Read the case, and answer the following questions and recommendations

1. Research systemic
risk: what is it? How do you detect it? Why is it so important and scary?

2. Was the Fed to Blame for the Housing Price Bubble? Why and why not? What is the global savings glut and the Greenspan’s conundrum?

3. Consider the way forward. Clearly, some of the policy responses have not worked out as planned. Consider the past 10 years since the start of the crisis.

(a) What are the intended and unintended consequences? What suggestions would you add?

(b) How well have policy makers, regulators, and supervisors performed?

4. Investigate the state of the US banking system and world financial system. Where are the problems today? How did the financial crisis affect the system and its working in the long term?

Please write two pages, single space. So half page for each question. Please cite the sources you use.