`` Safe As Houses `` And A Financial History Of The World

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Niall Ferguson clearly illustrates several economic principles and findings that are also illustrated in our Macroeconomics class. These concepts are seen in Episodes 5 and 6 of The Ascent of Money of money series. “Safe as Houses” and “A Financial History of The World” are both episodes that Ferguson uses to emphasize concepts that are also seen in our Macroeconomics. Some of the concepts that are seen in these episodes are property ownership and the finances that come with the ownership of property. Because of these two episodes it is easy for me to understand these concepts.
In episode 5, “Safe as Houses,” Ferguson explains the business behind the finances of houses and properties. The video goes back to explain how the Great
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All of this led to an increase in the number of Americans that can own their own homes. Government rigged the housing market to encourage Americans to become property owners. The government then started to underwrite the property owning idea, and that is what brought lenders and buyers together. The episode then goes on to describe a wall that was built because the government required it to be built. On one side of the wall it was mostly white residents. That was the side that was aloud to receive loans from the government. On the other side was a neighborhood with mostly black residents and those residents were not aloud to receive loans from the government for mortgage because “African Americans were regarded as fundamentally uncredit worthy” (Cwhite2000. Safe as Houses). This incident separated the city by not only credit, but by race. Those that were in the black part of town had to pay a significantly higher interest rate than those that lived in the white part of town. These two types of borrowers were later listed as being “prime” or “subprime.” During this time, blacks were excluded from being involved in the new property owning society. This exclusion caused an increase in urban, racial violence. The violence was mostly against property due to this decision. Although there was violence caused by this decision that was made, property ownership is still a considerably good investment.
In episode 6 of The Ascent of Money series,
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