First Name:
William
Last Name:
Windley
Major Department:
Finance and Banking
Thesis Director:
Jarrod Johnston
Date of Thesis:
May 2009
In 2007, the United States began the endurance of a surfacing of many financial perilous decisions that cultivated into what many economists have called “the perfect storm.” The clouds darkened and the waves grew a decade ago, as politicians, bankers, looking for an opportunity, created a nightmare. The current financial crisis deeply impacted citizens of the United States and across the world and is the most severe crisis witnessed since the Great Depression.
In this paper, a comparative analysis of historical financial crises will be discussed to predict any potential outcomes. It will also disclose the roots, beginning with sub-prime lending, mortgage-backed securities, and credit default swaps. After the problems have been indentified, the effectiveness of the response from the United States Treasury, the Federal Reserve, and others will be evaluated.
The paper will be concluded with an assessment of the potential outcomes of the crisis and the measure taken to respond to the crisis.