Evaluation

I really enjoyed Genius Economics this quarter. Though the current economic crisis is terrible, I am glad that I took this course at the same time. I liked actually understanding the news and being able to decode the facts from the hype. I regained interest for the news and the economic world and felt like I had a deep comprehension of the situation. I could watch the news with and educated eye and I didn't feel like what they were saying was going over my head.

I really liked this class. I really enjoyed just hanging out and talking about economics and the real issues that impact today's world rather than just in theory. AP Economics was fun and a really good class, but I found a new passion for the subject in these few weeks because it was relevant to today's world which was really exciting. I really changed my perspective and the concepts we had been learning came to life. I was not really sure before, but now I really feel like I will continue pursuing economics and might even major in it in college.

I like the laid back feel of this class. It feels more like a discussion rather than a class but I still get a lot out of it. I feel like I am learning a lot even though I am not taking notes and listening to lectures like a normal class setting. I would like to keep this relaxed energy alive in the next quarter. This class is a refreshing break from the monotony of lectures and constant assessments. I feel like this class focuses on learning for learning's sake rather than for a grade and that's what I like the most about it.

I talked to Jeanne and Katie... and some other people I can't really remember...

Housing Component of the Financial Crisis

The origin of this financial crisis lies in the housing market.  For the past 15-20 years, the housing market has been increasing.  Since people expected the housing market could increase indefinitely, people would take out loans that were beyond their means to actually pay and only pay interest.  They would wait until their house went up in value and then either sell it or refinance (take out another loan) to pay off the initial loan.  However, when the housing market started turning downward and prices decreased, these people could not sell their houses at a higher price and therefore couldn't afford to pay off their loans.  These subprime loans (or loans given to people with a high risk of defaulting) that were widespread in the years leading up to this crisis, especially because of institutions like Frannie Mae and Freddie Mac which made it easier for the public to obtain loans.  When people began to default (refuse to or declare that you are unable to pay) on their loans, banks were not getting the cash (liquidity) that they rely on to perform regular business.  This directly led to the liquidity crisis we are experiencing today.