Trust and Panic: The History and Impact of Debt - Lecture 1

Explore the complex world of debt and its far-reaching impacts in this thought-provoking lecture from the Santa Fe Institute's 2017 Ulam Lectures series. Delve into the historical, literary, and economic perspectives on debt, default, and forgiveness, and their crucial roles in financial booms, busts, and recoveries. Discover why debt, among all economic variables, causes the most trouble and how it simultaneously enables growth yet poses catastrophic risks. Learn about John Geanakoplos' theory of the leverage cycle and gain insights into the American mortgage crisis of 2007-2010 and the European sovereign debt crisis of 2010-2016. Examine how philosophers, writers, and governments have grappled with the concept of debt throughout history, exploring topics such as debtors' prisons, bankruptcy laws, central banks, and economic cycles. Gain a deeper understanding of the intricate relationship between trust, panic, and the leverage cycle in this comprehensive 93-minute presentation.