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Comm 439 economy-1

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Our economic crisis presentation.

Our economic crisis presentation.

Published in Economy & Finance , Business
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  • The article starts off by addressing the issue of the government taking over the mortgage giants Fannie Mae and Freddie Mac- states that this is just another instance of a declining economy that leaves investors in a state of fear Its good because it relates to the majority of the population who may not have a business or economy background Instead of just answering the questions, the author relates it back to the effects of the crisis and the future of the mortgage lenders
  • -Good because gives the pros of a situation which many may still see as a setback- relates it back to the people through the question of “How will this bailout -affect my mortgage?”- tells people that even though Frannie is in debt which makes large banking companies worried about their futures, the government will start buying mortgages which will in turn push the rates down and make houses more affordable with lower mortgage rates- -tells the readers that the best way to view the takeover is to say that it is an attempt to prevent the housing bust to get worse and eventually collapse altogether -However it still says that the economy is in a bad place and even with takeover aimed to jump start the economy, many houses are unsold and prices are high so nothing can be solved immediately
  • The article presents Paulson's reasons for justifying his actions instead of just presenting the situation with not reasoning behind it- really makes sure the audience understands it within context

Transcript

  • 1. ECONOMIC CRISIS COVERAGE By: Sarah, Brittney, Sam, Ahrang, Sahrish
  • 2. Good Articles
    • Honest and Accurate
    • Unbiased
    • Explain situation clearly
    • Provide historical context
    • Foresee future problems
    • Appeal to those who do have an economic background as well as to those who do not
  • 3. “ Will the Housing Bubble Burst in 2007?” ( Time , Feb. 22, 2007)
    • Gauges buyer sentiment using real estate search/browsing patterns
    • Increase in “homes for rent” searches
    • Increased traffic on home value sites like www.zillow.com
    • Warning signs: “sell my house fast” and “avoid foreclosure” searches
  • 4. “ With Fannie and Freddie, the US Is Bailout Nation” (September 11, 2008)
  • 5. “ With Fannie and Freddie, the US Is Bailout Nation” (cont.)
    • “ Americans not versed in financial- market arcana can be forgiven for scratching their heads at this time”
    • Poses and answers questions
      • “ What are Fannie and Freddie again?”
      • “ How will this bailout affect my mortgage?”
      • “ Who gained the most from this deal?”
  • 6. “ With Fannie and Freddie, the US Is Bailout Nation” (cont.)
    • “ By making more money available for mortgages, this should push the rate down even more…providing support to the reeling housing market”
    • “ There’s still a giant supply of unsold houses, and prices are still high relative to rents and incomes. So don’t expect a big housing rally.”
  • 7. “ With Fannie and Freddie, the US Is Bailout Nation” (cont.)
    • “ They got away with holding only tiny capital reserves to insure against losses.. because mortgages were supposed to be safe”
    • “ Central banks and investors throughout the United States and around the world… believe them to be virtually risk-free ”- Paulson
    • “ Paulson felt he had little choice but to make perception a reality”
  • 8. How Financial Madness Overtook Wall Street
    • September 18, 2008
    • Clearly outlines the course of the crisis
    • Easy to understand
    • No speculation for future
  • 9. “ How AIG Became Too Big to Fail” (March 19, 2009)
  • 10.
    • Explained backgrounds of the AIG bail out, and quoted important figures’ interviews and statements
      • Geithner, Liddy (CEO of AIG), Greenberg (former CEO), Bernanke, and Obama, etc.
    • “… AIG had paid out $165 million in retention bonuses to executives at the unit that compelled the U.S. to bail out the company in the first place.”
      • “ The revelations of the ALG bonuses, like nothing else, seemed to finally tip the mounting public furor over corporate malpractice into a full-scale rebellion.”
  • 11.
    • “ Although a CDS is an insurance policy, AIG was selling something far more exotic” and it was “the opposite of what insurance companies are supposed to do.”
    • “ The main target for the opprobrium is Geithner. He still enjoys the confidence of U.S. allies abroad and understands the deeply complicated world of global finance far better than the lawmakers…”
  • 12. Ben Bernanke Person of the Year 2009
    • “ His creative leadership helped ensure that 2009 was a period of weak recovery rather than catastrophic depression”
    • Made mistakes, but helped economy more than he hurt it
  • 13. Ben Bernanke: Person of the Year
    • http://www.time.com/time/video/player/0,32068,57543987001_1948061,00.html