Spring Break
Panel addresses financial crisis
by Reina Guerrero
Staff writer
News | 10/7/08
Posted online at 5:33 AM EST on 10/7/08
/ Last updated at 3:19 AM EST on 10/7/08
Additionally, Lynch said, "I identified the significant constraints that either candidate would face in light of what was currently being proposed. The $700 billion rescue packet is going to impose a significant budget constraint on whoever is the next president."
Lynch said that "additional issues will arise for the next president, including worse conditions in the labor market to our exports weakening and loss of investments. All of this will shape the economic climate and affect the revenues that are available to a president to spend on programs."
Magid, the former managing director and senior vice president at Bank of America, compared the economy to a "house of cards," explaining that the economy is based on credit. Magid said this is the "worst financial crisis since the [Great] Depression."
In his presentation, Magid explained that if foreign nations lose interest in the American dollar, it will exacerbate the current economic crisis. He stressed the importance of the United States' improving its relationship with emerging countries, since the U.S. is "no longer a superpower" and that the U.S. is going to have to "change its diplomatic tone."
David Warsh, an economic journalist, led the question-and-answer portion of the program. Warsh posed the question to the deans regarding the impact of the economic crisis on Massachusetts and the nation as a whole. Dean Lynch said that Massachusetts has not been heavily affected by the economic crisis because of the state's investment in higher education and in the life sciences. The forum concluded with another question-and-answer session involving the students in the audience.
Lynch said that "additional issues will arise for the next president, including worse conditions in the labor market to our exports weakening and loss of investments. All of this will shape the economic climate and affect the revenues that are available to a president to spend on programs."
Magid, the former managing director and senior vice president at Bank of America, compared the economy to a "house of cards," explaining that the economy is based on credit. Magid said this is the "worst financial crisis since the [Great] Depression."
In his presentation, Magid explained that if foreign nations lose interest in the American dollar, it will exacerbate the current economic crisis. He stressed the importance of the United States' improving its relationship with emerging countries, since the U.S. is "no longer a superpower" and that the U.S. is going to have to "change its diplomatic tone."
David Warsh, an economic journalist, led the question-and-answer portion of the program. Warsh posed the question to the deans regarding the impact of the economic crisis on Massachusetts and the nation as a whole. Dean Lynch said that Massachusetts has not been heavily affected by the economic crisis because of the state's investment in higher education and in the life sciences. The forum concluded with another question-and-answer session involving the students in the audience.
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