History of Business

Main Lecture points

  * Regulation began after the great depression
  * Deregulation began in the late 1990’s
  * Obama appointed Summers and Geithner who are against regulation, thus nothing has changed

The Great Recession (2008)

  * golden age in banking industry in the late 1990’s
  * lots of liquidity, lots of access to capital (all of what the bankers wanted)
  * Complexity permitted the financial markets to carry on for so long; it confused polices makers
  * 1930’s great depression happened when there was no social security net; made policies makers to create regulation to avoid it happening again
  * 1970’s and 1980’s deregulation begins; people forget what the 1930’s were like
  * people forget why governments tax them and begin to revolt against taxes because they don’t think they need the government supported things that taxes fund
  * new consensus formed that the government didn’t know what they were doing, thus wanted deregulation
  * Clinton, Bush and Obama are all the same in the big picture as they all thing big government are bad

Obama vs Romney

  * Obama does not look like a good candidate Romney does (physical looks)
  * Obama won at the start of the 2008 recession, he was a breath of fresh air – people hated George Bush
  * Since Macain didn’t understand 2008 and everyone hated Bush, Obama had a relatively easy election
  * Romney is of the belief that there was no 2008 crisis and everything is fine
  * People view democrats as socialist  
  * Geithner was one of the key figures behind the deregulation in the late 1990’s
  * Obama appointed Geithner as secretary of the treasury, many people were confused, not really a democratic thing
  * Larry Summers was the secretary of treasury in the Clinton administration and was a huge proponent of deregulation
  * Larry summers was beneath Geithner in the Obama administration as the director of the national economic council
  * So... [continues]

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