Question
What does this research make you more aware of? I had my research paper on how the Federal Reserve being lender-of-last-resort (LOLR) effected failing investment
What does this research make you more aware of?
I had my research paper on how the Federal Reserve being lender-of-last-resort (LOLR) effected failing investment banks during the Financial Crisis of 2007-2009. At the time, I had no idea how drastic this event was since I was not as interested in financing, lending, or the mortgage industry. After researching the topic more in depth, it really put into perspective just how close to an economic collapse had almost happened. This graph demonstrates from the turn of the millennium, including 9/11 when the airline industry was crushed, the gravity of how much greater of a heavy blow the lending and mortgage industry took. Due to this research, I had not known that at the time of the Great Depression, they had these same fail safes to aid in the recovery but failed to act. The Federal Reserve being LOLR during the Financial Crisis of 2007-2009 could step in and bailout many investment banks. This also led to many mergers or purchases of smaller banks to larger banks and allowing workers to remain in the company. By allowing the bailout, they were able to buy time for everything to start rebuilding instead of falling into another Great Depression.
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