Two Economic Assignments

The Financial Crisis of 2008-2009

Get your answers from credible sources on the internet and the textbook.

1. Explain briefly a) what the shadow banking system is and give examples of shadow banking institutions, and b) what led to bankruptcies in the shadow banking system during the 2008-2009 period.

2. Explain briefly the process involved in creating mortgage backed securities and the role mortgage backed securities played in the 2008-2009 financial crisis.

3. Explain briefly what credit default swaps are and the role they played in 2008-2009 financial crisis?

4. Watch the following videos and give a summary of the main points:

a) Frontline_ Credit Default Swaps:

http://www.pbs.org/wgbh/pages/frontline/oral-history/financial-crisis/tags/credit-default-swaps/

b) https://www.youtube.com/watch?v=JYTyluv4Gws