In 2007-2009, The US experienced a serious housing and financial crisis

In 2007-2009, The US experienced a serious housing and financial crisis that took almost 10 years to recover. In the first discussion forum, we will discuss the following questions.

1. What is a bank run? What is the purpose of the Glass-Steagall legislation?
2. Use CDO's, credit swap, auction rate securities, or any other examples to define and explain the concept of "shadow banking". You need to at least use two examples.
3. List and explain the key reasons for the 2006-07 housing bubble, based on the reading you are assigned (you need to quote and refer the title and page numbers of those articles, not just random sources.
4. Combine your answer for items 2 and 3 to explain the causes the 2007-09 financial crisis. YOU NEED TO use an example (such as Lehman Brothers) to support your story.
5. Your recommendations of what the government can do to avoid a similar crisis in the future.

Sample Solution