Lesson 8: Financial Deregulation and the 2008 Housing Crisis

September 13, 2016

Wed, Sep 14

Review:

  • Monetary Policy

Presentation:

  • Deregulation of the Financial System
    • Reaganomics
      • Unregulated capitalism
      • Trickle-down economics
        • Help the rich
        • The rich will invest more
        • New industries and jobs will be created
        • Rising tide lifts all boats
    • 1999 Repeal of Glass-Steagall
      • Gramm-Leach-Bliley Act
      • Republican Congress
      • Democratic White House
      • Removed “firewall” between commercial banks and investment banks
    • Derivatives Market
    • 2004 Securities and Exchange Commission (SEC)
      • In reply to global investment banks asking for more freedom
      • Agreed to loosen capital requirements
      • Allows fewer reserves and more debt
      • Voluntary regulation and self-reporting
    • Short History of Financial Deregulation in the US
  • Money for Nothing: Inside the Federal Reserve (begin at 0:29, end at 1:02)

Assignment:

  • Select an “Investment” property to prepare for Exam 1 Take Home assignment
  • More on Exam 1 next week

 

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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