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The Financial Crisis of 2008
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Five Slides Intro Model Data Implications Conclusion Structure
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Question Why is this important? How did you approach the problem? Intro
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Is the current financial crisis modeling that of the Great Depression as many people are speculating, or is it more reminiscent of the Savings and Loan Crisis of the late 1980s? Economic Question
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History has shown that implementation of incorrect policies may not only hinder the recovery of the economy, but it may also make it worse. By determining which situation the current crisis more closely resembles, we can avoid making the same mistakes of the past and employ use of the tools that did work in helping get the economy back on the right track. The Importance of this Question
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Model Use
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Data Model Implications Main Results
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Comparison of Crises Source: Bureau of Economic Analysis
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Comparison of Crises Source: Department of Labor Statistics Great Depression
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Comparison of Crises Source: Yahoo! Finance
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Comparison of Crises Source: Department of Labor Statistics
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The current financial crisis more closely resembles that of the Savings and Loan Crisis than that of the Great Depression. Implication of Time Series Analysis
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What did you learn? What do you want us to remember? Conclusion
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The 1989 S&L bailout package should be used as a model for the 2008 bailout package. Conclusion
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