Answer Happy

Watch this clip from the Daily Show that aired in 2008. (As a disclaimer, this is a satirical news show. The host, Jon Stewart, does make fun of then President Bush for his handling of the housing and financial crisis. If you do not want to watch the video because of this and would like another assignment please let me know via email). After watching the clip, choose one of the following questions to answer: 1) The host makes fun of the $600 stimulus checks for homeowners and then indicates that the financial markets collapsed anyway, and we know that the economy slipped into recession despite the government stimulus package. Why do you think that was? What was wrong with the $600 stimulus checks for homeowners? 2) The host describes the collapse of the financial markets in an interesting way (basically a night out where you end up losing all your money, except in this case you don't even get the night out). How could the collapse of the banking sector and the crash of the stock market (a crash of financial assets) cause a recession (which is a decrease in output and rising unemployment)? 3) At the end of the clip you see President Bush reassure everyone that the US is fine! Just fine! Even as the economy was basically collapsing. Why do you think he did that? (Remember that is wasn't so he could get reelected, because his two terms would be up that year, and his vice president wasn't even running. There is actually a good economic reason for doing so).