creditcrisis, jk

Credit Crisis

By: Kelley Bunner

& Jeannie Hartford

BCC

Before Credit Crisis

Now

Before __________________ Now

• Savings • Credit Cards- Debt

The money was never “really” there

• Robert Shiller, an economist at Yale, puts it bluntly: The notion that you lose a pile of money whenever the stock market tanks is a "fallacy." He says the price of a stock has never been the same thing as money -- it's simply the "best guess" of what the stock is worth.

• "It's in people's minds," Shiller explains. "We're just recording a measure of what people think the stock market is worth. What the people who are willing to trade today -- who are very, very few people -- are actually trading at. So we're just extrapolating that and thinking, well, maybe that's what everyone thinks it's worth."

• Shiller uses the example of an appraiser who values a house at $350,000, a week after saying it was worth $400,000.

• "In a sense, $50,000 just disappeared when he said that," he said. "But it's all in the mind."

•

THE DOMINO EFFECT

ON WALL

STREET

CREDIT CRISIS- STICKY SITUATION

FIGHTING TO STAY AFLOAT

DO NOT COLLECT 200 DOLLARS

do not pass go.

MONOPOLY- ARE YOU LOSING… OR ARE YOU WALLSTREET?