Readings:
· Morris, C. R. 2009 The Two Trillion Dollar Meltdown. Excerpts. Read Remainder of book 1-8
· Bernanke, B. 2011 The Federal Reserve and the Financial Crisis. Lecture 3: The Federal Reserve’s Response to the Financial Crisis pp. 64-96 on webcampus. For those who prefer video, you can see this at: http://www.youtube.com/watch?v=GLoqPm1nYRU
· Keen, Steve, 2010. The Economic Case Against Bernanke. http://www.debtdeflation.com/blogs/2010/01/24/debtwatch-no-42-the-economic-case-against-bernanke/ or as pdf on webcampus
Optional Materials
· Gordon, Chapter 20
· Greenspan, A. 2007, “The Roots of the Mortgage Crisis” Wall Street Journal online excerpts at: com/economistsview/2007/12/alan-greenspan.html”>http://economistsview.typepad.com/economistsview/2007/12/alan-greenspan.html . Short (3 pages) article describing how low interest rates caused housing investment, but note denial of bubble.
· Roubini, N. & S. Mihm. 2010. “The White Swan” Chapter 1 in Crisis Economics: A Crash Course in the Future of Finance. New York: Penguin Press. Pp. 14-37 on webcampus
· Harvey, David 2008 “A Financial Katrina” podcast at: http://davidharvey.org/2008/12/a-financial-katrina-remarks-on-the-crisis/ Fascinating analysis of last 30 years of 20th century and lead up to financial crisis from a Marxist perspective.
Writing Assignment:
Using Morris, Bernanke and Keen, describe how the financial system changed during the 1980s-2000s and how the housing bubble arose and collapsed and why it spread to other parts of the economy.
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