Economics

5-4 2011-12

2012-01-23T10:57:00.000-08:00

State Of The Union Address 2012: Obama Speech Scheduled For Jan. 24 : Listen and discuss your reactions.

5-3 2011-12

2012-01-13T15:32:00.000-08:00

Discuss how the Securities and Excahnge Commission works?

5-2 2011-12

2012-01-09T09:57:00.000-08:00

Cartoon Analysis Guide: Use this guide to identify the persuasive techniques used in political cartoons.

Symbolism-identify the symbols in a cartoon think about what the cartoonist intends each symbol to stand for.

Exaggeration-sometimes cartoonists overdo, or exaggerate, the physical characteristics of people or things in order to make a point.
Labeling-cartoonists often label objects or people to make it clear exactly what they stand for.
Analogy-after studying a cartoon try to decide what the cartoon’s main analogy is. What two situations does the cartoon compare?

Irony-the difference between the ways things are and the way things should be or the way things are expected to be.

5-1 2011-12 Review for Final

2012-01-09T09:54:00.000-08:00

Economics in Action Final 2010-11
You may have one page of handwritten notes to reference on the midterm.
Review the following terms and concepts. Review all Chapter Assessments

• Federal Reserve Systems- how did it improve banking?
• Powers of National Banking Acts of 1863-64
• GDP real vs. nominal
• Standard and Poor’s vs. Dow Jones Industrial Average
• Bear Market
• Gold Standard
• Financial services
• Interest
• Free enterprise system
• Bonds risks and benefits
• Market Classifications
• Divisibility
• Savings
• Liquidly
• Return
• Investment
• Securities and Exchange Commission
• Free Market enterprise
• Financial intermediary
• Primary market
• Secondary market
• Capital market
• Money market
• Financial services offered at banks, savings and loans, and credit unions
• Difference between commodity money and representative money?
• How does a debit card work?

4.2 2011-12

2011-12-05T10:05:00.001-08:00

What are the benefits and risks of buying stocks?

4-1 2011-12

2011-11-29T15:22:00.000-08:00

Discuss the differences between commodity money and representative money?

3.4 2011-12

2011-11-17T16:53:00.001-08:00

For each new morning with its light,
For rest and shelter of the night,
For health and food, for love and friends,
For everything Thy goodness sends.
~Ralph Waldo Emerson

Happy Thanksgiving!

3.3 2011-12

2011-11-10T13:56:00.000-08:00

Analyze the effects of price ceiling and price floors.

3-.2 2011-12

2011-11-10T13:50:00.000-08:00

Is there a connection between wages and skill levels? Give examples...

2011-11-04T09:22:00.000-07:00

Do you believe the government has the right to intervene in markets to promote competition? Defend your ideas.

3-1 2011-12

2011-10-28T13:43:00.000-07:00

a href="http://4.bp.blogspot.com/-92J7vgvnY4w/TqsT396jBOI/AAAAAAAAAYg/hGBiLnEOpbc/s1600/flag%2Bfirts%2Bammendment.jpg">
The first ammendment of the Constitution protects our rights and freedoms. Currently the "Occupy Wall Street" events happending all over the United States are creating controversy and much discussion. Look on the web, in papers, magazines, any place you find your new. Report out on one of the Occupy events around the U.S. Give your reactions. Would you participate in a rally? WHY OR WHY NOT?

2.4 2011-12

2011-10-21T12:48:00.000-07:00

a href="http://4.bp.blogspot.com/-ugjoFjau_nI/TqHJqbDDSDI/AAAAAAAAAYI/YgkqLZckHk0/s1600/kadafi.jpg">

Kadafi is dead! Discuss the political, national, and internal effects his death will have on the world. You can use quotes from the media, be sure to give credit.

2.3 2011-12

2011-10-14T15:22:00.000-07:00

Economic instability leads to social as well as economic problems. Politicians suffer from the consequences of economic instability. When times are hard, voters are dissatisfied, and incumbents are often thrown out of office. If too much economic instability exists, voters are often willing to vote for radical change. Do you see voter dissatisfication, what are voters dissatisfied with, is it reflected in this election.

2.2 2011-12

2011-10-07T15:10:00.000-07:00

Entrepreneurs are among the most creative players in the business world and are vital to the continued growth and vitality of the economy. Who can you think of as a great enterperneur past or present. Let us know who and what they did, give us something to "Discuss".

2.1 2011-12

2011-09-29T09:30:00.000-07:00

After reading the quote discuss with your peers your reflections, questions, statements about your reaction to the quotes. Encourage others to respond to your thinking.

"One of the most admirable things about history is, that almost as a rule we get as much information out of what it does not say as we get out of what it does say. And so, one may truly and axiomatically (fundamentaly) aver this, to-wit: that history consists of two equal parts; one of these halves is statements of fact, the other half is inference, drawn from the facts. To the experienced student of history there are no difficulties about this; to him the half which is unwritten is as clearly and surely visible, by the help of scientific inference, as if it flashed and flamed in letters of fire before his eyes. When the practised eye of the simple peasant sees the half of a frog projecting above the water, he unerringly infers the half of the frog which he does not see. To the expert student in our great science, history is a frog; half of it is submerged, but he knows it is there, and he knows the shape of it." - (The Secret History of Eddypus)

10-3

2011-06-02T13:07:00.000-07:00

This is it! Final discusssion...I'd like this to be a reflection on the semester's learning. Your choices are: look back on the blogs make a new comment based on what you know now, ask your peers a question to discuss, give me some feed back on DB's or the final, or what you would like to see in Econ next year. Thank you all for your participation, I enjoyed reading your comments, your insights were very interesting and informative.

10-2

2011-05-26T11:13:00.001-07:00

Enjoy the weekend.

10-1

2011-05-20T13:23:00.000-07:00

http://latimesblogs.latimes.com/money_co/2011/03/february-unemployment-jobs-economy-recovery-obama.html
"Unemployment rate drops to 8.9% in February on sharp increase in new jobs"

Go to the link above and read the article-give your review.

ECON Final Study Guide

2011-05-17T15:18:00.000-07:00

Economics in Action Final 2010-11
Review the following terms and concepts. Review all Chapter Assessments

• Federal Reserve Systems- how did it improve banking?
• Powers of National Banking Acts of 1863-64
• GDP real vs. nominal
• Standard and Poor’s vs. Dow Jones Industrial Average
• Bear Market
• Gold Standard
• Financial services
• Interest
• Free enterprise system
• Bonds risks and benefits
• Market Classifications
• Divisibility
• Savings
• Liquidly
• Return
• Investment
• Securities and Exchange Commission
• Free Market enterprise
• Financial intermediary
• Primary market
• Secondary market
• Capital market
• Money market
• Financial services offered at banks, savings and loans, and credit unions
• Difference between commodity money and representative money?
• How does a debit card work?

9-4

2011-05-13T13:37:00.000-07:00

Discuss the differences between Stanedard & Poor's 500 and the Dow Jones Industrial Average.

9-3

2011-05-06T12:27:00.001-07:00

Was Justice Served? Now What?

9-2

2011-04-29T10:31:00.000-07:00

How does the minimum-wage law affect the unemployment rate, costs of housing and cost of living? What is the minimum wage in California? What is the Federal rate?

9-1

2011-04-15T14:46:00.001-07:00

Cartoon Analysis Guide: Use this guide to identify the persuasive techniques used in political cartoons.

Symbolism-identify the symbols in a cartoon think about what the cartoonist intends each symbol to stand for.

Exaggeration-sometimes cartoonists overdo, or exaggerate, the physical characteristics of people or things in order to make a point.

Labeling-cartoonists often label objects or people to make it clear exactly what they stand for.

Analogy-after studying a cartoon try to decide what the cartoon’s main analogy is. What two situations does the cartoon compare?

Irony-the difference between the ways things are and the way things should be or the way things are expected to be.

8-3

2011-04-08T15:41:00.000-07:00

Determining Cause and Effect: Many times in Social Studies we find ourselves memorizing facts, dates, and events which may only help on tests or being a contestant on Jeopardy. What is really important is finding out WHY events happened and understand specific events that have occurred in history. A cause is an event or action that brings about an effect. The cause must happen first. Reflect on what you have been studying in history, government, and economics this year and discuss some causes and effects.

8-2

2011-04-04T10:02:00.000-07:00

Great quetions, now discuss them. You are now really blogging. Continue to read and post your questions.

7-4

2011-03-21T09:56:00.000-07:00

Where you are? As you complete your readings for this month I would like you to post a question to the discussion board.

7-3

2011-03-15T12:10:00.000-07:00

"No Pain High Gain" a high school workshop running three Wednesdays in April (1:30-3:30). Want to ace your next exams? Lean: what your learning style is, to tame test anxiety, common test phrases, do's and don't's, test taking strategies, types of questions, ways to take notes, and MUCH more.

Discuss what is difficult for you? Where do you need help? Is studying, getting started and staying organized your difficulty? Help me know what you need.

7-2

2011-03-04T14:44:00.000-08:00

Supply and Demand! Can you evaluate the ideas, issues, and positions presented in this political cartoon?

7-1

2011-02-25T17:02:00.000-08:00

Has the Federal Reserve System improved banking? Defend your position.

6-4

2011-02-18T15:01:00.000-08:00

Economic instability leads to social as well as economic problems. Politicians suffer from the consequences of economic istability. when times are hard, voters are dissatisfied, and incombents are often thrown out of office. If too much economic instability exists, voters are often willing to vote for radical change (as in the November election). How is the President dealing with the changes in Congress. Did his State of the Union address show his willingness to work with both sides?

6-3

2011-02-11T14:10:00.000-08:00

How does a society determine how a country produces, how it is produced, and who consumes what is produced?

6-2

2011-02-07T12:08:00.000-08:00

Entrepreneurs are among the most creative players in the business world and are vital to the continued growth and vitality of the economy. Who can you think of as a great entrepreneur past or present. Let us know who and why at they did, give us something to discuss!

6-1

2011-02-02T15:01:00.000-08:00

New to Economics? Do a book walk, give me some ideas for discussions. What would you like to talk over with your peers? How does the economy affect you?

5-4

2011-01-24T16:52:00.000-08:00

Watch or review the President's State of the Union Address, give your thoughts and opinions.

5-3http://money.cnn.com/2011/01/10/news/economy/California_budget_brown/index.htm

2011-01-13T09:38:00.000-08:00

http://money.cnn.com/2011/01/10/news/economy/California_budget_brown/index.htm

Read the article at the web site above, give your opinions on the California budget and how is will affect you.

5-2

2011-01-07T16:18:00.000-08:00

What are the benefits and deficits of free trade agreements? Thoughts about this political cartoon?

5-1

2011-01-03T11:58:00.000-08:00

Discuss the causes and effects of the Great Crash of 1929. What lessons can investors learn from the Crash?

4-3

2010-12-13T10:24:00.000-08:00

Happy Holidays! Go to January 2010 discussion board, week 17 and 18. There you will find the review questions for the mid-term.

4-2

2010-12-03T14:21:00.000-08:00

What are the benefits and risks of buying stocks?

4-1

2010-11-30T10:04:00.000-08:00

Discuss the differences between commodity money and representative money?

3-4

2010-11-17T17:16:00.001-08:00

Take the week off.

3-3

2010-11-10T17:11:00.000-08:00

Is there a connection between wages and skill levels? Give examples...

3-2

2010-11-09T10:40:00.000-08:00

Sorry, I forgot this was a short week. Analyze the effects of price ceiling and price floors.

3-1

2010-10-29T10:03:00.000-07:00

November 2, 2010, Election Day. Watch the news this week pay close attention to the advertisements for the election (frequency, special interest groups, times they run, patterns). Watch the results; discuss your reactions to the propositions and candidates that win. How will this election affect you?

2-4

2010-10-25T12:11:00.000-07:00

2-4 Demand is a willingness to buy a product at a particular price. There have been many products introduced during your high school years what have you been willing to buy regardless of the price? Define demand in your own words.

2-3

2010-10-19T11:56:00.000-07:00

2.2

2010-10-11T11:35:00.000-07:00

History teaches everything including the future." Lamartine

2010-10-04T14:59:00.000-07:00

The study of history; whether it be World, American, Government, or Economics is all in how you look at it. After reading the quote from Mark Twain, discuss with your peers your reflections, questions, statements about your reaction to the quote. Encourage others to respond to your thinking.

One of the most admirable things about history is, that almost as a rule we get as much information out of what it does not say as we get out of what it does say. And so, one may truly and axiomatically (fundamentaly) aver this, to-wit: that history consists of two equal parts; one of these halves is statements of fact, the other half is inference, drawn from the facts. To the experienced student of history there are no difficulties about this; to him the half which is unwritten is as clearly and surely visible, by the help of scientific inference, as if it flashed and flamed in letters of fire before his eyes. When the practised eye of the simple peasant sees the half of a frog projecting above the water, he unerringly infers the half of the frog which he does not see. To the expert student in our great science, history is a frog; half of it is submerged, but he knows it is there, and he knows the shape of it. - "The Secret History of Eddypus"

Weeks 31-34 Final Study Guide

2010-06-01T12:34:00.001-07:00

Use this oppotunity to study together. Comment back on at least one question per week to receive credit.

1. Define money as a unit of account.

2. Know the six characteristics economists use to judge how well an item serves as currancy.

3. Know the diffference between commodity money and representative money.

4. What powers did the National Banking Acts of 1863 and 1864 give the federal government?

5. How did the Federal Reserve System improve the bankng industry of the twentieth century?

6. Compare and contrast the services offered by commercial banks, savings and loan associations, and credit unions.

7. How does an ATM card work?

8. What is a free enterprise system?

9. In what ways does investing contribute to a free enterprise system?

10. Define financial intermediary.

11. What should you consider when making savings and investment decisions?

12. Compare treasury bonds, corporate bonds, municipal bonds, and international bonds. Which carries the lowest risk and why?

13. Describe the benefits of a money market mutual fund.

14. Describe the different market classifications? Which are the most "liquid"?

15. If you were an investor in a bear market, would you be buying or selling stocks?

16. Compare and contrast the S7P 500 to the Dow Jones Industrial Average. Which would give you a better idea of stock performance?

17. What does it mean to get a good return on an investment?

18. What is the Securities and Exchange Commission?

19. What is the gold standard?

20. Compare the real GDP to the nominal GPD. Why would an economist use real GPD?

week 30

2010-04-17T23:43:00.000-07:00

Do some internet research and find out what parts of the economy seem to be improving. Do you agree or do you think it is media hype? Comment back on your findings.

Week 29

2010-04-17T23:26:00.000-07:00

What are the most significant issues in economics today? Why are they significant?

Week 28

2010-03-26T16:21:00.001-07:00

Free enterprise takes many forms throughout the world. In the United States, the economic opportunity arising from free enterprise is abundantly evident. Gleaming city blocks, mom-and-pop businesses in suburban strip malls, and new Internet companies that are turning enterprising young adults into millionaires are some examples.

Economic theory defines free enterprise in terms of the level and type of government involvement in the economy. Therefore we need to examine the relationship between the U.S. government and the market economy. It's a topic as controversial as it is crucial.

Answer the following and comment on at least one post from your classmates.

What makes American free enterprise so adaptive and enduring?

Week 27

2010-03-23T17:39:00.000-07:00

Current Affairs: What are some of the key point to the Health Care reform? I am not asking for opinions yet, just take a look at the key points and report.

Week 26

2010-03-12T10:37:00.000-08:00

Identify three ways the government can influence the supply of a good. Can you think of any current examples?

Week 25

2010-03-05T09:08:00.001-08:00

Please attend the WASC Committee Student Meeting from 1:00-2:00 Monday. You may post a feedback comment.

Week 24

2010-02-28T20:36:00.000-08:00

This week we will play an interactive review game. Each student will write 2 questions based on this weeks' chapter. Avoid asking basic recall questions. Check back in a few days and choose another student's questions to answer. Post your responses. You must choose questions that have not already been answered.

Week 23

2010-02-19T11:16:00.001-08:00

This is a short week and so I have a special assignment for you.
1. Go to the Parkview Website at www.parkviewpylusd.org
2.Click on Forms
3. Select WASC
4. Read Chapters 4 and 5
5. Comment back on 3 things that you think are particular strengths of our program.

Second Semester Week 3

2010-02-16T08:33:00.001-08:00

Spend some time online reading about the recent "bail outs." Answer the following and comment on one classmate.

1. What is a bail out?
2. Why did our government use them?
3. Will bail outs make the economy better or worse in the long run?

Second Semester Week 2

2010-02-03T21:34:00.000-08:00

1. Watch the following video.
http://www.laentrada.pylusd.org/Economics/Economics.asf

2. One requirement for acceptable medium of exchange is____?

3. What did you find most interesting in this video?

Second Semester Week 1

2010-01-28T16:03:00.001-08:00

As we start this new semester it is time to reflect and take another look at our schoolwide learning goals, aka ESLRs, and make some goals.
Please review our goals and think of how you can meet those goals this semester. Remember to leave a comment.

EXPECTED SCHOOL WIDE LEARNING RESULTS (ESLR’s)
Panther’s set the P.A.C.E.
Panthers are…..
1. Partners in Education who:
• Team with parents and teachers in order to reach their full
potential
• Achieve through a personalized learning program
2. Academic Achievers who:
• Self evaluate and reflect as life long learners
• Utilize technological skills to master content and efficiently
produce and publish assignments
• Collect, organize, interpret, analyze, and supply information to
make decisions and solve problems
3. Compliant with State and District Standards
• Complete assignments based on best practices
• Demonstrate mastery of grade level skills and concepts
4. Effective Communicators who:
• Organize, analyze, evaluate and deliver presentations
• Write and speak with a command of Standard English
conventions appropriate to their grade level

Week 19 1/25/10

2010-01-13T10:05:00.001-08:00

Midterms are this Monday 1/25 from 10:00- 12:00 and 1:00-3:00. Please contact your teacher with any questions. You may bring one page of notes, front and back, for each midterm you are taking.

Week 18

2010-01-13T09:53:00.000-08:00

review questions continued...

12. Compare treasury bonds, corporate bonds, municipal bonds, and international bonds. Which carries the lowest risk and why?

13. Describe the benefits of a money market mutual fund.

14. Describe the different market classifications? Which are the most "liquid"?

15. IF you were an investor in a bear market, would you be buying or selling stocks?

16. Compare and contrast the S7P 500 to the Dow Jones Industrial Average. Which would give you a better idea of stock performance?

17. What does it mean to get a good return on an investment?

18. What is the Securities and Exchange Commission?

19. What is the gold standard?

20. Compare the real GDP to the nominal GPD. Why would an economist use real GPD?

Week 17

2010-01-08T14:34:00.000-08:00

Review continued-

6. Compare and contrast the services offered by commercial banks, savings and loan associations, and credit unions.

7. How does an ATM card work?

8. What is a free enterprise system?

9. In what ways does investing contribute to a free enterprise system?

10. Define financial intermediary.

11. What should you consider when making savings and investment decisions?

Week 16

2010-01-04T14:44:00.000-08:00

Mid- term review questions:Here is your chance to study on- line together!

1. Define money as a unit of account.

2. Know the six characteristics economists use to judge how well an item serves as currancy.

3. Know the diffference between commodity money and representative money.

4. What pwers ddid the National Banking Acts of 1863 and 1864 give the federal government?

5. How did the Federal Reserve System improve the bankng industry of the twentieth century?

Week 15

2009-12-13T16:41:00.001-08:00

Take this week to catch up on your studies so that you can enjoy your two week break!

Week 14

2009-12-06T10:57:00.000-08:00

Retail Sales for November are down. Over the last year, have you changed your shopping habits? What have your observed in malls, shops, and restaurants?

Week 13

2009-11-30T16:30:00.001-08:00

Your textbook has a companion website with activities and quizzes to help you master your assignments. Use the "links" section of our school webpage at www.parkviewpylusd.org to find the companion website and try at least two different activities. You will need to select your state and textbook. Leave a comment stating what you did and how beneficial it was to your learning.

Week 12

2009-11-17T19:21:00.000-08:00

We are one third of the way through the school year. Now is a good time to reflect on what you have been learning and how it relates to our school's learning goals. Below you will find our school-wide learning goals. Choose two and connect them to your learning for this subject area. Comment on one classmate's comment.

Panthers are…..
1. Partners in Education who:
• Team with parents and teachers in order to reach their full
potential
• Achieve through a personalized learning program
2. Academic Achievers who:
• Self evaluate and reflect as life long learners
• Utilize technological skills to master content and efficiently
produce and publish assignments
• Collect, organize, interpret, analyze, and supply information to
make decisions and solve problems
3. Compliant with State and District Standards
• Complete assignments based on best practices
• Demonstrate mastery of grade level skills and concepts
4. Effective Communicators who:
• Organize, analyze, evaluate and deliver presentations
• Write and speak with a command of Standard English
conventions appropriate to their grade level

Weelk11

2009-11-13T19:30:00.000-08:00

Chapter 8 Section 1: Sole Proprietorship

Write down three questions you would have before starting your own business. Answer your questions by using the site below.

http://www.sba.gov/smallbusinessplanner/index.html

Week 10

2009-11-01T18:18:00.001-08:00

Last week we read an op-ed column by Thomas Sowell. This week I would like you to examine the forms of rhetoric Mr. Sowell used to persuade the reader.Please cite at least two examples and state what form of rhetoric he used. What form of rhetoric did you use in your response?

Rhetoric (n) - the art of speaking or writing effectively. (Webster's Definition)

According to Aristotle, rhetoric is "the ability, in each particular case, to see the available means of persuasion." He described three main forms of rhetoric: Ethos, Logos, and Pathos.

Go to : http://www.rpi.edu/dept/llc/webclass/web/project1/group4/index.html

In order to be a more effective writer, you must understand these three terms.
Ethos
Ethos is appeal based on the character of the speaker. An ethos-driven document relies on the reputation of the author.

Logos
Logos is appeal based on logic or reason. Documents distributed by companies or corporations are logos-driven. Scholarly documents are also often logos-driven.

Pathos
Pathos is appeal based on emotion. Advertisements tend to be pathos-driven.

Week 9

2009-11-01T18:06:00.001-08:00

Thomas Sowell wrote an interesting column in the op-ed section of the newspaper. Please read the article and then tell me why you agree or disagree with his point of view.

Tuesday, October 27, 2009
When will we wake up?
Bit by bit, Obama's changes are dismantling America as we've known it.
Thomas Sowell
Thomas Sowell
Syndicated columnist

Just one year ago, would you have believed that an unelected government official, not even a Cabinet member confirmed by the Senate but simply one of the many "czars" appointed by the president, could arbitrarily cut the pay of executives in private businesses by 50 percent or 90 percent?

Did you think that another "czar" would be talking about restricting talk radio? That there would be plans afloat to subsidize newspapers – that is, to create a situation where some newspapers' survival would depend on the government liking what they publish?

Did you imagine that anyone would even be talking about having a panel of so-called "experts" deciding who could and could not get life-saving medical treatments?

Scary as that is from a medical standpoint, it is also chilling from the standpoint of freedom. If you have a mother who needs a heart operation or a child with some dire medical condition, how free would you feel to speak out against an administration that has the power to make life-and-death decisions about your loved ones?

Does any of this sound like America?

How about a federal agency giving school children material to enlist them on the side of the president? Merely being assigned to sing his praises in class is apparently not enough.

How much of America would be left if the federal government continued on this path? President Obama has already floated the idea of a national police force, something we have done without for more than two centuries.

We already have local police forces all across the country and military forces for national defense, as well as the FBI for federal crimes and the National Guard for local emergencies. What would be the role of a national police force created by Barack Obama, with all its leaders appointed by him? It would seem more like the brown shirts of dictators than like anything American.

How far the president will go depends of course on how much resistance he meets. But the direction in which he is trying to go tells us more than all his rhetoric or media spin.

Barack Obama has not only said that he is out to "change the United States of America," the people he has been associated with for years have expressed in words and deeds their hostility to the values, the principles and the people of this country.

Jeremiah Wright said it with words: "G** damn America!" Bill Ayers said it with bombs that he planted. Community activist goons have said it with their contempt for the rights of other people.

Among the people appointed as czars by President Obama have been people who have praised enemy dictators like Mao, who have seen the public schools as places to promote sexual practices contrary to the values of most Americans, to a captive audience of children.

Those who say that the Obama administration should have investigated those people more thoroughly before appointing them are missing the point completely. Why should we assume that Barack Obama didn't know what such people were like, when he has been associating with precisely these kinds of people for decades before he reached the White House?

Nothing is more consistent with his lifelong patterns than putting such people in government – people who reject American values, resent Americans in general and successful Americans in particular, as well as resenting America's influence in the world.

Any miscalculation on his part would be in not thinking that others would discover what these stealth appointees were like. Had it not been for the Fox News Channel, these stealth appointees might have remained unexposed for what they are. Fox News is now high on the administration's enemies list.

Nothing so epitomizes President Obama's own contempt for American values and traditions like trying to ram two bills through Congress in his first year – each bill more than a thousand pages long – too fast for either of them to be read, much less discussed. That he succeeded only the first time says that some people are starting to wake up. Whether enough people will wake up in time to keep America from being dismantled, piece by piece, is another question – and the biggest question for this generation.

Week 8

2009-10-17T21:00:00.001-07:00

Last week you posted possible questions for our midterm exam. This week I would like you to answer up to three questions posted by your classmates. You will receive receive one point of extra credit for correctly answering questions posted by classmates. You may earn up to 3 extra credit points.

Week 7

2009-10-17T20:59:00.000-07:00

Throughout the semester I will be requesting that students submit possible questions for our midterm exam. Please review your studies in Economics to date. Form three questions that you would like to see on the midterm that are reflective of the content covered thus far.

Week 6- Free Enterprise

2009-10-10T07:01:00.000-07:00

Week 5

2009-10-01T21:14:00.000-07:00

Week 4

2009-09-22T20:54:00.001-07:00

Take this week to reflect on what you have learned this month. Has anything influenced you strongly? What topics or subjects would you like to see on this discussion board?

Week 3

2009-09-18T18:04:00.001-07:00

California's unemployment rate rises to 12.2%

The rate rose in August from 11.9% in July, setting a record, but the pace of job losses slowed.

Despite signs that an economic recovery has begun in the state, California's unemployment rate set a new postwar high of 12.2% in August, up from 11.9% in July.

California has the fourth-highest unemployment rate in the nation; only Michigan, Nevada and Rhode Island, at 15.2%, 13.2% and 12.8%, respectively, have higher rates than California.

Still, there was some positive news in the figures released today by the California Economic Development Department. California lost only 12,300 jobs last month, compared with 38,900 jobs in July.

"This is good news, but California is not out of the woods yet," said Philip J. Romero, deal of the College of Business and Economics at Cal State Los Angeles. "These job losses would have been twice as bad but for growth in electronics exports and government-related employment."

California lost 741,500 jobs over the last year.

Construction, manufacturing, trade and five other categories shed a total of 23,700 jobs in August. But these losses were offset by gains in information, education and health services, and government. Romero attributes those gains to stimulus spending, overseas demand for electronics and the start of the school year.

The pain is spread throughout the state, with 14 counties from Imperial in the south to Trinity in the north experiencing unemployment rates of 15% or higher.

The unemployment rate in Los Angeles County rose to 12.3% in August from 11.9% in July. Riverside and San Bernardino counties lost 71,900 jobs over the year, pushing that region's unemployment rate to 14.5%. The unemployment rate in Ventura County rose to 11.2% from July's revised figure of 10.9%.

Orange County's unemployment rate remained among the lowest in the state at 9.6%.

Los Angeles County experienced significant losses in the government sector over the month, dropping 9,900 jobs as budgetary problems prompted cuts and furloughs. Manufacturing employment in the county also continued to slide, down 4,200 jobs from last month and 38,700 over the year.

Economists say the jobless rate in the state and county will probably stay high at least through the end of the year because companies are waiting as long as they can to hire new employees.

"Most people who look at this both in California and nationally expect that the unemployment rate hasn't peaked yet -- it's likely to get higher and stay higher for several more quarters," said Jed Kolko, associate director of research at the Public Policy Institute of California.

That makes people like Ricardo Pryor, a 45-year-old Long Beach resident, shake his head. He's been looking for a job for 14 months after his contract work as an information technology consultant ended. He's been trying to make the best of a bad situation and spend more time with his five children. He said that looking for work can be demoralizing when there are so few jobs available.

"The first six months was shameful," he said. "How do you tell people after 30 years of work you can't find anything? It becomes degrading."

California is one of 14 in the nation with an unemployment rate in the double digits, the Bureau of Labor Statistics reported this morning. The national unemployment rate in August was 9.7%.

alana.semuels@latimes.com

Read the article. Where where the biggest losses and where were the biggest gains? What fields should someone graduation from high school consider based on this report?

How to view the videos

2009-09-14T19:14:00.000-07:00

Windows Media Player or comparable is required to view the video.

Week 2- Socialism and Health Care Reform

2009-09-12T10:37:00.000-07:00

If you follow the news, you are aware that a major national discussion is taking place regarding health care reform. Here are some opinions to Obama's speech on the topic. What do you think about the topic? Do agree or disagree with the writers below?

By Eric Etheridge

Reactions to President Obama’s speech last night.

Harold Pollack in the New Republic:

President Obama closed in bravura fashion, evoking the memory of Senator Edward Kennedy, and the Senator’s lifelong passion for universal coverage. This was more than a tug on the heartstrings. President Obama unmistakably reminded America that conservatives called Social Security socialism in 1935. Conservatives called Medicare socialism in 1965. They are calling health reform socialism today. This was the opposite of triangulation. President Obama placed himself firmly in the camp of Franklin Roosevelt, Lyndon Johnson in providing a leavening hand of wise policy to intervene when markets crash or when individuals need help.

In his final months, Senator Kennedy noted that the character of our country is at stake. Is our heart large enough to embrace people who need help? President Obama closed by saying: “We did not come to fear the future. We came here to shape it.” He added: “I still believe we can act even when it’s hard.”

He has staked his presidency on this final point. That’s exactly what I wanted to hear.

William Kristol in the Washington Post:

So President Obama invited himself into our living rooms tonight…why? Not to address questions of war and peace — even though we are fighting two wars overseas, and even though an avowed enemy and terror sponsor is rushing towards nuclear weapons. Not to address the economy — even though unemployment continues to rise, the deficit is at an all-time high, and we face a truly worrisome debt burden in the years ahead. And not to rally the nation in the face of some other crisis.

But isn’t health care a crisis? No.

Indeed, the president acknowledged it isn’t: “But we did not come here just to clean up crises. We came to build a future. So tonight, I return to speak to all of you about an issue that is central to that future — and that is the issue of health care.” In other words, health care — unlike, say, the financial system a few months ago — is not in a state of crisis.

So there is no health care crisis. There are a host of normal public policy issues dealing with health care that can be dealt with through the normal political process.

But that doesn’t suit Obama. He’s decided a big victory on health care is key to his political success. He’s decided we all have to acquiesce in a massive overhaul of our health care system because…he’s decided he wants it.

Atul Gawande in the New Yorker:

Before President Obama’s speech on health care, I wrote out a list of what I thought we needed him to do.

1. Make clear the stakes.
2. Make clear what we get under his reform.
3. Understand our fears.
4. Convey strength in the face of them.
5. Speak to our core beliefs as a nation.

I thought he did this and did it amply. . . .

And yet I remain concerned that he may not have done enough.

The stone faces of his conservative enemies made clear the limits of what words could do. I was struck that for nearly the entirety of his speech, he spoke facing not the camera or the Democrats but the Republican throng. This has become a test of who we will trust. Are we going to trust the Republicans, with their predictions of dark disasters that will result from going along with a President they do not believe should be allowed even to speak to our schoolchildren? Or are we going to trust this still new and untested President enough to give his changes a chance?

Obama has continued to defend policies that would push us, for the first time in history, in the direction of encouraging doctors to make more rational, better coördinated, less costly clinical decisions. This includes experiments with changing the way doctors are paid, a clinician board to identify inappropriate care, and a “fee” (i.e., tax) on extremely high-cost insurance premiums. I was also made hopeful by his willingness to break with Democrats and admit that the medical malpractice system is itself broken and, although not the cause of our cost crisis, a wasteful contributor.

But this is just a start. Our current health-care system presents seemingly insurmountable difficulties. It is too big, too complex, too entrenched, bloated, Byzantine, and slowly bursting. What may be most challenging about reforming it is that it cannot be fixed in one fell swoop of radical surgery. The repair is going to be a process, not a one-time event. The proposals Obama offers, and that Congress is slowly chewing over, would provide a dramatic increase in security for the average American. But they will only begin the journey toward transforming our system to provide safer, better, less wasteful care. We do not yet know with conviction all the steps that will rein in costs while keeping care safe. So, even if these initial reforms pass, we have to be prepared to come back every year or two to take another few hard and fiercely battled steps forward.

In this way, successful reform will have to be more like a series of operations, with x-rays and tests in between to show how we’re doing. Embarking on the effort will be among the most severe challenges we take on as country. Outside the settings of war and economic collapse, we’ve never sustained any policy effort of this scope and duration. It is perfectly possible that our next push will be defeated, or used as an opportunity to dismantle the progress we’ve already made. But I can see no other choice. We can only forge ahead.

Week 2- The Credit Crissis

2009-09-12T10:23:00.000-07:00

Read the following article form the NY Times. Do you agree with the causes listed? Why? Comment on your classmates postings.

Overview

By THE NEW YORK TIMES

Updated July 17, 2009

In the fall of 2008, the credit squeeze, which had emerged a little more than a year before, ballooned into Wall Street’s biggest crisis since the Great Depression. As hundreds of billions in mortgage-related investments went bad, mighty investment banks that once ruled high finance have crumbled or reinvented themselves as humdrum commercial banks. The nation’s largest insurance company and largest savings and loan both were seized by the government. The channels of credit, the arteries of the global financial system, have been constricted, cutting off crucial funds to consumers and businesses small and large.

In response, the federal government adopted a $700 billion bailout plan in October 2008 meant to reassure the markets and get credit flowing again. But the crisis began to spread to Europe and to emerging markets, with governments scrambling to prop up banks, broaden guarantees for deposits and agree on a coordinated response. In February 2009, a $787 billion economic stimulus measure was also adopted.

Origins

The roots of the credit crisis stretch back to another notable boom-and-bust: the tech bubble of the late 1990s. When the stock market began a steep decline in 2000 and the nation slipped into recession the next year, the Federal Reserve sharply lowered interest rates to limit the economic damage.

Lower interest rates make mortgage payments cheaper, and demand for homes began to rise, sending prices up. In addition, millions of homeowners took advantage of the rate drop to refinance their existing mortgages. As the industry ramped up, the quality of the mortgages went down.

And turn sour they did, when homebuyers had to leverage themselves to the hilt to make a purchase. Default and delinquency rates began to rise in 2006, but the pace of lending did not slow. Banks and other investors had devised a plethora of complex financial instruments to slice up and resell the mortgage-backed securities and to hedge against any risks — or so they thought.

The Crisis Takes Hold

The first shoe to drop was the collapse in June 2007 of two hedge funds owned by Bear Stearns that had invested heavily in the subprime market. As the year went on, more banks found that securities they thought were safe were tainted with what came to be called toxic mortgages. At the same time, the rising number of foreclosures helped speed the fall of housing prices, and the number of prime mortgages in default began to increase.

The Federal Reserve took unprecedented steps to bolster Wall Street. But still the losses mounted, and in March 2008 the Fed staved off a Bear Stearns bankruptcy by assuming $30 billion in liabilities and engineering a sale to JPMorgan Chase for a price that was less than the worth of Bear’s Manhattan skyscraper.

Sales, Failures and Seizures

In August, government officials began to become concerned as the stock prices of Fannie Mae and Freddie Mac, government-sponsored entities that were linchpins of the housing market, slid sharply. On Sept. 7, the Treasury Department announced it was taking them over.

Events began to move even faster. On Sept. 12, top government and finance officials gathered for talks to fend off bankruptcy for Lehman Brothers. The talks broke down, and the government refused to step in and salvage Lehman as it had for Bear. Lehman’s failure sent shock waves through the global banking system, as became increasingly clear in the following weeks. Merrill Lynch, which had not been previously thought to be in danger, sold itself to the Bank of America to avoid a similar fate.

On Sept. 16, American International Group, an insurance giant on the verge of failure because of its exposure to exotic securities known as credit default swaps, was bailed out by the Fed in an $85 billion deal. Stocks dropped anyway, falling nearly 500 points.

The CIT Group, a lender to hundreds of thousands of small and midsize businesses that received a $2.33 billion bailout from the government in December 2008, announced in July 2009 that it had been unsuccessful in its efforts to receive additional government aid. Federal officials appeared to have concluded that CIT was too troubled to save a second time.

The Government’s Bailout Plan

The bleeding in the stock market stopped only after rumors trickled out about a huge bailout plan being readied by the federal government. On Sept. 18, Treasury Secretary Henry M. Paulson Jr. publicly announced a three-page, $700 billion proposal that would allow the government to buy toxic assets from the nation’s biggest banks, a move aimed at shoring up balance sheets and restoring confidence within the financial system.

Congress eventually amended the plan to add new structures for oversight, limits on executive pay and the option of the government taking a stake in the companies it bails out. Still, many Americans were angered by the idea of a proposal that provided billions of dollars in taxpayer money to Wall Street banks, which many believed had caused the crisis in the first place. Lawmakers with strong beliefs in free markets also opposed the bill, which they said amounted to socialism.

President Bush pleaded with lawmakers to pass the bill, but on Sept. 29, the House rejected the proposal, 228 to 205, with an insurgent group of Republicans leading the opposition. Stocks plunged, with the Standard & Poor’s 500-stock index losing nearly 9 percent, its worst day since Oct. 19, 1987.

Negotiations began anew on Capitol Hill. A series of tax breaks were added to the legislation, among other compromises and earmarks, and the Senate passed a revised version Oct. 1 by a large margin, 74 to 25. On Oct. 3, the House followed suit, by a vote of 263 to 171.

When the bill passed, it was still unclear how effective the bailout plan would be in resolving the credit crisis, although many analysts and economists believed it would offer at least a temporary aid. Federal officials promised increased regulation of the financial industry, whose structure was vastly different than it had been just weeks before.

The first reactions were not positive. Banks in England and Europe had invested heavily in mortgage-backed securities offered by Wall Street, and England had gone through a housing boom and bust of its own. Losses from those investments and the effect of the same tightening credit spiral being felt on Wall Street began to put a growing number of European institutions in danger. The weekend after the bailout’s passage, the German government moved to guarantee all private savings accounts in the country, and bailouts were arranged for a large German lender and a major European financial company.

And even as the United States began to execute its bailout plan, the tactics continued to shift, with the Treasury announcing that it would spend some of the funds to buy commercial paper, a vital form of short-term borrowing for businesses, in an effort to get credit flowing again.

Continued Volatility

When stock markets in the United States, Europe and Asia continued to plunge, the world’s leading central banks on Oct. 8 took the drastic step of a coordinated cut in interest rates, with the Federal Reserve cutting its two main rates by half a point.

And after a week in which stocks declined almost 20 percent on Wall Street, European and American officials announced coordinated actions that included taking equity stakes in major banks, including $250 billion in investments in the United States. The action prompted a worldwide stock rally, with the Dow rising 936 points, or 11 percent, on Oct. 13.

But as the prospect of a severe global recession became more evident, such gains were impossible to sustain. Just two days later, after Ben S. Bernanke, the Federal Reserve chairman, said there would be no quick economic turnaround even with the government’s intervention, the Dow plunged 733 points.

The credit markets, meanwhile, were slow to ease up, as banks used the injection of government funds to strengthen their balance sheets rather than lend. By late October, the Treasury had decided to use its $250 billion investment plan not only to increase banks’ capitalization but also to steer funds to stronger banks to purchase weaker ones, as in the acquisition of National City, a troubled bank based in Ohio, by PNC Financial of Pittsburgh.

The volatility in the stock markets was matched by upheaval in currency trading as investors sought shelter in the yen and the dollar, driving down the currencies of developing countries and even the euro and the British pound. The unwinding of the so-called yen-carry trade, in which investors borrowed money cheaply in Japan and invested it overseas, made Japanese goods more expensive on world markets and precipitated a steep plunge in Tokyo stock trading.

Oil-producing countries were hit by a sudden reversal of fortune, as the record oil prices reached over the summer were cut in half by October because of the world economic outlook. Even an agreement on a production cut by the Organization of the Petroleum Exporting Countries on Oct. 24 failed to stem the price decline.

Stock markets remained in upheaval, with the general downward trend punctuated by events like an 11 percent gain in the Dow on Oct. 28. A day later, the Fed cut its key lending rate again, to a mere 1 percent. In early November, the European Central Bank and the Bank of England followed with sharp reductions of their own.

Federal officials also moved to put together a plan to aid homeowners at risk of foreclosure by shouldering some losses for banks that agree to lower monthly payments. Detroit’s automakers, meanwhile, hard hit by the credit crisis, the growing economic slump and their belated transition away from big vehicles, turned to the government for aid of their own, possibly including help in engineering a merger of General Motors and Chrysler. Both automakers ended up filing for bankruptcy protection in 2009, each emerging from the process in fewer than 45 days.

The leaders of 20 major countries, meanwhile, agreed to an emergency summit meeting in Washington on Nov. 14 and 15 to discuss coordinated action to deal with the credit crisis. The group agreed to work more closely, but put off thornier questions until next year, in an early challenge for the Obama administration.

The Crisis and the Campaign

The credit crisis emerged as the dominant issue of the presidential campaign in the last two months before the election. On Sept. 24, as polls showed Senator John McCain’s support dropping, he announced that he would suspend his campaign to try to help forge a deal on the bailout plan. The next day, both he and Senator Barack Obama met with Congressional leaders and President Bush at the White House, but their efforts failed to assure passage of the legislation, which went down to defeat in an initial vote on Sept. 29, a week before it ultimately passed.

The weakening stock market and growing credit crisis appeared to benefit Mr. Obama, who tied Mr. McCain to what he called the failed economic policies of President Bush and a Republican culture of deregulation of the financial markets. Polls showed that Mr. Obama’s election on Nov. 4 was partly the fruit of the economic crisis and the belief among many voters that he was more capable of handling the economy than Mr. McCain.

As president-elect, Mr. Obama made confronting the economic crisis the top priority of his transition. Just three days after his election, he convened a meeting of his top economic advisers, including the billionaire investor Warren Buffett; two former Treasury secretaries, Lawrence H. Summers and Robert E. Rubin; Paul A. Volcker, a former Federal Reserve chairman; and Eric E. Schmidt, the chief executive of Google. After their Nov. 7 meeting, he called quick passage of an economic stimulus package, saying it should be taken up by the the lame-duck Congressional session, and that if lawmakers failed to act, it would be his main economic goal after assuming office on Jan. 20. The measure was adopted in February 2009.

Mr. Obama also faced a host of other demands as president-elect, including calls to bail out the auto industry, particularly General Motors, which warned that it would run out of cash by mid-2009. And some economists and conservatives questioned whether, given the economic crisis, he could still meet some of his pledges from the campaign, like rapidly rolling back the Bush tax cuts, which some felt would hurt demand, and pushing ahead with his planned expansion of health care coverage, which could greatly increase a soaring deficit.

Deeper Problems, Drastic Measures

With credit markets still locked up and investors getting worried about the big banks, Wall Street marked a grim milestone in late November when stock markets tumbled to their lowest levels in a decade. In all, the slide from the height of the stock markets had wiped out more than $8 trillion in wealth. The markets inched back in the weeks that followed as investors looked forward to a new administration and a huge economic stimulus package, but crucial indicators of the economy grew only worse.

In December, an obscure group of economists confirmed what millions of Americans had suspected for months: the United States was in a recession. The economy had actually slipped into recession a year earlier, a committee of economists said, putting the current downturn on track to be the longest in a generation. Unemployment rose to its highest point in more than 15 years. Trade shrank. Home prices fell farther. As inflation virtually halted, economists began to worry about deflation, the vicious cycle of lower prices, lower wages and economic contraction.

Retailers suffered one of the worst holiday seasons in 30 years as worried consumers cut back, raising the likelihood that dozens more would join stores like Sharper Image, Circuit City and Linens 'n Things in bankruptcy.

On Dec. 16, the Federal Reserve entered uncharted waters of monetary policy by cutting its benchmark interest rate to nearly zero percent and declaring that it would deploy its balance sheet and essentially print money to fight the deepening recession and locked credit markets. Investors cheered, sending the Dow up more than 300 points, but many economists began to worry about the world's appetite for hundreds of billions of dollars in new Treasury debt.

Other countries followed the Fed with rate cuts of their own. Britain’s central bank a wave of refinancing that nevertheless skipped many homeowners.

But as Mr. Obama took office, investors were just as worried as ever, as evidenced by Wall Street’s worst Inauguration Day drop ever. The fourth-quarter corporate earnings season was marked by billion-dollar losses and uncertain outlooks for 2009. The economy showed no sign of turning around. And many lawmakers and analysts began to wonder whether the first $350 billion in bailout money had any effect at all. Banks that received bailout funds sat on their money, rather than lend it out to consumers or home buyers.

And bailout recipients such as Citigroup and Bank of America were forced to step forward for additional lifelines, raising one of the most uncomfortable questions a new president has ever had to address: Would the government nationalize the American banking system?

A New Administration

The initial steps taken by the new Treasury secretary, Timothy F. Geithner, did not venture that far. In formulating the Obama administration’s response to the crisis, he was reported to have prevailed in discussions with presidential aides in opposing tougher conditions on financial institutions, like dictating how banks would spend their rescue money, or replacing bank executives and wiping out shareholders at institutions receiving aid. On Feb. 10, he outlined a sweeping overhaul and expansion of the government’s rescue effort, seeking to marshal as much as $2 trillion from the Treasury, private investors and the Fed.

The plan included a public-private rescue fund, often described as a “bad bank” for holding toxic assets, that would start with $500 billion with a goal of eventually buying up to $1 trillion in assets. There would also be direct capital injections into banks, which would come out of the remaining $350 billion in the Treasury’s rescue program. And the Treasury and Federal Reserve would expand a program aimed at financing consumer loans. The two agencies had originally announced their intention to finance as much as $200 billion in student loans, car loans and credit card debt. Instead the program would be expanded to as much as $1 trillion, and the Fed said it could broaden the plan to include both commercial and residential mortgage-backed securities.

But Mr. Geithner left major questions unanswered about the workings of many components of the new plan, and officials acknowledged that they had yet to decide many of the thorniest issues. So it remained unclear whether the Obama administration would be able to attract the large volume of private investment that Mr. Geithner sketched out in his speech. And the lack of specifics was also blamed for a negative reaction among investors, who sent stocks down nearly 5 percent.

After two weeks of declines on Wall Street marked by rumors of bank nationalization, the Obama administration came back with more details of their plans to perform "stress tests" on 19 of the country's largest banks, to see whether they had a large enough capital cushions to withstand further declines in the economy. Regulators then examined how banks would fare if the economy performed close to the consensus views (which were not good) and under "worst case" situations, in which the economy shrank 3.3 percent in 2009 and home values fell an additional 22 percent. Any bank that failed the assessment would have six months to raise additional capital privately, or would have to take it from the government in the form of preferred shares that could be converted to common stock.

With Wall Street's gaze glued to the banks, Mr. Obama shifted his attention back to the housing crisis and unfurled a $275 billion plan to help as many as nine million families refinance their mortgages or avoid foreclosure. The plan, which won praise from consumer advocates, offered incentives to homeowners who were current on their payments and to lenders who lower interest rates on home mortgages. "This plan will not save every home, but it will give millions of families resigned to financial ruin a chance to rebuild," Mr. Obama said in announcing it on Feb. 18. But analysts cautioned that Mr. Obama's plan would not help millions of homeowners who were "underwater," owing much more than the current value of their homes. And it inspired a populist invective by Rick Santelli of CNBC that encapsulated the frustration of people who believe the government's bailouts were doing little else than rewarding bad behavior by investors and homeowners.

New Fears, New Lows, Then New Hopes

It was a hard winter for stock markets and the global economy. The United States reported that the economy shrank even faster than originally estimated in the last three months of 2008 — a punishing 6.2 annual rate of decline — and the government increased its stake in Citigroup to 38 percent, increasing fears that the country's major banks were hurtling downward so fast that they could face the prospect of nationalization. Credit conditions began to slip again, and stock markets fell even further, skidding to their lowest levels in 12 years and slashing the share prices of blue-chip companies to something akin to penny stocks.

Conditions across the globe didn't look much better. Countries in Eastern Europe that had embraced American-style capitalism began to teeter, raising concerns that the Baltic republics, Hungary and Romania could be the next victims of the credit crisis, and could drag Western European banks down with them. Trade levels skidded lower and lower as demand for goods fell worldwide, hurting big exporters like China, and countries began throwing up trade barriers as the downturn deepened.

But just as investors seemed more hopeless than ever, an unfamiliar force took hold of the markets: hope. A flurry of economic reports released by the government and private research groups showed surprising signs of stability in areas like home sales, retail spending, factory orders and consumer confidence. Leaders of JPMorgan Chase, Bank of America and Citigroup offered more optimistic projections about their profitability. And when Mr. Geithner stepped back up to the plate and offered details of the administration's asset-purchase program, investors greeted them with a cheer that sent stock markets soaring, adding fuel to a bear-market rally that lifted the major indexes more than 20 percent and brightened conditions in many credit markets. Wall Street's warm reception for the plan was a relief for the Obama administration, after widespread criticism of its handling of $165 million in bonus payments at A.I.G.

Despite sharp divisions over how to respond to the economic crisis, leaders of the world's largest economies smoothed over some of their differences at the Group of 20 meeting in London at the beginning of April. They pledged $1.1 trillion that could be used to shore up developing countries and avoided the discord of a similar meeting during the Great Depression, but critics said the gathering failed to address some of the root problems of the global financial crisis.

A Crucial Moment for Banks and Automakers

For investors hunting for reasons to feel optimistic, signs of spring abounded. Although the International Monetary Fund said the global economy was the worst since 1945, many were eagerly hoping that the worst days of the recession were over. Stocks continued to race higher in April. Fraught credit markets were starting to thaw. Home sales in some battered markets were bouncing back. In a speech at Georgetown University discussing his broad economic agenda, President Obama said he detected “glimmers of hope” in the struggling economy.

The banking system even offered signs of improvement. Major banks like Citigroup, Wells Fargo and Bank of America that had been deep in the red said they had returned to profitability in the first three months of 2009, although many of those earnings came from one-time gains and creative accounting. For the second quarter of 2009, JPMorgan Chase and Goldman Sachs posted stellar profits.

A crucial test for the financial system came as the government released the results of its stress tests of 19 major financial companies. Regulators examined how much banks could lose on mortgages, credit cards and other loans if the economy deteriorated further, and found that 10 of the 19 banks needed additional capital cushions totaling $75 billion. Regulators said that banks unable to raise money from private sources could convert preferred shares owned by the government into common stock. The banks fared better in the stress tests than many had expected, prompting some critics to say the tests had not been rigorous enough. Once the results were out, several major banks raised billions in common stock and unsecured debt, eager to repay their government bailouts.

But for the country's sagging automobile makers, problems only seemed to multiply. Sales dropped by double digits, and General Motors and Chrysler, which received billions in government bailouts, rushed to complete restructuring packages, but they were unable to avoid the path to bankruptcy court.

After negotiations between Chrysler and a small group of bondholders failed, the government forced Chrysler into bankruptcy at the end of April and cobbled together an alliance with the Italian automaker Fiat. A month later, General Motors followed its rival into bankruptcy. But the automakers surprised experts by racing through restructuring and government-sponsored sales to create a new Chrysler and a new G.M. But an old question remained: Could the companies regain the status they had lost, become profitable and persuade the world to buy their cars and trucks?

Payback Time

It was a big moment for banks itching to escape Washington's heavier hand: After weeks spent jockeying with regulators and raising billions in stock offerings and debt sales, 10 big financial institutions were allowed to return their share of the government's $700 billion financial bailout. Banks including JPMorgan Chase, Goldman Sachs and American Express paid back a total of $68 billion, a move that allowed them to stand without taxpayer dollars and operate without increased government scrutiny over matters like executive pay.

But even as the banks wired the money back to the Treasury Department, some asked whether Washington and the banks were moving too fast. The financial system had stabilized and credit markets continued to improve, but none of the systemic problems that brought banks to their knees had been addressed. President Obama called for a broad regulatory overhaul, including increased protection for consumers, but as of mid-summer, none of his proposals had become law.

The springtime rally in stock markets began to stagnate as more unsettling economic indicators surfaced. Unemployment hit 9.5 percent, its highest rate in 26 years. Banks in Europe continued to deteriorate, and at home, mortgage defaults rose, and there were more troubled loans than ever. Projections of a second-quarter loss at Morgan Stanley, which returned its bailout funds, emphasized the complex landscape facing companies as they tried to put their financial houses in order.

Week 1 9/08/09

2009-08-26T23:12:00.000-07:00

1. Watch the following video.

http://www.laentrada.pylusd.org/Economics/Economics.asf

2. One requirement for acceptable medium of exchange is____?

Finals

2009-05-07T07:30:00.001-07:00

Finals will be held June 1st from 10:00-3:00 with an hour lunch from 12-1:00. Please be sure all discussion board assignments for this semester have been completed by June 1st. No new posting will be made as STAR Testing and finals will satisfy your interaction requirements.

Economics: Questions 3/30/09

2009-03-31T11:33:00.001-07:00

Answer 2 of the following qustions. Post your response and comment on a classmate's response.

1. Why is productivity important to a nation's standard of living?
2. What are the economic implications of a large retired (baby boomer) population and a smaller workforce?
3. Discuss the causes of inflation.
4. How does the Federal Reserve influence the economy? 12.5

Macroeconomics 3/23/09

2009-03-19T22:47:00.000-07:00

Watch the following video and then explain the concept of Macroecinomis in your own words.

http://www.laentrada.pylusd.org/Economics/Macroeconomics.asf

Microeconomics 3/16/09

2009-03-13T09:48:00.000-07:00

Watch the following video. What is microeconomics? Give several examples.

http://www.laentrada.pylusd.org/Economics/Microeconomics.asf

3/9/09

2009-03-06T20:31:00.000-08:00

Assignments for the week of 3/9/09

To receive full credit for the week complete the following:

1) Watch the following video

http://www.laentrada.pylusd.org/Economics/Economics.asf

2)Post 2 discussion questions of your own

3) Check back in and answer a classmates question