ECON 200 Chapter Notes - Chapter recession: Freddie Mac, Pork Barrel, Unemployment Benefits

• School: University of Arizona
• Department: Economics
• Course: ECON 200
• Professor: Steven Reff

Document Summary

The economics of the great recession: part 1. Adjustable-rate and interest only mortgages accounted for nearly two-thirds of new loans in the second half of 2004. Buyers we"re using riskier nancing techniques, such as interest only loans to squeeze into homes. Sept 7, 2008: the fed gov takes over fennie may and freddie mac is the beginning of the great recession. *one challenge that congress and the pres faced during the great recession was two-fold: Recognition lag: the period of time it takes to realize there is a change occurring that will change future macroeconomic event(s) Administrative lag: the time period recognizing the problem until the time that something is actually done to solve the problem. The gov sector is similar to the private sector in that they both play politics . In the private sector is called the of ce politics .