Two bubbles and two central banks: What now?

Video

Event Summary

Six years after the U.S. housing bubble started to pop, both the United States and Europe are plagued by tepid growth and falling asset prices and Europe is embroiled in endless financial troubles. Are we living in a post-bubble world yet?

Thursday, a distinguished panel at AEI looked at the emerging issues surrounding the bubble. Thomas Zimmerman of UBS examined the housing market to demonstrate that, while the market is moving the right way, it is still much worse than it looks. AEI's Mark Perry followed up by pointing out that more people are currently buying more houses more frequently and at higher prices than they have in years.

The panel then shifted from the housing bubble to Europe banking bubble, as Desmond Lachman showed how the European Union's pro-cyclical policies will make the troubles in Europe worse in the coming months. Christopher Whalen then argued that fears of bad financial policy and of fraud have scared an investment recovery out of existence, and John Makin closed by explaining how central bank policy has compounded recent bubble problems by driving investors out of the market.

The event ended with a transition from bubbles to bubbly as an audience member received a surprise marriage proposal.

--Daniel Hanson

Event Description

It has been six dreary years since the U.S. housing bubble peaked, and there are finally suggestions that the housing market has at long last bottomed out. But has it? If so, what are the financial and public policy implications? And Europe’s bubble: how much longer will its sovereign debt and banking crisis drag on, and how much worse will it get? 

Saddled with the rubble of a burst bubble, central banks are tasked with picking up the pieces. How might we assess the past actions of the Fed and the European Central Bank as “investors of last resort,” and how can we evaluate their challenges going forward?  These and other relevant questions will be addressed by an expert panel at this AEI event.

If you cannot attend, we welcome you to watch the event live on this page. Full video will be posted within 24 hours.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

John H.
Makin

 

Desmond
Lachman

 

Alex J.
Pollock

 

Mark J.
Perry

What's new on AEI

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Event Registration is Closed
Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Event Registration is Closed
Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.