The following post has two assignments namely;
1.How markets fail
1. Using the prisoner’s dilemma show why a conservative bank would have to take great risks in the banking industry by offering liar loans, subprime loans, Adjustable ARM loans, etc.
2. Explain how banks increasing leverage in 2002-2006 period was consistent with Minsky’s theories.
3. Show how a leveraged bank can make higher profits during a boom than an unleveraged firm. Then, show how a leveraged bank can lose much more of its capital during a recession than an
unleveraged bank.
4. What was Greenspan’s argument of why housing was not a bubble? What is wrong with his argument according to Cassidy?
5. Explain how Greenspan was guilty of the law of small numbers.
6. In terms of policy, what did Greenspan support during the period 1996-2006 that contributed to the financial crisis?
7. Explain interest only loans, stated-income loans, adjustable ARM loans
8. Explain how herd behavior contributed to the housing bubble
9. Explain how the subprime loan market is a market for lemons.
10. How did politicians feel about the subprime mortgage market before the financial crisis? Explain.
11. What is the problem with VAR (value at risk) models?
12. Why did so many investment banks have to start buying CDO’s and other mortgaged backed securities themselves (rather than selling them to other investors). Why did they buy these assets?
13. Come up with one research questions based on the video “The Warning”. Explain your question and why you think it would be an important question to answer.
2.The New Black Man
The New Black Man. Mark Anthony Neal posits a crisis in Black masculinity that he argues exists not only in the hip-hop generation but also amongst educated, middle-class Black men. He then re-
configues Black masculinity as a critical practice inclusive of the issues of women and LGBTQ persons. Neal writes in a clear and simple prose, but his conclusions are hard-hitting and important.
??Try to read the first section on The New Black Man and complete your responses. ??I would like for you to consider the following things as you read his piece:??1. How does Neal interweave Black
masculine sexuality, the criminal justice system, and the media? Is he persuasive or are you tired of the same old media scapegoating that you’ve seen so man times in the past???2. Neal’s text was
written before the Obama presidency. Does Barack Obama change anything about his analysis???3. Does Neal sufficiently problematize class and generational antagonisms between Black men? ??4. Why
does Neal consider the integration of Black gay men as central to the growth of Black men generally speaking? and why is this a critique of the militant Civil Rights movements of the 1960s and of
the Black church???5.What is a Black male feminist and why is such a figure critically important? Consider the case of Kevin Powell, as elaborated by Mark Anthony Neal.