History 1807 Lecture Notes - Lecture 3: Henry Paulson, Toxic Asset, Fire Sale
27 Sep 2016
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Our wealth and prosperity and everything we own rests on the idea of capitalism, much of what we have, is controlled by what goes on in lower manhattan. (jobs, mortgage, interest rates . ) Much of our economy is based on speculation, we do not live in a society that is based on consumerism. Much of what is going on wall street, is not understood. One reason why we were caught flat footed in 2008 was because most people didn"t understand how wall street operated. Wall street is key to everyone"s prosperity. People blamed the poor for taking out subprime loans and not knowing what they were doing. Fannie and freddie mac for giving out subprime loans. A recession is when the economy doesn"t grow. You rack up debt and you pay it off. If you spend a lot this year and then save next year, this ruins the economy.
