questions Flashcards
1
Q
what is a subprime mortgage?
A
Lending to people who can’t afford it
2
Q
What happened to the banks and insurance companies after 2008?
A
Their assests were bad and they got bailed out
3
Q
What is a bubble
A
when prices are driven up for beyond an assets intrinsic value
4
Q
what is financial euphoria
A
can create bubbles - optimistic so much that we forget crashes happen
5
Q
what is buying on margin?
A
borrowing money to buy stocks
6
Q
minksys financail hypothesis
A
stability leads to instability
7
Q
why was minsky ignore
A
no one wants to hear the bad side of things
8
Q
problem with neoclassical economics
A
leave out key information to predict economic crash
9
Q
free market idealogy
A
little to no gov intervention
10
Q
why is the problem with economic education
A
dont teach history and econ models are perfect
