ECON

Unit 4 Discussion: Policies of the FED during the 2007-2009 Recession and Fiscal Crisis.

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Note: Please complete your reading assignment before you participate in this discussion.

In your initial post, please respond to the following questions:

•What role did the government play in creating the financial crisis? What role did Fannie Mae and Freddie Mac play in the financial crisis? Could this have been prevented? How?

•Should the government have responded differently to the crisis? If so, how should they have responded? Should investment banks, and Freddie Mac and Fannie Mae have been “bailed out”?