Franklin Allen on Lessons from the Subprime Crisis
Episode Description
Wharton Professor Franklin Allen takes a long view of the subprime crisis, drawing on an international perspective of financial services.
Brief Summary
The episode analyzes the property bubble's causes and the financial crisis implications, focusing on the Federal Reserve's role and global bank risks.
Key points
- The Property Bubble. Experts agree there was a significant property bubble fueled by low interest rates.
- Global Financial Risks. Concerns arise over the stability of banks in Europe and their potential impact on the US.
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Episode highlights
- The Property BubbleExperts agree there was a significant property bubble fueled by low interest rates.“There was a bubble in property prices.”0:26Sep 17, 2008
- Global Financial RisksConcerns arise over the stability of banks in Europe and their potential impact on the US.“If they go down, the sequence of events can happen in real time.”11:20Sep 17, 2008
Tension
60/ 100Some tension
