1.Using the internet, search for an article that pertains to the fall of the economy and the impact it has had on the economy.

This is the article:

"Minneapolis Federal ReserveBankpresident Neel Kashkari unveiled a plan to end systemic risk posed by U.S.banks--by forcing them to hold a massive amount of capital, as much as 38%.

Kashkari released the Minneapolis Plan Wednesday, a proposal to end the threat to the financial system posed by the potential failure of "toobigtofail"banks, including JP Morgan, Citigroup, andBankof America Merrill Lynch.

The report comes as a newly elected president, Donald Trump, is considering ways to pare back the massive 2010 Dodd Frank financial reform legislation.

Legislation to allowbanksto avoid many of the most restrictive Dodd-Frank regulations by meeting higher capital thresholds has already been drafted.

Kashkari's report could add support to that legislative effort.

Under what he called the Minneapolis plan,bankholding companies larger than US$250bn would be forced to hold common equity of 23.5% of risk-weighted assets excluding long-term debt.

Under Kashkari's plan to reign in the largestbanks, the U.S. Treasury Secretary would also be called on to certify that individual largebanksare nottoobigtofail.

If the Secretary refuses to certify a largebank, thatbankwill be subject to an additional 5% capital charge per year, maxing out at 38%.

The cost of forcingbanksto hold massive amounts of capital are substantial, Kashkari admits, up to 41% of GDP. For the US with a GDP of US$28trn, the cure may be worse than the disease.

Kashkari argues that the cost, while much higher than current regulations, is still lower than the cost of another financial crisis. He put the cost of a full blown banking crisis at 158% of GDP.

"Regulations can make the financial system safer, but they come with costs of potentially slower economic growth," Kashkari said speaking at the Economic Club of New York. "Ultimately, the public has to decide how much safety they want in order to protect society from future financial crises and what price they are willing to pay for that safety."

To prevent risk from simply migrating from highly regulatedbanksto so-called shadow banking,Kashkari recommends a 1.2%-2.2% tax on the debt of shadowbanks, including hedge funds, mutual funds, and finance companies larger than US$50bn depending on whether they are deemed systemically risky.

If the plan were adopted there will be fewer megabanksand less concentration overall, Kashkari said.

"If there are any TBTFbanksleft, they will be so well-capitalized that their risk of failure will truly have been minimized."

https://web.a.ebscohost.com/ehost/detail/detail?vid=3&sid=bf0c5917-9e98-4d16-b33b-c61faac2fa44%40sessionmgr4007&bdata=JkF1dGhUeXBlPXNzbyZzaXRlPWVob3N0LWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#AN=119658072&db=bth

Here is my summary:

The article I found is about Minneapolis Federal Reserve Bank president Neel Kashkari and his plan to end threat of banks too big to fail. His plan was if banks holding larger than $250 billion, they would be forced to hold 23.5% equity of assets. If a bank refuses to hold 23.5% then they can be charged an additional 5% caping out at 38%. According to Neel, he believes that the "cure may be worse than the disease." The plan may slow the economy but would maintain its stability. Neel recommends that a 1.2-2.2% tax on shadow banks (Ex. Hedge funds, mutual funds) will help deter people shadow banks verses the regulated banks, either big or small. If the plan went through he believes there would be less "big banks" to fail because they would be so well-capitalized, meaning that they weren't in a position to fail to begin with so this plan would not affect them.

a.Summarize the article sharing your thoughts on the recession and what impact it has had.

b.Discuss how a government budget surplus or deficit influences the loanable funds market.

c.Analyze the implication of an added consumer debt in the loanable funds market.

d.Explain the crowding out effect and it's role in the economy.