June 23, 2017

When the economy was on the verge of collapse due to the 2008 financial crisis, the Federal Reserve dropped interest rates to zero in an effort to get money moving around again. The economy is not in such dire straits now, of course, so the Fed has once again returned to raising rates gradually. This video quickly reviews how the Fed works and demonstrates the ways that the central bank affects the nation’s money supply.  

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When the stock market collapsed in 2008, the government deemed Wall Street’s ailing banks “too big to fail” and provided them with a multi-billion dollar bailout. The emergency loan ultimately saved the banks, but has provided no shortage of controversy ever since. To the financial sector’s critics, many of the problems caused by these banks stemmed from their enormous size. In fact, nothing much has changed since the financial collapse: the same five banks that dominated bond underwriting and Continue reading

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