Economics 353 lecture 5

Economics 353 lecture 5 - Economics 353 Lecture 5 Pre-Civil...

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Economics 353 Lecture 5 Pre-Civil War Banking
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Please Read http://online.wsj.com/article/SB100014240 52748704362004575001042824028862.h tml? mod=WSJ_hpp_LEFTWhatsNewsCollecti on February 9, 2010 No Exit in Sight for U.S. and Fannie, Freddie Flail
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Dow Jones Industrial Average Dow Jones (Industrial) stock average broke 10,000 – GOING DOWN – yesterday. Today, it broke 10,000 – GOING UP. When did the Dow Jones Average first cross 10,000 – going up?
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Dow Jones Average 1999 Why is this relevant? There has been and will likely continue to be a discussion of the privatization of social security (and putting your social security payments into stocks). Over the last 10 years what has the rate of return on stocks been?
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Our Financial Crisis The world financial crisis (called the Great Recession in the US) was caused by the US financial industry. One day economic historians will look back at this time and try to figure out what fraction of the economic growth that we experienced was associated with financial bubbles.
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Our Financial Crisis The causes of the crisis have remained unaddressed by the US Congress. Many of the factors involved in the financial crisis are still operating today. Derivative contracts still trade. Ratings firms that gave AAA ratings to securities that failed are still giving out AAA ratings.
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Our Financial Crisis Besides the obvious problems with the US financial system were the other forces at work? What might they have been?
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Tidbits A Winter Storm Warning is in effect from midnight tonight to 6am Thursday morning.
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