creditcrisis, jk
TRANSCRIPT
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?