Spring Break
Terry professors ponder financial crisis
U.S. 'in first inning' of recession
CAREY O'NEIL
Issue date: 10/9/08 Section: News
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"I guess this is a sign we're going to talk about some pretty important events," said Christopher Cornwell, department head of economics, as he addressed more than 300 people during Terry College's "What Just Happened?" panel discussion.
"We're only in the first inning," he said about the economy, but people should start planning for the future.
William D. Lastrapes, a professor of economics, compared past economic woes in the U.S. to the present situation.
"The '90s had a lot of money floating around," he said. "Lending standards fell. In the summer of 2006, house prices declined. In 2007, people began realizing there were problems and pulled out of the market, increasing the cost of finance."
"We are currently in a recession," he said, pointing to job loss and housing declines. "No one's predicting unemployment rates of 25 percent for four years like in the Great Depression, but figures are similar to the recession of the early '80s."
James B. Kau, a legal studies and real estate professor, said he thinks government regulation is to blame.
"The last thing we should have is more regulation. What the credit market is doing ... is perfectly rational. What the government is doing is very strange."
People on Wall Street would get around any government regulations, and by piling on more regulation "we're just drawing on the poison," he said.
Kau, who worked for Freddie Mac and Fannie Mae, said he foresaw short term problems.
"Everyone is going to suffer, including a lot of innocent people," he said, because of rising inflation.
But some students said they were still optimistic about the job market.
"I can't do anything about it, so there's no sense in worrying," said Timothy Orkins, a senior from Clarkesville.
Lastrapes agreed.
"You guys who are 18 to 20 years old will have no problem in the long term. Things will get better. I would be optimistic."
Viewing Comments 1 - 9 of 11
Whatever
posted 10/09/08 @ 9:16 AM EST
"The last thing we should have is more regulation."
This is ideological claptrap.
Fannie Mae
posted 10/09/08 @ 10:00 AM EST
Be a CEO of AIG For 3 months and get $18 million dollars....CEO of Fannie Mae, large severance package...Why the heck aren't these CEO held responsible for not managing risk correctly and putting shareholder and now taxpayers money down the drain. (Continued…)
zaid
posted 10/09/08 @ 5:44 PM EST
"
James B. Kau, a legal studies and real estate professor, said he thinks government regulation is to blame.
"The last thing we should have is more regulation. (Continued…)
JT
posted 10/09/08 @ 11:00 PM EST
Wow, Zaid, you really are the epitome of an ignoramus who belongs in a Econ 2105. Just shut up and stop pretending like you understanding anything about economics or finance. (Continued…)
zaid
posted 10/09/08 @ 11:23 PM EST
"instead of advancing the ideological manure you get from the liberal operatives in the media."
Would you please drop the persecution complex? The media cheered on the deregulating of the '90s. (Continued…)
Donkey Alumnus
posted 10/10/08 @ 1:31 AM EST
This story makes me want to puke! I recently lost my job working for a real estate developer in Atlanta. We are not in a recession, we are in a f**king g*d damn depression!!!
Have you look at the LIBOR or DOW recently? Wake up UGA professors!!! I am glad I graduated from Terry but the professors saying this BS are complete f**king idiots. (Continued…)
jaron
posted 10/10/08 @ 10:47 AM EST
Donkey, your chosen field may be in a depression, but your industry is partly responsible. Overdevelop much?
Donkey Alumnus
posted 10/10/08 @ 7:13 PM EST
Depends on the product type you are developing. Market fundamentals suck : cap rates up, lending terms are tight, construction costs are up, growth & market fundamentals suck, etc. (Continued…)
slots gambling online
posted 1/19/09 @ 1:06 AM EST
At the time of financial crises we need to come together united and try to solve the problems which are responsible for such a hazard. We need to overcome it. (Continued…)
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