{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

aw pers 2 - Substantive Article Summary/Review Perspectives...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Substantive Article Summary/Review Perspectives 2001 11/29/10 I. Title: Origins of the Financial Market Crisis of 2008 Author: Anna J. Schwartz Source: Cato Journal, Vol. 29, No. 1 Date of Article: Winter 2009 II. Summary Government Responsible for Crisis While consumer greed played a large role in the financial crisis of 2008, Government policies contributed greatly to the problem. The Federal Reserve lowered interest rates and kept them low for too long, making home buying seem more realistic than it really was. Government programs such as HUD further propagated the idea that every consumer ought to own a home. Fannie Mae and Freddie Mac were given governmental directives to target low income homebuyers. Problems with New Investment Instruments New financial innovations acted as catalysts for the credit crisis. Securities, derivatives, and auction-rate securities were exciting and profitable for banks in the beginning, and were substituted more and more rapidly for the traditional mortgage loans. However, the problem with them was in determining their price. Mortgages
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern