Video

Professor Shiller discusses the effects of the financial crisis and the failed policies of investment banks.  He walks through the wreckless actions taken by investment banks, their effects on the secondary market, and the intervention by the federal reserve to soften the landing of the crisis. 

Shiller suggests that the financial system is unstable and needs more regulation and oversight, especially for consumers.   He believes that the role of the federal reserve will be altered in the future.  Furthermore, Professor Shiller discusses the basics of investment banking and talks about how they underwrite securities which are then traded in the secondary market.  These securities came under fire as they were irresponsibly created and were composed of toxic assets which cratered in value as the housing market started to take a nose dive.

The speaker discusses the rationale for the Fed setting a target rate versus setting a money supply target. 

Below is my VRTX day trade from 5/21.  The stock had a silly green bar on the 5-minute chart.  On first glance it looked like a hammer, but the wick was so ridiculous, you knew that the longs were asking for it.  I took on a short position in anticipation of this level breaking.