137-461: Saginaw ( / ˈ s æ ɡ ɪ n ɔː / ) is a city in and the seat of Saginaw County, Michigan , United States. It had a population of 44,202 at the 2020 census . Located along the Saginaw River , Saginaw is adjacent to Saginaw Charter Township and considered part of Greater Tri-Cities region of Central Michigan . The Saginaw metropolitan area had a population of 190,124 in 2020, while
274-449: A currency crisis or balance of payments crisis . When a country fails to pay back its sovereign debt , this is called a sovereign default . While devaluation and default could both be voluntary decisions of the government, they are often perceived to be the involuntary results of a change in investor sentiment that leads to a sudden stop in capital inflows or a sudden increase in capital flight . Several currencies that formed part of
411-470: A 2010 population of 200,169. This is a decrease of -9,870 people from the 2000 United States Census . Overall, the county had a -4.7% growth rate during this ten-year period. In 2010 there were 79,011 households and 52,287 families in the county. The population density was 250.2 per square mile (96.6 per square kilometer). There were 86,844 housing units at an average density of 108.5 per square mile (41.9 per square kilometer). The racial and ethnic makeup of
548-460: A bank suffers a sudden rush of withdrawals by depositors, this is called a bank run . Since banks lend out most of the cash they receive in deposits (see fractional-reserve banking ), it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run renders the bank insolvent, causing customers to lose their deposits, to the extent that they are not covered by deposit insurance. An event in which bank runs are widespread
685-420: A bubble is the presence of buyers who purchase an asset based solely on the expectation that they can later resell it at a higher price, rather than calculating the income it will generate in the future. If there is a bubble, there is also a risk of a crash in asset prices: market participants will go on buying only as long as they expect others to buy, and when many decide to sell the price will fall. However, it
822-513: A challenge to the epistemic norms typically assumed within financial economics and all of empirical finance. The possibility of financial crises being beyond the predictive reach of causality is discussed further within Epistemology of finance . Leverage , which means borrowing to finance investments, is frequently cited as a contributor to financial crises. When a financial institution (or an individual) only invests its own money, it can, in
959-517: A consistent feature of both economic (and other applied finance disciplines) is the obvious inability to predict and avert financial crises. This realization raises the question as to what is known and also capable of being known (i.e. the epistemology ) within economics and applied finance. It has been argued that the assumptions of unique, well-defined causal chains being present in economic thinking, models and data, could, in part, explain why financial crises are often inherent and unavoidable. When
1096-399: A few agents encourage others to buy too, not because the true value of the asset increases when many buy (which is called "strategic complementarity"), but because investors come to believe the true asset value is high when they observe others buying. In "herding" models, it is assumed that investors are fully rational, but only have partial information about the economy. In these models, when
1233-445: A few investors buy some type of asset, this reveals that they have some positive information about that asset, which increases the rational incentive of others to buy the asset too. Even though this is a fully rational decision, it may sometimes lead to mistakenly high asset values (implying, eventually, a crash) since the first investors may, by chance, have been mistaken. Herding models, based on Complexity Science , indicate that it
1370-404: A financial crisis. To facilitate his analysis, Minsky defines three approaches that financing firms may choose, according to their tolerance of risk. They are hedge finance, speculative finance, and Ponzi finance. Ponzi finance leads to the most fragility. Financial fragility levels move together with the business cycle . After a recession , firms have lost much financing and choose only hedge,
1507-475: A fixed exchange rate may be stable for a long period of time, but will collapse suddenly in an avalanche of currency sales in response to a sufficient deterioration of government finances or underlying economic conditions. According to some theories, positive feedback implies that the economy can have more than one equilibrium . There may be an equilibrium in which market participants invest heavily in asset markets because they expect assets to be valuable. This
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#17327724342791644-405: A large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics , and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles , currency crises , and sovereign defaults . Financial crises directly result in
1781-411: A loss of paper wealth but do not necessarily result in significant changes in the real economy (for example, the crisis resulting from the famous tulip mania bubble in the 17th century). Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus and financial crises continue to occur from time to time. It is apparent however that
1918-469: A mainly ceremonial executive mayor who was to have fairly weak powers. This was to be, as numerous other elected officials, along with elected or appointed boards, controlled much of the administrative and executive functions of government. The efficient and cohesive functioning of the Saginaw city government also was constrained by remaining rivalries between residents, business owners, and politicians from
2055-508: A male householder with no wife present, and 38.1% were non-families. 32.1% of all households were made up of individuals, and 9.5% had someone living alone who was 65 years of age or older. The average household size was 2.52 and the average family size was 3.19. The median age in the city was 33.5 years. 28.4% of residents were under the age of 18; 10.6% were between the ages of 18 and 24; 25.1% were from 25 to 44; 25% were from 45 to 64; and 10.9% were 65 years of age or older. The gender makeup of
2192-528: A massive renovation. The Celebration Square area of downtown boasts an authentic Japanese Tea House, the only one of its kind in Michigan. The Andersen Enrichment Center and Rose Gardens are another attraction in Celebration Square offering ongoing art exhibits, a summer jazz concert series, and winter and summer art fairs. Numerous other arts and cultural organizations serve the community including
2329-688: A means for easy travel for the Native American population among numerous settlements and hunting areas, as well as access to Lake Huron. Saginaw was also a frequent meeting location for councils of the Ojibwe, Pottawatomi, and Ottawa—the Three Fires of the Anishnabeg. What is today Saginaw County was inhabited by the Ojibwe at the time of the arrival of Euro-Americans. The Ojibwe were still
2466-485: A new Michigan state constitution was adopted. The new Michigan state constitution mandated increased home rule powers for local units of government, and the Michigan state legislature enacted the Home Rule Cities Act in 1909. Under this statute , cities were permitted to frame and adopt their own city charters and were given great flexibility in structuring their local governments. The government, under
2603-600: A new owner, who made another plat in February 1837. However, the financial crisis of the Panic of 1837 dampened interest in purchasing properties. After selling only 58 of the 407 plots, the remainder was sold again in 1841. Saginaw was the location of the annual government payment to the Ojibwe and Ottawa of the area, starting in the 1830s. This also attracted many French-Canadian and Euro-American merchants, primarily involved in selling watered down whiskey. The main cause for
2740-484: A policy of "No annexation, no water," Saginaw chose to sell water to neighboring communities under long-term contracts. This allowed the townships to further develop at the expense of the city, the limits of which changed little after consolidation in 1889–90. The unintended consequence of this choice was that Saginaw's population stopped growing, new housing development focused on the suburban townships, and businesses eventually followed. Manufacturing in Saginaw declined in
2877-455: A population decline. Modern economic development is focused on comparative advantages in innovation, clean energy, and continued manufacturing exports. However, the city continues to have a higher proportion of manufacturing jobs than the U.S. average. The name Saginaw is widely believed to mean "where the Sauk were" in Ojibwe , from Sace-nong or Sak-e-nong (Sauk Town), due to the belief that
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#17327724342793014-519: A port for Great Lakes vessels. What is now the city of Saginaw resulted from the consolidation of the cities of East Saginaw and Saginaw City (West Side) in 1889. In 1819, Lewis Cass , in the Treaty of Saginaw , negotiated the prerogative for the United States to own and settle the area with the leaders of the Ojibwe . In 1820, Campau attempted to expand across to the east bank of the river but
3151-458: A program to purchase unwanted, abandoned structures from their owners, which would be then added to a list of homes to tear down. Officials estimate that there were nearly 1,200 homes within the city limits worthy of demolition. Efforts to revitalize downtown increased in 2013. CBS television executive and Saginaw native David Strouse announced an investment plan in late 2013 that would save nearly an entire block of buildings slated for demolition at
3288-618: A result of its high rate of unemployment. The crime rate has been a major area of concern for the community. Saginaw's economic conditions, compounded by the Great Recession , are a significant area of concern for the city's residents. The decline in manufacturing jobs has resulted in higher than average rates of unemployment. Property values in the city have declined, decreasing the amount the city government collects in property taxes. Unemployment in Saginaw peaked in July 2009, according to
3425-701: A risk of sovereign default due to fluctuations in exchange rates. Many analyses of financial crises emphasize the role of investment mistakes caused by lack of knowledge or the imperfections of human reasoning. Behavioural finance studies errors in economic and quantitative reasoning. Psychologist Torbjorn K A Eliazon has also analyzed failures of economic reasoning in his concept of 'œcopathy'. Historians, notably Charles P. Kindleberger , have pointed out that crises often follow soon after major financial or technical innovations that present investors with new types of financial opportunities, which he called "displacements" of investors' expectations. Early examples include
3562-438: A single city. Prior to this consolidation, the nearby village of Salina had already become part of East Saginaw. The consolidation of Saginaw became effective with the election of officers on March 12, 1890. The provisions of the city charter were established by the same act of the legislature that provided for the consolidation. Saginaw was to be governed by a city council consisting of two aldermen elected from 21 wards and
3699-475: A single officer, the city manager , who was appointed by, and accountable to a city council of nine members elected as a group by the entire city at-large. The system was designed to address two principal issues with Saginaw's history of municipal government, the inefficiency and politics associated with having executive and administrative authority spread among many different officers and boards, and political rivalries and friction between various geographic areas of
3836-411: A situation when the participants in an exchange market come to recognize that a pegged exchange rate is about to fail, causing speculation against the peg that hastens the failure and forces a devaluation . A speculative bubble (also called a financial bubble or an economic bubble) exists in the event of large, sustained overpricing of some class of assets. One factor that frequently contributes to
3973-428: A small profit could be made with little or no capital. However, when interest rates changed and the incentive for the flow was removed or reversed sudden changes in capital flows could occur. The subjects of investment might be starved of cash possibly becoming insolvent and creating a credit crunch and the loaning banks would be left with defaulting investors leading to a banking crisis. As Charles Read has pointed out,
4110-480: A trading post on the west bank of the Saginaw River. Shortly thereafter the United States established Fort Saginaw. Campau's trading post was also inhabited by Metis. During Michigan's territorial period, a county and township government were organized at Saginaw. Growth of the settlement was fueled rapidly during the 19th century by the lumber industry. Saginaw was the site of numerous sawmills and served as
4247-417: A weighted average of monthly percentage depreciations in the exchange rate and monthly percentage declines in exchange reserves exceeds its mean by more than three standard deviations. Frankel and Rose (1996) define a currency crisis as a nominal depreciation of a currency of at least 25% but it is also defined as at least a 10% increase in the rate of depreciation. In general, a currency crisis can be defined as
Saginaw, Michigan - Misplaced Pages Continue
4384-550: Is Saginaw . The county was created by September 10, 1822, and was fully organized on February 9, 1835. The etymology of the county's name is uncertain. It may be derived from Sace-nong or Sak-e-nong (English: Sauk land ), as the Sauk (French: Sac ) tribe is believed by some to have once lived there. A more likely possibility is that it comes from Ojibwe words meaning "place of the outlet" – sag (English: an opening ) and ong (English: place of ). See List of Michigan county name etymologies . Saginaw County comprises
4521-534: Is also home to the Theodore Roethke Home Museum, a National Literary Landmark. The museum honors one of America's greatest 20th-century poets, who was born and raised in Saginaw. Saginaw County, Michigan Saginaw County , officially the County of Saginaw , is a county located in the U.S. state of Michigan . As of the 2020 Census , the population was 190,124. The county seat
4658-677: Is available from MBS International Airport near Freeland, Michigan and Bishop International Airport in Flint, Michigan . Harry Browne Airport in Buena Vista Charter Township also serves the region. The Saginaw River is maintained by the Corps of Engineers , and from time to time, dredged to maintain a shipping channel down the river to Bay City , and from there, to the Great Lakes . Most of Saginaw County
4795-613: Is based on the work of Thomas Tooke , Thomas Attwood , Henry Thornton , William Jevons and a number of bankers opposed to the Bank Charter Act 1844 . Starting at a time when short-term interest rates are low, frustration builds up among investors who search for a better yield in countries and locations with higher rates, leading to increased capital flows to countries with higher rates. Internally, short-term rates rise above long-term rates causing failures where borrowing at short term rates has been used to invest long-term where
4932-528: Is called a recession . An especially prolonged or severe recession may be called a depression , while a long period of slow but not necessarily negative growth is sometimes called economic stagnation . Some economists argue that many recessions have been caused in large part by financial crises. One important example is the Great Depression , which was preceded in many countries by bank runs and stock market crashes. The subprime mortgage crisis and
5069-576: Is called a systemic banking crisis or banking panic . Examples of bank runs include the run on the Bank of the United States in 1931 and the run on Northern Rock in 2007. Banking crises generally occur after periods of risky lending and resulting loan defaults. A currency crisis, also called a devaluation crisis, is normally considered as part of a financial crisis. Kaminsky et al. (1998), for instance, define currency crises as occurring when
5206-610: Is considered to be one of the ten most authentic Tea Houses outside the country of Japan. The site is open from April through October and offers traditional tea ceremonies by appointment, and on the second Saturday of each month. Each year in September a Japan Festival is held in the garden, featuring authentic Japanese singers, dancers, and performers, and offering demonstrations of Japanese Culture to those in attendance, including flower arranging, calligraphy, origami, and authentic Japanese cuisine, such as sushi and other dishes. The city
5343-485: Is difficult to predict whether an asset's price actually equals its fundamental value, so it is hard to detect bubbles reliably. Some economists insist that bubbles never or almost never occur. Well-known examples of bubbles (or purported bubbles) and crashes in stock prices and other asset prices include the 17th century Dutch tulip mania , the 18th century South Sea Bubble , the Wall Street Crash of 1929 ,
5480-509: Is making sure institutions have sufficient assets to meet their contractual obligations, through reserve requirements , capital requirements , and other limits on leverage . Some financial crises have been blamed on insufficient regulation, and have led to changes in regulation in order to avoid a repeat. For example, the former Managing Director of the International Monetary Fund , Dominique Strauss-Kahn , has blamed
5617-501: Is scarce, potentially aggravating a financial crisis. International regulatory convergence has been interpreted in terms of regulatory herding, deepening market herding (discussed above) and so increasing systemic risk. From this perspective, maintaining diverse regulatory regimes would be a safeguard. Fraud has played a role in the collapse of some financial institutions, when companies have attracted depositors with misleading claims about their investment strategies, or have embezzled
Saginaw, Michigan - Misplaced Pages Continue
5754-497: Is served by the Saginaw Intermediate School District (SISD), which coordinates the efforts of local boards of education, but has no operating authority over schools. Local school boards in Michigan retain great autonomy over day-to-day operations. A number of charter schools also operate in the county. School districts in the county (including any with any territory, no matter how slight, even if
5891-571: Is taxed by government and returned to the mass of people in the form of welfare, family benefits and health and education spending; and secondly, the proportion of the population who are workers rather than investors/business owners. Given the extraordinary capital expenditure required to enter modern economic sectors like airline transport, the military industry, or chemical production, these sectors are extremely difficult for new businesses to enter and are being concentrated in fewer and fewer hands. Empirical and econometric research continues especially in
6028-663: Is the controlling regional body for the Catholic Church . The county government operates the jail , maintains rural roads, operates the major local courts, keeps files of deeds and mortgages, maintains vital records , administers public health regulations, and participates with the state in the provision of welfare and other social services. The county board of commissioners controls the budget but has only limited authority to make laws or ordinances. In Michigan, most local government functions — police and fire, building and zoning, tax assessment, street maintenance, etc. — are
6165-461: Is the internal structure of the market, not external influences, which is primarily responsible for crashes. In "adaptive learning" or "adaptive expectations" models, investors are assumed to be imperfectly rational, basing their reasoning only on recent experience. In such models, if the price of a given asset rises for some period of time, investors may begin to believe that its price always rises, which increases their tendency to buy and thus drives
6302-658: Is the type of argument underlying Diamond and Dybvig's model of bank runs , in which savers withdraw their assets from the bank because they expect others to withdraw too. Likewise, in Obstfeld's model of currency crises , when economic conditions are neither too bad nor too good, there are two possible outcomes: speculators may or may not decide to attack the currency depending on what they expect other speculators to do. A variety of models have been developed in which asset values may spiral excessively up or down as investors learn from each other. In these models, asset purchases by
6439-722: Is used to host private and public events throughout the year. These events include Hollyday Art Fair, Art & Garden Festival, the SAWA Fall Watercolor Exhibition, Jazz in the Rose Garden and Art @ the Andersen and a World AIDS Day service The garden includes a fountain with a sculpture by Marshall Fredericks . The Saginaw Art Museum hosts temporary exhibitions and permanent collections. The museum also houses The John and Michele Bueker Research Library and Archives of Michigan Art. The museum originated as
6576-538: The American Fur Company was operating a post at Saginaw. Few plots were sold and after the U.S. Army pulled out, the town languished for most of the following decade. The town was re-platted in December 1830, comprising riverfront from Cass Street, on the south, to Harrison Street, and north to Jefferson. These plots sold slowly. By 1835, only 24 plots had been sold and the remainder were transferred to
6713-626: The European Exchange Rate Mechanism suffered crises in 1992–93 and were forced to devalue or withdraw from the mechanism. Another round of currency crises took place in Asia in 1997–98 . Many Latin American countries defaulted on their debt in the early 1980s. The 1998 Russian financial crisis resulted in a devaluation of the ruble and default on Russian government bonds. Negative GDP growth lasting two or more quarters
6850-454: The Japanese property bubble of the 1980s, and the crash of the United States housing bubble during 2006–2008. The 2000s sparked a real estate bubble where housing prices were increasing significantly as an asset good. When a country that maintains a fixed exchange rate is suddenly forced to devalue its currency due to accruing an unsustainable current account deficit, this is called
6987-523: The Saginaw Sting , an indoor football team. Downtown Saginaw has undergone a resurgence with locally-owned restaurants and coffee shops dotting the area. The downtown Saginaw area contains several office buildings from the late 19th century and early 20th century. They are located near the Saginaw Club, a social club founded in 1889. In December 2016 "The Gallery: Art For Saginaw" opened in
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#17327724342797124-614: The Saginaw-Saginaw Township North (Saginaw County), Midland ( Midland County ), and Bay City ( Bay County ) metropolitan areas, which had a combined population of 377,474 at the 2020 census . As of the census of 2010, there were 51,508 people, 19,799 households, and 12,252 families residing in the city (excludes townships). The population density was 2,970.5 inhabitants per square mile (1,146.9/km). There were 23,574 housing units at an average density of 1,359.5 per square mile (524.9/km). The racial makeup of
7261-519: The South Sea Bubble and Mississippi Bubble of 1720, which occurred when the notion of investment in shares of company stock was itself new and unfamiliar, and the Crash of 1929 , which followed the introduction of new electrical and transportation technologies. More recently, many financial crises followed changes in the investment environment brought about by financial deregulation , and
7398-532: The U.S. Census Bureau , the city has a total area of 18.10 square miles (46.88 km), of which, 17.34 square miles (44.91 km) is land and 0.76 square miles (1.97 km) is water. Saginaw lies on the Saginaw River , 15 miles (24 km) inland from the Saginaw Bay , an arm of Lake Huron . The city sits in the middle of the Saginaw Bay watershed, the largest in the state of Michigan. It includes
7535-546: The U.S. Census Bureau , the county has a total area of 816 square miles (2,110 km ), of which 800 square miles (2,100 km ) is land and 16 square miles (41 km ) (1.9%) is water. It is part of the Flint/Tri-Cities region of Mid-Michigan . The median elevation in Saginaw County, Michigan is 620 feet (190 m) above sea level. The 2010 United States Census indicates Saginaw County had
7672-664: The United States Department of the Treasury approving a grant to demolish vacant and abandoned properties via the Michigan State Housing Development Authority. The $ 100 million grant contained $ 11.2 million set aside for Saginaw, with Detroit receiving $ 52.3 million, Flint $ 20.1 million, Pontiac $ 3.7 million, and the final $ 2.5 million going to Grand Rapids . After the grant's approval, Saginaw city officials announced
7809-712: The financial crisis of 2007–2008 on 'regulatory failure to guard against excessive risk-taking in the financial system, especially in the US'. Likewise, the New York Times singled out the deregulation of credit default swaps as a cause of the crisis. However, excessive regulation has also been cited as a possible cause of financial crises. In particular, the Basel II Accord has been criticized for requiring banks to increase their capital when risks rise, which might cause them to decrease lending precisely when capital
7946-411: The stock market (" margin buying ") became increasingly common prior to the Wall Street Crash of 1929 . Another factor believed to contribute to financial crises is asset-liability mismatch , a situation in which the risks associated with an institution's debts and assets are not appropriately aligned. For example, commercial banks offer deposit accounts that can be withdrawn at any time, and they use
8083-422: The world systems theory and in the debate about Nikolai Kondratiev and the so-called 50-years Kondratiev waves . Major figures of world systems theory, like Andre Gunder Frank and Immanuel Wallerstein , consistently warned about the crash that the world economy is now facing. World systems scholars and Kondratiev cycle researchers always implied that Washington Consensus oriented economists never understood
8220-427: The 1889 charter, had continued to be inefficient and provided for much political infighting. In 1913, a new city charter was adopted with voter approval and which followed a commission form of city government that had gained in popular interest among various cities across the United States in the early 20th century. The new government consisted of five commissioners, each elected separately at-large , who served both as
8357-491: The 2008 subprime mortgage crisis ; government officials stated on 23 September 2008 that the FBI was looking into possible fraud by mortgage financing companies Fannie Mae and Freddie Mac , Lehman Brothers , and insurer American International Group . Likewise it has been argued that many financial companies failed in the recent crisis because their managers failed to carry out their fiduciary duties. Contagion refers to
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#17327724342798494-673: The Army thought possible, armor-piercing shells for anti-tank use, and more than half a million M1 carbine rifles for the US military during World War II, the "Gun Plant" that later became Steering Gear Plant 2. Saginaw Steering Gear's Plant 1 also began wartime production in 1941, concentrating on ball screws that would eventually be used in the wing flaps of the Boeing B-29 Superfortress . Malleable Iron converted its production of Armasteel from engine components to gun parts and tank treads, while Grey Iron specialized in
8631-597: The Bureau of Labor Statistics, standing at 23.5%. The unemployment rate dropped to 9.0% as of April 2015; crime has decreased as unemployment has decreased. Saginaw consistently ranks as having one of the highest crime rates in both Michigan and the United States at large. In 2020, Saginaw had a homicide rate of 50.2 per 100,000 people, narrowly surpassing Detroit's rate (49.7) and dwarfing the State and National Rates (7.6 and 6.5, respectively). Unemployment and population loss in
8768-632: The Jackson-Church-Wilcox Company began as a partnership in 1906 for producing steering gear under the "Jacox" brand. Jackson-Church-Wilcox was acquired by Buick in 1909, and as part of General Motors became the Jackson, Church and Wilcox Division, the first GM division devoted to parts production. In 1919 the Jacox division was merged with Saginaw Malleable Iron and Central Foundry into GM's Saginaw Products Company . This formed
8905-715: The Saginaw Arts & Enrichment Commission, Eddy Band, Holidays in the Heart of the City, River Junction Poets, Theodore Roethke House of Poetry, Riverside Film Festival, Lawn Chair Film Festival, Friday Night Live Concerts, River Junction Poets and Saginaw Area Watercolor Society. The Dow Event Center is home to the city's junior ice hockey team, the Saginaw Spirit of the Ontario Hockey League as well as
9042-486: The Saginaw River. Lumber production peaked by the early 1870s, but had virtually disappeared by the end of the 19th century. In addition to salt production, which experienced an eventual decline as well, growing industries, such as those supporting the area's agriculture and manufacturing, developed. On June 28, 1889, the Michigan state legislature passed Act 455 to consolidate the cities of Saginaw and East Saginaw into
9179-566: The Saginaw, MI Metropolitan Statistical Area and is included in the Saginaw-Midland-Bay City Combined Statistical Area , the 5th largest metropolitan area in Michigan. The name Saginaw is widely believed to mean "where the Sauk were" in Ojibwe , from Sace-nong or Sak-e-nong (Sauk Town), due to the belief that the Sauk once lived there. But it is more likely that the name means "place of
9316-409: The Sauk once lived there. But it is more likely that the name means "place of the outlet", from the Ojibwe sag (opening) and ong (place of). When Natives told Samuel de Champlain that the Sauk nation was on the western shore of Lake Michigan , Champlain mistakenly placed them on the western shore of Lake Huron . This mistake was copied on subsequent maps, and future references identified this as
9453-588: The Tri-Cities area had 377,474 residents. Established as a fort following the 1819 Treaty of Saginaw , Saginaw was a thriving lumber town in the 19th century. It was an important industrial city and manufacturing center throughout much of the 20th century due to its automobile and automotive parts production led by General Motors . As part of the Rust Belt , its industry and strong manufacturing presence declined, leading to increased unemployment, crime, and
9590-452: The United States entered World War II , Saginaw's industrial complex became directed towards military production. Turning its efforts to the production of munitions , ordnance and components for military vehicles made Saginaw a significant contributor to the Allies' victory. Saginaw was home to a production facility that produced .30 caliber machine guns more quickly and at lower cost than
9727-415: The actual risks in the economy and stop giving credit so easily. Refinancing becomes impossible for many, and more firms default. If no new money comes into the economy to allow the refinancing process, a real economic crisis begins. During the recession, firms start to hedge again, and the cycle is closed. The Banking School theory of crises describes a continuous cycle driven by varying interest rates. It
9864-403: The automotive industry; most notably, manual transmission assemblies, steering gear boxes and power steering pumps. At the height of manufacturing in the 1960s and 1970s, the city and neighboring Buena Vista Township hosted 12 General Motors plants, an Eaton Manufacturing plant (demolished 2008) where 5,000 people produced auto parts, and numerous smaller concerns. The General Motors plants in
10001-403: The average family size was 3.23. In the city, the population was spread out, with 31.6% under the age of 18, 9.9% from 18 to 24, 28.3% from 25 to 44, 18.7% from 45 to 64, and 11.4% who were 65 years of age or older. The median age was 31 years. For every 100 females, there were 87.2 males. For every 100 females age 18 and over, there were 81.0 males. The median income for a household in the city
10138-485: The basis for the Saginaw Steering Gear Division, created in 1928. General Motors and other manufacturers established foundries and other automobile-related manufacturing facilities in Saginaw, for the production of chemicals and plate glass, as well as metal fabrication. This early development of a symbiotic relationship with the auto industry set the course for the future of the city. Before
10275-468: The bursting of other real estate bubbles around the world also led to recession in the U.S. and a number of other countries in late 2008 and 2009. Some economists argue that financial crises are caused by recessions instead of the other way around, and that even where a financial crisis is the initial shock that sets off a recession, other factors may be more important in prolonging the recession. In particular, Milton Friedman and Anna Schwartz argued that
10412-628: The circular relationships often evident in social systems between cause and effect – and relates to the property of self-referencing in financial markets. George Soros has been a proponent of the reflexivity paradigm surrounding financial crises. Similarly, John Maynard Keynes compared financial markets to a beauty contest game in which each participant tries to predict which model other participants will consider most beautiful. Furthermore, in many cases, investors have incentives to coordinate their choices. For example, someone who thinks other investors want to heavily buy Japanese yen may expect
10549-422: The city council and as the executive heads of various city government departments. One of the commissioners served as the mayor, which was a mostly ceremonial role. The 1913 city charter was followed for little more than two decades when the voters of the city again adopted another new city charter in 1935 following the council-manager form of government . The government under the 1913 city charter retained some of
10686-423: The city was 46.1% African American , 43.5% White , 0.5% Native American , 0.3% Asian , 5.2% from other races , and 4.4% from two or more races. Hispanic or Latino of any race were 14.3% of the population. There were 19,799 households, of which 36.0% had children under the age of 18 living with them, 26.9% were married couples living together, 28.7% had a female householder with no husband present, 6.3% had
10823-603: The city was 47.1% male and 52.9% female. As of the census of 2000, there were 61,799 people, 23,182 households, and 15,114 families residing in the city. The population density was 3,542.9 inhabitants per square mile (1,367.9/km). There were 25,639 housing units at an average density of 1,469.9 per square mile (567.5/km). The racial makeup of the city (excluding townships) was 47.02% White , 43.26% African American , 0.49% Native American , 0.33% Asian , 0.02% Pacific Islander , 5.86% from other races , and 3.03% from two or more races. Hispanic or Latino of any race were 11.75% of
10960-538: The city's infrastructure. In 1947, Saginaw and the nearby city of Midland constructed a 65-mile-long (105 km) water supply pipeline drawing water from Whitestone Point in Lake Huron to meet the anticipated needs of the communities. In addition, the cities of Midland and Bay City joined with Saginaw to develop and operate an airport on the site of a former POW camp in nearby Tittabawassee Township , which eventually became MBS International Airport . In 1908,
11097-494: The city, mainly the east side and the west side. In the years following World War II , the Michigan state legislature enacted laws making it increasingly difficult for incorporated cities to expand by annexing territory from neighboring townships. Townships, which had historically served an agrarian, smaller population than that of larger cities, were given the ability to provide nearly all the same services an incorporated city could. Although Midland pursued (and continues to pursue)
11234-417: The county - Imerman Memorial Park, Veterans Memorial Park, Ringwood Forest, Price Nature Center, William H. Haithco Recreation Area , and The Saginaw Valley Rail Trail. These parks comprise over 550 acres, including 18 miles of hiking trails, two boat launches, four fishing access sites, a swimming beach, picnic shelters, and recreation programs. The largest employers in Saginaw County are: Saginaw County
11371-464: The county was 70.5% White, 18.6% Black or African American, 0.3% Native American, 1.0% Asian, 7.8% Hispanic or Latino, 0.1% from other races, and 1.6% from two or more races. There were 79,011 households, out of which 30.5% had children under the age of 18 living with them, 45.4% were husband and wife families , 16.0% had a female householder with no husband present, 33.8% were non-families, and 28.2% were made up of individuals. The average household size
11508-499: The county were: The Saginaw metropolitan area's main shopping district is located in neighboring Saginaw Township along Bay Road and Tittabawassee Road north of town, where several big box stores and regional restaurant chains can be found. Also in the same area is Fashion Square Mall , a regional shopping mall anchored by JCPenney and Macy's . Primary areas within the city of Saginaw for consumer shopping include Old Town and downtown. Saginaw's entertainment hub can be found in
11645-416: The crash of the dot com bubble in 2001 arguably began with "irrational exuberance" about Internet technology. Unfamiliarity with recent technical and financial innovations may help explain how investors sometimes grossly overestimate asset values. Also, if the first investors in a new class of assets (for example, stock in "dot com" companies) profit from rising asset values as other investors learn about
11782-448: The cycle restarts from the beginning. Mathematical approaches to modeling financial crises have emphasized that there is often positive feedback between market participants' decisions (see strategic complementarity ). Positive feedback implies that there may be dramatic changes in asset values in response to small changes in economic fundamentals. For example, some models of currency crises (including that of Paul Krugman ) imply that
11919-413: The dangers and perils, which leading industrial nations will be facing and are now facing at the end of the long economic cycle which began after the oil crisis of 1973. Hyman Minsky has proposed a post-Keynesian explanation that is most applicable to a closed economy. He theorized that financial fragility is a typical feature of any capitalist economy . High fragility leads to a higher risk of
12056-435: The dominant force in the area in the 1820s, and in 1827 they were attacked by a two groups of Winnebago people coming from Wisconsin. The Ojibwe prevailed in this fight with the aid of local Euro-American settlers. In 1853 the Ojibwe and Ottawa both established large hunting camps along the Saginaw River, although Euro-American settlers were beginning to establish saw mills and farms in the area by that point. According to
12193-600: The downtown area, where venues such as The Dow Event Center and the restored Temple Theatre offer live entertainment. The Saginaw Bay Symphony Orchestra and Saginaw Choral Society are housed in the Temple and each of these organizations performs a full concert series annually at the Temple venue. The Saginaw Historical Society is also located downtown in an elaborate castle. Nearby, the Saginaw Art Museum boasts an impressive permanent collection and recently underwent
12330-552: The economy. These theoretical ideas include the ' financial accelerator ', ' flight to quality ' and ' flight to liquidity ', and the Kiyotaki-Moore model . Some 'third generation' models of currency crises explore how currency crises and banking crises together can cause recessions. Austrian School economists Ludwig von Mises and Friedrich Hayek discussed the business cycle starting with Mises' Theory of Money and Credit , published in 1912. Recurrent major depressions in
12467-408: The form of wages) than the value of the goods produced by those workers (i.e. the amount of money the products are sold for). This profit first goes towards covering the initial investment in the business. In the long-run, however, when one considers the combined economic activity of all successfully-operating business, it is clear that less money (in the form of wages) is being returned to the mass of
12604-526: The former two cities. The distinctions and rivalries between Saginaw's east side and west side persisted into the 20th century in various forms, and continues to influence Saginaw's social, political, economic landscape, even into the 2010s. In the early 20th century, automobile production proliferated throughout Michigan, but most notably in Detroit . Other Michigan cities became suppliers to Detroit factories, sometimes with factories of their own. In Saginaw,
12741-417: The founding and subsequent development of Saginaw was the large demand for lumber as the United States expanded westward. A virgin growth forest principally consisting of white pine trees covered most of Michigan. The convenient access to transportation provided by the Saginaw River and its numerous tributaries fueled a massive expansion in population and economic activity. As the trees were being cut down in
12878-511: The funds cannot be liquidated quickly (a similar mechanism was implicated in the March 2023 failure of SVB Bank ). Internationally, arbitrage and the need to stop capital flows, which caused bullion drains in the gold standard of the nineteenth century and drains of foreign capital later, bring interest rates in the low-rate country up to equal those in the country which is the subject of investment. The capital flows reverse or cease suddenly causing
13015-423: The home of C.L. Ring who commissioned Charles A. Platt to design the house and gardens. The museum opened to the public in 1948. The museum is a Smithsonian Institution affiliate. Saginaw is home to a Japanese Cultural Center, Tea House and Garden, as a result of its 52-year Sister-City relationship with Tokushima, Japan. The Garden was completed in 1971. The Tea House, known as Saginaw Awa An, completed in 1986,
13152-442: The idea that financial crises may spread from one institution to another, as when a bank run spreads from a few banks to many others, or from one country to another, as when currency crises, sovereign defaults, or stock market crashes spread across countries. When the failure of one particular financial institution threatens the stability of many other institutions, this is called systemic risk . One widely cited example of contagion
13289-455: The independent boards that were given authority independent of the elected city commissioners. This caused some inefficiency and political friction. The economic consequences of the Great Depression during the 1930s provided the final catalyst for municipal government reform. In contrast to the previous government structures, the 1935 charter, having taken effect in 1936, provided for all administration of city government to be headed directly by
13426-506: The initial economic decline associated with the crash of 1929 and the bank panics of the 1930s would not have turned into a prolonged depression if it had not been reinforced by monetary policy mistakes on the part of the Federal Reserve, a position supported by Ben Bernanke . It is often observed that successful investment requires each investor in a financial market to guess what other investors will do. Reflexivity refers to
13563-504: The innovation (in our example, as others learn about the potential of the Internet), then still more others may follow their example, driving the price even higher as they rush to buy in hopes of similar profits. If such " herd behaviour " causes prices to spiral up far above the true value of the assets, a crash may become inevitable. If for any reason the price briefly falls, so that investors realize that further gains are not assured, then
13700-525: The intersection of Washington and Genesee, the core of downtown Saginaw. The plan called for the renovation and redevelopment of four buildings, creating market-rate apartments on the upper floors and retail space at ground level. In 2012 a similar deal was made for the Bancroft and Eddy apartments at the same intersection. Once Section 8 housing, these buildings are being transformed into market-rate apartments and retail space. Economic development in
13837-542: The largest contiguous fresh-water coastal wetland in the United States. The City of Saginaw consists of many diverse neighborhoods, including: Saginaw has a humid continental climate influenced by its inland position not on the shore of one of the Great Lakes of Michigan. Saginaw is the largest principal city of the Saginaw-Midland-Bay City, MI CSA , a Combined Statistical Area that includes
13974-457: The late 20th and early 21st centuries has led to urban decay , specifically a rise in abandoned homes that provided locations for criminal activity. In recent years, city officials, law enforcement, and neighborhood watch associations have made progress in preventing this activity by heavily patrolling target areas and offering rewards for reporting illegal or suspicious activities. Efforts to reduce blight in Saginaw increased greatly in 2013, with
14111-438: The latter half of the 20th century, leading to high unemployment in the city. As a result, the city's population diminished dramatically. From 2000 to 2010, the population of Saginaw proper decreased by nearly 10,000. Michigan's population during that period decreased by 0.6% percent, the only U.S. state to lose population during the decade of the 2000s. In addition, Saginaw has faced increasing social problems relating to poverty as
14248-425: The median income for a household in the county was $ 41,938 and the median income for a family was $ 52,243. Males had a median income of $ 27,691 versus $ 16,488 for females. The per capita income for the county was $ 21,025. About 12.4% of families and 16.9% of the population were below the poverty line , including 24.1% of those under the age 18 and 10.1% of those age 65 or over. The Roman Catholic Diocese of Saginaw
14385-518: The modern equivalent of this process involves the Carry Trade, see Carry (investment) . Some financial crises have little effect outside of the financial sector, like the Wall Street crash of 1987 , but other crises are believed to have played a role in decreasing growth in the rest of the economy. There are many theories why a financial crisis could have a recessionary effect on the rest of
14522-428: The money they lend. Therefore, they are ready to lend to firms without full guarantees of success. Lenders know that such firms will have problems repaying. Still, they believe these firms will refinance from elsewhere as their expected profits rise. This is Ponzi financing. In this way, the economy has taken on much risky credit. Now it is only a question of time before some big firm actually defaults. Lenders understand
14659-660: The newly redeveloped downtown. At roughly 5,000 square feet it is one of the largest public art galleries in Michigan. The Downtown Farmer's Market offers Michigan produce, flowers, and baked goods from local bakeries and will be moving to an indoor permanent location in 2017. Downtown is not to be confused with the Old Town/West Side City area located on the other side of the river and about one mile (1.6 km) southwest. Old Town has many popular bars, locally owned restaurants, and businesses. The city's roster of local arts organizations includes Pit and Balcony, one of
14796-708: The oldest continuously operating community theaters in the United States, founded in 1932. The Castle Museum of Saginaw County History is an important and prominent museum in downtown Saginaw. The museum is housed in a former post office which was built to resemble a castle, and pays homage to the historical French heritage of the area. With more than 100,000 artifacts in its collection, the Historical Society of Saginaw County displays items from their collection as well as those of traveling exhibits. The Andersen Enrichment Center and Lucille E. Andersen Memorial Rose Garden are part of Saginaw's park system. The facility
14933-474: The outlet", from the Ojibwe sag (opening) and ong (place of). When Natives told Samuel de Champlain that the Sauk nation was on the western shore of Lake Michigan , Champlain mistakenly placed them on the western shore of Lake Huron . This mistake was copied on subsequent maps, and future references identified this as the place of the Sauks. Champlain himself never visited what is now Michigan. The area
15070-493: The place of the Sauks. Champlain himself never visited what is now Michigan. The site of what later became the city of Saginaw was originally inhabited by the Anishnabeg . French missionaries and traders first appeared in the area during the late 17th century and encountered the Ojibwe (Chippewa) living in the area. The first permanent settlement by those other than Native Americans was in 1816 when Louis Campau established
15207-410: The population (the workers) than is available to them to buy all of these goods being produced. Furthermore, the expansion of businesses in the process of competing for markets leads to an abundance of goods and a general fall in their prices, further exacerbating the tendency for the rate of profit to fall . The viability of this theory depends upon two main factors: firstly, the degree to which profit
15344-409: The population. There were 23,182 households, out of which 35.4% had children under the age of 18 living with them, 32.9% were married couples living together, 27.3% had a female householder with no husband present, and 34.8% were non-families. 29.5% of all households were made up of individuals, and 9.9% had someone living alone who was 65 years of age or older. The average household size was 2.60 and
15481-549: The price up further. Likewise, observing a few price decreases may give rise to a downward price spiral, so in models of this type, large fluctuations in asset prices may occur. Agent-based models of financial markets often assume investors act on the basis of adaptive learning or adaptive expectations. As the most recent and most damaging financial crisis event, the Global financial crisis, deserves special attention, as its causes, effects, response, and lessons are most applicable to
15618-402: The proceeds to make long-term loans to businesses and homeowners. The mismatch between the banks' short-term liabilities (its deposits) and its long-term assets (its loans) is seen as one of the reasons bank runs occur (when depositors panic and decide to withdraw their funds more quickly than the bank can get back the proceeds of its loans). Likewise, Bear Stearns failed in 2007–08 because it
15755-593: The production of magnesium for use in Pratt & Whitney aeroplane engines. Migration from across the country, particularly from the Southern United States , drastically increased Saginaw's population during the war years and through the 1950s. This population growth included the expanded presence of African Americans and Latinos in Saginaw. Even before the end of the war, the needs of Saginaw's growth became clear, and were met by significant investment in
15892-421: The region is focused on comparative advantages in innovation, clean energy, and continued manufacturing exports. Compared to other mid-sized communities, Saginaw has a high number of patent applications per job, and more than 81 times the average US share of jobs in photovoltaic technology research and production. The city continues to have a higher proportion of manufacturing jobs than the US average. According to
16029-413: The region, logs were floated down the rivers to sawmills located in Saginaw, destined to be loaded onto ships and later railroad cars. Multiple settlements comprise present-day Saginaw. On the west side of the river the first settlement around what had been Fort Saginaw developed into Saginaw, which was incorporated as a city in 1857, containing the seat of the Saginaw County government. On the east side of
16166-496: The responsibility of individual cities and townships. From 1988 to 2012, Saginaw County was a consistently Democratic county at the Presidential level. However, in recent elections it has become increasingly competitive, with Donald Trump narrowly winning the county in 2016 by slightly over 1,000 votes while narrowly losing it in 2020 by about 300 votes. Trump won it back in 2024 , this time with an outright majority of
16303-678: The resulting income. Examples include Charles Ponzi 's scam in early 20th century Boston, the collapse of the MMM investment fund in Russia in 1994, the scams that led to the Albanian Lottery Uprising of 1997, and the collapse of Madoff Investment Securities in 2008. Many rogue traders that have caused large losses at financial institutions have been accused of acting fraudulently in order to hide their trades. Fraud in mortgage financing has also been cited as one possible cause of
16440-427: The river a parallel settlement, East Saginaw, developed which was incorporated first as a village in 1855, and then as a city in 1859. Also south of East Saginaw, on the east bank of the river, the village of Salina formed. Salina's name relates to the brine that led to a growing industry of salt production in the area. Both Saginaw and East Saginaw quickly became a hub for railroad transportation in addition to ships on
16577-471: The safest. As the economy grows and expected profits rise, firms tend to believe that they can allow themselves to take on speculative financing. In this case, they know that profits will not cover all the interest all the time. Firms, however, believe that profits will rise and the loans will eventually be repaid without much trouble. More loans lead to more investment, and the economy grows further. Then lenders also start believing that they will get back all
16714-425: The same thing they expect others to do, then self-fulfilling prophecies may occur. For example, if investors expect the value of the yen to rise, this may cause its value to rise; if depositors expect a bank to fail this may cause it to fail. Therefore, financial crises are sometimes viewed as a vicious circle in which investors shun some institution or asset because they expect others to do so. Reflexivity poses
16851-430: The schools and/or administration are in other counties) include: Former school districts include: There are twenty eight recognized historical markers in the county: They are: 43°20′N 84°03′W / 43.33°N 84.05°W / 43.33; -84.05 Financial crisis Heterodox A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose
16988-425: The spiral may go into reverse, with price decreases causing a rush of sales, reinforcing the decrease in prices. Governments have attempted to eliminate or mitigate financial crises by regulating the financial sector. One major goal of regulation is transparency : making institutions' financial situations publicly known by requiring regular reporting under standardized accounting procedures. Another goal of regulation
17125-456: The subject of investment to be starved of funds and the remaining investors (often those who are least knowledgeable) to be left with devalued assets. Bankruptcies, defaults and bank failures follow as rates are pushed high. After the crisis governments push short-term interest rates low again to diminish the cost of servicing government borrowing which has been used to overcome the crisis. Funds build up again looking for investment opportunities and
17262-575: The tendency for the rate of profit to fall borrowed many features of the presentation of John Stuart Mill 's discussion Of the Tendency of Profits to a Minimum (Principles of Political Economy Book IV Chapter IV). The theory is a corollary of the Tendency towards the Centralization of Profits . In a capitalist system, successfully-operating businesses return less money to their workers (in
17399-515: The very worst case, lose its own money. But when it borrows in order to invest more, it can potentially earn more from its investment, but it can also lose more than all it has. Therefore, leverage magnifies the potential returns from investment, but also creates a risk of bankruptcy . Since bankruptcy means that a firm fails to honor all its promised payments to other firms, it may spread financial troubles from one firm to another (see 'Contagion' below). For example, borrowing to finance investment in
17536-405: The vote. All countywide officers are elected for four-year terms. The next scheduled election for these offices is November 2024. (information as of April 2021) Saginaw County Parks and Recreation Commission is a county-wide government organization founded by William H. Haithco Sr. in 1969. Haithco then served as chairman from 1972 to 1999. The organization operates six parks throughout
17673-399: The world economy at the pace of 20 and 50 years have been the subject of studies since Jean Charles Léonard de Sismondi (1773–1842) provided the first theory of crisis in a critique of classical political economy's assumption of equilibrium between supply and demand. Developing an economic crisis theory became the central recurring concept throughout Karl Marx 's mature work. Marx's law of
17810-485: The yen to rise in value, and therefore has an incentive to buy yen, too. Likewise, a depositor in IndyMac Bank who expects other depositors to withdraw their funds may expect the bank to fail, and therefore has an incentive to withdraw, too. Economists call an incentive to mimic the strategies of others strategic complementarity . It has been argued that if people or firms have a sufficiently strong incentive to do
17947-427: Was $ 26,485, and the median income for a family was $ 29,945. Males had a median income of $ 31,614 versus $ 22,714 for females. The per capita income for the city was $ 13,816. About 24.7% of families and 28.5% of the population were below the poverty line , including 40.2% of those under age 18 and 16.3% of those age 65 and over. During much of the 20th century, Saginaw's economy was dominated by manufacturing related to
18084-417: Was 2.44 and the average family size was 2.99. In the county, 23.4% of the population was under the age of 18, 10.6% from 18 to 24, 22.9% from 25 to 44, 27.8% from 45 to 64, and 15.3% was 65 years of age or older. The median age was 40 years. For every 100 females there were 93.6 males. For every 100 females age 18 and over, there were 90.4 males. The 2010 American Community Survey 1-year estimate indicates
18221-484: Was inhabited from about 1000 B.C. to 1000 A.D. by the Native American Hopewell culture , followed by the Anishnabeg . Some historians believe that the Sauk at one time lived in the area and were driven out by Ojibwe (Chippewa), before the area was first visited by Europeans. The Saginaw region includes an extensive network of many rivers and streams which converge into the Saginaw River and provided
18358-536: Was rejected by the Chippewas. In 1822, the United States Army established a fort on the west bank of the Saginaw River and named it Fort Saginaw. Two companies were stationed at the fort. A group of investors purchased some land near the fort and had it platted under the name, Town of Sagana. Due to the extremely harsh seasons and illnesses, Fort Saginaw was abandoned by 1824. By the late 1820s,
18495-476: Was the destination of a Sauk footpath that became one of the first roads in what is now Michigan, the Saginaw Trail . The trail, first authorized in 1819, was completed to Saginaw in 1841. Since then, Saginaw's access to the outside world has expanded with the development of maritime, rail, air, and freeway links to the major cities of Michigan and neighboring states and nations. Scheduled airline service
18632-734: Was the spread of the Thai crisis in 1997 to other countries like South Korea . However, economists often debate whether observing crises in many countries around the same time is truly caused by contagion from one market to another, or whether it is instead caused by similar underlying problems that would have affected each country individually even in the absence of international linkages. The nineteenth century Banking School theory of crises suggested that crises were caused by flows of investment capital between areas with different rates of interest. Capital could be borrowed in areas with low interest rates and invested in areas of high interest. Using this method
18769-449: Was unable to renew the short-term debt it used to finance long-term investments in mortgage securities. In an international context, many emerging market governments are unable to sell bonds denominated in their own currencies, and therefore sell bonds denominated in US dollars instead. This generates a mismatch between the currency denomination of their liabilities (their bonds) and their assets (their local tax revenues), so that they run
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