The Financial Crisis Of 2008 And How It All Started As...

This paper is about the financial crisis in 2008 and how it all started as well as the ways that banking has operated and is operating today. I have watched all of Chairman Bernanke’s college lecture videos and he has gone into many different aspects of banking including how the Federal Reserve began, what lead to the recent financial crisis, and what we are doing as a nation to see what we can do to help eliminate from happening again. First, I will be summarizing Chairman Bernanke’s four lectures he did in 2012 at George Washington University. Chairman Bernanke’s first lecture was more focused on the history of central banking and how the Federal Reserve of the United States of America began. What Bernanke talked about is how central banking is essential to all modern nations that revolve around their own personal currency. An example he gave is of course our Federal Reserve in America and the EU Federal Bank that revolves around the euro. He also delved into t he policy tools that the Federal Reserve is responsible for. Some of these tools are monetary policy. This policy is important for maintaining macroeconomic stability by adjusting interest rates to help influence spending, production, employment, and inflation. Another one of the tools that the central banks are responsible for is the provision of liquidity which deals in the financial crises and the handing out of short term loans to help ease financial panics. This tool is also the â€Å"lender of last resort† whichShow MoreRelatedThe Financial Crisis Of 2008 Essay1740 Words   |  7 Pages The financial crisis of 2008 was one of the worst recessions in American history since the Great Depression. During the financial crisis of 2008, big banks lost their money, the stock market crashed, people lost their houses, and the value of loans plummeted. The financial crisis of 2008 was a crisis in value for the financial market, which bled into the economy of the country. 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