I had heard of Long Term Capital Management and some of these problems before.
Should we regulate the economy? I say Yes!
Oh, brother. The US government is the one that said computer driven trading is legitimate. The vast majority of the stock market is driven by computer algorithms. Saying the government knew nothing about "program" trading is ridiculous.
It was the massive debt that was the real problem. This video is a one-sided point of view designed to get people to ask for more government interference in the economy.
The same is true for the housing bubble of 2008. It was a direct result of government interference in the housing market. Fannie Mae and Freddie Mac, government institutions, were requiring the banking system to make housing loans to people who had no chance of paying off their loans. The banks were required to stop the practice of making sure people had the income to safely pay off a housing loan. It had been financial experts consensus for many decades that a debtor couldn't manage to pay back a housing loan if the payment was more than 1/3 of their gross income. Well, the government required that to be set aside and loans were required to be issued with payments of up to around 50% of a person's/family's income. It also required that credit history be ignored. So, as a result a few years later people began defaulting on their housing loans left and right.
What did ABC, CBS, NBC, CNN, etc... do? They castigated the banks for it, even though all of this was mandated by the Democrats in charge of committees that ran Freddie Mac and Fannie Mae. And socialist organizations like ACORN ran public demonstrations in which they created rowdy behavior in front of the banks and went an protested on the front lawns of banking executives that had a tendency to become violent. The press ran cover for the people actually responsible for the issue. Along with castigating the banks and bankers it praised the Democrats and organizations like ACORN.
To believe what the socialistic main stream media has to say on these subjects is to ignore reality. A person has to do their own research to see what has happened. To accept the word of programs like this is to let the media do you your thinking for you.
