Prime Rate20% April 2, 1980 Source: www.wsjprimerate.us
COMPANIES COULDNOT AFFORD TOBORROW MONEY TOOPERATE THEIRFACTORIES.SUPPLY DRIED UP.AS A RESULT, THEINFLATION RATE ATTHE TIME WAS 14.5PERCENT.
“Are you better off today than you were four years ago?” Ronald Reagan
Reagan Carter Landslide!Source: www.uselectionatlas.org
Paul Volcker“The U.S., along with the rest of the world, is in the midst of a great recession.”
col·lapse [kuh laps] –noun. A sudden and complete failure; a breakdown.
“You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing, not the easy thing.” Commencement Speaker St. Anselm College, 2002
“Ex-Tyco ChiefExecutive KozlowskiSentenced to 8 to 25 Years” Headline / Bloomberg.com / 09.19.2005
Strong Fundamental Values“We must demand of ourselvesand of each other the higheststandards of individual andcorporate integrity. We safeguardcompany assets. We comply withall company policies and laws.”Source: The Tyco Guide to Ethical Conduct
Regency mahogany bookcase, c. 1810, $105,000 “We safeguard George I walnut tallcase clock, $113,750company assets.” Custom queen bed skirt, $4,995 Ascherberg grand piano, c. 1895, $77,000 Chandelier, Painted Iron, c. 1930, $32,500 Pair of Italian armchairs, c. 1780, $64,278 Persian rug, 20 feet by 14 feet, $191,250
“In corporateAmerica, crimepays. Handsomely.Grotesquely, even.”Arianna HuffingtonPigs at the Trough
ENHE RO W N LE ME TT R -P RIL a slippery slope AC L KA LY RD NC CI H J TI .P. GR M OU OR P GA IM N CL W ON OR E LD GR CO OU M P GO BA L NK DM OF AN AM SAC ER H S IC A
Bad Judgment? Just days after receiving an $85 billion taxpayer- funded loan, AIG spent $440,000 to pamper executives for an entire week at the extravagant St. Regis Resort.
Photo by Win McNamee/Getty Images“I would like my life back.” Tony Hayward, former BP CEO
TRICKLE-DOWN THEORYWhen governmentallows businesses toflourish, their resultingprofits will ultimatelytrickle down to lower-income individuals.Aghion, P., & Bolton, P. (1997). A theory oftrickle-down growth and development. Reviewof Economic Studies, 64(219), 151-172.