For those that missed the last Economics club meeting, we talked about Quantitative Easing, and the bank bailouts that took place in 2008.
For those unfamiliar with what exactly Quantitative Easing is, here is a pretty good explanation. The graph above shows what has happened to the Monetary Base (Currency + Reserves) since the Quantitative Easing began. It has exploded. Ben Bernanke has a delicate situation in his hands as action from the Fed, if it is not careful, could trigger very high inflation or another recession.
We also touched on the financial crisis and ways that the derivatives markets, government regulations on banks, cheap credit, and moral hazard all played a part in building up the huge housing bubble – and then popping it.
If this topic is interesting to you, the books The Big Short and Boomerang Michael Lewis are very entertaining reads on the latest financial crash. They deal with more of the people involved in the events that led up to the financial crash. I read both over last summer, and they were great. There are literally dozens of books out there on the latest financial crash, I’m sure most of them are good. The movies Wall Street: Money Never Sleeps and Margin Call are also entertaining and shed some light on the crash in their own unique ways. I liked them.
I hope you all enjoyed the meeting! Our next club meeting is on October 23rd, and we are planning on Calving Williams from Career Services come in and talking to us. He was great last Fall, I really enjoyed what he had to say.
One last thing, there is a Presidential Debate next Tuesday night and we are planning on getting together to watch it. I will post a Facebook event with the details.