The Bubble is a feature length documentary that ask those who predicted the greatest recession since the Great Depression, why did it happen and what are we facing? The documentary is an adaptation of Tom Woods’ New York Times bestseller Meltdown. Filmmaker Jimmy Morrison is releasing each interview in full for free before the film’s release.

James Grant originated the “Current Yield” column in Barron’s before founding Grant’s Interest Rate Observer in 1983. He is the author of five books on finance and financial history: Bernard M. Baruch: The Adventures of a Wall Street Legend (Simon & Schuster, 1983), Money of the Mind (Farrar, Straus & Giroux, 1992), Minding Mr. Market (Farrar, Straus & Giroux, 1993), The Trouble with Prosperity (Times Books, 1996) and Mr. Market Miscalculates (Axios Press, 2008). A sixth book John Adams: Party of One, a biography of the second president of the United States-was published in March 2005 by Farrar, Straus & Giroux.

Category: Bailouts, Video

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4 Responses to “James Grant: The Bubble”

  1. denim says:

    I suggest one to Google James Grant, Economist before listening to this. Grant is said to be of the Austrian economic cult. Grant does not understand money systems. Mysterious natural market forces run the economy is the best I can make of the Austrian doctrine. While it is claimed that Grant predicted the bubble, it is my view that this is a chicken little prediction,i.e., constant warnings with no timing given and so eventually, like Nostradamus’ predictions, it is said http://mises.org/journals/scholar/thornton6.pdf

  2. denim says:

    I did not see Warren Buffett’s name on the list at the http://www.thebubblefilm.com interviewees.
    Here is BBC and Buffett (Last Updated: Tuesday, 4 March, 2003):
    ” The derivatives market has exploded in recent years, with investment banks selling billions of dollars worth of these investments to clients as a way to off-load or manage market risk.

    But Mr Buffett argues that such highly complex financial instruments are time bombs and “financial weapons of mass destruction” that could harm not only their buyers and sellers, but the whole economic system.”

    I guess he got that right!

    A primer on the credit crises:

    It all was based on a mortgage holder having a job to pay his mortgage… and guess who sent his job out of the country to Mexica via NAFTA and also to sweat shops in Asia. That was the first domino… the rest is history and current events.

  3. crazicanuck says:

    I like the phrase ‘fear of Sunday night’ but I think Grant is confused about the effect of ‘bail out uncertainty’. As I recall on Friday night there was uncertainty, but a generally held belief, that LEH would be bought by BAC. Sunday night there was a certainty of LEH’s failure. It is that certainty that caused the problem. Grant seems to believe that too big to fail banks can fail. LEH proves that hypothesis is wrong. We don’t have to rely on counterfactuals; the reality doesn’t support Grant’s argument.

  4. Haigh says:

    In this video Grant makes comment on the following:

    -Government created two immense hedge funds
    -Mortgage Interest Deduction
    -Were MBS’s the root of the crisis?
    -Capital Requirements-False sense of security
    -Bankers&Taxpayers—Stockholders vs. We The People
    -FDIC-Socialization of risk
    -Alan Greenspan-Seat of the pants central planning-irony
    -Free Market Interest Rates-Should be grown in nature like eggs or chickens.
    -1920-21 Depression lessons
    -Glass Steagall – unintended consequences
    -Fiscal Stimulus – economy feels like an old man
    -Over-medicated economy leads to lethargic growth
    -Bear Stearns
    -Quantitative Easing
    -Operation Twist
    -Results of Good Intentions
    -Clarity of market pricing
    -Japan’s lost decade-Will America follow?
    -Excess Reserve Explosion-a clear and present danger
    -Interest on Reserves
    -Federal Reserve-a bureaucracy of earthlings
    -Interest on national debt-If interest rates were to rise to 5% the defense budget would have to be cut 44%
    -World Reserve currency-the US magic credit card
    -Bubble 2012-the collective misplaced faith in Central Banking