Thursday, September 25, 2008

Just the Facts: Breaking Down the Recent Financial Crisis

With "bailout” as the new buzz word of the day, the crisis on Wall Street has everyone talking. A recent New York Times article by Steven D. Levitt features commentary by Douglas W. Diamond and Anil Kashyap – professors at the University of Chicago’s Graduate School of Business – that breaks down the government intervention to help Fannie, Freddie and A.I.G., as well as the fall of Lehman. The article, which provides an easy-to-follow explanation for those still trying to make sense of those two dizzying weeks, predicts that accessing credit will become more difficult and more expensive for small business and everyday individuals in the wake of these drastic changes in the financial system.

1 comment:

Nick said...

Contrary to what the main stream media says, wall street as a whole (capitalism) should not be blamed for the actions and policies set forth by OUR congress. There are, in fact, corrupt men in wall street who partnered with corrupt men in government to engineer a win-win situation at the expense of the taxpayer. Capitalism (and our nation or any nation) will only survive when the good and virtuous people are running it. Which means, come this November, you must vote for good men and women who stand by principle and uphold our constitution and not just give lip service to causes that seem noble and just.