The Shocking Cause Of The Financial Crisis

The shocking cause of the 2008 financial crisis is revealed in a book reviewed in a televised programme hosted by Derek Conway with guests Alessio Rastani of and Shabbir Razvi of iFSA. See video:

In “Whoops! Why Everyone Owes Everyone and No-one Can Pay”, John Lanchester explains why the financial crisis was considered by bankers an “impossible” event.

In the book review show Epilogue, this book is discussed by the studio guests.

Tell us your own views. Do you agree with the opinions of the guests on the show? Leave us a comment – even if you disagree.


  1. Hi Alessio – I enjoyed the video. Watched it all the way to the end. I am not quite sure I agree with your view about scrapping bonuses for bankers. Surely there needs to be some incentive for bankers to make money, otherwise why would they bother?

  2. Very interesting discussion. The other studio guest Shabbir seems to have a lot to say. I find his views to be quite left wing. Sacking bankers and putting them on the dole? Dream on. With a world run by bankers the devil can take of his own! Anyway, great show Alessio. Thanks for sharing this.

  3. Building better world has been lasting for hundreds or even thousands of years. Our fathers and grandfathers have heard exactly the same what we hear from nowadays “smart” guys. It doesn’t change. It hasn’t changed.

    It seems that IQ has nothing to do politics and economy in accordance with fairness, justice, and above all wealth balance. I haven’t read the book but from what you said I must admit it also refers to polish politicians. Absolutely ignorant or/and cack-handed about making right decisions. Indeed it’s easy to criticise, but it’s that obvious that these are the “smart”, “bright” and so well educated guys who made us smell their s**t.

    The only way to make any change is to let people understand the situation.

  4. “it’s not their money, it’s ours”! EXACTLY and Well said Alessio!

    These “smart” “leaders” are gambling with our money, and getting bonuses.

    This video, helps give a reality check to those who wonder what’s going on in the financial world!

    Thank you for posting this Alessio!

  5. Great discussion Alessio, wish it was longer. That whole financial scandal was surely more bizarre than any fiction and is now being so well covered over with other “distractions” that the public really has no concept of what’s going on. There was no effective action taken to call anyone to account, let alone punish – but I guess that’s no big surprise either!

  6. Great Video, the one country I would like to add to this whole financial mess is Iceland. They actually went after bankers and politicians who allowed their country to be financially seduced into this whole credit scheme. But what was the result for Iceland? Well they have been threatened to never be apart of the European Union, and for putting some of these politicians and bankers in jail, they will most likely never be admitted to the EU. Now one banker fled to England and he’s there on asylum from the Icelandic Authorities. Imagine what would happen if the people responsible for the financial mess were to face the consequences? Reality would be different.

  7. And all the Kings Horses and all the Kings men still cannnot put the economies back together again

  8. According to Austrian economics the government is at the root of the problem and must be abolished in order to allow free market to function in the financial industry. Bankers are only responding to the incentive structure in place, what else would you expect them to do!

  9. I’m not sure how you punish the bankers. Putting them in prison or sacking them only costs the nation even more in keeping them. Perhaps hitting them in the hip pocket and fine them personally heavily could be an option, rather than the bank itself as was the case with Barclays over Libor. So many have obviously acted in criminal ways. In the case of Barclays it is probably been the lower echelon who had no part in the decision making who are being made redundant now.

  10. Qnother stupid book hoping to make quick bucks out of the crisis. i wonder which people in their right minds buy such books.

  11. The problem, as I see it, is that we are no longer a capitalist economy. Cartels and monopolies have been actively encouraged (particularly by the last government – and this one seems to be doing nothing to reverse the trend). RBS should never have been bailed out. True capitalism is all about letting failing institutions actually fail. Shabbir is spot on when he says sack them and put them on the dole. Who else gets to keep their job when they are rubbish at it?

    As for bonuses – I work freelance. My bonuses comes from working harder, longer, better. Not just because I turn up.

  12. Great Video with Alessio and Shabbir. It seems that there are different forms of intelligence. If certain people can get others to pay for their bad bets, well then that is their skill. Others have the skill to heal or to protect and there is not much money in that, albeit there is great human reward! If a doctor heals all of his patients he will not have great fortune. Alas it should be different but it isn’t.

  13. Great vedio i agree 100 percent How much time do we have before the :”?#&$: hits the fan?

  14. Very interesting video, I feel the root of the problem is the form of capitalism that has been adopted by the majority of the world since the break up of the soviet union, almost as if there is no other way of operating. the trouble with the rampant free market capitalism we use at the moment, apart from the obvious (recent crashes etc.) is the underlying rot that means we are doomed to repeat the same mistakes again and again. If, as under the present system, the only measure of sucsess is what is in your bank account, regardless of how you gained it. we can see that this will promote sociopathic behaviour, lying, cheating, and flat out robbing the people thay are supposed to be serving becomes the norm. unfortunatly this filters down through the populace, potentialy creating a selfish attitude, that undermines our social structure.

    keep up the great work

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