This talk was given at a local TEDx event, produced independently of the TED Conferences. The Great Economic Myth of 2008, challenging the accounting to accounting principal.

Brian Wesbury is Chief Economist at First Trust Advisors L.P., a financial services firm based in Wheaton, Illinois.
Mr. Wesbury has been a member of the Academic Advisory Council of the Federal Reserve Bank of Chicago since 1999. In 2012, he was named a Fellow of the George W. Bush Presidential Center in Dallas, TX where he works closely with its 4%-Growth Project. His writing appears in various magazines, newspapers and blogs, and he appears regularly on Fox, Bloomberg, CNBCand BNN Canada TV. In 1995 and 1996, he served as Chief Economist for the Joint Economic Committee of the U.S. Congress. The Wall Street Journal ranked Mr. Wesbury the nation’s #1 U.S. economic forecaster in 2001, and USA Today ranked him as one of the nation’s top 10
forecasters in 2004. Mr. Wesbury began his career in 1982 at the Harris Bank in Chicago. Former positions include Vice President and Economist for the Chicago Corporation and Senior Vice President and Chief Economist for Griffin, Kubik, Stephens, & Thompson. Mr. Wesbury received an M.B.A. from Northwestern University’s
Kellogg Graduate School of Management, and a B.A. in Economics from the University of Montana. McGraw-Hill published his first book, The New Era of Wealth, in October 1999. His most recent book, It’s Not As Bad As You Think, was published in November 2009 by John Wiley & Sons. In 2011, Mr. Wesbury received the University of Montana’s Distinguished Alumni Award. This award honors outstanding alumni who have “brought honor to the University, the state or the nation.” There have been 267 recipients of this award out of a potential pool of 91,000 graduates.

About TEDx, x = independently organized event In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.* (*Subject to certain rules and regulations)…(read more)

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The 2008 financial crisis is often cited as one of the most devastating economic events in modern history, with its effects still being felt to this day. But what is the real truth behind this crisis? In his TEDx talk titled “The Real Truth about the 2008 Financial Crisis,” Brian S. Wesbury sheds light on how the crisis unfolded and challenges some of the commonly held beliefs surrounding it.

Wesbury, an economist and financial expert, begins by debunking the myth that the financial crisis was caused by greedy Wall Street bankers and reckless lending practices. While these factors certainly played a role, Wesbury argues that the root cause of the crisis was actually misguided government policies. He points to the Federal Reserve’s loose monetary policy in the early 2000s, which fueled a housing bubble by keeping interest rates artificially low.

Furthermore, Wesbury argues that government intervention in the housing market, specifically the push for affordable housing through policies such as the Community Reinvestment Act and the government-sponsored enterprises Fannie Mae and Freddie Mac, also contributed to the crisis. These policies incentivized banks to lend to subprime borrowers who were unable to repay their loans, leading to a wave of defaults and foreclosures.

Wesbury also challenges the narrative that deregulation was to blame for the crisis. While there were certainly instances of regulatory failure, he argues that the financial industry was actually heavily regulated at the time of the crisis, and that excessive regulation can stifle innovation and economic growth.

So what can we learn from the 2008 financial crisis? According to Wesbury, the key takeaway is that government intervention in the economy can have unintended consequences, and that policymakers should be cautious when implementing new regulations or policies. He emphasizes the importance of free markets and individual responsibility in driving economic growth and prosperity.

In conclusion, Brian S. Wesbury’s TEDx talk offers a fresh perspective on the 2008 financial crisis, challenging commonly held beliefs and shedding light on the true factors that led to the economic meltdown. By understanding the real truth behind the crisis, we can better prepare for the future and work towards a more stable and prosperous economic system.