EC4024 Lecture 7 Crises

Last Time

Structure of Markets

• Admin: PS1 Up, Due Mar 6th

• Tutorials OK?

• Times in Labs

• Business Cycles & Finance

• Financial Fragility

• Data

Ireland’s Macroeconomy

Too Many of These

Lead to This

US Case

Read: Robert Shiller, The Subprime Solution

Some examples of CEO salaries in the US in 2006 may give some context:

Bear Stearns: $34 million for CEO James Cayne,

Lehman Brothers: $27 million for CEO Richard Fuld,

Citigroup: $25 million for CEO Charles Prince.,

Countrywide Financial: $43 million for CEO Angelo Mozilo.

Irish Case

Next TimeWhere did Ireland go

wrong?