University of Chicago Conference on the Financial Crisis (April 10, 2009), Panel 1: Sources of the Crisis

[What follows is my reportage of the Panel 1 of the conference, which I attended. I took pretty thorough notes, but they are necessarily incomplete. I welcome corrections. In the coming week I will better type up my notes on Panels 2 and 3. I did not attend Panel 4. The impatient can find the rough notes to Panels 2 and 3 in my earlier stub post.]

Conference on the Financial Crisis
Co-sponsored by the Money, Markets and Consumption Workshop, Economica, and other organizations. Held at the Franke Institute in the Regenstein Library at the University of Chicago, April 10, 2009. It was mighty.

Panel 1: Sources of the Crisis

Moderator: Gary Herrigel (Department of Political Science, University of Chicago)

Douglas Diamond (University of Chicago Booth Graduate School of Business)

Diamond gave a slightly slow-moving but persuasive talk on financial crises in recent historical perspective. He argued that basically such crises are all the same, being caused by runs on short-term debt. Diamond unfortunately did not do a great job dumbing down his talk, so that my sense was that it was difficult for many people in the room to understand it well. (See below my account of the Q&A session at the end of the panel, where I give more detail on Diamond’s ideas. I took bad notes at the beginning and good notes at the end.)

Mark Mizruchi (Sociology Department, University of Michigan)

Mizruchi presented other, perhaps deeper causes