1、UNIT UNIT 10 10 Economic CrisisEconomic Crisis CONTENTS Teaching Aims Text A Text B Supplementary ReadingTEACHING AIMSAfter studying this unit,you are required to1.Have a general idea of the Economic Crisis.2.Understand the influence of the US subprime mortgage crisis.3.Master the difficult words an
2、d expressions.Text A US subprime mortgage crisisQUESTIONS1.How long do you think the subprime mortgage crisis will last?2.How does the subprime mortgage crisis affect the average American?3.Can you give some solutions to the subprime mortgage crisis?TEXT A Preview Beginning in late 2006,the US subpr
3、ime mortgage industry entered what many observers have begun to refer to as a meltdown.A steep rise in the rate of subprime mortgage defaults and foreclosures has caused more than 100 subprime mortgage lenders to fail or file for bankruptcy,most prominently New Century Financial Corporation,previous
4、ly the nations second biggest subprime lender.The failure of these companies has caused prices in the$6.5 trillion mortgage backed securities market to collapse,threatening broader impacts on the US housing market and economy as a whole.The crisis is ongoing and has received considerable attention f
5、rom the US media and from lawmakers during the first half of 2007.TEXT A PreviewTEXT A Reading Comprehension Read the following sentences and decide whether they are true（T)or false（F)1.The failure of these companies has caused prices in the$6.5 billion mortgage backed securities market to collapse,
6、threatening broader impacts on the US housing market and economy as a whole.()F 2.Tranches of sub-prime debts were repackaged by banks and trading houses into attractive-looking investment vehicles and securities that were snapped up by banks,traders and hedge funds on the US,European and Asian mark
7、ets.Thus when the crisis hit the subprime mortgage industry,those who bought into the market suddenly found their investments near-valueless-or impossible to accurately value.()TTEXT A Reading Comprehension 3 Observers of the meltdown have cast blame widely.Some have highlighted the practices of sub
8、prime lenders and the lack of effective government oversight.()TEXT A Reading Comprehension TTEXT A Reading Comprehension 4 Many accounts of the crisis also highlight the role of falling home prices since 2006.()5 Some economists,including Federal Reserve Board chairman Alan Greenspan in March 2007,
9、expected subprime-mortgage defaults to cause problems for the economy,especially so if US home prices fell.()FFTEXT A Notes 1.UCLA：University of California,Los Angeles 2.The NASDAQ Stock Market:also known as the NASDAQ,is an American stock exchange.NASDAQ originally stood for National Association of
10、 Securities Dealers Automated Quotations,but the exchanges official stance is that the acronym is obsolete.It is the largest electronic screen-based equity securities trading market in the United States and fourth largest by market capitalization in the world.With approximately 3,700 companies and c
11、orporations,it has more trading volume than any other stock exchange in the world.TEXT A Notes 3.Dow Jones Dow Jones Indexes(DJI):was formed in 1997 as an entity within Dow Jones&Co.It produces,maintains,licenses and markets indexes as benchmarks and as the basis of investible products such as excha
12、nge traded funds(ETFs),mutual funds and structured products.The company currently has employees in 14 cities worldwide,including Princeton,NJ,New York,Boston,Chicago,Los Angeles,London,Frankfurt,Singapore,Hong Kong,Beijing,Mexico City,So Paulo,Santiago and Dubai(its latest office).Dow Jones is owned
13、 by News Corp.4.The Federal Housing Administration(FHA):is a United States government agency created as part of the National Housing Act of 1934.The goals of this organization are:to improve housing standards and conditions;to provide an adequate home financing system through insurance of mortgage l
14、oans;and to stabilize the mortgage market.TEXT A NotesTEXT A New Words and Expressions:1.subprime sbpraim adj.次级的；准最低贷款利率的Subprime mortgages are loans to people who may not have enough money to repay them.次级抵押贷款是指一种贷款人可能没有足够钱来偿还的贷款。2.mortgage m:id vt.抵押n.抵押My fathers business is failing;hes mortgage
15、d all his assets so as to save it.我父亲的企业在亏损，他抵押了所有资产试图挽救它。TEXT A New Words and Expressions:3.meltdown meltdaun n.美俚灾难；彻底垮台；熔化；暴跌Slide into a theater to watch Ice Age 2:The Meltdown this April.今年四月，请您一路滑进戏院，好好欣赏冰原历险记2。4.tranche tr:n n.（国际货币基金组织贷款划分的）部分；一期款项After which all other quantities will be cal
16、culated as per Contract tranche size agreed to by both parties.之后其余全部数量将有计划地按照双方同意的合约份额规模进行。TEXT A New Words and Expressions:5.reined in 放慢；支配,控制；控制,放慢；控制You must learn to rein in your temper.你必须学会控制你的脾气。6.inflate infleit vt.使充气；使通货膨胀vi.膨胀；充气A few bidders inflated the prices on purpose.几个投标人故意抬高价钱。T
17、EXT A New Words and Expressions:7.highlight hailait vt.突出；强调；使显著；加亮 n.最精彩的部分；最重要的事情；加亮区His remarks highlighted his own function.他的讲话突出了他个人的作用。8.testimony testimni n.证词，证言；证据I think that is testimony of exist.我以为那是存在过的证据。9.localized luklaizdadj.限局性的，局部的v.使地方化；定位；局限（localise的过去分词）Their interest locali
18、zed on the development of this new drug.他们的兴趣集中在这种新药的研制开发上。10.snapped up 抢购，匆匆吃下，抢先弄到手；争购，抢购；抢购；迅速His statement was snapped up by the chairman.会议主席打断了他的发言。TEXT A New Words and Expressions:TEXT A Assignment Finish the rest of exercises of Text APreview Text B Text B Dismal science-Paul Krugmans Londo
19、n lecturesQUESTIONS1.Do you think that the Economics is a Dismal science?2.Do you know Paul Krugman?3.Do you think that the Economic recovery will come soon?TEXT B Preview The London School of Economics was once so popular among young American scholars that British students used to joke that LSE sto
20、od for“Lets See Europe”.A distinguished sightseer,Paul Krugman,returned to the LSE on June 8th to give the annual Lionel Robbins memorial lectures.Mr Krugman,who gave the Robbins lectures 21 years ago,tried to answer two big questions in the course of his three talks.Why did economists not foresee c
21、alamity?And how will the world economy climb out of recession?TEXT B Reading Comprehension Read the following sentences and decide whether they are true（T)or false（F)1.The London School of Economics was once so popular among young American scholars that British students used to joke that LSE stood f
22、or“Lets See Europe”.()2.The shadow banking system was not as important to the economy as the ordinary kind,but was far more vulnerable.()FT3.The excess borrowing that did for shadow banks threatens consumers,too.They are scrambling to save more as house prices plunge.()4.If zero interest rates can n
23、ot get consumers to spend,then governments must spend instead.()5.As for the economy,the road back to health will not be long and painful.()TEXT B Reading Comprehension TTFTEXT B Notes1.The shadow banking system:or the shadow financial system consists of non-bank financial institutions that play an
24、increasingly critical role in lending businesses the money necessary to operate.TEXT B Notes2.John Maynard Keynes:was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics,as well as the economic policies of governments.Keyness influence waned in t
25、he 1970s,partly as a result of problems that began to afflict the Anglo-American economies from the start of the decade,and partly because of critiques from Milton Friedman and other economists who were pessimistic about the ability of governments to regulate the business cycle with fiscal policy.Ho
26、wever,the advent of the global financial crisis in 2007 has caused a resurgence in Keynesian thought.Keynesian economics has provided the theoretical underpinning for the economic policies of President Barack Obama of the United States,former Prime Minister Gordon Brown of the United Kingdom,and oth
27、er global leaders to ease the late 2000s economic recession.TEXT B New Words and Expressions:1.calamity klmti n.灾难；不幸事件This is your sin and your calamity!这是您的罪孽和您的灾难！2.recession risen n.衰退；不景气；后退；凹处One reason is the recession.原因之一是经济衰退。TEXT B New Words and Expressions:3.bubble bbl n.气泡，泡沫，泡状物；透明圆形罩，
28、圆形顶vi.沸腾，冒泡；发出气泡声vt.使冒泡；滔滔不绝地说A fountain bubbled at the hotel gate.旅馆大门口泉水汩汩地流着。4.obvious bvis adj.明显的；显著的；平淡无奇的In this example,the contradiction is obvious.在这个例子中，矛盾是明显的。TEXT B New Words and Expressions:5.burst b:st vi.爆发，突发；爆炸vt.爆发，突发；爆炸n.爆发，突发；爆炸Her dress is so tight the seams are bursting.她的外衣这么
29、紧身，缝口绽开了。6.marble m:bl n.大理石；大理石制品；弹珠adj.大理石的；冷酷无情的 Marble and Stone Working Machinery and Equipments.大理石和石头工作机器和设备。7.asset set n.资产；优点；有用的东西；有利条件It is a huge asset.这是一个巨大的财富。TEXT B Assignment Finish the exercises of Text BPreview supplementing reading.Supplementary ReadingFatalism vs.Fetishism-How
30、will developing countries grow after the financial crisis?Supplementary Reading Preview FORTY years ago Singapore,now home to the worlds busiest port,was a forlorn outpost still garrisoned by the British.In 1961 South Korea was less industrialized than the communist north and dependent on American aid.In 1978 Chinas exports amounted to less than 5%of its GDP.These countries,and many of their neighbours,have since traded their way out of poverty.Given their success,it is easy to forget that some development economists were once prey to“export fatalism”.
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