Aftermath of a Crisis

2011, Economics  -   37 Comments
Ratings: 7.47/10 from 34 users.

Aftermath of a CrisisBroadly speaking, financial crises are protracted affairs. More often than not, the aftermath of severe financial crises share three characteristics.

First, asset market collapses are deep and prolonged. Real housing price declines average 35 percent stretched out over six years, while equity price collapses average 55 percent over a downturn of about three and a half years.

Second, the aftermath of banking crises is associated with profound declines in output and employment. The unemployment rate rises an average of 7 percentage points over the down phase of the cycle, which lasts on average over four years.

Output falls (from peak to trough) an average of over 9 percent, although the duration of the downturn, averaging roughly two years, is considerably shorter than for unemployment.

Third, the real value of government debt tends to explode, rising an average of 86 percent in the major post–World War II episodes. Interestingly, the main cause of debt explosions is not the widely cited costs of bailing out and recapitalizing the banking system.

Right after the financial crisis happened in 2008, sociologist Manuel Castells convenes the Aftermath Network, an international group of intellectuals who will analyze the crisis as it is unfolding. They think it is not just a financial crisis, but a social crisis as well, bringing about a fundamental transformation of societies at large.

For three consecutive years, the group meets in Lisbon to discuss the crisis. While banks are back in business, societies are struggling with anger, lack of trust and a budget crisis, bringing about rising unemployment and instability, leading in their turn to social protests and a widespread lack of trust in politcial parties and financial institutions.

In this documentary, thinkers involved in the project present original perspectives on the aftermath of the crisis to recognize its multiple faces. With Sarah Banet-Weiser, Craig Calhoun, Joao Caraca, Gustavo Cardoso, Manuel Castells, Pekka Himanen, Terhi Rantanen, John Thompson, Michel Wieviorka and Rosalind Williams.

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37 Comments / User Reviews

  1. coryn

    Excellent presentation of ideas and viewpoints. What would you do if you realized that your 'elders', your 'mentors' and your 'role models' were all silently complicit in the bankruptcy of the world? Would you be in the streets? Only a rating of 7.50 puzzles me. I wonder how many views since 2011, that's 5 years now and it's not gone viral. Fortunately I've done my time..... I've watched the whole show from the barren war years to the toys for everyone years....... from low interest rates of the 1930's to the peak of 1980, only to complete the cycle now at near, or below, 0%. But, this time it's different, it's the entire world at one time, not just an isolated country here or there. This is unique and unprecedented to my knowledge. So bend over and put your head between your legs and kiss your future goodbye......... I think we'll all be in the streets sooner than we expect ..... Peace.

  2. Macroman

    It is leverage. Leverage is the problem. Basic assumption maybe, but we had more then ever. Thus the worst crisis ever. It exponentializes anything it levers, both positively and negatively. More profits then ever, and bigger losses then ever. Sound familiar? Now the corps have simply corrupted the gov't. in order to rig the game so the taxpayers absorb the losses.

  3. LV

    this is utterly boring and useless. Ideas are completely fragmented. The film is taped together with variety opinions from pundits and academia.

  4. umbrarchist

    It's 43 years after the Moon landing. NASA just landed a robot on Mars by a method far more complex than 1969. But economists can't figure out that planned obsolescence has been happening in cars since the '50s. But then they have not talked about the DEPRECIATION of all of that junk for decades.

    Ever heard of Net Domestic Product? Economists don't mention that either. Demand Side Depreciation does not exist because the experts don't talk about it. The Laws of Physics do not care if economists can't get their math right.

  5. mitchmiller

    I really don't think there is any thing extraordinary about this financial crisis, at least in the US. There were financial panics about every twenty years from the mid-1800's to the great depression. Society was undergoing significant change then as society always is. What I think makes this time somewhat different is that this is the first "managed" economic crisis of this degree in human history. Aside from Paulson's stumble to allow Lehman to fail, I believe Bernanke and Geitner are to be applauded for preventing the ship from capsizing. It is now up to the institutions of government to right the ship. Crisis breeds financial opportunities and, at least in the US, our government is beholden to those that will most certainly have the most to gain by taking advantage of the situation. I agree with one commentator's statements in the clip that stated that nationalism is a real threat. History repeats itself.

  6. Vanya Levy

    Some interesting ideas here, not solutions. In particular, I found the analysis of post-crisis corporate branding very insightful. We all do have an individual responsibility but it's clear that the governments and financial institutions are self serving, and not facilitating the common cause of the people. Historically speaking this has how the world has always worked; aside from a brief period of prosperity an the rise of the middle class in the 50's-70's. Perhaps that period is the anomaly and we are actually headed back to the "good old days" before the establishment of the entitled middle class.

    My solution? It may seem trivial and in fairness will only work for already somewhat entitled first world people, and if you are on this site you are probably part of that club; enjoy life, live, love, exercise, feel the sun on your face, taste the rain, stop watching TV, educate yourself about technology, finance and branding, figure out what you love to do and do it as much as possible

  7. KsDevil

    That's it? They understand the situation, they discuss the situation, they 'feeli our pain', but that is all they offer. Seems like a waste of an education. And then the marketing specialist talks about how grand the ads are that promote individuals to action....all while not addressing the causes and letting the guilty off the hook. Talk about being part of the system.

  8. Alex Barker

    I thought these people were getting together to create solutions. Instead, I feel like even these "experts" don't have a clue as to where the problem lies. We can play the blame game until eternity, and I don't deny there are terrible people doing terrible things, but we need to look past the problem and into the realm of solution. I know people are either sick of hearing it, or are close-minded to any alternative to what we already have, but this money system truly has to go, and we need to figure out how to organize ourselves when the financial and political systems collapse. I don't wanna hear NWO this and free-market that, and communist comments, because they get us nowhere. Money doesn't work. It only gives us the illusion of progress. Government as we have doesn't work either and only gives us the illusion of control. Communism didn't work because the versions we've seen in history did not address money or politics and their inherent corruption. The only thing we can depend on is ourselves, and it's through communities and social networks that we will build a new society. They are right in this video when they say we are being nostalgic. Enough with the "good old days" mentality. Things were never good, only uneven/unfair distribution of wealth and resources. Now that we are more connected, and the middle class grows thin, the borders of classism are blurring and we are beginning to see each other as equals. It usually takes catastrophic events, whether natural or man-made to bring people together, and this is because when faced with something that threatens us all equally, we realize there are no differences in race or status. I look forward to a global financial collapse because I know that people are better than how they portray us in films and television series. We won't hunt each other down. We'll call our neighbors, friends, and families, and we'll figure out how to survive because the key to human survival is in collectives.

    1. brandyv88

      RON PAUL!!!!! he'll fix everything :)

    2. Jacek Walker

      Very good comment but we should remember that nothing will ever work if it has been built on lies. Almost all societies have been built on lies and false promises and the crisis we suffer now is nothing more than the hidden and repressed lies coming out on the surface.

      It is not the system that needs to be replaced or a new community that needs to be created. It is the thousand of masks that people are carrying on their faces and put them accordingly to a situation that needs to be removed. This is why the world is in such a confused state - no one is true to themselves.

      Get rid off those masks and then you will slowly start to see through the fog. From falsehood nothing real can ever be born.

  9. phillip wong

    Don 't see what is the big deal. The IMF, and world banks policy of austerity were also implemented in the third worlds many times in the past. Why is this a problem now?

    1. Hodd

      It wasn't ok then, and it isn't ok now. It allowed cheap extraction of resources in some countries, selling off of public infrastucture, destroying any standard of living and putting people in poverty. How is that not a problem?

    2. Alex Barker

      It's a problem now because first world citizens are now faced with (what we thought to only be) third world problems. I guess it really does take a crisis to wake people up and propel them to action and change.

    3. Lee Anderson

      I take my hat off to you, sir! :)

  10. ZarathustraSpeaks

    Any discussion of this subject that does acknowledge the culpability all those who were hurt by the crisis simply sets us up for an repeat of what happened with even greater consequences. You are "gambling with house money" when you sign your name to any loan knowing you only can only make the next payment if the next paycheck comes in. This has always been true in the past and will be be in the future. The only difference is "we have chosen" to take on more debt with less cushion in recent years and the economy went south so we got "caught with our pants down". Whatever the "evil Wall Street Wizards" did they are not responsible for our own "buy in" to the consumer mentality of pushing the limit to the max. Greed is the culprit, not just greedy CEO's who are in the unique position of gambling with other peoples money.

    1. Monk

      Are you suggesting then that it is 'greedy' to feel the need to own ones own property/home and perhaps a piece of land on which to grow ones own food, thereby, becoming self sufficient or as self sufficient as the resources one has can provide, thus removing oneself, as far as possible, from the prevailing issue, that, the means of production were removed from the masses many years ago turning most of the planets population into slaves thus reducing the majority of the planets population to mere playthings for the corporate elite to exploit.

    2. ZarathustraSpeaks

      I am "suggesting" greed is a product of allowing ourselves to be drawn into the same endless cycle of consumerism and "growth at any cost" than the 'corporate elite' perpetuate. The majority of debt by individuals has been created by individuals trying to keep up with neighbors in homes and credit card spending on the electronic toys or sending their children to college to study liberal arts because their little 'precious" one needs to spread his/her wings and fly, only to come home and move in with mom and dad because they cant find a job the corporate elite wont "give them". The suggestion that all this debt has been created by Ma and Pa trying to get their "little house on the prairie" to grow a few cash crops is a farce. You only have to be a corporate elite victim if you make decisions based on what popular culture tells you is important which is fine but dont blame the people that lent the money to do so. Debt may be necessary to own a home or car but you decide how much risk you are willing to accept. Most of the people got in trouble by buying houses they could not afford based on a projection of straight line income which is always a mistake.

  11. harry nutzack

    one rarely sees such an example of round table masturbation of this level on film without a XXX rating, at least here in the us. one historian, and a gaggle of sociologists (the inventors of modern advertising AKA "hype") and "media professors". what a complete waste of oxygen

  12. Robyn318

    This is all smoke and mirrors, trying to blame the society and culture for the financial disaster of 2008. The truth is that there is a very real reason that Washington D.C. is not part of the United States; that the city of London is not a part of England; and that Rome is not a part of Italy.

    To get a little insight into what really happened and why…look up ‘naked short selling’ and watch the videos ‘Wall Street fails to deliver’ and ‘ The trillion dollar lawsuit the inside story”.

    1. harry nutzack

      color it as you like, robyn, but, at least here in the states, the "average joe" was just as involved in the birth of this crisis as the wall street big shots were. if folks hadnt been treating their homes as "piggy banks", hadnt used "paper equity" as a means to finance driving the biggest chromiest SUV, or the widest plasma screen in the neighborhood, this crisis couldnt have happened.the blind acceptance of the laughable concept of housing values rising 300% without significant improvement within a span of a few short years is as much to blame as the derivative "voodoo" the banks pulled. if the commoner hadnt mortgaged his house at an obviously speculative level (125% of market value in many cases), GS couldnt have marketed said derivatives, AIG would have had no market for "default swaps", and the "predatory lendors" would have had nobody to hoodwink, thus leaving all the injured world economies (as well as pension funds, mutual funds, smaller banks, etc) unscathed by this debacle. the guy who acted in complete opposition to the lessons taught in 7th grade economics classes bears as much blame as any wall street fatcat

    2. Robyn318

      I agree with you that the average joe was involved. It was the banks however that overvalued the houses in order to glean more money out of the mortgage cash cow. Banks are suppose to be the experts in long-term investment keeping an eye on the build/bust cycles of the economy…they got greedy, plain and simple.

      A foreign company runs the American economy; the Federal Reserve Bank, that answers to no-one, not even Congress. Sure there are pseudo hearings on the stability of the US economy but that too is all smoke and mirrors. After the Fed Res poured trillions of excess dollars into the American economy creating an environment of excess for the average consumer, they yanked too much money too fast out of the economy when they realized the housing market was oversold, causing it to crash. IF they had slowly recalled the excess dollars over a period of a few years there would not have been a crash.

      The recession of the 1980’s and the Great Recession of 2008 were caused by the same exact greedy tactics…get every interest dollar that you can out of the housing consumer, even from those individuals that cannot afford to own homes. And when you have drained it dry, to the point is not sustainable anymore, pull all of the extra trillions of dollars out of circulation, eliminating overtime, jobs and mortgage payments and take back the houses so they can be mortgaged again to the next wave of un-savvy consumers.

      The Federal Reserve made out with a tremendous amount of profit in this scam: they received money from the initial mortgages (payment # 1, when it all collapsed they got bailed out (payment # 2) and thirdly they started the biggest foreclosure in American history (payment #3 when the resell them).

      The whole American culture is set up to dupe its citizens in this way. We have the highest cost per student for education and some of the most uneducated high school graduates in the world…it is all about the money, anyway you can get it; the students are a necessary inconvenience in the process. There seems to be a concerted effort to dumb down the American public so they can be easily fleeced.

      The American economy is based on credit not manufacturing; when people are close to being overextended on their credit lines the stock market soars, when people stop buying and start saving the stock market starts to plummet…it is set up for failure through greed.

  13. classifiedindian

    This is utter rubbish!

  14. dmxi

    search you tube for 'ronpaul - bernanke :who owns the fed ' if the link i posted doesn't work ( & enjoy !).

  15. Tarquin Mahoney

    rebrand the crisis? is this woman on crack? I have never seen such rubbish, this levis ad is helping solve or is an attempt to solve the crisis somehow? its gonna arrest ben bernanke? it was corporate greed, it was banksters, people know this -you can maybe sell that shite to the USA but i cantsee greece buying it. the answer to the crisis is an eminem advert?

    1. rawbot

      I don't remember her saying that the ad is an attempt to solve the crisis in any way. And by saying the ad is "rebranding the crisis" she speaks about how the Levis is trying to show us this aestheticized view of empty factories and deserted streets as something "sexy" and how this is all really a big opportunity for us (only that we can't recognize it as such) and thus shift the focus from the real culprits who are responsible for the crisis we're now in to literally saying "something got broken" as if no one is to blame.

    2. Tarquin Mahoney

      She didnt seem to be disagreeing whatever with the concept of selling you your own poverty back to you - she even used the term "wasteland chic" and i quote "What better way for the US to re-establish trust for consumers than to position the crisis as a brand".She didnt seem to be too against the idea- why should she? shes a pointless marketing parasite.
      She also has a fundamental misunderstanding of what "capitalism" actually means- we are not living with capitalism- we are living with corporatism-ie fascism -the two are very different, capitalism requires capital, the banksters are playing with fiat monopoly money not actual real world capital.
      She sheds light on a good point, ill concede that, that Americans will buy those shiny turds like they are the best thing since sliced bread.
      but her credentials are still that of a propagandist...
      and what was she selling you before the trick was played? and she got a job at this think tank?
      The finnish lady with the point about nationalism was the one person in this doc who wasnt just pontificating from the perspective of their given professions- divide and rule is the game plan -it always was but noone is buying the "greeks are just lazy" or "the british are all thieves and con men" line because we can see the wizards behind the curtain and we have their names....
      Ben Bernanke, Jamie Dimon, George Bush, Donald Rumseld, Mitt Romney, Tony B.liar Mervyn King, Barack Obama, Henry Kissinger, Alan Greenspan the list goes on and on but for the first time in human history these people are exposed and the veil has been lifted- they went one step too far this time.
      to quote JFK.
      "For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence — on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations. Its preparations are concealed, not published. Its mistakes are buried, not headlined. Its dissenters are silenced not praised. No expenditure is questioned, no rumor is printed, no secret is revealed."
      This was just weeks before he was murdered.
      And now the secret is out...

    3. rawbot

      From my perspective she was outlining the absurdity not ingenuity of said campaign, but I might have misunderstood it, I don't know.

    4. Tarquin Mahoney

      I rewatched it just to check and you are probably correct, she does make brief mention of it being hypocritical but her opening statement is the one i quoted. I think she is probably a victim of bad editing but to you and i the concept is absurd, haenous and palpably disgusting -to make this point without out and out stating the equivalent of "the cheeky b*stard corporations are now selling us back our hungry ***es to us- as a glorious and noble oppurtunity"
      "It makes me ******* sick to the stomach grab your pitchforks"

  16. Tarquin Mahoney

    Right then, ten minutes in and no-one has mentioned thieves, fraud, fiat currency, illegal war, troika, financial terrorism or jamie dimon or mervyn king or tony blair- the bastards who did this have names.
    The only way to restore faith in any system is to bring them to book- the mob wont be be satiated until this happens and the "crisis" will continue as we have a criminal culture, everyone can now see the thieves and see they are still holding their loot when the majority of people have nothing.
    You gonna have law breaking and riots if we dont hang the bastards outto dry forall to see- this intellectualising requires an intellectual audience and is or the most part useless.

  17. Tarquin Mahoney

    Its not a crisis - its a trick.

  18. rawbot

    I've seen this last year and it is well worth the watch, like most of VPro Backlight series. I also recommend California Dreaming, Quants - the Alchemists of Wall St., Here Comes the Sun, The Race for the Future Car (most of them are on topdocs already) and many more.

  19. Pysmythe

    We've all heard it before:
    Privatize the gains and socialize the losses.

    Plus ca change,
    Plus c'est la meme chose.

    Good documentary...but if you can watch it and not get pi55ed off about the subterfuges of the monied-class, well, then, in the words of Harry S.Truman, "You oughta go to hell."

  20. Mercenarry ForHire

    I find Humanity extremely interesting.

    The speed of communication has greatly increased, so a lot of problems might actually get fixed eventually.

    (It depends on what happens with all this Information being exchanged and if Humanity wants to change.)

  21. dmxi

    all conspiracy theories aside,this collapse was inevitable,as capitalisms root core is exploitation untill resources are expired for the profit of few,that is the law of finance via debt!if one begs to differ,i advise them to research 'how debt is created' & any related topic.....this is no 'zeitgeist' mumbojumbo,just plain factual reality!

    1. Mercenarry ForHire

      I agree with you,
      I find it that people usually dont take into account that most systems are destined to fail like all things are destined to die, just like animals adapt or die off. (Each system or way of doing things has its own life span. Some last more than others.

      Corruption follow when theres something to be gained, when this happens the system itself becomes corrupted and often humanity find a new way of doing things.

      My theory is that Humanity will have to cycle through all of them and eventually come full circle, in which time either each nation will have its own system or just repeat the cycle. (Similar to how the Seasons change and each changing cycle brings new opportunities.)

      But i could be wrong, for all i know Humanity CAN Keep one system until the Year 100,000 without major drawbacks O.o

      (This Criminal says, its not about the Goal but about the Journey, and all the Terrible and Wonderful things we Humans well create before we like 99% of all known animals dies off and go extinct.)

  22. Rolands

    Really enjoyed watching. Great thoughts discussed. Thank you.

    1. adminblo