Understanding recent events in US/Global Economy

(use these clips in your gov't/econ. classes as starter points!)

I just got back from Day 1 of an economic summer institute seminar I signed up for. The focus of this seminar is the connection of the current financial crisis with history--drawing comparisons with the Great Depression (though we call today's crisis a "Great Recession" instead...not quite sure why...).

Anyway, I have to admit that I was truly fascinated with the topics we discussed and learned about in the seminar. We began class with this Frontline video clip (Part 1-3). I was a bit reluctant to even go to this seminar bc our HW reading, Krugman's The Return of Depression Economics, was a bit dense for me (I have trouble understanding financial terms bc it is so confounded). So I entered the class feeling a bit intimidated by my financial illiteracy.

We started the seminar with this Frontline clip and I was hooked. All the questions/confusion I had regarding these gov't giant bailouts in 2008 such as with Bear Stearns, were explained thru this clip and thru this seminar.

I realized that it is highly important to gain this financial literacy. For instance, what exactly is meant behind subprime mortgage lending? Yes, we may understand the basics that it is a loan given to a borrower who might be less likely to repay a loan (yet is given the loan anyway with the belief that when housing market picks up, the borrower can refinance or pay off mortgage by selling the house in the future), but to understand why this subprime mortgage loan had such a sweeping impact on particular regions such as CA, we would have to understand that the subprime mortgage lending was tightly interconnected/interweaved with other investors and financial institutions that it was just difficult to "unwind." This applies to Bear Stearns, Freddie Mac and Fannie Mae, Lehman Brothers, etc. Our own personal money was tied up in this messy web when we "deposit" money into the banks or when we take out mortgages...etc. etc...... This interconnected mess is termed, systemic risk. This is why even though the probs. may have been caused by decision making in Wall Street, we felt the affects on "Main Street" (which would be us...the people).

Anyway, this seminar provided me with a deeper interest in Economics and feeling a sense of urgency on becoming more financially literate. Financial terms are fully loaded and will guide folks on money management (or just being smarter with our money).

I think it's important that this type of financial literacy class/seminar is accessible in working class communities. We work hard for our money. It would be nice to know other options/opportunities to invest/save our hard earned money for long-term benefits for our families and our own communities. It almost appears that it is limited just to the elite....
hmmm...