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Bank Crisis

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									Andrew Jackson’s Inaugural Address
          March 4, 1827
       To the Victor
     Belong the Spoils
  In this cartoon (drawn as a
      mocking memorial to
  Jackson’s death in 1877),
 the Spoils System was not
  received well by all. Notice
   how Jackson rides the pig
   (the symbol of greed and
over-indulgence) as it feasts
  on scraps of bribery, fraud,
and plunder. To Jackson, the
Spoils System was a reward
  for loyalty. To others, it was
 an example of “buying your
     way” into government
            positions.
W. H. Harrison’s Inaugural Address
          March 4, 1841
Jimmy Carter’s Inaugural Address
        January 20, 1977
 Too Many Balls in the Air
   President Jimmy Carter
 started out strong, with new
promises for the poor and the
   needy, but with all those
 balls in the air, the budget
     came crashing down
The very word "maverick" implies not only independence but a willingness to take risks.
But it is critical to understand the common thread running through McCain's high-profile
          breaks with the GOP: In every case, McCain took a position that was
    overwhelmingly popular with the public. It was hardly a risk for a politician with
national ambitions to embrace campaign finance reform or an effort to regulate tobacco,
despite the displeasure it may have caused within the GOP caucus. The other issues on
   which he has broken with some or all Republicans -- global warming, the gun show
   loophole -- were also cases in which the prevailing Republican position was widely
  unpopular. However sincere he was in the positions he took, the result in every case
 was a double-victory for McCain: He could enhance his image as a moderate and a
 maverick, and do so with no risk to his national ambitions, since he was taking
the popular position.... The only years in which McCain diverged significantly from the
Republican party line in the last decades were 2001, when he voted with the party "only"
67 percent of the time, 2004, when he stuck to the party line 79 percent of the time, and
2006, when his unity score was 76. The rest of the time, throughout his 19-year Senate
         career, McCain has voted with his party more than 80 percent of the time.


                                                     -David
                           David Brock and Paul Waldman Brock and Paul Waldman
                                             Free Ride: John
                       Free Ride: John McCain and the MediaMcCain and the Media
                                    (March 2008)
  Panic!

1837 and 2008
                           Panic!
• What causes a panic?
• panic: just like it sounds, an
  economic time of turmoil
  when the general public
  reacts to dips in the market,
  crop failures, stock market
  crashes, etc.
• We stopped calling it
  “panic” in the late 1800s
  and went with a new term:
  depression
• But what makes a panic a
  panic?
• And how is the Panic of
  1837 similar to the economic
  crisis of today?
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
         Crisis begins

              Panic begins




Van Buren’s
presidency
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
Crisis begins        This chart shows the
                    wholesale prices of 38
Panic begins       commodities, including
                wheat and corn. The price of
                these commodities has free-
                  fallen, indicating either an
                    overproduction, or an
                 inability of the public to buy.
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
Andrew Jackson   Martin Van Buren   W.H. Harrison   James Polk
   reelected          elected          elected        elected
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
 Do they think that I am such a damned fool as to think
 myself fit for President of the United States? No, sir; I             Oh, do not cry. Be good children,
know what I am fit for. I can command a body of men in                      and we shall all meet in
      a rough way, but I am not fit to be President.                   Heaven... I want to meet you all,
                                                                         white and black, in Heaven.
                 -Andrew Jackson, 1821
                                                                            -Andrew Jackson, 1845



            There are no necessary evils in government. Its evils
             exist only in its abuses. If it would confine itself to
                                                                           I will go to South Carolina and
          equal protection, and, as Heaven does its rains, shower
                                                                             hang the first secessionist I
          its favors alike on the high and the low, the rich and the
                                                                             see from the first tree I can
                  poor, it would be an unqualified blessing.
                                                                                         reach.
                           -Andrew Jackson, 1832
                                                                          -Andrew Jackson, Date Unknown



        Hemans gallows ought to be the fate of all such
      ambitious men who would involve their country in civil
                           wars.
                        -Andrew Jackson, 1833
                                                                         Peace, above all things, is to be
                                                                             desired, but blood must
                                                                         sometimes be spilled to obtain it
      When asked, on his deathbed, what his two greatest
   regrets in life were, he answered, “I did not hang Calhoun             on equable and lasting terms.
                          and shoot Clay”                                     -Andrew Jackson, 1833
                     -Andrew Jackson, 1845
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
                             Panic!
•   The Panic of 1837 was
    caused by four main
    factors:
    1. Overspeculation on land
       (meaning the price of land
       was inflated and over-
       developed)
    2. Crop failures
    3. Depreciation of the dollar
    4. An uninformed presidency
•   Today’s crisis has been
    caused by the same factors
    1. Overspeculation in the
       housing market
    2. Increased price of living
    3. Depreciation of the dollar
    4. An uninformed presidency
             So What Happened?
•   This current economic
    crisis has been caused
    by a number of factors:
    1.   Subprime mortgages
    2.   Housing prices
    3.   Credit risks
    4.   Lack of regulation
•   But the issues are the
    same as they were in
    1837…
             Subprime Mortgages
•   mortgage: a loan from a
    bank to buy a house or
    property
•   subprime: sounds exactly
    like it means: not good, or
    below what is normally
    standard
•   subprime mortgage: a
    loan to a person with either
    poor credit, no credit, or no
    investigation into what their
    credit is
•   When it comes time for
    these people to pay their
    mortgage bills, they
    default on the loan
Subprime Mortgages Across the Country
         The darker the colors,
       the more subprime loans
Late Payments Across the Country
       The darker the colors,
the later the mortgages payments
                             A History of Home Values
This graph is a bit counterintuitive. From the mid 1990s, the U.S. was booming in home
production. So, the more homes, the lower the value. That’s why subprime mortgages
         are so dangerous: a risky loan on a home that’s not worth that much!
             So What Happened?
•   This current economic
    crisis has been caused
    by a number of factors:
    1.   Subprime mortgages
    2.   Housing prices
    3.   Credit risks
    4.   Lack of regulation
•   But the issues are the
    same as they were in
    1837…
The Issues at Hand
                The Issues at Hand
•   On November 4,
    Coloradans will go to the
    polls to answer the
    following questions:
    1. Is a fetus considered a
       person?
    2. Should we increase gambling
       to increase revenue?
    3. Should people be forced to
       join labor unions?
•   Let‟s hold a mock-election
    in class, and see if our
    votes reflect the rest of
    the state…
                      Amendment 46
•   Should there be an
    amendment that…
    –   …prohibits the preferential
        hiring of people based on
        their race, sex, or gender?
•   Proponents say…
    –   …preferential hiring hurts
        those who AREN‟T
        minorities. This amendment
        would end this
        discrimination
•   Opponents say…
    –   …this effectively ends
        Affirmative Action and will
        end programs aimed at
        placing women and
        minorities in places of power
                      Amendment 47
•   Should there be an
    amendment that…
    –   …disallows an employer from
        forcing their employees to
        join a labor union?
•   Proponents say…
    –   …this amendment protects
        workers‟ rights and their
        paychecks!
•   Opponents say…
    –   …this amendment would pit
        employer against employee
                        Amendment 48
•   Should there be an
    amendment that…
    –   …formally defines a “person”
        from the point of conception
        (the moment the sperm and egg
        meet?)? This fetus is then
        given the same Bill of Rights
        protection, including the “right
        to survive…”
•   Proponents say…
    –   …life starts at the point of
        conception, so therefore, these
        fetuses need protection
•   Opponents say…
    –   …this amendment effectively
        reverses a woman‟s right to
        abortion, even in cases of rape
        and incest
                       Amendment 49
•   Should there be an
    amendment that…
    –   …prohibits paycheck
        deductions automatically
        taken by the state for labor
        unions and organizations?
•   Proponents say…
    –   …this amendment protects
        workers‟ rights and their
        paychecks!
•   Opponents say…
    –   …this amendment should be
        decided at the local level,
        not the state level, and also
        provides for more “red
        tape”
                       Amendment 50
•   Should there be an
    amendment that…
    –   …allows for citizens of Black
        Hawk and Central City to
        approve new gambling games
        in increase revenue?
•   Proponents say…
    –   …this increased revenue will
        go towards Colorado
        community colleges
•   Opponents say…
    –   …this amendment would
        cripple the “historic charm”
        of these cities and would
        turn these cities into „round
        the clock gambling districts    After all the fighting and scratching, will we have a
                                              Republican or Democratic president?
                       Amendment 51
•   Should there be an
    amendment that…
    –   …raise the state sales tax
        from 2.9% to 3.0%, with the
        additional revenue from
        that 0.1% going towards
        services for the disabled?
•   Proponents say…
    –   …this 0.1% increase will
        bring in $186 million per
        year, and is a small price to
        pay for a large benefit
•   Opponents say…
    –   …the government already
        spends $4 billion on the
        disabled already, and an
        increase in the sales tax is
        not appropriate during          After all the fighting and scratching, will we have a
        these difficult times                 Republican or Democratic president?
                      Amendment 52
•   Should there be an
    amendment that…
    –   …directs a specific tax on
        oil companies toward
        transportation and highway
        maintenance?
•   Proponents say…
    –   …this amendment would help
        fix congestion on I-70
•   Opponents say…
    –   …the amendment focuses
        too much on I-70 and could
        take funds away from water
        projects
                      Amendment 53
•   Should there be an
    amendment that…
    –   …makes it a criminal offense
        for CEOs and heads of
        business to engage in
        immoral and substandard
        practices in business?
•   Proponents say…
    –   …in the light of AIG and
        other business failures, we
        need to keep tighter reigns
        on our CEOs
•   Opponents say…
    –   …the amendment could have
        a negative impact on the
        business environment,
        considering most CEOs and
        business heads already         After all the fighting and scratching, will we have a
        follow the laws perfectly            Republican or Democratic president?
                      Amendment 54
•   Should there be an
    amendment that…
    –   …prohibits businesses from
        financially supporting
        political candidates, if
        they‟ve previously taken an
        oath not to?
•   Proponents say…
    –   …it just makes sense!
•   Opponents say…
    –   …the amendment goes too
        far and interferes with the
        political process and the
        rights of people to choose
                                      After all the fighting and scratching, will we have a
        who they sponsor / support          Republican or Democratic president?
                       Amendment 55
•   Should there be an
    amendment that…
    –   …forces employers to show
        “just cause” when firing an
        employee?
•   Proponents say…
    –   …it protects from firing
        people “at will” and provides
        for employee protection
•   Opponents say…
    –   …the amendment makes it
        impossible to fire someone!
                      Amendment 56
•   Should there be an
    amendment that…
    –   …forces employers to
        provide healthcare for their
        employees, even if they only
        employ 20 people or less?
•   Proponents say…
    –   …people need health care,
        and this would increase
        workplace productivity
        because people are
        healthier
•   Opponents say…
    –   …it puts an unnecessary
        financial burden on these
        employers
                      Amendment 57
•   Should there be an
    amendment that…
    –   …allows an employee to sue
        his or her employer if they
        don‟t provide a “safe and
        healthy” work environment?
•   Proponents say…
    –   …the present system of
        Workers’ Compensation
        isn‟t enough and this
        amendment gives workers
        another option
•   Opponents say…
    –   …Workers’ Compensation is
        enough protection, and this
        would clog the courts         After all the fighting and scratching, will we have a
                                            Republican or Democratic president?
                        Amendment 58
•   Should there be an
    amendment that…
    –   …removes a tax credit given to
        oil companies in 1977, and
        divert that money ($321 million
        / year) to preserve wildlife,
        help pay for college, etc.?
•   Proponents say…
    –   …the current system offers a
        $321 million incentive for oil
        companies to develop business
        here in Colorado. We have
        plenty of business here, so
        divert the money elsewhere!
•   Opponents say…
    –   …since the oil companies are
        NO LONGER RECEIVING that
        money, they‟ll increase energy
                                          After all the fighting and scratching, will we have a
        cost to make up the difference          Republican or Democratic president?
                      Amendment 59
•   Should there be an
    amendment that…
    –   …creates a “savings account”
        from unspent state money
        for schools to use in times
        of trouble?
•   Proponents say…
    –   …this amendment provides a
        constant source of funding
        to education, even during
        tough economic times
•   Opponents say…
    –   …that unspent money should
        be returned to the tax
                                       After all the fighting and scratching, will we have a
        payers!                              Republican or Democratic president?

								
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