REPLY SD model of the US Economy (SD6919)

[SDMAIL Sheldon Friedman]

Posted by  "Sheldon Friedman" <sheldon.friedman at comcast.net>

>From Shelly Friedman
 
In response to Carl Betterton- I use a model of the stock market crash 
of 1929 in my class to get students started on the concept of system 
dymanics. I had presented this at a pre-confernece meeting at Fordham 
University, prior to the New York Meeting, several yaeers ago.  The 
model is small , but includes things like interest rates, margin calls, 
buyers and sellers of stocks, etc. It does not model the economy, but 
all you need to do is to change the names from margin to subprime loans, 
interest rates are at the center, and replace with stocks with housing. 
Its the same set of "family" effects. Unfortunately, not being into 
finances, I never knew that there was a "subprime" market. If I had,  I 
would have taken action before the problem hit the fan.
Shelly Friedman
 
St. Joseph College
Posted by  "Sheldon Friedman" <sheldon.friedman at comcast.net>
posting date  Sat, 12 Apr 2008 10:00:00 -0400