POLS 1402 Lecture Notes - Lecture 2: Financial Innovation, Financial Market, Alan Greenspan
13 Apr 2017
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Document Summary
European cooperation had its benefits, but consequences too: small european countries such as greece, ireland, portugal (and even spain and. In europe, banks stopped lending because no more money in the system, calling for greece/other small nations to pay up. Note that this caused us collapse of mortgage market that was also based on not-smart lending. Iceland - policy of deregulation that was disastrous for environment (exploiting natural resources), and then economy. Bankers lent out twice the amount of iceland"s national income. Iceland"s banks collapsed in end of 2008 unemployment tripled. 2008: bankruptcy of lehman brothers and ieg result was global recession that doubled national debt, unemployed millions caused by an out-of-control system. 30 year period of deregulation during reagan"s, clinton"s and bush"s administrations: keating scandal, alan greenspan. Citigroup largest financial investment group in world violated glass-stiegel act, passed after great depression which prevented banks from using deposits in high-risk deals. Huge amount of criminality countless financial company scandals.
