Simon Johnson, the Professor of Entrepreneurship at MIT’s Sloan School of Management, and former chief economist at the International Monetary Fund, is an outspoken critic of the US government response to the financial crisis. Now he takes on the “too big to fail” banks which continue to threaten our economy.  In his latest book, called 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, which he co-wrote with James Kwak, Simon argues that if the biggest banks aren’t cut down to size, it’s only a matter of time before we face another financial crisis. And once again, the government – aka the taxpayers – will be obliged to step in and bail out these behemoths…
In Simon’s words, if they’re too big to fail — they’re too big to exist!
Simon Johnson is also a senior fellow at the Peterson Institute for International Economics.  And he’s the co-author, again with James Kwak, of the influential economics blog The Baseline Scenario. Simon spoke with ThoughtCast at the Harvard Book Store in Cambridge, Massachusetts.

Milking Time at Lovejoy Brook Farm

Note: this slideshow was commissioned by the BBC Radio program Americana.

Lydia Ratcliff is a survivor. She’s farmed her 90 acre plot of land in Andover Vermont for 43 years, and though she’s now come down with chronic obstructive pulmonary disease, or COPD, she still climbs on top of that tractor in hay season.
Does she offer a lesson for the rest of us? Does she represent the future of farming in Vermont, or is she one of the last of a dying breed?
Click here to listen (9 minutes.)

Jonah Lehrer (photo credit: Lori Duff)

After his talk, ThoughtCast spoke with Lehrer briefly about the value of emotion in rational decision making, the power of wishful thinking to hijack our reason, and the potential to retrain the brain via the mind. According to Lehrer, we’d generally be better off sticking to our instincts, our initial reaction or impulse, rather than over-think things. Calm, cool deliberation, it turns out, doesn’t always lead to the best results. Jonah Lehrer is a Contributing Editor at Wired Magazine, and has written for The New Yorker, Nature, Seed, The Washington Post and The Boston Globe.
Click here to listen to this rather noisy interview (8:50 minutes.)

dopamine brain

Click here to listen (3:24 minutes.)

Eat Lunch or Be Lunch

Calling for Acronyms!

So, here’s Dale Hobson’s contribution:
“How about GRR–for Great Republican Rip-off or Global Resources Rape.
I don’t want to spit or hurl; I want to bite.” Ouch!
And here’s William’s:
I always thought “The GBR” captured it well. “The Great Brain Robbery”
Leighton says: WODD — world order down the drain
While Lee Goldberg has come up with:
Global Economic Meltdown Offers Rude Awakening – GEMORA – !!!
And Anthea Raymond gives GEC two thumbs up:
“GEC works for me quite possibly because of the gagging sound evoked.
We’re in for a long slow retch on this one.”

Meanwhile, Valeria Villarroel suggested Governmental Fail (GF?)
and Barton George followed up with Worldwide Total Fail: WTF
while Helen Tan writes: “GEC sounds like the cracking of an egg!”
Hence: Giant Egg Cracking

Have we covered the whole alphabet yet?
Oh, and that GEC-monster gracing this post?
It’s a sculpture by Juan Cabana, called Stranded…
Perhaps he hatched from Helen Tan’s egg!

For more acronyms –

Me Says:

How about Heny Paulson’s “SHIT” – Structured Housing Investment Trust (i.e the bank bailout)

patricia gras Says:

GEM
global economic mess
It’s a gem because it will teach us how to live differently PERHAPS

Jenny Says:

Okay, here’s an acronym from “anonymous” —
“How ’bout the GMVWUC…for the Global Misplaced Values Wake-Up Call. It doesn’t exactly roll off the tongue.”
Well, I like it anyway. Try pronouncing it! Sounds like a mash-up of US car companies — or should I say a pile-up?…

bill Says:

A couple of groaners…
We have A.D.D., American Deficit Disorder
Some of us have O.C.D., Obliterated Countries Disorder

James Poterba

What is the right expression to describe today’s economic nightmare? I’m sick of “mess” and “crisis” is too bland. What about “cesspool”? Well, I compromised with “pits” — feel free to add your own juicy descriptions in ThoughtCast’s comments section!
Either way, I dived into the “pool” with MIT’s Mitsui Professor of Economics James Poterba, who’s also the head of the National Bureau of Economic Research, the think tank in charge of determining when recessions start … and end. Wouldn’t that be nice? Headlines proclaiming the “end” of this rather inordinate business cycle.
Are these ups and downs indeed just a part of capitalism’s inevitable booms and busts? Ought we to accept them as natural, rather than resist them? Or ought we to scrap the “system” and rebuild? You tell me…
But first, listen to this: (15:30 minutes).

And — check out a 4 minute video of the interview.

Alberto Alesina

Harvard economist Alberto Alesina has devoted himself to these questions. In a book he co-authored with Francesco Giavazzi, he asks: The Future of Europe: Reform or Decline??
Click here: to listen. (27 minutes)

Amartya Sen

This new book examines the unfortunate connection between violence and our tendency to identify with one key trait — our ethnicity, or religion, for example — to the exclusion of all others. Sen argues that we can combat this tendency by rejecting this narrowly defined, limited sense of identity, and embracing a broader, richer and more complex understanding of ourselves.
Amartya Sen was born in West Bengal, India (now Bangladesh) and teaches economics at Harvard University. He is known in the wider world for his work on the causes of famines.
Note: Susan Wennemyr served as associate producer on this program.
Click here: to listen (28:30 minutes).
To listen to a panel on “Combating Global Poverty” that includes Sen, click here to access WGBH’s Forum Network.