey and maria vietz
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THE FRESH PRINCE OF WALL STREET: An Educational Rap By: Josh Lacey and Maria Vietz. What were the roles of individuals and ideas in the financial crisis?. - PowerPoint PPT PresentationTRANSCRIPT
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THE FRESH PRINCE OF WALL STREET:An Educational RapBy: Josh Lacey and Maria Vietz
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What were the roles of individuals and ideas in the financial crisis?
• We plan to present, in a FUN and INNOVATIVE format, a 3-minute model to show how people and their ideas shaped the 2008 Financial Crisis
• By presenting a complex idea so simply, we hope to make these important ideas understandable for all.
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IDEAS• Animal Spirits
(Akerlof and Shiller): The economy is guided by five elements of human psychology1. Confidence2. Fairness3. Corruption4. Thinking in stories5. “Money illusion”
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IDEAS• The economics
profession is flawed due to its control by the powerful (Häring and Douglas)
• “Zombie ideas” (Quiggin)- many economic ideas have outlived their usefulness (e.g. MBS, austerity)
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INDIVIDUALS• Central bankers as
alchemists or sorcerer’s apprentices? (Neil Irwin)
• What did Wall Street bankers and policymakers do while the music was playing, and how did they react after the music stopped? (Alan Blinder)
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INDIVIDUALS• The Bankers’ New
Clothes by Admati & Hellwig
• As with the emperor the fable, no one was willing to question or regulate powerful bankers
• Necessary reforms:– Reducing complexity– Increasing regulation– More capitalization
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And that’s a RAP.