History of the US Economy (1900-Present)

In class we discussed the history of the US economy, the 5 economic crisis and the federal reserve system.  The 5 economic crisis are as follows:

1.  Panic of 1907 - Trusts speculating in stock market
2.  Great Depression (1930s) - Commodity Prices led to bank runs
3.  Savings and Loans Crisis (1980s) - High inflation, devaluation of S & L Assets (mortgages), bank
                                                              runs
4.  Long-Term Capital Management (1990s) - complicated derivatives/no market, devalued when try
                                                                           to sell...same assets devalued on other funds balance
                                                                           sheet.
5.  Subprime Lending/Housing Bubble (2008) - lending to undesirable individuals eventually leading
                                                                             to market failure (almost) because the financial
                                                                             system is interconnected.

We  also talked about the Federal Reserve System which is made up of a Board of Governors (7) appointed at various times by the president to serve 14 year terms.  Also, the 12 regional federal reserve banks. More information is linked below in the notes.

Notes - The Federal Reserve

HW - Read Modules 27 and 28