This week we talk with Linda Yueh, author of the book The Great Crashes. Since America's Wall Street Crash of 1929, the global economy has weathered the most tumultuous century in financial history. From the currency crises of the 1980s, to Japan's housing meltdown, the dot com boom and bust, the global financial crash and the COVID pandemic, crash after crash has sent shockwaves through our world. The Great Crashes tells the stories of ten of these historic financial events. They serve as a series of cautionary tales, each with their own lessons to be learnt. With clear-eyed analysis, renowned economist Professor Linda Yueh uses these meltdowns to extract a critical three-step framework to help recognise the early signs of a crash, mitigate the effects and even prevent them in the future. There is very little that is certain in economics, except for this: there will be another financial crisis.
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Understanding Economic Bubbles and Crises: Insights from Linda Yu
This episode of Bubble Trouble features Richard Kramer and Will Page in conversation with Linda Yu, the author of 'The Great Crashes', discussing lessons from historical economic downturns and ways to prevent future crises. Yu shares her unique perspectives drawn from her experiences in journalism, academia, and having been a witness to several economic crashes. The conversation covers the dynamics of bubbles, the role of banks and debt in triggering financial crises, regulatory challenges, the impact of policy decisions on economic inequality, and the specific case of China's impending financial instability. Throughout, the importance of understanding human nature's role in financial markets and the necessity for credible crisis management strategies are underscored.
00:02 Introduction
00:47 Part One
00:47 Introducing Linda Yu: From BBC to Authorship
01:34 Linda Yu's Journey: Academia, Books, and Economic Crashes
02:06 The Making of 'The Great Crashes': A Deep Dive into Economic Meltdowns
06:04 Understanding Crises: The Three Phases of Economic Downturns
08:47 The Role of Banks in Economic Crises: A Critical Examination
15:12 Regulatory Challenges and the Shadow Banking System
22:06 Educational Insights: The Importance of Economic History
26:52 The Eurocrisis and Bail-Ins: A New Approach to Banking Failures
29:58 Part Two
30:10 Preview of Part Two: Further Explorations into Economic Crises
31:16 Exploring Economic Festivals and the Humor in Economics
32:06 The Serious Side of Economic Crime in China
32:14 Navigating the Iceberg: China's Economic Challenges
33:07 The Next Great Crush: Predicting China's Economic Future
33:39 The Intricacies of China's Banking System and Property Bubble
34:56 China's Influence on Global Markets and Emerging Economies
35:30 China's Unique Approach to Big Tech Regulation
39:25 The Consequences of Financial Penalties on Banks
41:03 Preventing the Next Great Crash: Policy Levers and Their Effectiveness
46:13 The Unintended Consequences of Economic Policies
55:10 Crisis Management and the Importance of Credibility
59:19 Final Thoughts and the Future of Economic Crises
01:00:30 Credits
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Apr 22 202438 mins