Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Credit crunch lessons not learned -- MIT's Ross

Thursday, September 13, 2012 - 03:39

Sept. 13 - Four years into the credit crisis we still have no mechanisms in place to prevent a repeat, but there are measures that could be taken, says Onassis Prize winner and MIT Professor Stephen Ross.

▲ Hide Transcript

View Transcript

Can be avoided a lot of credit crisis. Whitney -- is one distinguished academic and just being awarded the amount of economics Chrysler is what convinced you that professor Stephen Ross. From the MIT's school commencement but I trust thanks very much for joining us thank you bad. Four year long into this credit crisis what have we learned about the cost of government. I. I think there -- a number of causes that aren't as well understood. In retrospect as they should be. We still continue to focus on reforming regulation we focus on monetary policy we don't have a serious fiscal policies night. And some of the lessons we haven't learned of the impact of accounting. Impact of regulation. And just the inability of the system. Kind of flexibly respond to problems arrives. Do we have the mechanisms some types of some economic crisis from happening. Dishonest attack crises there and have the features of the economic system interaction in politics and economics. Really means that you're always be on the cusp of something some. Big insurance companies plan for a 100 -- that. Well every hundred years one of those happen. And maybe even more frequently nowadays. So. I think we'll really have to do is get over this business saying too big to fail. You know the fact of the matter is that a lot of things are too -- you know you don't want bill -- gonna have to have a system in place. To deal with the crises. Rather than a system. Place for cancer and stopped. So what do you think what what do you think got a concrete acts a lot needs to be taken out about mechanisms in place. Well one thing I'd like this is. A recognition. When companies fail. Particularly financial. Need to have some sort of a strike force some sort of a way to -- Immediate. You don't necessarily have to support the shareholder. But you have to go we had maybe take control of the operation. Someone if you leave it efficient fashion. So it doesn't become an ad -- ones. Is that like an international body or grass nobody national. And -- national bodies there. I'm big -- of regulation should be. A lot of little separate regulations around them one. Looking at the world economy and the whole. How little -- don't you think it'll be before we could see you growth rates again that we have but the central gross writes that we have before the crisis. I'm not. -- -- -- I'm sort of couldn't explain what happened after. Reluctant to protect. I think it's going to be a very long time because I think the crisis only point about some structural deficiencies particularly in the western. So the western economies have wonderful points of strength in our economy is rated. Agriculture terrific -- technological innovation but many older industries that things were just found that it. And yet if you think that that was something back to him do. You have a difficult time making references.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Credit crunch lessons not learned -- MIT's Ross

Thursday, September 13, 2012 - 03:39

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)