Essay About Moral Hazard

Essay about Moral Hazard
The theme of moral hazard comes up numerous times throughout the movie, Too Big To Fail and is an extremely important factor when considering
what happened in September of 2007 and its consequences. By definition, moral hazard is, "the risk that a party to a transaction has not entered into
the contract in good faith, has provided misleading information about its assets, liabilities or credit capacity, or has an incentive to take unusual risks in
a desperate attempt to earn a profit before the contract settles" (Investopedia). Basically it's when others such as these investment banks are careless
with the money invested by the people because it isn't their money or their risk. This was the case throughout many points in the film. First, ... Show
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Ultimately, U.S Treasury SecretaryHenry Paulson directed CEO of Lehman Brothers, Dick Fuld to declare bankruptcy before the market opened.
They decided against bailing them out and preached to the public about moral hazard. In this situation, if they were to bail Lehman Brothers out, it
would promote the theory that, it wouldn't matter if banks are careless with others money if they are going to get bailed out anyway, and also what is
stopping these banks from not repeating the same mistake if the Fed bails them out in the end. This came over well initially in the public for those
exact reasons but soon turned. Because of Lehman Brothers counterparty risk, it affected the entire financial market and another giant, AIG, began to
collapse. With AIG failing it would cause the entire financial system to fall and cause massive problems. Due to these reasons Paulson lobbied for the
government to intervene and eventually they did and passed the Emergency Economic Stabilization Act of 2008, which allowed Paulson to spend up to
700 billion to purchase securities and inject cash directly into banks. They ended up doing exactly what they weren't willing to with Lehman Brothers
and their preaching against moral hazard went right out the window when they decided to bail out AIG. Moral Hazard is a double edged sword
because in the end, what is to stop these banks from doing the same thing again? Also, if
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Great Depression Research Paper
Goslin – Research Paper.
The Great Depression was a harsh global economic depression in the decade prior World War II. The Great Depression, while it happened far before
the "Great Recession" of 2008, it can be greatly compared. During the Great Depression, all income, tax revenue, and prices dropped. International
trade decreased by more than 50%, and U.S. unemployment climbed to just above 25%. Industrial cities like Detroit and Pittsburgh took the heaviest
hits. While the recession of 2008 was not as drastic, it affected the world economy and resulted in a global recession more so than ever before. The
percent of U.S. citizens unemployed had reached 10% as of 2009. Along with the challenges unemployment presented, consumer ... Show more content
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The status and power of women were increased, which expanded them to a new say in decisions. The recession of 2008 is also called the 'Great
Recession', said to have begun in December 2007, and took a turn for the worse in September 2008, and it was a severe economic problem expanded
globally. This recession affected the world economy, and is said to have been the worst financial disaster since theGreat Depression. The decline in the
Dow Jones this time was –53.8%. Since the official start of the recession in December 2007, and through June 2010 there have been about 2.3
million homes foreclosed in the United States. In 2012, the state with the most foreclosures in January alone was California, with 51,584 houses
being repossessed. Unemployment during this collapse was 8.5%, and continued to increase to about 10% as of 2010. People's reaction to this
recession was a huge decrease in spending and borrowing from banks, but an increase in saving. There were easily multiple causes for the start of the
Great Depression in 1929. Many historians and economists put emphasis on organizational causes such as actions by the Federal Reserve. Often part of
any business cycle are recessions due to the changes of supply and demand, but what turns this business cycle into a depression is always up for
debate. In the case of the Great Depression, the stock market crash of 1929, bank failures, debt deflation, and American economic policies with Europe

Summary: The Twisted Mortgage Crisis
Between 2007 and 2008, the impending mortgage crisis met its peak, and subsequent "burst". In simple terms, over the years leading up to the housing
bubble, banks loaned out large amounts of money to the people in an effort to stimulate the economy. Those who originally did not qualify for such
large loans, now did. However, these subprime borrowers (borrowers with a poor credit history) often could not actually afford their payments, leading
them to file for bankruptcy, and pushing the country closer toward the recession and the collapse of the housing market. The rise in subprimemortgage
delinquencies and foreclosures meant a severe decline in securities. As the recession escalated, the wellbeing of financial institutions and citizens alike

Too Big To Fail Movie Essay
The movie Too Big to Fail depicts the time period from August to mid–October of 2008. The movie gives unique insight into the lives of the people
who were very much involved in the financial crisis. Personally, within the movie, Paul Giamatti who played Ben Bernanke was my personal favorite.
His portrayal of the chairman of the Federal Reserve was outstanding in my opinion, as I enjoy Giamatti as an actor. Anyhow, the movie moves along as
the crisis gradually unfolds, beginning with the failure for a company to purchase Lehman Brothers. A British company had planned on merging with
Lehman Brothers the British government would not authorize the acquisition. Paulson, played by William Hurt, received a phone call notifying him
that General Electric... Show more content on Helpwriting.net ...
Along with Ben Bernanke, Paulson comes to a conclusion that legislation must be passed by Congress to allow for direct capital injections for major
financial institutions. After first being shut down in Congress, the Emergency Economic Stabilization Act of 2008 is put into place after Bernanke
warns of another possible Great Depression. Seven hundred billion dollars was allocated to the Fed to be injected into failing major institutions to
calm the Crisis. The agreement between the banks and the Treasury was that the Treasury would lend banks cash, however, banks could only use the
cash provided to get the flow of credit restored, because, according to Bernanke, a major cause of the Great Depression was the lack of flow of credit.
The end of the movie states that the banks and the economy stabilized and the banks repaid their debt. However, by this time, ten financial institutions
held seventy–seven percent of all banking assets in the United States, and the institutions were declared too big to fail. Being a fan of Paul Giamatti
and business, I found this movie to very entertaining. I missed the first two days of the film, but rented it online to view and I rather enjoyed my time
with

Financial Crisis : Fiscal Crisis
Financial Crisis: 2008–2009
In early 2000s, most private and public budgets in the U.S. were funded through local and sovereign debts. In this regard, staggering mortgage industry,
weak fiscal policies, and unscrupulous financial investors principally contributed to the 2008–2009 financial crises. Due to surging inflation and
accumulated interests, most borrowers failed to payback their loans due to continued bankruptcy. Consequently, interest rates in various countries were
adjusted to balance the demand and supply of the circulating money. In economics, any increase in the price levels concurrently increases demand for
money, which means that supply and demand for money did not balance in various economies during the 2008–9 crises. ... Show more content on
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The situation led to the surging inflation cases in the country, lack of capital finances to support new business startups, recession/depression, and
unemployment since most companies laid off their employees after closing down their businesses. Consequently, the situation spread all over the word
with most governments forced to intervene and bailout some of their financial institutions to manage the crisis. In the American context, what worsened
the situation was high expectation of the mortgage lenders who expected huge profits from their clients after full recovery of the loans.
Events
In 2007, housing crisis deepened drastically in the US markets. Consequently, several financial banks and hedge funds, which had largely invested in
subprime mortgages, were left with valueless assets in the wake of foreclosures. In fact, the damage had spurred the echelons of Wall Street and the
economy could no longer afford the subprime loans. In April 2007, New Century Financial, which is a subprime mortgage lender, filed a bankruptcy
court protection case so that it could get reprieve from its burdening loans. In July 2007, Investment Bank Bear Stearns liquidated two hedge funds
spent on precarious securities guaranteed by subprime mortgage loans (Bernanke, 2013). American Home Mortgage Investment, a security company
specialized in adjustable–rate mortgages, also filed a case for bankruptcy protection. This

Factors That Affect The Economic System
In monetary terms, a subsidence is delegated a moderate development or absence of development in financial movement; all together for the economy
to escape the retreat, the legislature must execute expansionary monetary strategies. "The activities of government are grouped into three categories:
allocation, redistribution, and stabilization. Stabilization and redistribution are conducted primarily through governments in all economic systems.
Allocation is a microeconomic activity that is shared by the government and the market to different extents in different systems." (Amacher, 2012)
Every school takes an alternate way to deal with the financial investigation of money related arrangement, purchaser conduct and government spending.
"In a Keynesian model, financial markets are linked to aggregate supply and aggregate demand primarily through changes in planned investment, which
is a highly volatile component of aggregate demand." (Amacher, 2012,) Expansionary strategy can be separated into two territories, the financial
approach as expressed above and money related arrangement; both of these strategies affect the economy, for example, assessments and government
spending, total interest, GDP, and job. Keynes ' hypothesis of determination balance is genuine GDP, work, and costs concentrates on the relationship
between total pay and consumption. The key characteristic of Keynesian macroeconomics that distinguishes it from Classical theory is a postulated
stickiness in some

Government Reactions during the Great Recession
Monetary Policy and Fiscal Policy: Government Reactions during "The Great Recession
Monetary policy and fiscal policy can greatly influence the US economy.
Keynesian economics says, "A depressed economy is the result of inadequate spending. Keynesian argued that government intervention can help a
depressed economy through monetary policy and fiscal policy. The idea established by Keynes was that managing the economy is a government
responsibility.
Monetary policy uses changes in the quantity of money to alter interest rates and in turn affect the level of overall spending. The object of monetary
policy is to influence the nation's economic performance, as measured by inflation, the employment rate and the gross domestic product, an aggregate
measure of economic output. Monetary policy is controlled by the Central Bank and influences money supply.
Fiscal policy uses changes in taxes and government spending to affect overall spending and stabilize the economy. The objective of fiscal policy is the
governments' typical use fiscal policy to promote strong and sustainable growth and reduce poverty. During periods of recession congress has the
option to decrease taxes to give households more disposable income so they can buy more products. Therefore, lowering tax rates increases GDP.
The steady growth of core inflation in late 2007 and the first half of 2008 appear to suggest that the Fed's applied discretionary powers to avoid a
tightening. In 2009 the feds needed to be

Macro-Economic Policy. Examine The Aims And Policy Objectives
Macro–Economic Policy
Examine the aims and policy objectives which UK Governments have used from the "credit crunch" of 2008 – up to the present time. How effective
have they been? And how far has the global economy restricted (or otherwise) the Government response.
In this essay I will examine the UK Government aims and policies that they used to tackle the 2008 "credit crash". I will also discuss the purpose of
economic policy making and how that effects the global economic environment.
It is useful to define Monetary and Fiscal policy. Monetary policy involves changing the interest rate and influencing the money supply. It is usually
carried out by the central bank and monetary authorities. This involves setting base interest rates ... Show more content on Helpwriting.net ...
It wasn 't long before things started to move just as the cheap money wanted them to.
This environment of easy credit and the upward spiral of home prices made investments in higher yielding subprime mortgages look like a new rush for
gold. The Fed continued slashing interest rates, emboldened, perhaps, by continued low inflation despite lower interest rates. In June 2003, the Fed
lowered interest rates to 1%, the lowest rate in 45 years. The whole financial market started resembling a candy shop where everything was selling at a
huge discount and without any down payment. "Lick your candy now and pay for it later" – the entire subprime mortgage market seemed to encourage
those with a sweet tooth for have–it–now investments. Unfortunately, no one was there to warn about the tummy aches that would follow. (For more
reading on the subprime mortgage market, see our Subprime Mortgages special feature.)
But the bankers thought that it just wasn 't enough to lend the candies lying on their shelves. They decided to repackage candy loans into collateralized
debt obligations (CDOs) and pass on the debt to another candy shop. Hurrah! Soon a big secondary market for originating and distributing subprime
loans developed. To make things merrier, in October 2004, the Securities Exchange Commission (SEC) relaxed the net capital requirement for five
investment banks – Goldman Sachs (NYSE:GS), Merrill Lynch (NYSE:MER), Lehman Brothers, Bear Stearns and

U.S. Economic Crisis Essay
The United States is currently experiencing the biggest financial crisis after the Great
Depression, in this paper we will discuss what caused the current economic crisis and why? Two
What is the relationship between mortgages, the housing crisis and Wall Street? Third, how has this crisis affected fiscal policy and what are some of
the drawbacks of government intervention. Four, what is the recession doing to GDP, economic growth and inflation and how are other countries faring.
Five, discuss the different types of unemployment and why is underemployment becoming an economic issue and lastly, what should be done to get the
economy back into expansion mode. One main factor that caused the current economic crisis ... Show more content on Helpwriting.net ...
These loans were result of large acquisitions or lack of due diligence on loan purchases by these large firms according to Muolo, P (2007). Fiscal
policy is the government expenditure and revenue collection to influence the economy before the current economic crisis the government policy
was increasing home ownership. This crisis has affected fiscal policy and the government has intervened by providing simultaneous packets to
companies that have been affected by the economic crisis. In February 2008 President Bush signed into law a $168 Billion economic stimulus
packet, which was intended for the consumer to simply spend their rebates to cover higher food and fuel prices. Then in February 2009 President
Obama signed the American Recovery and reinvestment act of 2009, a $787 billion stimulus package that was allocated to help struggling
homeowners. Some other programs the U.S Government passed was the Emergency Economic Stabilization Act of 2008 or Bailouts of Major
financial institutions. There were some drawbacks by government intervening pose risks to price, financial, and fiscal stability. According to the
economy of United States are the worlds largest it's normal GDP was estimated to be $14.2 trillion in 2009. The total U.S Federal debt was $10.62
trillion, while the U.S public debt is the world's largest in absolute size. This debt as a

The Financial Crisis : Rescue Efforts
The Financial Crisis: Rescue Efforts Throughout the early 2000's, relaxed lending regulations and lowered interest rates sparked the growth of the
securitization of subprime mortgages. In order to increase profit and revenue, a number of financial institutions became heavily involved in the process
of securitizing the loans. When house prices began to fall in 2006, homeowner delinquencies and foreclosures increased causing many institutions to
become overleveraged. As a result, the destabilization of financial institutions and the economy ensued, provoking the great recession in 2007. In an
effort to promote economic stability the United States government intervened and provided financial assistance to institutions with the greatest... Show
Consequently, these losses impacted the health of financial markets across the United States and the world. On October 9th 2007, the DJIA
closed at a record high of 14,164 before tumbling to below 11,000 in July 2008 (Kosakowski, 2008). As the crisis worsened, the DJIA continued to
fall reaching a low of 6,547 in March of 2009. Not only did the DJIA feel the impact of the crisis but the LIBOR did as well. During the middle of
2007, the LIBOR was rallying at a high of 5.3195, however, over the next year the rate would continue to drop until it hit record lows. At the
beginning of January 2009 the LIBOR came in below one and continued to hover around .3 and lower over the next few years (Fedprimerate, n.d.).
In corresponded with the LIBOR, the Federal Funds rate also fell into a downward spiral from the crisis. Before the crisis was fully realized, the
Federal Funds rate was 4.25 in December 2007. As the effects of the crisis grew the rate dropped to .25 by the end of the next year and stayed
consistently low over the next few years (Federal Reserve, 2015). Therefore, the financial crisis destabilized the health of financial markets, resulting in
the drastic lowering of the DJIA, LIBOR and Federal Funds rate. Relief Efforts In an effort to cushion the effects of the crisis the United States
government intervened to help maintain consumer

Troubled Asset Relief Program: A Case Study
Is it possible that two government bailouts paid less than a year apart could result in two drastically different results? As economics writer for the
Washington Post, Robert J. Samuelson, says, "Six years ago, it (the auto bailout) was wildly controversial, with the fate of General Motors and
Chrysler hanging in the balance. Now, it's clear that the bailout was a solid success.". The financial bailout, known as the Troubled Asset Relief
Program, has left the banks still reliant on the government in the event of a future crisis (Leonhardt). In 2008, two large industries were on the brink
of collapse. George W. Bush signed a bill to put money into the failing auto industry. Barack Obama signed the bill known as the Troubled Asset
Relief Program to save major U.S. banks from a financial meltdown (Barofsky). The lessons that we can learn from what went right and what went
wrong could ensure greater success of future bailouts. The two bills had different outcomes because of the differences in the oversight of each industry,
who the bailouts were supposed to protect, and if the fear of bankruptcy was present.
The main difference between the auto and finicial ... Show more content on Helpwriting.net ...
Banks continue to believe that if they fail again, they will get another batch of free government money to help them out. Credit agencies freely
admit this in their reports about major banks (Barofsky). As Samuelson simply states, "Fear is a great motivator". The fear of no longer having a job
or a company motivated the auto industry to change to be competitive. Wall Street faces no such fear. Decades and decades of bailouts have proven
that they can do what they want without the fear of losing their jobs (Barofsky). Fear is the great motivator of capitalism, and the lack of fear on Wall
Street has resulted in banks abusing their size to pressure the federal government into even more

The And Exchange Commission 's Mission Essay
The Securities and Exchange Commission's mission is to "protect investors, maintain fair, orderly, and efficient markets, and facilitate capital
formation." The purpose of this paper is to examine three recent federal security laws to see if they uphold all parts of the SEC's mission. The three
laws to examine are Sarbanes Oxley Act (2002); Emergency Economic Recovery Stabilization Act (2008); and Dodd Frank Wall Street Reform and
Consumer Protection Act (2010). The Sarbanes Oxley Act (2002) passed after theEnron fiasco of the early 21st century. Enron was able to trick
investors by using Special Purpose Entities which was allowed through GAAP standards, but nonetheless failed to reveal the potential risks to the
investors looking at its financial records. "Enron 's executives had in fact fraudulently reported profits, but not debts, inflating its stock value and
enabling it to obtain some capital from ignorant financial institutions and other investors." (Kaal, 2016) Therefore, the passing of the SOX Act
provided two main points, the Public Company Accounting Oversight Board and Title IV. PCAOB holds public accounting firms accountable. PCAOB
works in conduction with other CPA organizations, but it holds the ultimate authority over CPA organizations. Title IV requires the full disclosure for
any Special Purpose Entities and the impact that they might have. Also pro forma calculations, figures based on future events that might occur, and
personal loans to

Advantages Of Historical Cost Accounting
Fair value measurement had gained its hold decades ago in various western world. Relevant jurisdiction and accounting standards had authorized fair
value as essential recognition of balance sheet and income [ WR LandsmanFair value accounting for financial instruments: some implications for bank
regulation 2006, BIS working paper 209, University of North Corolina Kenan–Flagler Business school]. On 1st August 2008, the scenario behind
accounting practices in Malaysia face a regulatory change with the introduction and adoption of FRS 139 "Financial Instruments: Recognition and
Measurement" with effective date of 1st January 2010. This is deemed as the first step in recognizing fair value accounting as a reliable and updated
practice or model. In propelling forward, the Malaysian market therefore is unable to dismiss any developments with... Show more content on
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The growing number of entrepreneurship also added to the number. Furthermore, HCA requires minimal resources in tern of its implementation and is
cost–saving. 2.HCA is very straightforward. Any changes in assets are not recorded until they are realized. In small and medium enterprise, HCA
serves its purpose as a bookkeeping rather than to attract probable investors. For example, a small enterprise that dwell on Information and
Technology, might face difficulty in keeping up the real values of their current assets, such as software, or equipment, as it has relatively higher
depreciation value and shorter product lifespan. Therefore, many small enterprise prefer the simpler HCA. 3.HCA are widely applicable everywhere.
Any data, or information resulted from HCA are easily available to interpret even by the public. 3.3 Evolution Of Historical Cost Accounting (HCA)
towards Fair Value Accounting

Essay on Corporate Bailout and the Law
The climax of the 2008–2009 financial crises, the largest ever since the Great Depression of the 1930s, witnessed the near collapse of
multibillion–dollar industries in the United States. Concerns over the economic impact of the possible collapse of these industries compelled the then
administration and Members of Congress to seek legislative options to salvage them. Consequently, two of the industry biggest players in the auto
industries, General Motors and Chrysler, were offered financial support by the government and in return, shareholders and other stakeholders had to
make necessary sacrifices in order to fundamentally restructure their businesses and commit to the tough decision of returning the companies to
financial viability. In... Show more content on Helpwriting.net ...
According to an analysis released by the Centre for Automotive Research (CAR) on December 9, 2013, the auto industry bailout generated an 8 to 1
savings. This means that for every dollar spent by the taxpayers, there was a return of close to eight dollars in savings. The reason for terming the
bailout as a success is that it was successful in averting a wave of massive Chapter 11 filings that could have led to the wipe out of at least $280
billion in household income and a further $105 billion drained from the federal coffers as a result of a hike in demand for services like unemployment
insurance (McAlinden and Menk, p.13). According to McAlinden and Menk, the authors of the research memo, the intervention of the government
should be viewed as one of the most successful ones in the economic history of the United States (McAlinden and Menk, p.12). Basing on the economic
modelling presented in the research memo, minus the bailout, it is clear that GM and Chrysler would have closed their operations permanently come
January 2009. The consequences would have been catastrophic, as it would have meant that almost 600,000 retirees from the two companies would
have seen a delay, a reduction in their pensions, and or a cancellation of their health benefits. Furthermore, many supporters of

State Budgeting Issues
To say it's been a rough span of years for the state and local governments would be an understatement during this recession. From 2008 to present day
all states have struggled to balance their budget and not run a deficit. Throughout American history, this is said to be the worst recession since 1947
after World War II. Revenues fell substantially and unemployment went into the double digits. Throughout this struggle we've seen cuts in education,
public services, increases in taxes and spending cuts. This recession has affected businesses and residence raging from young to elderly. The federal
government has stepped in to help by providing the American Recover and Reinvestment Act (ARRA) but this eventually will spiral down to its finish...
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They had the top housing market and were building new schools monthly to keep up with their population growth. When the recession hit they took a
huge loss in the amount of revenue that was collected every year from their tourist attractions. In addition, the housing market to fell and educational
cuts happened throughout the region. Teachers were being let go and public services were also being effected by this. In Nevada's circumstance, and
much like every other state, they rely mostly on their sale revenue and income taxes. When a recession hit revenue decrease and the people's income
taxes were affected making it difficult for spending. "Nevada has cumulatively lost $25.4 billion in income since 2008, translating into a staggering
$9,800 per resident"(Abramsk 2). This affected health care, education and public safety and consumer demand. State governments are restricted in
ways that ultimately put them at a stand still when responding to the recession. The states have slim choices to react to quick economic shocks like
this one. The states have to also keep in mind they cannot compromise public services, medical help and unemployment insurance benefits. Although
the ARRA would help with solving some of these problems like said before, the money will eventually halt. If the state goes spending crazy trying to
totally avoid cutting taxes this could also cause a problem. There needs to be a balance of spending the federal

The Financial Crisis Of 2008 Essay
The 2008 financial meltdown resulted in the most treacherous investment landscape observed since the great depression. The most notorious issue was
the subprime mortgage crisis, which had a ripple effect felt through every market in the world. The banks, whose leverage rate should never have been
higher than two times capitalization, surged as high as thirty to forty times market cap. With this level of exposure, any unforeseen market fluctuations
could mean disaster. Lehman Brothers, the oldest investment bank on Wall Street, went bankrupt and thousands lost their jobs. Outside of finance,
thousands of companies in the United States and abroad had to fire significant portions of their workforce, thus furthering the economic decline and
plunging the US into an economic recession. In the late 1990s, Congress repealed the legislation separating commercial and investment banks, which
resulted in investment banks overreaching their bounds. The Emergency Economic Stabilization Act of 2008 was enacted due to the effects of the
subprime mortgage crisis, which allowed the US Treasury to spend billions of dollars to bail out the investment banks by purchasing distressed assets.
However, the bailout plan has created a debate over whether it was a good idea for the government to bailout the investment banks. Also, if the
government fared better or worse in the years following the bailout.
The financial crash of 2008 created two paradigms, bailout and bankruptcy and to this day it is

The Emergency Economic Stabilization Act Of 2008 And...
On October 3, 2008 President George W. Bush signed the Emergency Economic Stabilization Act of 2008, otherwise known as the "bailout." The
Purpose of this act was defined as to, "Provide authority for the Federal Government to purchase and insure certain types of trouble assets for the
purpose of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal
Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual
income tax relief, and for other purposes" (Emergency Economic Stabilization Act). In my paper I will explain and show the relationship between the
Emergency Economic Stabilization Act of 2008 and subprime lending, the collapse of the housing market, bundledmortgage securities, liquidity, and
the Government 's efforts to bailout the nation 's banks.
Subprime lending became prevalent in the early 2000's when property values were sky–rocketing and many Americans thought they would fulfill their
home ownership dreams, by obtaining loans they may not otherwise qualify for. A subprime loan is a loan offered to an individual who does not
qualify for a loan at the prime rate due to their credit history. Subprime loans have higher interest rates because of the risk that the lender is taking.
During the early 2000's the housing market was great for homebuyers, since interest rates where low and property values

Recommendation On Future Policy For The 30 % Solar...
TO: American Public
FROM: Schuyler Ream, PPD 225 Student
DATE: 11/18/2015
SUBJECT: Recommendation on future policy for the 30% Solar Investment Tax Credit
I. EXECUTIVE SUMMARY:
Created in the Energy Policy Act of 2005, the 30% Solar Investment Tax Credit (ITC) is the solar industry's most important and only public policy that
supports the deployment of solar energy in the United States to both the residential and commercial sectors. The 30% ITC has been successful in
increasing deployment and lowering costs of solar energy. Since the eight–year extension created by the Emergency Economic Stabilization Act of
2008, solar prices have consistently fallen year after year while installation rates and efficiencies have continued to rise, thus equaling the average
cost of solar energy dropping by more than 73% and a 6500% annual growth rate since 2006, as reported by an independent analysis done by
Bloomberg New Energy and Finance dated September 15, 2015, commissioned by the Solar Energy Industries Association. However, the ITC is set
to expire December 31, 2016, and a failure to extend the ITC, according industry experts reported by PR Newswire July 22, 2015, would result in "90
percent of all solar companies going out of business and thousands of jobs lost". In response to the looming expiration date, Ari Natter, Bloomberg
Energy Reporter, reports "the solar industry is launching an all out push starting in 2015 to extend the investment tax credit". At this point, there are 3

The Downfall of the U.S. Auto Market and the Collapse of...
The Downfall of the U.S. Auto Market and the Collapse of the Economy Unemployment is rising and the entire global economy is falling. The story
has become all too common. If there is a negative direction available to follow, we're definitely taking advantage of the opportunity. Americans
became too accustomed to the period of inflation through the 1990s, and the ongoing recession is affecting most everyone. The Big Three
automakers (GM, Ford and Chrysler) have made massive cuts to their workforces, and the entire national job market has been upended. My personal
life has been greatly distorted due to these events, after Delphi (contracted by GM) outsourced most of their jobs and shut down 21 of their 29 plants
in the US. In previous... Show more content on Helpwriting.net ...
In 2008 and 2009, a series of bailouts were provided to General Motors and Chrysler, due to slowing car sales and massive quarterly losses. Unions
buckled due to the fact that they received much higher wages, and more luxurious benefits than their non–unionized counterparts. In 2006, Consumer
Reports top ten car picks were Japanese (Noe). Parts makers were quick to move jobs overseas, where laborers were willing to work for much less
money. In 2008, GM closed 14 factories, 2,000 dealers, and cut 47,000 employees. All of these factors, among numerous more, were responsible for
the collapse of the economy on a national and global scale. Gasoline prices soared during the energy crisis which lasted from 2003–2008. Consumers
moved from buying SUV's and trucks to more fuel–efficient cars, such as hybrids. This was especially disconcerting considering that these larger
vehicles were the most profitable for the automakers (MSNBC). The market which was hardest hit was that of the parts–makers, which saw their cash
flow cut in half, since automakers were rushing to cut production (Economist). GM filed for bankruptcy 32 days after Chrysler, effectively making GM
the fourth–largest company ever to file for bankruptcy (Carty). According to Darwin Bible, "probably one of the worst things about it has been
watching all the stress on workers' faces and their families' faces" (Carty). Overall mental health is rapidly

Federal Reserve And The 2008 / 2009 Financial Crisis
Federal Reserve and the 2008/2009 Financial Crisis: What they did and Why
In the late 2007, early 2008 the United States and the world was hit with the most serious economic downturn since The Great Depression in 1929.
During this time the Federal Reserve played a huge role in assuring that it would not turn into the second Great Depression. In this paper, we will be
discussing what the Federal Reserve did during this time, including a discussion of our nation's three main economic goals which are GDP,
employment, and inflation. My goal is to describe the historic monetary and fiscal policy efforts undertaken by the U.S. Government and Federal
Reserve, including both the traditional and non–traditional measures to ease credit markets and stimulate the economy. First, I want to give you a
little background on the Financial Crisis of 2008/2009. The Financial Crisis began in December of 2007, and by the fall of 2008 the economy was in
a huge downfall. This all began in August of 2007 because of defaults in the subprime mortgage market, which sent a shudder through the financial
markets. The former chairman of the Federal Reserve described the crisis of 2008/2009 as a "once–in–a–century credit tsunami". Many firms,
including commercial banks, Wall Street firms, investment banks, all suffered significant losses and eventually went bankrupt. This caused households
and smaller businesses to have to pay higher rates on the money that they borrowed. This downfall wasn't just

The Government Bailout Saved the Automobile Industry Essays
In the latter part of 2008, the United States' economy was rapidly plummeting – the stock market crashed, the housing bubble burst and gas prices
skyrocketed. The majority of U.S. based firms faced the reality that they would not be able to survive during such desperate economic times. The U.S.
automobile industry, in particular, began to buckle under the depressed economy. The government stepped in proposing a multi
–billion dollar bailout to
stimulate the economy and restore economic balance. The possibility of this unprecedented government intervention was condemned by many
economists. If the government helped the ailing automotive industry, this industry would have to tighten their expenditures and plan for the future to
prove to ... Show more content on Helpwriting.net ...
Observers of failed economic stimulus packages have developed a fear that these large sums of funding will be mismanaged and therefore will not be
able to stimulate the economy ("History of Government Spending," n.d.). The unprecedented government intervention during the massive economic
crisis of the late 2000's was met with varied sentiment of economists (Lee, 2009). For example, economist Marci Rossell felt that government
intervention was arbitrary and lacked clarity as to which firms would receive government aid (Lee, 2009). She furthered her argument by stating that if
the government bailed out homeowners and banks that were borrowing and lending "over their heads," they were creating a dangerous precedent to set
(Lee, 2009, p.40). However, Rossell praised the Obama administration for having a clear grasp on the economic situation and trusted in this
administration's guidance to recover from the economic crisis. Conversely, economist Steven Schwarcz said that though the government bailout in
2008 would cost more than it would have if the government had reacted more swiftly to early signs of recession, these institutions would collapse and
fail without government aid ("How Three Economists," 2008). If these institutions failed, the ripple effect of this failure to the U.S. economy would be
irreparable. One particular American industry, the automobile industry had been sustained by three main

Subtle Changes in Language Create Media Bias Essay
In the past few years, the news media has become more competitive, more extensive, and more globalized than ever before. Reporting occurs in near
real time from almost any location to the consumer's television or computer screen. With so many news agencies now vying for precious minutes of a
consumer's time, it is common for a story to undergo slight alterations that make it more emotional or sensational. Several consequent transformations
of the same story can lead to extreme misreporting on the actual content, and oftentimes it is difficult to ascertain what the original story was without
looking at multiple versions from different sources. The purpose of this paper is to trace the development of a news story across a 24–hour period,...
The first piece of news is from NPR's Morning Edition. The writer intended it to be a short snippet of the need–to–know points of the bailout. The main
points presented are that the announcement of a bailout had a much greater effect on the Greek economy than the unveiling of a reform package
earlier in the week and that Germany is planning to offer unspecified aid to the country. The reporter also mentions that many oppose the bailout
because they feel it will set a precedent for "eurozone" nations who encounter a similar problem in the future. There are no sources cited for the
information in the piece, but the quotation is from someone who appears to be respectable. This piece makes the problem seem much simpler than
the other articles do. While no citations are present, NPR is such a respected institution on its own that none seem necessary. The reporter's work is
transparent, and all of the key questions are answered, to some degree of clarity. Context is well established, and the report represents both the pros
and cons of the bailout. Overall, this is a reliable piece of news. The second news piece is an article from the Guardian, a Great Britain–based
newspaper. Its main point is that a bailout plan has been reached, and, in contrast to the NPR piece, uses a quote from the EU's president to make that
point. It offers other information as well, most of it quoted from such figures as Germany's chancellor and France's president, including that the

Financial Crisis And Its Effects On American Economy Essay
A financial crisis involves the value of financial institutions or assets dropping rapidly. It is often associated with a panic on the banks causing
investors to sell off assets or withdraw money from savings accounts. This is the result of concern that the value of those assets will drop if left at the
financial institution. As the crisis intensifies there is a significant change in the amount of risk that world financial markets are willing and able to
accept. This results in easy credit conditions becoming a situation of tight credit and is accompanied by reduced consumer and business confidence.
According to experts, credit is the most vital piece to a successful economy. Consumers and businesses rely on credit to make large purchases. In recent
years, the American economy has experienced the most severe global financial crisis since the Great Depression of the 1930's. Unemployment rates
rose, and stock and housing markets tumbled. These combined had dramatic effects on American households. Global Financial Crisis Effects When
sky–high home prices in the United States turned downward, the entire United States financial sector and financial markets overseas faced its most
dangerous crisis since the Great Depression. It all began when mortgage dealers loaned home loans to families that did not qualify for ordinary home
loans. The terms of these loans were unfavorable the borrowers. These subprime mortgages may have started with low interest rates

The Globalization Of The World Economies Is A Direct...
Over the past few decades, particularly during the 2000s, financial markets around the globe have become increasingly interconnected (Shmukler,
2004). This mounting integration of the world economies is a direct result of globalization. Particularly, the globalization of financial markets is
characterized by substantial cross–national flows of capital and the development of a large foreign exchange market. Every day around the world,
banks and stockbrokers transfer vast amounts of money across country borders in the form of retirement funds, hedge funds, insurance, and similar
investments. For instance, a German national is able to purchase Facebook stock which is an American–based company that went public to venture
capitalists around the... Show more content on Helpwriting.net ...
According to Schmukler (2004), when financial institutions in one country are under duress, borrowers have the option to raise capital by issuing
shares in domestic or international capital markets. The globalization of finance make the valuing and distribution of capital more efficient as changes
in financial risks are revealed quickly. Furthermore, borrowers and investors can obtain better terms on their financing as "they are able to tap a
broader pool of capital from a more diverse and competitive array of providers" (HГ¤usler, 2002). Corporations can afford tangible investments
because they have become substantially cheaper. As a result, these reduced rates improve economic activity and growth, in addition to economic
prosperity. Emerging enterprises and reputable banks can source funds from a diverse group of providers, and build their businesses.
On the other hand, the pitfalls of financial globalization include: the instability of markets, distortion of the allocation of capital, emerging companies
and banks are vulnerable because of inadequate regulation, and the contagion phenomenon. The globalization of financial markets are volatile and this
may threaten markets. When the globalization of financial market occurs, financial risk will become actively traded among companies, investors, and
other nations. Consequently, it becomes challenging to pinpoint potential challenges and measure

Hiv/Aids Epidemiology in Swaziland
Running head: HIV/AIDS Epidemiology in Swaziland
HIV/AIDS Epidemiology in Swaziland
Andrew Jay Mallo
Florida International University
Abstract
Since the first case was reported in 1986, AIDS has disproportionately affected the Kingdom of Swaziland relative to other nations in the region and
globally. The high prevalence rate is characteristic of a generalized epidemic. It is estimated that there will be 20,000 to 30,000 newHIV infections each
year. The Swazi Ministry of Health and Social Welfare [MoHSW] collects this data every two years, creating a lag of time between data collection and
dissemination of information. Based on HIV prevalence studies, the HIV epidemic has disproportionately affected women, is primarily ... Show more
content on Helpwriting.net ...
The stabilization may be due to a slight decrease in new cases. It is difficult to make this conclusion since there is no access to HIV incidence data.
There has been a decline in AIDS mortality rate since 2004 which may also correspond with an increase in antiretroviral therapy.
Source: UN/WHO. (2008, October). Epidemiological fact sheet on HIV and AIDS: Swaziland.
Transmission Patterns Although there has been some stabilizing in the HIV prevalence rate over the last couple of years there still exists a significant
heterogeneity in the HIV epidemic. Adult women have a significantly higher prevalence rate than men: 31% to 19.7% (UNAIDS, 2008).
Overall, the male–to–female ratio of HIV cases for young adults (age 15–24) has doubled from 2:1 in 2001 to 4:1 in 2007 (UNAIDS, 2008). The HIV
prevalence rate of pregnant women was 38.8% in 2007 (UNAIDS, 2008). The 11th HIV sentinel surveillance study showed a stabilization of HIV in
pregnant women. The data shows that women are at a greater risk of acquiring HIV than men. The greater risk is reflective of heterosexual
transmission. An epidemiological study by Physicians For Human Rights (2007) identifies an inequality between men and women that plays a role in
this heterogeneity. In this study women were more economically dependent and lacked control over sexual decision making. Women's rights had a
protective effect: Belief in sexual decision

Executive Pay History
Federal governance in executive pay is essential to a stable and healthy economy. I offer that the issue of Federal governance in executive pay is
bigger than equity in compensation. "Taxpayers and politicians and others disapprove of these levels of compensation precisely because the leaders of
these firms, in the words of Treasury Department officials, nearly caused the financial system worldwide to collapse."
History of Corruption in Executive Pay
The economic downfall of 2008 illustrates the impact of unbridled corporate pay structures on our economy. Securities fraud, committed as a result of
incentive packages offered to executives to create quick profits, had a detrimental effect on the overall economy. As observed during theBank and Loan
bust of 1989, CEOs take greater risks when offered stock options in their compensation packages. The 2008 Financial crisis, sparked by subprime
mortgage market and hedge funds, was driven by banking executives making short term risks that served detrimental to stockholders in the long run.
Furthermore, many compensation packages offered Golden Parachute clauses with no claw backs to both performing and underperforming executives.
The history of the executive pay is revealing. In recent years the ... Show more content on Helpwriting.net ...
In recent years, financial organizations have been bailed out to prevent the financial collapse of the economy. The Troubled Asset Relief Program
(TARP) provided relief funds to financial institutions. This program is a part of the Emergency Economic Stabilization Act of 2008. While
controversial, the Obama administration determined it was necessary to prevent worldwide economic failure. This bail out was necessary to add
stability to the financial markets after high–risk investments and fraudulent practices of the largest banking institutions in the US

Tax Implications Of Bailout And Elections Essay
Tax Consequences of Economic Failures June 13, 2007 is the day that Richard C. Cook claims in his article, "It's Official: The Crash of the U.S.
Economy Has Begun." In the past couple of years, months, and weeks, the United States economy and stock market showed significant failures and
inefficiencies to the world. Perhaps the greatest evidence signaling the recent economic meltdown is the subprime mortgage problems that started a
little over a year ago. The burst of the U.S. housing market bubble was caused by a combination of risky lending and borrowing practices and higher
interest rates coupled with dropping housing prices, making refinancing more difficult. To deepen the drama, Wall Street's excessive debt and
unsustainable... Show more content on Helpwriting.net ...
However, the ensuing months proved that more action is needed, resulting in the passing of the Emergency Economic Stabilization Act on October 3,
2008. Tax Consequences of Bailout Act Endearingly referred to as the "700 billion dollar bailout," the Emergency Economic Stabilization Act was
passed to prevent a major economic depression and help those that have been significantly displaced by the recent economic failures. More importantly,
it serves as a much–needed economic boost to jump–start both confidence by protecting the financial system and get credit flowing again. Despite
negative reactions from the people and the press, the bailout comprises of tax amendments and changes that may provide relief to the individuals
most affected by the economy. The tax consequences arising from the bailout act are important to note and some major provisions are listed below.
1.Extend mortgage debt forgiveness relief to 2012: cancellation of debt will not be treated as taxable income and no taxies will be levied on
discharges of up to $2 million (married filing jointly) and $1 million (married filing separately). 2.Extend alternative minimum tax relief to 2008:
exemption amounts of $69,950

Financial Crisis : The Fiscal Crisis
The second week of October in 2008 was the worst week for stock market during 75 years, Buckley (2011) state that the worst record was the Dow
Jones Industrial Averages dropped 22.1%, but it fell 44.3% then. In general, a financial crisis is not an accident; it may take several years and has
complex and interlaced causes (Claessens and Kodres, 2014). The 2007–08 global financial crisis is a typical case due to long–term non–intervention
policy and loose regulation for financial market from government. Moreover, it involved the complex relationship between government and financial
institutions. In order to look at this issue in particular, this essay first goes though the timeline of the 2007–08 financial crisis, particularly in U.S. and...
Furthermore, financial institutions, such as Citigroup, Goldman Sachs, Lehman Brothers, AIG and Moody's, designed some new credit derivatives
which were subprime lending. Subprime lending is a special loan for low–income workers and lower credit people to help them buy housing, but the
loans resulted in a debt crisis. Another huge area of debt was a result of other instruments. For instances, CMO's, CDO's, SIV's and MBS's are kinds of
financial derivatives that millions of people paid trillions of dollars for.
However, there were not the only reasons for crisis, government has responsibility for the market as well, but the American government implemented
policy to support financial institutions, and permitted loose regulation of the market. Consequently, the risk in financial markets was intensifying.
Ameriquest collapsed on 31 August 2007, the largest subprime lender in America. Reuters (2007) reported that "Ameriquest downsized in the
current housing cycle, deciding in May 2006 to close all 229 retail branches and cut 3,800 jobs". There were several mortgage companies and banks
failing followed by this; Others were bailed out by governments. The U.S. Federal Reserve injected 41 billion dollars for banks to borrow at a low
rate and to support whole financial market. But this was

Financial Crises And Its Effects On Global Economic Crisis
The 2007–2008 Financial Crisis– Its Causes and the Involvement of the FED The financial crises that occurred in 2007–2008 had such a big impact on
the world that it is now considered a global financial crisis (GFC) or global economic crisis. It is commonly believed that it began in July 2007 with
the credit crunch; U.S. investors lost trust in the value of subprime mortgages which caused a liquidity crisis. This had the effect that the U.S. Federal
Bank injected a large amount of capital into the financial markets. By September 2008, the crises had worsened as stock markets around the world
became highly volatile. This paper will examine the causes of the financial crises in 2007–2008, as well as the involvement of the FED in... Show more
content on Helpwriting.net ...
Even though, they could not provide any assets, they wanted to realize their dream to buy their own home. Bankers who were willing to give
them loans caused an increase in the number of home loans, and more people were able to buy their own house. As a result, an appreciation in
home prices occurred. Easy credit and the upward spiral of home prices made investments in higher yielding subprime mortgage look like a new
rush for gold (Thomas, 2011). The Fed interacted by reducing interest rates in June 2003 to 1%, which was, at the same time, the lowest interest rate
in the last 45 years. The concerns began when interest rates started to rise and home ownership on the other hand, reached a point of saturation.
After June 30, 2004, the Fed started to increase rates at such a high level that two years later, the Federal funds rate had reached a much higher rate
of 5.25%. Also by 2004, homeownership had peaked at 70%, and as a logical consequence, the majority of people were not interested in buying
homes anymore. In the last quarter of 2005, home prices started to decline, which also led to a 40% decrease in the U.S. Home Construction Index
during 2006. Not only were new homes being affected, but many subprime borrowers now could not withstand the higher interest rates and they started
defaulting on their loans (Chan, 2011). This had the consequence that two years later, in 2007, every month, several subprime lenders were filing for
bankruptcy which

A Note On The Bailout Crisis
The concept of a bailout is a loaded topic by itself, and its definition certainly does not give it any help. The words "failing," "save," and "collapse" are
usually not associated with a light–hearted idea. When a company or a country's economy is on the verge of collapse, chaos is not far behind. Job
loss, bank's individual trust, the stock market, and even each household's net. worth is at stake, all of which leads to economic decline. During this
time of panic, banks (commercial or central depending on the scale) must make a decision on whether or not they should save/bailout the company or
economy. In many instances, especially when a country's economy is about to collapse, other central banks are usually not seen to shy away... Show
Later that month, the U. S. House of Representatives passed legislation establishing the Troubled Asset Relief Program, or TARP. Congress then
passed, and President Bush signed, the Emergency Economic Stabilization Act of 2008, which established the $700 billion Troubled Asset Relief
Program (Investopedia). In November 2008, the Federal Reserve instituted quantitative easing programs following the 2007–2008 financial crisis; or
QE as it has become known. Quantitative easing is the act in which central banks buy government bonds in order to promote economic growth. In
November 2010, the Federal Reserve announced a second round of quantitative easing, referring to it as "QE2." A third round again was later
announced on September 13, 2013; which is now being referred to not as QE3; but "QE–Infinity." Quantitative easing can only be carried out if the
central bank controls the currency used in the country. Japan, the United Kingdom, Scandinavia and the Eurozone quickly followed, since enacting
quantitative easing programs of their own (Randow). A central bank, reserve bank or monetary authority are all institutions that manages a state's
currency, money supply and interest rates. A central bank also has the authority to print the national currency. Central banks within countries in the
Eurozone cannot unilaterally expand their money supply and therefore cannot directly employ quantitative easing. These countries must instead, rely

Review: Good to Great Essay
Running head: Good to Great Book Review|
In partial fulfillment for the requirement for
DEPARTMENT OF EDUCATIONAL LEADERSHIP AND COUNSELING
BY
TIFFANY TURNER–BANKS
11/12/2011
Jim Collins and his research team have done a wonderful job identifying what it takes for a company to go from good to great. I found this book
extremely interesting and would like to share several of my thoughts. The study looks at companies that appeared on the Fortune 500 from the years
of 1965 to 1995, looking for those that, for 15 years, either tracked or underperformed the stock market, followed by a transition, and subsequently
returning at least 3 times the stock market for at least 15 years. The eleven companies included in the ... Show more content on Helpwriting.net ...
Rather they demonstrated personal humility and professional will revealing an aggressive resolve to do what was best for the company, he or she
plays an important role in the success of their organization through talent, knowledge, skills, and good work habits. The lower levels included
effective leader, competent manager, contributing team member, and highly capable individual. The traits of Level 5 leaders include, building
"enduring greatness" into their organizations, setting their successors up for success, talking about the company and others, but declining to discuss
themselves, ordinary people producing extraordinary results, most likely to come from within the company, not outside of it, quick to give credit
outside themselves when there was success, while at the same time taking personal responsibility when things went badly and distinctive in their
approach to the people they wanted in the company. Most companies would think the first step in becoming a great would be to create a vision and
a strategy, but this has not been proven true. The first step a company should take is determining who the right employees are, and which position in
the company is right for them. In chapter three is states" If executives get the right people on the bus, the right people in the right seats and the wrong
people off the bus, then we'll figure out how to take it someplace great." Level 5 leaders wanted top players as well top effort.

Summary: The 2008 Financial Crisis
hroughout History, our great Nation, the United States of America, went through many era's of financial crises that resulted in depressions. This also
happened in 2008, when we experienced an immense financial crisis known as the Great Depression of 2008–2009. In an effort to end the financial
crises, the government established three major bailouts: the Emergency Economic Stabilization Act of 2008 (EESA), the Troubled Asset Relief
Program (TARP), and the American Recovery and Reinvestment Act (ARRA). Overall, the financial crises of the Great Recession of 2008
–2009
caused the government to implement various bail–outs in an attempt to stabilize the economy. These programs have their own advantages and
disadvantages that affect individuals and... Show more content on Helpwriting.net ...
The Treasury is now gradually drawing to an end of its remaining TARP investments and continues to implement TARP initiatives to help struggling
homeowners avoid foreclosure (Tarp Programs). The American Recovery and Reinvestment Act (AARA), which is also known as the Recovery Act or
the Stimulus, is a legislation that was enacted by the United States Congress and signed into law by Pres. Barrack Obama on February 17, 2009. It was
designed to stimulate the U.S. economy by saving jobs that were put at risk by the Great Recession of 2008–2009 and to create new jobs (American
Recovery and Reinvestment Act). In addition, it created measures to update our nation's infrastructure, enhance energy independence, expand
educational opportunities, improve affordable health care, provide tax relief, and protect those in greatest need. The Department of the Treasury
initiated nine programs, including tax changes and the delivery of an estimated $150 billion, which were designed to directly relief Americans and
their families (Recovery Act). Indeed, these programs were relevant in my

Causes And Consequences Of The Great Recession
CAUSES AND CONSEQUENCES OF THE GREAT RECESSION The most recent four years of the turbulent financial execution brought up a larger
number of issues than gave answers about reasons for the Great Recession of 2008–2009. Most business analysts are faulting the land business sector
breakdown and the tailed it budgetary emergency as fundamental driver of the Recession. Be that as it may, the genuine macroeconomic reason was the
change of the national macroeconomic approach from the Demand backing to Supply bolster methodology amidst 1980s. In this article I am going to
discuss the reasons of the Great Recession and its results. The monetary methodology before 1980–s has been based on the thoughts of the full job and
the wages development as the consequence of the development of profitability. The full vocation and the wages development have empowered the
increment in the interest for merchandise and administrations. That development has affected the increment in the supply and has invigorated the
organizations to put into new innovations encouraging the further development of efficiency. The "stagflation" of 1970–s truly harmed this
methodology. In 1980–s the Keynesian model of the monetary development, which depends on the backing of the development of Aggregate Demand,
has been supplanted by the "neo–liberal" model of financial development based upon the backing of the development the Aggregate Supply. Increment
sought after as it takes after from the established

The Stock Market Crash Of 1929
The cause of the crash in the stock market in 1929, was an incident that occurred on October 29, which was called Black Tuesday. Investors traded
16 million dollar of shares toward the New York Stock Exchange in a day, upon that billions of dollars were lost and investors lost their business or
their jobs. one of the major reason why was that car and other factory produced certain quota of cars. during the great depression people who were
rich is now poor and the poor and the poorer. people were living in terrible condition.
The event that lead up to the stock market crash of 1929 was a result of various economic imbalances and structural failings. these are some of the most
significant economic factors behind the stock market crash of 1929.
During 1920s known as "The Roaring Twenties" was the time when America was over dependent on production, automobiles, etc were the leading
industry, there was divided line between rich and poor. 60% of the population was living below poverty levels. There was uneven distribution of
wealth, 6% of the wealthiest people in the country were getting most of American income and, 33% of the income and richest, 1% owned half of the
nation's wealth. While the united states were doing extremely well during the 1920s, most of europe is still dealing with the devastation of World War
I. America soon become a superpower world bank and, europe started borrowing and buying less of American products. While there was a

Globalization Of Financial Markets And The Global Crisis
Globalisation of Financial Markets and the Global Crisis The financial markets are increasingly and highly interconnected, which means that the
regulation of the financial services is becoming globalised as well, since most of the bigger firms operate all over the globe, the standardization of the
regulation is a very common practice nowadays, making very difficult especially for developing countries keep up with the regulation. The financial
crisis of 2008 was one of the most devastating and longest crises the contemporary world has seen, after the crisis a set of reforms, institutions and
regulation were created, to avoid this happening again. Financial markets are in need of stronger regulation and higher penalties for infringement,
nevertheless the main challenge for most countries is the implementation of the international regulations. The crisis is the result of different factors.
This essay will analyse firstly, some of the factors that contribute to globalisation of the markets. Secondly, how these factors led to the financial crisis
of 2008 and how the crisis developed. Thirdly, it will analyse the changes made regulation wise in order to try to mitigate the crisis and avoid another
crisis of this magnitude. The definition that the QFINANCE Financial Dictionary (2009), gives of markets is "market for buying and selling financial
instruments market in which financial instruments are traded. The financial markets are stock exchanges, commodity exchanges, bond

Moral Hazard And The Banking System
Moral Hazard and the Banking System ACCT 6377: Corporate Governance Zachary Seay The University of Texas at Dallas Introduction The moral
hazard of bank bailouts is a very simple idea enveloped in a very complex issue. Back in late 2007 to mid–2009 the United States and the global
economy faced one of the worst recessions the world has ever seen. In fact the time period has been dubbed the Great Recession. Now at a broad
level this recession was caused essentially by our large banks buying and positively rating thousands upon thousands of mortgage backed securities
and collateralized debt obligations. In addition, the banks started getting to a point where they were leveraged sometimes in excess of 30 to 1. The
Federal Reserve initially recommended banks try to stay around 10 to 1.(d) When the mortgages started to foreclose the value of those securities
plummeted and the banks started to lose solvency. With the issue of possible banks going into bankruptcy the government of course got involved.
Instead of letting the banks fail, taxpayers instead bought up many of those toxic securities along with toxic bank stock and set the banks free
without so much as a slap on the wrist. This is what many have come to consider a moral hazard. It is hard to tell if our actions really even helped as
the economy didn't start getting to back to normal until around 2012. Mortgage backed Securities & Collateralized Debt Obligations Mortgage backed
securities and collateralized debt

Summary: The 2008 Financial Crisis
The Financial Crisis
The financial crisis of 2008 has been, so far, the worst financial meltdown of today's generation. The crisis not only brought a halt to the banking
system as we know it, caused major financial institutions to close their doors for good, but required a Government bailout in order to stabilize the
failing economy. The eventual collapse of the established institutions and the recession that followed, caused the finance industry to re–think their
position and ideology on their operating practices so that the same type of occurrence would not repeat itself again.
The origins of the financial crisis can be attributed to multiple inter–related factors. The biggest single contributor of the crisis, however, was the
practice of ... Show more content on Helpwriting.net ...
The economic outlook had taken a grim downturn, unemployment rates were quickly dropping, and consumer spending and trust were at historic
lows. Ben Bernake, Chairman of the Federal Reserve, along with other prominent financial economists noted the financial system was facing a
"liquidity crisis" as banks started to hold on to their remaining capital (Cassidy, 2013). The men decided to respond to the crisis by lowering
federal rates and issuing bailout funds to banks. The goals of this response was to stabilize the failing economy and to prevent the failure of major
financial institutions. The lending program and lowered interest rate response was later coined as the "Bernake Doctrine". Bernake was able to
achieve the lending programs by relying on Section 13(3) of the Federal Reserve Act of 1932, which allowed for permissible lending in "unusual and
exigent circumstances" (Cassidy, 2013). In addition, Bernake influenced Congress alongside, Hank Paulson, US Secretary of Treasury, to pass a $700
million bail–out bill which had a provision called TARP (Troubled Asset Relief Program), saving major banks including AIG, Goldman Sachs, Merrill
Lynch, and Morgan Stanley and allowing the acquisition of Wachovia and Washington Mutual by larger and more solvent institutions. (Cassidy, 2013).
TARP was a

My Permanent Home, Texas, And I Am Represented At All...
. With a population of roughly 26 million, Texas has a unique blend of languages, cultures, and political ideologies. With such a huge population and
varying interests, there are many representatives to help voice the majority concerns and interests within the state. These representatives hold office in
varying levels of government such as local, state, and national government positions. My permanent home is in Keller, Texas, and I am represented at
all three levels of government. My local government consists of six city council members who all represent the city of Keller. The council consists of
members: Debbie Bryan, Gary Reaves, Tom Cawthra, Bill Dodge, Bill Hodnett, and Rick Barnes. Further up in the chain of government is
Representative Giovanni Capriglione. Representative Capriglione represents me in the state government level in the 98th district. Finally, in the
national level of government, republican Congressman Michael C. Burgess represents me. Congressmen Burgess represents congressional district 26.
Michael Burgess addresses several needs of the citizens of the 26th district and has taken certain stances on a variety of issues and topics. Three issues
Congressman Burgess considers priorities are energy, federal spending, and health care. Burgess has made headlines regarding the stances he has taken
on these issues. Burgess believes that his stances best represent the 26th district of Texas and serve the citizens best. Along with his role of congressman,

Jack Beatty's Age Of Betrayal
In the book Age of Betrayal, Jack Beatty puts forth his argument that "representative government gave way to bought government," (Beatty 192). Do
you agree with Beatty's assertion of representative government? If yes, how would you compare the political climate of the time to the current political
climate?
I agree with Beatty's claim in regards to the United States. Often times, elected officials would streamline legislation for the wealthy because they
would receive gifts in return. This is most clearly seen through the Homestead Act and the distribution of land grants. In the chapter "Vote Yourself a
Farm," Beaty states that "in return for a modest land grant, for example, a Kansas road, spread $295,000 worth of stock among Thaddeus Stevens, ...
Representative government does not pave the way for a bought government, rather, it opens the door and increases the likelihood of corruption. There
are many representative governments around the world that do work and are not as susceptible to special interests as the United States. For instance,
Canada. Canada has a representative government, but they do not face the same issues of corruption as the United States. This is due to their
campaign finance laws and the role contributions serve during a campaign. In Canada, an individual may only contribute a maximum of $1,500 to a
political candidate or party. This in turn leads to an average campaign budget of roughly $100,000 in total. Campaign budgets in the United States
dwarf those of their Northern neighbor. As stated earlier, this will continue to be the case until campaign finance laws are put in

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