US, later became global, monetary crisis is hot now. I read the Iceland is about to be bankrupt.
The Money Meltdown gives us many links to explanations about the cause, the key fact, and what to do about it.
- Behind the current panic.
- Recommended: This American Life’s Alex Blumberg and NPR’s Adam Davidson joined forces to present the best introduction to the crisis. If you can’t listen to the audio, read the transcript.
- The short version: Blumberg and Davidson’s story abridged for NPR.
- The shorter version: 15 things you need to know about the panic.
- The shortest version: Andrew Lombard gives a more succinct summary.
- The updated version: Davidson and Blumberg revisit the crisis in a second This American Life episode.
- The ongoing version: Davidson and Blumberg blog about the crisis.
- Previous banking crises.
- Recommended: Two International Monetary Fund economists give a dry but surprisingly readable comparison of the current banking crisis to 42 previous crises, including an overview of past government interventions and their effects. To skip to their conclusions about the present crisis, see pages 27 to 33.
- The short version: The BBC walks through six previous crashes.
- The shorter version: The Financial Times compares the proposed bailout to four previous bailouts in handy chart form.
2. Key Facts
- A timeline of the crisis.
- Recommended: Wikipedia probably has the best, most up-to-date timeline of the disaster’s progress through our economy.
- The linky version: This timeline is a close second to Wikipedia for depth and scope.
- A closer look: CNN focuses in on the high-drama period around the unveiling of Paulson’s bailout proposal.
- What’s in the bailout bill.
- Recommended: McClatchy summarizes what went into the final bill passed by Congress to rescue the banking industry.
- AGAINST THE BAILOUT: McClatchy summarizes the reasoning of economists who say the bailout isn’t needed.
- FOR THE BAILOUT: Economist James Kenneth Galbraith says it won’t fix things, but it will get us through the year.
- In pictures: How much is $700 billion?
- Reactions: What experts think of the bill.
- A guide to the alternatives.
- Recommended: Washington Post reporters Anthony Faiola and David Cho describe some alternative approaches that have been proposed and their pros and cons.
- The short version: Econo-blogger Megan McArdle issues an open call for alternative ideas. (We’ll follow up when her response is posted.)
- A consensus alternative? Econo-blogger Alex Tabarrok says economists agree on the step the government should take.
- The crisis around the world.
- Recommended: The Christian Science Monitor summarizes European attempts to confront the crisis.
- The snapshot: The Financial Times explores the trauma’s ripples into the Asian markets.
3. What’s Next
- Best- and worst-case scenarios.
- Recommended: The BBC asks, What would Armageddon look like?”
- From the center: Libertarian-ish economist Tyler Cowen walks through the best and worst outcomes.
- From the right: Conservative blogger Ross Douthat envisions the best, worst and likeliest scenarios.
- What the next President should do.
- Recommended: The Brookings Institute provides a sort of opinionated to-do list, setting up the debate over how to fix the economy after the election.
- Don’t hold back: Why the credit crisis shouldn’t force the next President to trim his expensive plans.
4. Your Money
- Advice for the average Joe.
- Recommended: New York Times columnist David Leonhardt answers questions from regular folks concerned about the crisis.
- Advice from average Joes: Ask MetaFilter users offer words of wisdom.
- Good money advice no matter what happens.
- Money guru Dave Ramsey offers some basic financial advice to see you through whatever lies ahead for the economy.
- Watch for falling credit: Banks are getting stingier. Don’t be caught off-guard.
- Where to invest: When the stock market tanks.
- You’re allowed to laugh. Or cry.
- Just breathe: TechDirt urges everyone to just take a deep breath.
Many liken this to 1929 US crisis, but Scott Reynold Nelson, a historian, disagree about this, and said that it’s more like the Panic of 1873, because of the same cause, mortgage.
Mortgages were easier to obtain than before, and a building boom commenced. Land values seemed to climb and climb; borrowers ravenously assumed more and more credit, using unbuilt or half-built houses as collateral. The most marvelous spots for sightseers in the three cities today are the magisterial buildings erected in the so-called founder period.
But the economic fundamentals were shaky. Wheat exporters from Russia and Central Europe faced a new international competitor who drastically undersold them. The 19th-century version of containers manufactured in China and bound for Wal-Mart consisted of produce from farmers in the American Midwest.
Surprisingly, via here I knew that someone named Reinhardt did predict this crisis, up to the starting date (Sept 15th) from months before. Surprisingly also, he linked it to a pilgrimage activity. Interesting. whiteraven commented
I think this was posted back in 2007…first time and the reposted in July 2008.
But I didn’t confirm it.