An Economic Analysis of the Financial Collapse. National Council for the Social Studies Vital Issues Session November 14, 2009. Presenters. Glen Blankenship Georgia Council on Economic Education Mark Schug University of Wisconsin-Milwaukee George Vredeveld University of Cincinnati
An Economic Analysis of the Financial Collapse
National Council for the Social Studies
Vital Issues Session
November 14, 2009
Georgia Council on Economic Education
University of Wisconsin-Milwaukee
University of Cincinnati
St. Cloud State University
Hint: Do they still follow the 3-6-3 rule?
How did the financial crisis affect us?
What are some likely hypotheses regarding the causes of the financial collapse?
The magnitude of the current financial crisis has grown because of the amount of leverage used.
What do today’s banks do?
Non-Interest income is increasing as a proportion of net operating revenue (source: Bank Management,6th edition.imothy W. Koch and S. Scott MacDonald
Net Interest Income
Composition of Noninterest Income by Bank Size as a Percentage of Total Assets, 2004 (source: Bank Management,6th edition.Timothy W. Koch and S. Scott MacDonald
All Comm. Banks
sales of loans
Teaching about the financial crisis
Open Market Operations
Interest on Required Reserve Balances and Excess Balances
Term Auction Facility
Primary Dealer Credit Facility
Term Securities Lending Facility
ABCP MMMF Liquidity Facility
Commercial Paper Funding Facility
Money Market Investor Funding Facility
Term Asset-Backed Securities Loan Facility
Upcoming publication of Council for Economic Education
Planned Table of Contents
Lesson 1 The Financial Crisis of 1907 and the Financial Crisis of 2007: A Comparison
Lesson 2 Data Analysis: How the Numbers of U.S. Economic Performance in 2008 and 2009 Compare to Other Periods in History
Lesson 3 Manias, Bubbles, and Panics in World History
Lesson 4 The Japan Comparison: Japan in the mid-1980s through 1990s and the U.S. in the 2000s
Lesson 5 Monetary Policy in the Recent Financial Crisis
Lesson 6 The Role of Housing in the Recent Financial Crisis
Lesson 7 The Instruments and Institutions of Modern Financial Markets
Lesson 8 Understanding Financial Markets in 2007 - 2009