Class Assignment #1 Due: Thursday, September 26th
Over the past several years the financial markets have gone through turmoil, significantly affecting borrowers, investors and financial and non-financial institutions; both “Wall Street” and “Main Street”. In response, the Federal Reserve, as overseer of the economy and financial markets, reduced in the Fed Funds target rate to near 0%, bailed out several large financial and non-financial institutions and instituted several liquidity programs to support the markets. Was the Fed’s response to the market turmoil the solution, or part of the problem?
In this folder you will find two additional documents; 1) testimony by Fed Chairman Bernanke given to the Financial Crisis Inquiry Committee in Washington on September 2, 2010, and 2) a Wall Street Journal opinion piece by Thomas, Hennessey and Holtz-Eakin dated January 27, 2011, discussing their dissenting opinion on the Financial Crisis Inquiry Commission’s report on the causes of the crisis. You must also research at least one additional more recent source (published within the last twelve months) on the topic. You may read as many additional articles as you wish.
Your assignment is to read each document and then, in your own words, discuss what you believe caused the financial crisis and comment on the Fed’s role and response. In light of class readings, discussions and current events, do you believe the Fed made the right moves to settle the markets, why, or why not? Please cite all articles in a separate “Works cited” page at the end (not included in word count).
Your paper should not exceed 1000 words (three pages), be double spaced and stapled to a cover sheet containing at a minimum your name, U number and word count for the paper.
Document Preview: Class Assignment #1?Due: Thursday, September 26th
Over the past several years the financial markets have gone through turmoil, significantly affecting borrowers, investors and financial and non-financial institutions; both “Wall Street” and “Main Street”. In response, the Federal Reserve, as overseer of the economy and financial markets, reduced in the Fed Funds target rate to near 0%, bailed out several large financial and non-financial institutions and instituted several liquidity programs to support the markets. Was the Fed’s response to the market turmoil the solution, or part of the problem?
In this folder you will find two additional documents; 1) testimony by Fed Chairman Bernanke given to the Financial Crisis Inquiry Committee in Washington on September 2, 2010, and 2) a Wall Street Journal opinion piece by Thomas, Hennessey and Holtz-Eakin dated January 27, 2011, discussing their dissenting opinion on the Financial Crisis Inquiry Commission’s report on the causes of the crisis. You must also research at least one additional more recent source (published within the last twelve months) on the topic. You may read as many additional articles as you wish.
Your assignment is to read each document and then, in your own words, discuss what you believe caused the financial crisis and comment on the Fed’s role and response. In light of class readings, discussions and current events, do you believe the Fed made the right moves to settle the markets, why, or why not? Please cite all articles in a separate “Works cited” page at the end (not included in word count).
Your paper should not exceed 1000 words (three pages), be double spaced and stapled to a cover sheet containing at a minimum your name, U number and word count for the paper.