Wednesday, November 12, 2008

Understanding the Financial Crisis

Haven't posted lately. To some extent this is because it didn't seem like anyone was reading the blog. So, if you read this post, please leave a comment to encourage me to continue posting (or ask a question, or agree/disagree, or whatever).

Thought I'd pass on this great resource for understanding the current world financial crisis: A Personal FAQ on the Financial Crisis of 2008 by Prof. Ivo Welch at Brown University. Another good resource for those without much economics background is the daily Planet Money podcast from NPR. As with most accounts of the crisis, these are both focused on the effect of the crisis in the US (after all, that's where it started).

Here in Australia we seem to be in better shape: sub-prime lending wasn't nearly so prevalent here; the banks appear to have been more conservative, leading to higher capital levels; mortgage loans are NOT non-recourse; and the Reserve Bank has more room to cut interest rates than the Fed.

5 Comments:

Blogger Dave said...

I read it Karen, it is one of the many blogs I have in my Google Reader list.

2:34 pm  
Anonymous Anonymous said...

I read your blog too, the post by the Brown univ. economist is great. What do you think about Nassim Taleb's characterization of finance educators? http://tinyurl.com/6e3un7 Thanks for taking your time and posting interesting material.

2:23 am  
Blogger Fiona said...

Great to the next post, Karen. My online marketing friend was impressed by the calibre of websites linking to your blog. And, I have got your blog feeding to my honours network - so THANK YOU for your work...

10:19 am  
Anonymous Betsy said...

I read it! Takes me a while, and I don't always understand it, but I do...

10:46 am  
Blogger Fiona said...

This post is great. Were you at that event I organised last year, with Allan Kleidon, in August? He went through the sub-prime crisis to a packed house, and pretty much foretold the global effects that were to ripple around the world in the months after his presentation. It was pretty doom and gloom, but his assessment of Australia tallies with yours.

Will there be any good news to come out of this mess? I'd like my next alumni event to be about the good news to result from this GFC...

A lady I work beside at the farmers markets on Saturdays said to me this morning - that self-made millionaires will be a result of this recession (her words not mine)... Why would that be?

Great to see the posts happening Karen!

1:56 pm  

Post a Comment

<< Home