St Cloud State University Financial Crisis of 2008 Discussion Questions

1 of 2Money and Banking
Course Project #1
2007 Financial Crisis VIDEO Assignment
“Inside Job” Documentary – 100 points
Name: ____________________________________
This video is about money and banking, and accounting fraud in the US financial markets. From watching
this video, you should learn more about how the 2007 financial crisis developed and how it did and will
affect your lives. I hope you see the importance of that happened in relation to our financial system,
economic growth, practices of banks and corporations, the consumer and to the ethics and values in the
financial profession.
(1) Grading: Your grade will depend upon support and quality of your content, grammar, spelling, full
sentence explanations and overall knowledge. NOTE: One word, one phrase and/or one sentence
answers are considered insufficient and will not result in high points. Explain, support and use of
outside resources, while not required is recommended. This is a 100-point course project, so I
expect to see sufficient support and explanations for each question.
(2) Format: Make sure you state the question and then give the answer. This is not an essay report.
Points will be deducted if this format is not followed. Number your pages. Include a cover page. Include a
Reference Page (at least the movie link).
(3) Links: Here are two links to the movie (free). The movie is also available at the SCTCC Library, but it is
not online, i.e. you must go to the library building to watch the movie.

http://www.veoh.com/watch/v37088999EJyNe8wF?h1=How+US+Dollar+Collapsed+-+Inside+Job
1. There were numerous reasons given that were behind the economic collapse of 2007. List and discuss
just 5 reasons. (5 pts)
2. Give 2 suggestions of what could have been used to control or even avoid the 2007 financial crisis. (5
points).
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3. Why didn’t the SEC (Securities Exchange Commission) get involved to help lessen or even avoid the
credit crisis? (5 points)
4. Name five Investment banks in the US at the time of the financial crisis. (5 points)
5. What happened to the savings and loan companies? (5 points)
6. What happened to the banking industry in the 90’s and 2000’s, consolidation or expansion? Give
examples. (5 points)
7. What financial institution was the largest lender of subprime loans? (5 points)
8. Who was the Federal Reserve Chairman in the 2000’s? Discuss his comments/viewpoints about the
recession at that time. Use outside resources if needed. (5 points)
9. Who is the current Federal Reserve Chairman? (5 points)
10. What are the riskiest loans called? Why did investment bankers prefer them? (5 points)
11. What is a CDO? (5 points)
12. What is the highest possible credit rating? Explain what it means. (5 points)
13. Who took over AIG? How did it occur? (5 points)
14. Does the video say derivatives make markets safer or more unstable? Why? (5 points)
15. What did bankers do with derivatives? (5 points)
16. What did you think about the video? Biased? Anti-government? Anti-banking industry? Why? (5 points)
17. What did you learn from this video that you can apply to your personal financial future? (10 points)
I expect 3 – 4 paragraphs and full support from items in the video!
18. Provide your own opinion on the actions of the US Government and the Federal Reserve during the
2007 financial crisis in solving the credit crisis. (10 points)
I expect 3 – 4 paragraphs and full support from examples in the video.
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