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Robert Shiller on the Financial Crisis: What Do We Do About It?

09/25/2008 at 12:00 p.m.

At this hour President Bush is meeting with John McCain and Barack Obama and key members of Congress. They're hammering out an agreement for the biggest federal intervention in financial markets since the Great Depression. Last night the President said if the $700 billion plan isn't worked out fast, there will be a financial panic. Will the plan calm financial markets? Why should people who didn't speculate on the housing boom pay for those who did? Longer term, how do we fix the problems that got us here in the first place?

We'll ask those questions of Yale economist Robert Shiller. He predicted the dotcom bubble and the subprime mortgage crisis. Now Shiller has written "The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do about It." Also today, economist Dean Baker is on hand as we take your calls on the financial crisis. And we'll hear about state House speaker Frank Chopp's bold new plan for the Alaskan Way Viaduct.

Guest(s)

Robert Shiller is a Yale economics professor who predicted both the dotcom and housing bubbles. His latest book is "The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do about It."

Dean Baker blogs about economic reporting for the American Prospect. He's also co–director of the Center for Economic and Policy Research in Washington, DC. He previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University.

David Brewster is the publisher of the online magazine, Crosscut.

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