Self-Motivation
David Goggins
Former Navy Seal
Career Development
Bryan Cranston
Actor
Critical Thinking
Liv Boeree
International Poker Champion
Emotional Intelligence
Amaryllis Fox
Former CIA Clandestine Operative
Management
Chris Hadfield
Retired Canadian Astronaut & Author
Learn
from the world's big
thinkers
Start Learning

Re: How does the credit crisis fit into the macroeconomic picture?

Question: How does the credit crisis fit into the macroeconomic picture?

Thomas Cooley:  Yes, so the question is, I gather your question is how did this happen?  So there were three-- there were several ingredients.  Okay, one ingredient was, there was a bubble in housing prices.  People assumed that housing prices would just continue to go up and up and up and that they could take on unrealistic amounts of debt because the appreciation and the value of their houses would make it possible for them to deal with that amount of debt.  The other thing that happened was that there was a break down in lending practices by mortgage lenders.  So there was not sufficient oversight.  The fee structure for people issuing mortgages was such that their only incentives were to get mortgages out there, to grant them.  And then the other ingredient was sort of the rapid securitization of lending throughout the economy and throughout the world.  So what happened is, these mortgages got bundled and sliced into different pieces that supposedly represented different risk characteristics.  And then there's the vast machinery of the securitization industry, which rated a lot of these things as triple A or very, very safe securities, when they, in fact, they were not.  And so there was a whole un-virtuous circle of things that resulted from this.  That meant when housing prices began to fall, this whole business collapsed and that caused panic essentially in the credit markets because many people found themselves holding these exotic securities that were these bundled mortgages or pieces of them that they could not sell.

Recorded: 3/21/08

NYU's Thomas Cooley explains the credit crisis.

Live on Tuesday | Personal finance in the COVID-19 era

Sallie Krawcheck and Bob Kulhan will be talking money, jobs, and how the pandemic will disproportionally affect women's finances.

Education vs. learning: How semantics can trigger a mind shift

The word "learning" opens up space for more people, places, and ideas.

Future of Learning
  • The terms 'education' and 'learning' are often used interchangeably, but there is a cultural connotation to the former that can be limiting. Education naturally links to schooling, which is only one form of learning.
  • Gregg Behr, founder and co-chair of Remake Learning, believes that this small word shift opens up the possibilities in terms of how and where learning can happen. It also becomes a more inclusive practice, welcoming in a larger, more diverse group of thinkers.
  • Post-COVID, the way we think about what learning looks like will inevitably change, so it's crucial to adjust and begin building the necessary support systems today.
Keep reading Show less

Why is everyone so selfish? Science explains

The coronavirus pandemic has brought out the perception of selfishness among many.

Credit: Adobe Stock, Olivier Le Moal.
Personal Growth
  • Selfish behavior has been analyzed by philosophers and psychologists for centuries.
  • New research shows people may be wired for altruistic behavior and get more benefits from it.
  • Crisis times tend to increase self-centered acts.
Keep reading Show less

How DNA revealed the woolly mammoth's fate – and what it teaches us today

Scientists uncovered the secrets of what drove some of the world's last remaining woolly mammoths to extinction.

Ethan Miller/Getty Images
Surprising Science

Every summer, children on the Alaskan island of St Paul cool down in Lake Hill, a crater lake in an extinct volcano – unaware of the mysteries that lie beneath.

Keep reading Show less

How Hemingway felt about fatherhood

Parenting could be a distraction from what mattered most to him: his writing.

Ernest Hemingway Holding His Son 1927 (Wikimedia Commons)
Culture & Religion

Ernest Hemingway was affectionately called “Papa," but what kind of dad was he?

Keep reading Show less
Quantcast