NY Fed 2008: A Global Meltdown
By Samantha Wolf and Sahej Verma
Want to experience a day in the life of a banker? Maybe sport a Rolex Daytona and drive a shiny new Maserati? You just might get your chance this April at LAMUN.
It’s time to talk finance.
The LAMUN crisis committee for the Global Financial Meltdown of 2008 centers around the emergency meetings held after the infamous stock market crash. It’s going to be number-oriented, tailored to the interests of budding economists or anyone else interested in finance.
The committee is led by Shankar Chelliah and Justin Schmerler, who are excited to bring you an unconventional crisis committee. “We enjoy out-of-the-box topics. What we’re looking forward to in this committee particularly is how delegates who are normally used to scenarios that involve war and conflict will respond to crisis updates on stock crashes,” explains Chelliah.
“We both enjoy the intersection of politics and economic financial issues,” adds Schmerler. You can expect just that: finance, business, economics and ethics will collide as delegates tackle the largest problem the global market has ever faced.
Due to its impacted nature, this crisis committee is extremely complex. “The special thing about our topic is that it was such a volatile period, and any of the decisions made in this room could profoundly change the course of history,” states Schmerler. “That’s how consequential this week was.” Since any of the decisions you make will affect the entire global economy, you are advised to study up and be prepared for a tumultuous time.
As delegates, you will be expected to understand a level of technicality that is uncommon for most LAMUN committees. While typical committees have assigned countries or specific people represented, the NY Fed has less character guidelines. Schmerler puts it best: “You’re the richest guy in the world. Do whatever you want in crisis.”
That being said, nothing is off-limits. The chairs have prepared for every possible scenario, and they are excited to see how committee plays out. Chelliah relates, “although our committee is based on events that occurred in 2008, our crisis team has no intention of making the committee run along the same timeline, and we are excited to see delegates react to the curveballs we throw at them.”
Note that the economy is also affected greatly by social and political factors. In fact, the 2008 political situation played a huge part in the aftermath. This can be related to today’s politics, where economic downturn is still a hot-button issue.
After the crash, regulations were put in place to prevent something this disastrous from happening again. These laws are in place today, and they still hold significance. However, Chelliah comments, “there is a high possibility that the current administration will try to repeal, or at least greatly amend, the policies that were put in place 8 years ago.”
The specific significance of the Fed crisis is cultivated from years of deregulation, leading up to the catastrophic crash in 2008. The complications of this committee will undoubtedly reflect modern-day issues, and it will be important to draw parallels to know how to address the state of our current financial world.“It caused the entire global economy to re-evaluate everything we base our political economy on,” describes Schmerler.
“A lot of people have forgotten about how terrible that situation was,” continues Chelliah. You must remember that your decisions will affect workers wages, factory regulations, and other everyday aspects of the workforce.
This emergency meeting simulation will yield you with great power, but use it wisely. You just might rewrite the course of history.