167. Victims and Villains; Panics and Bubbles
Lecture, three hours. Requisites: course 101, Management 120A (may be taken concurrently). Focus on phenomena of panics, bubbles, and manias in financial history. In-depth analysis and discussion of underlying causes, private and public policy responses, similarities, and contemporary issues in today's financial landscape. Focus on study of financial meltdown of 2008 with comprehensive treatment of financial and banking panics, with discussion of underlying housing and stock market bubbles. Highlights report of Financial Crisis Inquiry Commission, and various components of crisis with case and discussion on each component. Also covers five other financial crises: panic of 1907, Great Depression, Japanese real estate and stock market bubbles of 1980s, American banking crises of 1980s, and Asian Contagion of late 1990s. Students read case studies relating to each, and more general related readings including speeches, papers, and articles. Letter grading.