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Why the credit crunch took hold

Why the credit crunch took hold and what the authorities should do to avoid a repeat of the crisis and to quell the current economic turmoil.

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In a new podcast, Richard Portes, Professor of Economics, talks about why the credit crunch took hold and what the authorities should do to avoid a repeat of the crisis and to quell the current economic turmoil.

Portes begins the podcast by explaining who is responsible for the spread of problems across borders and markets. “The main players initially were the banks; they took loans, sliced them and diced them in various ways, then sold them on in the ‘originate to distribute’ model which is now in question”.

He goes on to discuss the central banks’ efforts to underpin the markets, monetary policy, the roles of accountants, auditors and the rating agencies, and what should be done.

Listen to this podcast to hear Richard Portes’s insights on the credit crunch.

Created: Tuesday 08 April 2008

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