Ascent of Money Planet Finance Daniel Coumans

Ascent of Money Planet Finance Daniel Coumans - Daniel...

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Daniel Coumans In the final episode of THE ASCENT OF MONEY series, titled Planet Finance, Niall Ferguson discusses the spread of financial practices across the globe, the rise of the American real estate market, and the outcome of the subprime mortgage fiasco. Ferguson starts with finance in the world near the end of 2007 and how the financial globalization that has occurred is vulnerable to financial shock and political motives. He discusses how people today take the universal right to own their own homes for granted. He talks about the depression of 1929 in America and how people struggled to pay rent, especially in Detroit. When wages were cut and workers were laid off, workers demanded unemployment relief. What followed was a bloody battle between unemployed workers and the police, leaving five workers slain. Edsel Ford’s response was to have a mural painted by Diego Rivera showing that workers and employers were in harmony. These murals were seen as a travesty as Rivera painted a much more truthful depiction. The government response to home ownership was what became known as the “New Deal”. This deal brought about the Fannie Mae which set up a nationwide market for home owners. By reducing the monthly cost of a mortgage through government backed loans, home ownership was now more affordable for many Americans. Basically, the US government affectively underwrote the mortgage market. The catch, however, was that not everyone was approved for credit. Actually, it turned out that loans were given based on color and African Americans were unable to get loans. Blacks were to be excluded from the
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This note was uploaded on 08/15/2011 for the course BUS 7000 taught by Professor Unknown during the Spring '11 term at Wayne State University.

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Ascent of Money Planet Finance Daniel Coumans - Daniel...

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