video 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.