Identify four policies the government enacted following the financial crisis

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hfre7

Economics

Managerial Economics 420

Description

For the Portfolio Project, in a well-constructed paper, identify four policies the government enacted following the financial crisis. Evaluate what effect these policies would have on the economy from both a short-run and a long-run perspective. Be sure to include:

  • The distinction between the short-run and long-run economic views and what determines economic output in the relative time periods
  • A definition of the measures used to determine economic success in the different time periods
  • A link from each policy back to these distinctions and measures.

Adhere to the following standards:

  • Your paper should be six to ten pages in length, not including the title or references pages.
  • Review the grading rubric, which is found in the Week 8 folder.
  • Incorporate at least five scholarly references that are not required readings for this module. The CSU-Global Library is a good place to find these references.

Be sure to follow the APA requirements.

Unformatted Attachment Preview

ECN400: Portfolio Project Rubric Criteria Meets Expectation Content, Research, and Analysis 25-30 Points Preliminary Delivered milestones in Deliverables Weeks 2, 4, and 7 as required. 33-40 Points Content Correctly identifies at least three economic principles and at least three macroeconomic indices. OR Correctly identifies at least four government policies enacted in response to the financial crisis. Requirements Analysis Synthesis and Evaluation Approaches Expectation Below Expectation 19-24 Points Delivered milestones in two of the three weeks as required. 25-32 Points Correctly identifies two economic principles and two macroeconomic indices. OR Correctly identifies two government policies enacted in response to the financial crisis. 13-18 Points Delivered milestones in one of the three weeks as required. 17-24 Points Correctly identifies one economic principle and one macroeconomic indicator. OR Correctly identifies two government policies enacted in response to the financial crisis. 25-30 Points The Portfolio includes all of the required components, as specified in the assignment. 19-24 Points The Portfolio includes most of the required components, as specified in the assignment. 65-80 Points Provides strong or adequate thought, insight and analysis of concepts and applications regarding principles and the economic indices. OR Provides strong or adequate thought, insight and analysis of concepts regarding how the policies affected the economy, especially the distinction between long run effects and short run effects. 49-64 Points Provides thought, insight and analysis of concepts and applications regarding principles and the economic indices but with some significant, but not major errors. OR Provides thought, insight and analysis of concepts regarding how the policies affected the economy, especially the distinction between long run effects and short run effects with some significant but not major errors. 49-64 Points Some significant but not major errors or omissions in synthesis and evaluation. Synthesizes and evaluates concepts and applications regarding principles and the 13-18 Points The Portfolio includes some of the required components, as specified in the assignment. 33-48 Points Provides thought, insight and analysis of concepts and applications regarding principles and the economic indices but with major errors. OR Provides thought, insight and analysis of concepts regarding how the policies affected the economy, especially the distinction between long run effects and short run effects with major errors. 33-48 Points Major errors or omissions in synthesis and evaluation. Major errors or omissions in synthesis and evaluation. Synthesizes and evaluates concepts 65-80 Points Demonstrates strong or adequate synthesis and evaluation of course concepts in macroeconomics. Strongly or adequately synthesizes and evaluates concepts and applications Limited Evidence 7-12 Points Failed to deliver milestones in Weeks 2, 4, and 7 as required. 9-16 Points Correctly identifies one or fewer economic principles and no macroeconomic indicators. OR Correctly identifies one or fewer government policies enacted in response to the financial crisis. 7-12 Points The Portfolio includes few of the required components, as specified in the assignment. 17-32 Points Does not provide thought, insight and analysis of concepts and applications regarding principles and the economic indices. OR Does not provide thought, insight and analysis of concepts regarding how the policies affected the economy, especially the distinction between long run effects and short run effects. 17-32 Points Fails to demonstrate synthesis and evaluation. Fails to synthesize and evaluate. Major errors or omissions in synthesis and evaluation. ECN400: Portfolio Project Rubric regarding principles and the economic indices. OR Strongly or adequately synthesizes and evaluates concepts regarding how the policies affected the economy, especially the distinction between long run effects and short run effects. economic indices but with some significant, but not major errors. OR Synthesizes and evaluates how the policies affected the economy, especially the distinction between long run effects and short run effects with some significant but not major errors. 13-15 Points Cites and integrates at least five credible sources. 10-12 Points Cites and integrates four credible sources. 13-15 Points Application of Sources well or adequately Source chosen to provide Material substance and perspectives on the issue; knowledge from the course linked properly to source material. Mechanics and Writing 17-20 Points Organization Project is clearly organized, well written, and in proper essay format including an introduction, body, and conclusion. Conforms to project requirements. 10-12 Points Some significant but not major problems with selection and linkage of sources. 7-9 Points Major problems with selection and linkage of sources. 13-16 Points Small number of significant but not major flaws in organization and writing; is in proper essay format. In a minor way does not conform to project requirements. 17-20 Points Strong sentence and paragraph structure; few or no minor errors in grammar and spelling; appropriate writing style; clear and concise with no unsupported comments. 13-16 Points Small number of significant but not major errors in grammar and spelling; generally appropriate writing. 17-20 Points 13-16 Points 9-12 Points Major problems in organization and writing; does not completely follow proper essay format. In a significant way does not conform to project requirements. 9-12 Points Inconsistent to inadequate sentence and paragraph development; work needed on grammar and spelling; does not meet program expectations. 9-12 Points Sources Grammar and Style and applications regarding principles and the economic indices. OR Major errors or omissions in synthesizing and evaluating how the policies affected the economy, especially the distinction between long run effects and short run effects. 7-9 Points Cites and integrates three credible source. Synthesizes and evaluates concepts and applications regarding principles and the economic indices. OR Fails to synthesize and evaluate how the policies affected the economy, especially the distinction between long run effects and short run effects. 4-6 Points Cites and integrates three or fewer credible sources. 4-6 Points Source selection is seriously flawed; no linkage to knowledge from the course. 5-8 Points Project is not well organized or well written and is not in proper essay format. Does not conform to project requirements. 5-8 Points Poor quality; unacceptable in terms of grammar and/or spelling; inappropriate writing style that interferes with clarity. 5-8 Points ECN400: Portfolio Project Rubric Demonstrates proper use of APA style. Project contains proper APA formatting, according to the CSU-Global Guide to Writing and APA Requirements, with no more than one significant error. Total points possible = 350 Few errors in APA formatting, according to the CSU-Global Guide to Writing and APA Requirements, with no more than two to three significant errors. Significant errors in APA formatting, according to the CSUGlobal Guide to Writing and APA Requirements, with four to five significant errors. Numerous errors in APA formatting, according to the CSUGlobal Guide to Writing and APA Requirements, with more than five significant errors.
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Explanation & Answer

Attached.

Running Head: US FINANCIAL CRISIS

The Remedies to the US Financial Crisis in 2007 and 2008
[Name]
[College]

US FINANCIAL CRISIS
Abstract
The US and the rest of the world in October and September 2008 experienced what could be
summed up as a financial panic. The US took the role of coming up with emergency plans to
stabilize the economic situation. Due to the financial panic and the emergency measures taken,
there was formed a ‘perfect storm’ for a new financial regulation. The prices in real estate were
reducing gradually in late 2007. Investors in the sector started to short the market which signaled
the start of the financial crisis. The crisis in the real estate market continued in early 2008 which
lead to losing billions of dollars in the market. Also, the interbank credit markets went up. The
value of the US banking institutions collapsed such as Fannie Mae and Freddie Mac. This paper
will discuss the strategies laid down by the us government in 2008 to counter the financial panic
that occurred.
Keywords: financial, economic, market

US FINANCIAL CRISIS
The Remedies to the Financial Crisis in 2008
The financial crisis was triggered by the weakened housing market and a fast rise in the
neglecting of subprime mortgages. These neglects led to a breakdown of what the majority saw
as an underwriting standards that were reflected in the process of securitization. The lenders
failed to acquire the confidence of underwriting carefully because they did not want to hold the
loans themselves. Investors expected the prices of the property to rise, according to the
experience from the then-recent past years. The investors also failed to pay close attention to the
ability of the borrowers to pay back the money. Due to the complexity of the securitizations of
the loans, the due diligence of the loans was almost impossible. Most of the banking firms and
other money lending institutions were caught up in the crisis because some crucial parts of the
deal were not deal with well.
The Troubled Asset Relief Program was one of the strategies that were used by the US
government to counter the financial crisis. The TARP was a program that was meant to purchase
the toxic assets and equities from financial and banking institutions within the US to help
strengthen the financial base. The then-president George W. Bush assented the law. The
Emergency Economic Stabilization Act created the TARP program in the year 2008. The
program initi...


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