What Caused The Global Financial Crisis according to Phillip Anderson

The Global Financial Crisis according to Phillip Anderson

Phillip Anderson is the founder and managing director of Economic Indicator Services, an economic forecasting service that specializes in business, commodity, and real estate cycles. Anderson is the author of The Secret Life of Real Estate and Banking.
1. Which FCIC View best represents the causes of the Financial Crisis?

Majority Conclusions

2. Which narrative presented by Douglas Elliott and Martin Baily of the Brookings Institute in Telling the Narrative of the Financial Crisis: Not Just a Housing Bubble best represents the causes of the Financial Crisis?

"Everyone" was at fault: Wall Street, the government, and our wider society.

3. The Global Financial Crisis effectively ended in the year
Depends, The stock market lowed in March of 2009, this is the bottom for the market. However, the stock market is always 6 to 9 months ahead of the economy in general, and real estate prices are always last to bottom, so for US real estate the low was 2010 or 2011, very hard to measure. The UK real estate market is generally 6 months behind the US. I would say 2009 then, as far as the actual crisis was concerned.

4. What were the primary causes of the Global Financial Crisis?
The capitalization of the economic rent into a tradable privilege, permitted to then have credit created upon this capitalized value.

5. What still should change as a result of the crisis?
Substantially better collection of the economic rent, worldwide, to stop it capitalizing into a tradable price. But like this will ever happen!!

Compiled by Gary Karz, CFA
Host of InvestorHome

Global Financial Crisis Survey

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