During this second installment of Dennis McCuistion and Terry Brock’s interviews with guest speakers from Freedom Fest, we hear from Fred Foldvary, Ph.D.
During Dennis McCuistion’s spotlight interview with Fred Foldvary, PhD, a Santa Clara University economist who predicted the current depression, Foldvary comments:
“the credit expansion fueled the real estate expansion… Real estate is still falling. We increase the money supply, higher inflation and BOOM- we’ve not learned our lesson right yet. The next crash will be a lot worse, and the government is tapped out- so can’t bail us out.”
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Stay tuned for more from Freedom Fest!
Thanks for joining us,
Niki Nicastro McCuistion
Executive Producer/Producer
The McCuistion Program
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Freedom Fest, an annual festival where “free minds meet” to celebrate “great books, great ideas, and great thinkers” in an open-minded society, was founded and is produced by Mark Skousen (who’s been a guest on our program). Freedom Fest invites the “best and the brightest” from around the world to talk, strategize, socialize, and celebrate liberty.
The present mortgage market, which includes, experts say, $100 billion dollars in subprime lending may lead to a wide disruption of financial markets, lack of liquidity, jobs and corporate profits. In this segment, the panelists discuss how this was caused and how it will affect the average person and business owner. The panelists include:
- Mike Davis, Professor of Economics and Finance, Southern Methodist University – Cox School of Business
- John Heasley, Executive Vice President, Texas Bankers Association
- Bob McTeer, Ph.D, Distinguished Fellow, National Center for Policy Analysis
- Dory Wiley, CPA, President, Commerce Street Capital
The housing market is in turmoil and the credit crunch has drastically effected the American economy and the overall feeling of personal financial stability. Explaining the reasons for the credit crunch, panelists cite housing interest rates, accessibility of mortgages and lack of equity, just to name a few. The Fed has had a role in the crisis of the day, but they contend that the Fed is not the primary player in the current credit crunch.
During their discussion of who is to blame for the credit crisis, they discuss subprime lending and securitization. Subprime lending and securitization are not bad in themselves, however, in excess they became very dangerous.
In a video with Fred Foldvary, Ph.D., economist from Santa Clara University, Foldvary forecasts a depression in 2008 or by end of the decade and explains his reasons why.
The discussion concludes with the panelists discussing ways to recover and safeguard for the future.
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05.04.08 – 1703
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