The Common Good hosted a screening of the HBO original film, Too Big to Fail, followed by a conversation with Chairman and Editor-in-Chief of U.S. News & World Report, Mort Zuckerman and NY Times Columnist, Joe Nocera. The conversation addressed the shortcomings in financial policy that led to the 2008 economic downturn, the harmful effects of the two-party system, the current economic crisis, as well as the financial future of our country.
Following the screening of “Too Big To Fail”, a film that chronicles the events leading up to the 2008 financial meltdown, Nocera and Zuckerman began their conversation by discussing how the crisis could have been averted. Nocera suggested the problems began with the Federal Reserve Bank of New York’s decision to assist in Bear Stearns’ buyout by JP Morgan. “Bear Stearns was much less interconnected investment bank than Lehman Brothers,” said Nocera. “Their failure would have had much smaller consequences to the financial system, and it would have sent a system to everyone else to get their house in order, because they were running short on time.”
The conversation transitioned into a discussion of the current economic crisis and the risks our economy faces today. Nocera explained his take on the current crisis, suggesting that because we cannot control how potential economic problems in other countries may affect us, we must shift our focus to things we can control. However, Nocera noted, extreme partisanship is getting in the way of creating solutions to our economic problems. “What’s interesting,” Nocera noted, “is that this is exactly what the Common Good stands for, encouraging civil discussions between Democrats and Republicans.”
Looking to the future, both speakers agreed the most important thing for the country is to rejuvenate the economy. A booming economy will lead to a decrease in the debt. Whether this starts with a stabilized housing policy, or a government stimulus program is unknown, but Zuckerman and Nocera agreed that the economy is the crucial first step.
As the debt ceiling deadline approaches, politicians are facing the realities of the recent economic crisis, causing enormous party tensions between Republicans and Democrats. Talks between President Obama and congressional Republicans have grown increasingly partisan, frustrating the public and detracting from the importance of the decision at hand.
