The Current Economic Crisis
A Seminar with William Dunkelberg
Professor of Economics at Temple University, Formerly Dean of the Fox School of Business
November 10, 2008
Congress passed a "bailout", but who will it help? Why did the market crash 800 points days after the bailout was passed? How did we get into this mess in the first place? Who is at fault? What's at the core of our current problems? The seeds of our current problem can be traced back to the Community Reinvestment Act of 1977, followed by Fannie and Freddie's subservience to Congress, and the greed of private investors who found a way to con the world into investing in our housing boom by financing it through the purchase of complex mortgage-based assets that were ultimately made with no underwriting standards save the hope that home prices would rise forever. The Fed probably kept interest rates too low too long, but is more cheap credit the answer to the problems created by cheap credit? Will this save us from recession or cause one, and what are the implications of this huge intrusion of government into the private sector?
Learn more about Prof. Bill Dunkelberg.
Read Prof. Dunkelberg's latest "Notes On the Economy."