Essay on Stock Market and Services Textbook Page Review

Essay on Stock Market and Services Textbook Page
1.Reviewing GM's financial information in GM Exhibit 1 and its stock price in GM Exhibit 2, when do you first see signs of GM's impending
financial distress?
The sign of GM's impending financial distress is first seen in 2005. GM reported a net loss of more than $10 billion and has continued to post annual
losses since that time with losses reaching almost $31 billion in 2008. GM's cash flow from operations in 2005 was a negative $16.8 billion.
Reviewing GM's stock price, we can see that the stock price also decreased dramatically started in 2004 to 2008. In 2005, GM's stock traded around
$19 per share and reached the lowest of $1.45 per share on March 2009.
Source: Auditing and Assurance Services Textbook page C11–C13.
2.In ... Show more content on Helpwriting.net ...
Deloitte & Touche definitely should have issued a going–concern opinion earlier for GM so that customers, suppliers, investors, and creditors could be
aware of the situation. Issuing a going–concern opinion might promote timelier rescue activity.
Source: Auditing and Assurance Services Textbook page C11
–C13.
4.What economic factors existing in the United States during 2008 might have accelerated Deloitte & Touche's decision to issue an audit opinion
modified to disclose going–concern uncertainties?
There are some factors existing in the United States during 2008 might have accelerated Deloitte & Touche's decision to issue an audit opinion
modified to disclose going–concern uncertainties.
The Global Financial Crisis or 2008 financial crisis is considered by many economists to have been the worst financial crisis since the Great Depression
of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in
stock markets around the world.
For fiscal year 2008, in addition to General Motors, seven other Fortune 500 companies (Ausbury Automotive Group, Charter International, Lear Corp,
MGM Mirage, Pilgrim's Pride Corporation, Sonic Automotive, Inc., and TWR Automotive Holdings Corp.) received going–concern opinions; no
Fortune 500 companies had received such opinions in 2007. For a broader universe of companies, the number of all companies filing
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How Important Was вЂњRegulatory CaptureвЂќ in Causing the...
The purpose of this paper is to show that the "regulatory capture" has played a role not easily measurable in causing the global financial crisis. To
illustrate this, the first step will to describe the "regulatory capture" in its three possible qualifications; then, I will explain, providing some examples,
how each of these categories played a possible role in posing the basis for the financial crisis. While illustrating the different forms of capture I will
present some questions that leave space to different answers. Finally, I will conclude that the regulatory capture have surely played a role in generating
the crisis, but it is not possible to evaluate the effective role it had in causing it.
"Regulatory capture" is not easily ... Show more content on Helpwriting.net ...
For instance, the increased importance of networks and the rise of highly systemic banks created a system in which the banks became, on one side,
too big to fail, and, on the other, too big to save. Indeed, the lesson from Lehman Brothers Chapter 11 is that letting go bankrupt a systemic player
(even not one of the largest) might bring about unknown undesirable effects. The policy makers are, therefore, definitely captured because banking
sector is architecture in such a way that constrains the policy makers to go through a bail–out in case of a relevant financial distress. So which are the
consequences of this behaviour? The outcomes are double: the ex–ante banks' possibility to engage moral hazard behaviour and the ex–post debt
burden on the tax payers. This creates an incentive for the banks to take more risks due to the implicit protection of the government, that rely on the
tax payers to pay for the bailouts, creating a substantial problem of fairness and social equity, in which low income class has to pay for the top
income class' errors. Another example of this theory is the state dependence on taxes generated by the financial sector. For instance, in the UK "the
financial sector's gross value added (GVA) rose over the last decade, but has declined since 2009. Its contribution to UK jobs is around 3.6%. Trade in
financial services makes up a substantial proportion of the UK's trade surplus in services. Estimates of the sector's contribution to Government tax

What Caused the Economic Collapse of 2008?
Anthony Smith
Dominique Dieffenbach
ENC1102 – English Composition II
7 February 2012
Who is to Blame for the Economic Crash of 2008? Throughout history there has always been some sort of a class struggle. The rich always seemed to
get richer while the poor barely managed to get by. One of the main things that contributed to the ever–expanding gap between the rich and the poor was
greed. Whether it was the greed for money or for power, greed was certainly a driving force. More recently, the greed of several, rich and powerful
individuals helped to cause one of the largest financial collapses of modern times. The purpose of this paper is to establish some of the key players in
the economic crash of 2008, and to show some common ... Show more content on Helpwriting.net ...
Sadly, this would not be the case. Later in his Presidency,Ronald Reagan would appoint Alan Greenspan to head the Federal Reserve Bank. Greenspan,
an economist, had previously sent a letter to government regulators to help convince them of the "soundness" of the savings and loan industry and its
need to be de–regulated. He was paid $40,000 by a top executive of the savings and loan industry, Charles Keating, for his work in convincing the
regulators to de–regulate the savings and loan industry. After the collapse of the savings and loan industry, many top executives were arrested and sent
to prison for looting their companies, Charles Keating was one of the main criminals that were sent to prison. (Ferguson 15:35) Works Cited
Blumberg, Alex, dir. "The Giant Pool of Money– Episode 355." Dir. Davidson Adam, This American Life. NPR News: WBEZ, Chicago, 09 May 2008
Radio.
Ferguson, Charles, dir. Inside Job. Prod. Marrs Audrey. Sony Pictures Classics, 2010. DVD.
Levin, Carl, and Tom Coburn. United States. United States Senate. Wall Street and the Financial Crisis: Anatomy of a Financial Collapse. Washington:
Committee on Homeland Security and Governmental Affairs, 2010.
Who is to Blame for the Economic Crash of 2008: An Annotated Bibliography
Blumberg, Alex, dir. "The Giant Pool of Money– Episode 355." Dir. Davidson Adam, This American Life. NPR News: WBEZ,

Bailouts Effect on Economy
Almost 1.2 trillion dollars were spent on bailing out the various banks in the 2008 financial crisis. First, what bailouts are is explained. Then, the
history of bailouts in the US is told. Finally, the effects of the recent bailouts are analyzed. Because billions of dollars are spent on bailouts, they
need to be understood by the public by knowing their history and their effects on the economy to ensure informed decisions in the future on
whether or not banks should be allowed to fail. A bailout is the process of offering money to a failing business, often in the form of a loan, in order
to prevent the consequences of that business going bankrupt. The most well known type of bailout is when the government bails out a company but
that is not the only kind of bailout. It can be an individual bailing out a company, a company bailing out another company or even a government
bailing out another government as has been happening in Greece for a few years. The reason that a company is bailed out is because of the "Too
big to fail" theory which states that some banks or other companies are so large and interconnected with the rest of the economy that if it failed there
would be disastrous effects in the rest of the economy, enough to cause another recession or even another great depression. For example in 2008, the
global financial services firm Lehman Brothers filed for bankruptcy, which was the largest bankruptcy in U.S history with over six hundred billion
dollars in assets. The

The Pros And Cons Of The Banking Crisis
Banking crisis has been much more frequent than any of the expectations by research or any of the banks. The annual probability of a crisis has been
judged to be around 4–5% in both the industrial sector and emerging market countries (Walter, 2010). The banking sector has been effected by many
factors which contributes to its vulnerability. Some of the factors that adds to the vulnerability of the bank are minimum availability of high–quality
capital, lack of high quality liquid assets, and sources for reliable funding.
After the great economic crisis of 2008 (Subprime crisis), many banks had failed leading to a great recession. Since the beginning of the financial
turbulence which began in the year 2007, globally the banks have reported a total write downs and losses of more than 888 billion dollars. At the
same time some of them have estimated the overall expected loss of various banks and financial institutes in the range of 2.2 trillion dollars (Global
Financial Report Market Updated, 28 Jan 2009). Banking crisis are usually associated with significant economic losses. During the crisis many banks
had failed to bring in additional capital which had forced many of them into a ... Show more content on Helpwriting.net ...
The major problem is with respect to the Ethics in Banking, which was the major cause of all the crisis and failures. May even a stringent norm
come, it will still have some loopholes which the Banking Wizards will find out. Unless the core of banking which is the "Trust of customer" that is
gained, no bank can ever be successful. If we observe down the lane, we will see that behind all the failures of the banks was the lack of trust by the
customers over banks. And the reason being simple that the banks had forgone the Ethics for the sake of Profitability. And this is the point where the
main problem starts, for this being the very foundation is

The 2008 Financial Crisis Essay
Introduction
In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many
economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis
expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish
individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman
Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and
... Show more content on Helpwriting.net ...
The economy is known as a new emerging economy especially after entering WTO in 2007. The Foreign Direct Investment (FDI) has increase
considerably and the GDP is over 8% in the period of three years (2005–2007). Nonetheless, it is clear that the economic instability occurs after WTO
accession of Vietnam 1 year. Consequently, the economy has suffered surginginflation as well as trade and fiscal deficit. (Figure 1) GDPCPI
20058.48.3
20068.27.5
20078.58.3
20086.223
20095.36.9
Figure 1 : GDP and CPI 2005–2009 (% change per year)
Source: Asian Development Bank and Vietnam
B. Inflation
Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4–5% GDP and the trade deficit accounted for 20% GDP in which
approximately $US17.5 billion dollars. The influence of high fuel combine with food prices and high domestic demand lead to high inflation. The high
price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country importing fuel. Furthermore, the increase in global food
prices affect detrimental to the high inflation in Vietnam.(Figure 2) Figure 2 : Fiscal Deficit and Trade Deficit (2003–2008)
Source : IMF, General Statistics Office of Vietnam
C.Impact on Trade
The global financial crisis has affected severely on Vietnamese exports. After joining the WTO, Vietnam's trade has become depend on global

Essay about American Financial Crisis
The US Financial System: A Crumbling Empire The financial system has been crucial to the role of free enterprise. "Financial markets have come to
supply non–financial corporations with mechanisms for managing their risks and for comparing and evaluating diverse investment opportunities in a
highly complex global economy" (Cindin, 2008). "However, despite the lifetimes it took to build our financial institutions, bad luck and careless risk
management have jeopardized careers and mortgaged these institutions' futures"(Wallace, 2008). The nation is currently attempting to deal with the
biggest financial crisis since the Great Depression. It is now imperative that a way be found which will re–regulate finance without undermining
finance's... Show more content on Helpwriting.net ...
This is the result of commercial and investment banks lending vast sums for housing purchases and consumer loans to borrowers who are ill–equipped
to repay. As consumers begin to default on their loans, banks are realizing the horrendous fact that they have no tangible cash to carry out business
procedures. These profound errors in risk management are taking disastrous tolls on the economy. The U.S. economy is now facing four serious
problems. The first problem is that consumers are cutting back on spending in an effort to try and repay their loans. "Presently, consumers and banks
are trying to reduce the amount of money borrowed in relation to their assets or income, a process known as de–leveraging" (Francis, 2008). This will
cause a recession since consumers make up seventy percent of all spending. The inventory of unsold homes is now large, so the demand for housing
and construction will be low for several years. Other businesses will also begin to reduce the production of goods in order to keep pace with the
decrease in demand. The International Monetary fund is forecasting the United States' gross domestic product to grow by just .5% in 2008 and .6% in
2009. The problem of consumer spending is actually the least of the economy's worries. The second dilemma that the economy faces is the increase in
the number of defaults on mortgage payments and consumer loans. Large quantities of consumers were purchasing homes in belief that the property

Shadow Banking
Shadow Banking System and its role in the global financial crisis
What is shadow banking system
Shadow Banking System (SBS) refers to a collection of financial entities, infrastructures and practices which support financial transactions but beyond
the regulation and monitor from the government or official regulators. Some financial institutions, like investment banks, may conduct some their
transactions in the shadow banking system, but they are not SBS institutions themselves. The term was first proposed in 2007 by Paul McCulley, CEO
of Pacific Investment Management Co., and soon became popular with the spread of global financial crisis around the world.
History and evolution
Shadow banking system has actually existed for a ... Show more content on Helpwriting.net ...
With excessive trading, market became even more risky and volatile. Firstly, just because those derivatives can reduce risk, to some extent at least, it
gave the banks and other financial institutions a perverse incentive of performing prudential risk control. Secondly, any risk–control instruments can
easily become the profit–seeking tools for the greedy speculators. Like commodity futures contracts, they were originally designed to hedge risks in
real commodity business. But very soon after, most such trading became for speculation purpose, which, on the contrary, increased the market volatility.
Furthermore, the evaluation of those collateralized derivatives and securities is very subjective and unstable. It depends on confidence, market
conditions and the modeling that different companies use. When economy goes bad, the underlying assets price may drop sharply. Securities devaluate
and defaults appear more and more, and that would have a domino effect to make things even worse.
SBS' role in global financial crisis
Many academics have openly blamed the SBS to be the main cause of the global financial crisis. SBS blew the bubble and now the bubble bust.
From 2004 the US Federal Reserve started increasing interest. In 2006, America's real estate price started declining. This shook the foundation the SBS.
In August 2007, America's top 5 investmentbank, Bear Stearns Co. declared to stop redemption on its

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

Financial Crisis Essay
In 2016 it was estimated that the US wealth gap had reached a width previously seen in the 1920s. Since the 1970s America's middle class has
been shrinking, whilst the lower and upper classes have been growing, the former at a much faster rate to than the latter. It's negative effects are
best stated up John Taylor in the Hover Digest: "On the Fraser index, the United States ranked 2 in the year 2000 and it ranks 14 today. On the
Heritage index it ranked 5 in 2008 and it ranks 12 today. On the World Bank's Doing Business indicator it ranked 3 in 2008 and it ranks 7 today."
(Hover Digest 9). Much of this shrinkage has been attributed to various periods of economic turmoil in the past several decades; the 1979 energy
crisis, the Savings and... Show more content on Helpwriting.net ...
Post–Great Depression deregulation began in 1980 when then President Jimmy Carter signed the Depository Institutions Deregulation and Monetary
Control Act into law. This was the first piece of bank–reform legislation since the Great Depression. Among other things, the bill included provisions
lowering the Federal Reserve's mandatory reserve requirements for banks, preempted state usury laws that limited interest rates lenders could charge
for residential mortgages and allowed depository institutions to access the Federal Reserve Discount Window for credit advances. In other words,
banks could borrow more of the taxpayers money, gamble with said money and states' attempts to protect their citizens by regulating interest rates
Banks charged for mortgages on homes. This charity to large Banks was the first to come in a long line of endowments to corporate America caused by
the mushrooming of free market fundamentalism during the Reagan Administration that has persisted to modern day. It is no coincidence that
immediately following the birth semi–capitalist largess was full of economic issues; deregulation led to irresponsible practices by During the 90s
deregulation continued to sowing the seeds of future downturn for the US economy as both major parties shifted economically right. The paramount of
deregulation from this

Too Big to Fail
Can banks become "too big to fail", and should they be allowed to stay that way? On September 15th 2008, the investment bank Lehman Brothers
filed for bankruptcy. It was, and still is, the biggest bankruptcy filing in U.S. history , with Lehman's holding $691 billion in assets at the time. The
event was the catalyst for the current financial crisis. By the end of trading that day, $700bn had been wiped off the global stock markets. The Dow
Jones had plummeted 500 points, its biggest drop since the terrorist attacks of 9/11 . Despite rumours and knowledge that Lehman's was struggling,
with its share price dropping daily, the huge drop in the financial markets was due to the huge shock. No–one had been expecting this, as it was
anticipated... Show more content on Helpwriting.net ...
Furthermore, their size and capital allows them to provide those services at cheaper rates than their smaller counterparts. The large banks can achieve
much greater levels of economies of scale. Studies by Boyd and Heitz have shown that larger banks, (defined as having assets of over $50 billion),
have higher scale economies than their smaller counterparts . The mean measure of scale economies in the banking industry is 1.145, whilst the larger
banks had a mean of 1.25, implying that they were therefore 9.2% more efficient than the rest of the industry. They hereby estimated that the larger
banks' economies of scale increased their contribution to national output by 9.2%. These proponents argue that the social benefits derived from these
economies of scale are beneficial enough to prevent the stricter reforms and changes being discussed by governments around the world from being
implemented. One of the main arguments against banks becoming too big to fail is that a moral hazard problem occurs. Moral hazard is a basic
economic concept, whereby one party entering a transaction will take more risky actions if they know they have insurance against the outcomes of
those actions. At present, too big to fail banks have a variety of systems emplaced by the government, which protect them in the event that they run into
financial difficulty. For example, in the U.S. the banks' creditors get federal deposit

Macro and Micro Causes of Financial Crisis Essay
Corporate and Wholesale Finance – 12BSP053 "Since 2007 to mid 2009, global financial markets and systems have been in the grip of the worst
financial crisis since the depression era of the late 1920s. Major Banks in the U.S., the U.K. and Europe have collapsed and been bailed out by state
aid". (Valdez and Molyneux, 2010) Identify the main macroeconomic and microeconomic causes that resulted in the above–mentioned crisis and make
an assessment of the success or otherwise of the actions taken by the U.K government to resolve the problem. By Alistair Walters– A913910 1Five
years on from the beginning of the worst financial crisis he world has seen we are still in a perils state of low or negative growth and low interest...
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These low rates 120% 100% 80% 60% 40% 20% 0% 1987 effectively encouraged frivolous spending and heavy borrowing allowing people to live
beyond their means. Low interest rates also increased the discount value of assets and therefore increased their value. This created a house price
boom in the UK and US. It was in the US that this twined with high levels of borrowing created the subprime lending market, whereby individuals
with poor or no credit history borrowed vast subs of money to buy 2001 1991 1993 1995 1997 1999 2003 1989 2005 2007 3US UK EU
TheCausesof,andResponseto,TheFinancialCrisisproperty. Lenders underwrote the loan against the value of the house with little concern for the ability
to repay due to the booming property market and sold the debt as packaged securities on international capital markets spreading the debt overseas. Once
the house

Causes of the 2008 Financial Crisis
Student Name
Professor's Name
Course Title
Date of Submission
Causes of the 2008 Financial Crisis
a) Financial crisis definition Financial crisis is defined as the financial meltdown, or in other terms as the credit crunch. A financial crisis is an
economic incidence makes it hard to obtain and access the capital for use in investment. The economic crisis is an ongoing economic problem that
was more pronounced in 2008 resulting in the liquidity in the global credit markets and its financial systems (Berlatsky 77). This means that there was
no credit available for the investors, which adversely affects the poor countries. For the developed countries, this crisis created panic and was
perceived as the most horrible in the previous years. ... Show more content on Helpwriting.net ...
This position has given it some of the substantial reasons for it to stir the economies of the world, and in the 1990s, the banks in the USA became
the financial instruments for deposits of the surplus from the oil producing countries. The Real domestic product (GDP) began to contract towards the
third quarter of 2008, with a gradual annual fall since the 1950s (Suter 45). The capital investments which was on the decline in 2006 matching the
1958 post war record in the first quarter of 2009, dropping by 23.2%. Furthermore, the rising tide on bad debt threatened the solvency of most of the
banks. The changes in the Federal Reserve policies created panic in the inter–blending market (Gup 44). This was due to the uncertainty in which banks
would survive their tenure in the lending of money to anyone leading to the censure of the economy. The investors in the stock market panicked
making them send all their stock shares to a free fall. The decline in the shares significantly reduced the capital shares that greatly affected the bank
regulatory system as it is based on the idea that the loans borrowed have to be a certain multiple of the bank capital (Dalton 63). This led to a massive
decline in the lending system that significantly threatens the stability of the system. The significant effects of the financial crisis were more apparent
was first detected in the US

To what extent does the Efficient Market Hypothesis (EMH)...
Introduction
It was previously assumed that economic investors and regulators (agents) utilised all available information and thus market prices were a reflection of
this information with assets representing their fundamental value, encouraging the position that agents' actions were rational. The 2007–2008 Global
Financial Crisis (GFC) is posited to have originated from the notion that all available information was utilised, causing agents to fail to thoroughly
investigate and confirm "the true values of publicly traded securities," leading to a failure to register the presence of an asset price bubble preceding
the GFC (Ball 2009).
This essay will use the notions of EMH to determine the extent to which they can explain the Global ... Show more content on Helpwriting.net ...
This argument becomes redundant when we consider that investors did know that asset prices were wrong because the favoured strategies of trading
desks and proprietary portfolios were primarily founded on market mispricing, hence this can be seen as the cause of huge losses in 2007–2008. In this
financial crisis, it was the knowledge and recognition of mispricing that were a probable cause of the GFC as agents were prepared to bid up the
price of assets and allow subprime mortgages to continue to be traded even although common sense would suggest that 100% finance to subprime
candidates was destined for failure and would burst the asset bubble as US mortgage defaults increased alongside foreclosures.
Further to the argument that agents were ignorant of and failed to engage with new information, the formation of asset price bubbles has been offered
as a cause for the GFC. Ball argues that it is inherently difficult to recognise the presence of an asset price bubble until after the event has affected the
market and even by recognising that prices did not accurately reflect true value, this could never have indicated a nearing price bubble burst to
investors because EMH suggested that all then available information was

Taking a Look at the Great Recession
Many economists have come to consider the 2008 financial crisis as the worst recession since the 1930's Great Depression. The recession led to the
total collapse of financial institutions, the withdrawal of banks by the national governments and the total collapse of stock markets across the world.
The housing market also suffered in many areas, which resulted in prolonged unemployment, evictions and foreclosures. The crisis played a key role
in the failure of significant businesses, the decline in the wealth of consumers, estimated in trillions of American dollars, a downturn in economic
activities and the debt crisis of the European countries. On 9 August 2007, the Banque National de Paris (BNP), a French bank and financial
company whose global headquarters are located in London, stopped withdrawals from three hedge funds citing a total evaporation of liquidity. This
marked the beginning of the active phase of the crisis. In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in
plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing
of sub–prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies
and banks to back their financial commitments contributed to the bursting of the bubble (Boatright, 2010). During 2008, securities suffered huge losses
due to

Master Thesis On Finance And Investments
Master Thesis Topics
Finance & Investments
2009–2010
Table of Contents
Master Thesis topic 1: The Design of Lockup Contracts in IPO Firms in Europe4 Master Thesis topic 2: Bank Risk Management6 Master Thesis
topic 3: The Ambiguous Role of Credit Ratings8 Master Thesis topic 4: Mergers and Acquisitions9 Master Thesis topic 5: Trading Volume and
Asset Prices10 Master Thesis topic 6: Liquidity in Asset Markets11 Master Thesis topic 7: The Role of Corporate Governance in Mergers and
Acquisitions13 Master Thesis topic 8: The Risk of Corporate Fraud and Capital Market Consequences15 Master Thesis topic 9: Credit Derivatives16
Master Thesis topic 10: Bank–Borrower Relationships17 Master Thesis topic 11: The Impact of... Show more content on Helpwriting.net ...
As directors assume important leadership roles and they are more informed than other shareholders, thus the information asymmetry tends to be higher
between directors and outside investors than between venture capitalists and outside investors. However, venture capitalists are repeat investors who
have valuable reputation at stake which may limit their conflict of interests with outside investors acquiring shares in the IPO. Outside investors may
not purchase shares in the IPO backed by venture capitalists who were previously involved in taking advantage of insider information and reducing the
wealth of outsider investors. Besides venture capitalists also use IPO as an exit mechanism to optimally recycle investments and maximize future
returns. Hence the length and expiry of directors' lockup agreements will convey significantly different information than the length and expiry of
venture capitalists' lockup agreements.
Important Literatures
Aggarwal, R., Krigman, L. and Womack, K., 2002, "Strategic IPO Underpricing, Information Momentum, and Lockup Expiration Selling". Journal of
Financial Economics 66, 105 – 137.
Brav, A. and Gompers, P., 2003, "The Role of Lockups in Initial Public Offerings". The Review of Financial Studies 16, 1– 29.

Cornell, B. and Sirri, E., 1992, "The Reaction of Investors and Stock Prices to Insider Trading". The Journal of Finance 47, 1031 – 1059.
Field, L. and Hanka, G., 2001, "The Expiration of IPO Share Lockups". The Journal of

What Are The Similarities Between The Great Depression And...
Introduction
The world has encountered two major economic slumps since World War I. The Great Depression was the longest financial crisis witnessed by the
modern world. It started at around October 29th, 1929 and lasted up to the beginning of the Second World War in 1939 (Temin 301). The great
depression was by far the worst and longest economic crisis ever recorded in modern history, until towards the end of 2007. The next economic crisis
that would be comparable to the Great Depression occurred in the late 2000s, precisely between December 2007 and June 2009 (Roberts 1). It would be
popularly referred to as the Great Recession. The Great Depression and the Great Recession were undoubtedly similar in multiple ways. This paper
aims at comparing these two great economic crises by highlighting their similarities. This paper answers the question 'How similar were the failures of
the financial markets during the great depression ... Show more content on Helpwriting.net ...
During the Great Depression, households had to keep up with increased rates both on income and excise tax. The highest mark was at 79% in terms of
marginal tax. Most Americans, however, lay within the 50% tax rate (Cole, Harold and Lee 159). Entrepreneurship and capital intensive investments
were also greatly affected, with the government requiring more than half of any income exceeding a set value. Due to the decreased investment by
entrepreneurs, the joblessness problem was further compounded. Similarly, the Obama administration recommended significant tax hikes, planned for
the future. Some of the items that the Obama administration had recommended were tax hikes on included liquor, cigarettes, plane tickets, and soft
drinks. Furthermore, the many tax breaks that had been enacted under President Bush were discontinued. President Bush had implemented tax cuts on
capital gains tax, income tax, and estate

Financial Crisis 2008
Banking Academy| City University of Seattle|
CORPORATE FINANCE
THE GLOBAL FINANCIAL CRISIS 2008 Group's member:Nguyб»…n NhЖ° Nam (C)Phan Thu AnNguyб»…n ThГ№y DungHoГng BГЎ
SЖЎnNgГґ Thб»‹ ГЃnh TuyбєїtDate: 28/11/2014|
AbstractIn 2008 the world was fell into the worst financial crisis since the Great Depression of 1929–1933. Although this crisis has gone, however, its
consequences for the economy of many countries is very serious, even now many nations are still struggling to escape difficulty. Just in a short period,
the crisis originating from America has spread to all continents. It led to a series of serious consequences such as the falling in stock markets, increasing
in unemployment rates, large financial institutions had been ... Show more content on Helpwriting.net ...
Prior to formally entering the financial crisis, a range of signs forecasting this event had happened around the world. Problems with short–term debt
funding and mortgaged assets were not limited to the United States, which is also the underlying cause of the financial crisis (Stoeckel, 2009). In
2001, the U.S economy fell into recession after the dotcom crisis and the terrorist event on September 11. To encourage the consumption, the central
bank had lowered interest rates. The result was that with interest rates so low, investment and consumption became too easy, the U.S financial
markets rapidly back and created "real estate bubble". Started from the housing market, the crisis quickly spread to the entire U.S financial system
bank. In 2007, the 4th biggest bank in the U.S, name Lehman Brothers was under pressure. Lehman tried many different ways to save itself such as
raise capital, sign a deal with Morgan Stanley and Bank of America, merger with Barclays but none of it worked ("Financial Crisis 2007/2008
Overview," 2011). From here, everything was ready for the crisis explosion in September 2008.
2. Reasons
There are so many reasons lead to global financial crisis in 2008. In this case, I want to mention to seven main causes which directly promoted
financial collapse. 2.1 The housing bubble
From 1890 to 1997, the real price of housing in the U.S. remained relatively stable. When prices peaked in 2006, the average price

Ethics Essay
Our case study discusses the rise and fall of one of the largest telecommunications corporations in the world, Nortel Networks Corporation. Nortel was
one of the many early 21st century telecommunications companies that failed due to upper echelon management, a dysfunctional board of directors,
inflated costs and earnings, and a smoke and mirrors illusion of stability. There were many avenues that could have been taken that would have
prevented the demise and fall of the organization, but those roads were not traveled. Many argue that government intervention could have prevented the
backlash and whitewater effect of Nortel's bankruptcy, but due to corporate ties within the government and the Securities and Exchange Commission
the many ... Show more content on Helpwriting.net ...
Although initially they created unintended unethical behavior which probably resulted from a dysfunctional management team, those initial ideas
would later lead to several action sequences that would have lasting effects. The two moral imperatives of "do not lie" and "do unto others as you
want done to you" were not attributes that several of the board members held (Collins, 2011, pg. 24). There are a multitude of mechanisms that should
be put in place to better align managers with the interests of shareholders, and the government plays a big part of that puzzle. Agency problems arise
when the management of a public company pursues its own economic self–interest ahead of shareowners' and secondary stakeholder's interests' and
portrays disregard for the respect for others and does not reflect at atmosphere of corporate citizenship. This behavior may manifest itself in the form of
golden parachutes, long–term employment contracts, corporate jets, and other perquisites. Managers are susceptible to human nature and may pursue
their own economic agendas without any concern for maximizing the wealth of the shareowners (Anson, White, McGrew, Butler, 2004). Nortel
investors complained that even in its downward spiral, the executives received bonuses and issued excessively optimistic projections. Soon there would
not be much left other than the lawsuits alleging issuance of misleading financial statements and blatant insider trading

Policy Failures Essay
Policy failures Immediate reaction to the Great Recession could have assumed that it was an intelligence failure perpetrated by the failure to
understand and anticipate the risk in the economy. Or perhaps there was too much noise to be able to pick out clear indicators of the pending economic
turmoil. However, to do so dismisses the culture of deregulation that existed throughout the 1990s and early 2000s. It also dismisses the political nature
of financial policy making. Thus, at its core, the Great Recession occurred as a result domestic and foreign policy.
In the early 2000s, the Federal Reserve lowered interest rates to combat deflation following the burst of the dot com bubble. By 2003, the Fed dropped
the rate to 1%, traditionally ... Show more content on Helpwriting.net ...
Some financial institutions got bailed out. Some merged with others. Others were nationalized by the USG. But the USG chose not to bail out
Lehman Brothers in September, instead allowing the bank to fail. That would become perhaps the biggest failed decision of the entire crisis, because
it injected a lack of confidence into the markets. It caused a run on repos, similar to the bank runs traditionally seen in prior financial crises (Gorton
and Metrick 279). However, the bank run came in the form of large banks concerned with the failure of other large banks, which had not traditionally
occurred. Accordingly, the stock market crashed as the last remaining shreds of confidence exited the markets and a herd mentality ensued globally.
From foreign policy makers' perspective, the most significant failure was to not understand the tight coupling between the US and the rest of the
developed world. Figure 4 demonstrates the prevalence of financial crises across the world and the number of countries involved. A cursory glance
demonstrates the drastic increases following 1970. Evidence existed that coupling in global finance was increasing systemic risk. However, policy
makers globally failed to heed the evidence and make meaningful action towards protecting against systemic risk. Thus, policy makers failed to make
any meaningful developments in increasing shock absorption capabilities.
Application to the literature Policy making in the financial sector is complex and

Financial Crisis Essay
Marconi (2010) believes that the role played by the institutional investors propagated the financial crises. Institutional investors, which is both,
individual or companies do enjoy the benefits of reduced commission preferential regulations. This is due to their large and professional investments.
Institutional investors like the mutual funds, pension funds, hedge funds like Magnetar Capital, and Life insurance companies like the AIG and
investments trusts contributed to the global financial crises of 2007–2008. This financial crisis also referred to as the great recession was triggered by
liquidity problems in the United States economy. Many large financial institutions collapsed according to Geczy (2010). The government had to bail out
There were breaches in accounting practices and general breach of business ethics. The bank directors and the chairman are accused of having
certified false financial statements and not disclosing key financial practices in the bank. Among the undisclosed practices was the Repo 105. The
Lehman had been using it from 2001, it involved using the Repos to finance assets and treating them as sold Repos while accounting. This according
to the report was abuse of ordinary repurchase agreements, it was done to lower the banks leverage as was asked of investment banks toward the end
of 2007. The bank at times even involved its subsidiaries. Financial leverage should have been attained by borrowing and investing the same at higher
interest rates. The auditors Ernst &Young have been accused of professional negligence for failing to disclose these practices thus misled the investors
on the financial status of the bank. Some critics cite the complex financial systems and financial investment products to have been the trigger of the
2007–2008 financial crises. According to Laurence (2010), other factors include: failure of effective regulations in the investment markets,
inappropriate credit interests, and self interest practices among the institutional investors. According to Hughes (2011), some critics also argue that the
institutional investors were behaving in irrational manner

Efficient Market Theory and Behavioural Finance Essay
The behaviour of markets and investors, the decision making in the market place and the dynamics of demand and supply in any given market cannot
be determined with a hundred percent accuracy. However master minds in the past have designed various techniques and theories that help investors
make a particular buying decision, or to make choices logically. These theories and techniques help today's investors to peep into the future and make
almost immaculate predictions regarding the future behaviour of the market and the ongoing trends. A lay man night view the decision making of an
investor as being solely based upon speculation but in reality every move that an investor makes today in the market place is backed up by sound
calculation and... Show more content on Helpwriting.net ...
So according to the Efficient Market Theory it is impossible for any investor to "beat the market" that is earn more profit or get more return than what
the market is actually offering. Therefore the investor can only earn greater profits on his investment if the investment portfolio includes a high
proportion of risky investments that is those with higher standard deviations and betas but with a good capability of yielding high returns as well
(Stephens, C.R., 2010).
On the other hand behavioural finance defines the market dynamics and movement in terms of psychology of the participants in the trading process.
Behavioural finance proposes that the amount of information available in the market regarding the factors that determine the output or profitability of
a particular investment actually serve to determine the movement and output of the market itself (Fama, E.F., 1998).
It is believed that Efficient Market Theory is based upon some fallacies and it does not provide strong grounds of whatever that it proposes. More
importantly the Efficient Market theory is perceived to be too subjective in its definition and details and because of this it is close to impossible to
accommodate this theory into a meaningful and explicit financial model that can actually assist investors in making the investment decisions
(Andresso–O'Callaghan, B., 2007).
The basis of Efficient Market theory is considered to have a gap in theory and practice that

Dodd Frank Act Essay
On July 21, 2010, President Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act, which is commonly referred as the
Dodd–Frank Act. This act was passed as a response to the Great Recession in order to prevent potential financial debacle in the future. This regulation
has a significant impact on American financial services industry by placing major changes on the financial regulation and agencies since the Great
Depression. This paper examines the history and impact of Dodd–Frank Act on American financial services industry.
The world's financial system was almost brought down in 2008 by the collapse of Lehman Brothers that was a major international investment bank at
that time. The government sponsored these banks' bailouts that were funded by tax money in order to restore the industry. Before the crisis, banks
were lending irresponsible mortgages to subprime borrowers who had poor credit histories. These mortgages were purchased by banks and packaged
into low–risk securities known as collateralized debt obligations (CDOs). CDOs were divided into tranches by its default risk. The ratings of those
risks were determined by rating agencies such as Moody's and Standard & Poor's. However, those agencies were paid by banks and created an
environment in which agencies were being generous to ratings since banks were their major clients.
Also, in the pre–crisis era, banks and other financial services firms including hedge funds and mutual funds were searching

American Dream Argumentative Essay
In 1937, James Truslow Adams coined the term "American Dream" in his book The Epic of America. Adams stated the "American Dream" was a
land of opportunity for everyone. In this utopia, every man and woman is able to reach their highest potential in employment, housing, and family
regardless of birth or position, because they worked hard and earned it ("What is The American Dream?"). Ever since 1937, Americans have had this
idea in their head of finally achieving the "American Dream" with their spouse, house, white picket fence, 2.5 kids, and movement up the
socioeconomic ladder. It is what people whisper at night as they leave their war–torn streets for a better life. Yet in the past few years, that dream has
begun to crumble. I believe Millennials are waking up to see that this dream utopia is flawed.
Homeownership is a double–edged sword. It is the "American Dream" to one day own a house. Compared to their predecessors, Millennials are
seeing the advantages and disadvantages of homeownership at an earlier age. These early generations believed owning a house was the cherry–on–top
to being an all–around American and achieving the "American Dream". As a cynical generation who grew up with information at our fingertips and
the world falling around us, millennials see homeownership differently. "The cautious and conservative approach to home buying displayed by
millennials is driven by the fact their outlook on life was shaped by a number of bad things when they were young–the terrorist attack on the World
Trade Center in 2001, the 2008 financial crisis, the housing bust with mass foreclosures and a weak recovery that has so far provided incomes below
that of prior generations" (Stowe England, 36). We learned that the world was not fair and that it is time to redefine the "American Dream" to reflect
our current economic society.
Owning a house comes with various responsibilities, many of which Millennials cannot absolve. Firstly, homeowners set down roots by owning a
house. Previous generations knew that once they bought this house they would live there until the end of their days. Millennials do not experience that
type of lifestyle, especially in a job market where they might be required to move outside of

The Pros And Cons Of Globalization
To the average global citizen, the scope of globalization and its influence is glaringly obvious. You notice it in the variety of foods at your local
grocery store, the ease at which you are able to communicate with your friends over the internet, the speed at which products from online shopping
reach your home, and just about everywhere else. In an economic sense, its existence is a bit more elusive to the untrained eye– though certainly not
any less present (on the contrary, the evolution of what is known as the global economy is arguably the most significant product of modern
globalization). That is to say, the economic implications don't paint as happy a picture as some of the more favorable facets of globalization, which is
generally thought to be a positive thing (at least from the privileged point–of–view of a Global Northerner). To the trained eye, by contrast, the ugly
face of globalization is much more apparent, and being educated in the matter strengthens one's ability to understand and process specific examples of
this; and there is no shortage of unpleasant examples to choose from: one of the most famous being the stock market crash of 2008. The Big Short is a
film that narrates different group of people's involvement in the 2008 global financial crisis– or more accurately, the United States housing market crash
that is thought to have caused it. Michael Burry is a hedge fund manager who, after some extensive research, finds out that the housing market is

Film Analysis Of Lauren Greenfield's 'The Queen Of...
Lauren Greenfield's 2012 documentary The Queen of Versailles offers an entertaining and thought provoking look at what subjects a documentary can
cover as the film follows billionaires David and Jacqueline Siegel and their family as they navigate the 2008 economic crisis and attempt to build a
mansion inspired by Versailles. Though the premise of the film is fairly straightforward, on a deeper level the film touches upon such ideas as the
unattainability of the "American Dream," the correlation between wealth and happiness, and family perseverance in the face of adversity. However, one
key theme of the film serves to discredit the outside assumption that wealthy individuals lead flawless happy lives, and are in someway elevated beyond
typical humanity, not experiencing hardships in the same manner as middle class society. In reality, as the film demonstrates, the wealthy are as flawed
and as deeply human as any other class, capable of experiencing hardships and unhappiness regardless of material wealth. To further explore how the
film achieves its theme, one must first have a firm understanding of the documentary form and how certain events in the film highlight the theme, which
is explored in the following paragraphs .
Firstly, it is important to understand how the documentary form is best suited to illustrate the film's theme. In order to do this, one must have an
overview of the documentary style of filmmaking. Documentaries concern themselves with the "exploration of

English Major Essay
In recent years, the English major has faced an increasing amount of scrutiny. While the number of English majors throughout the United States is
rapidly declining, majors with roots in science, technology, engineering, and math are praised as worthwhile and immediately beneficial. Beginning
shortly after the Great Recession of 2008–2009, humanities–based majors have been deemed expendable and trivial. President Barack Obama's 2011
State of the Union Address only served to propel this mindset as he "renewed his commitment for his 'Educate to Innovate' platform that specifically
targets [science, technology, engineering, and math degrees] as a means of helping to rebuild America's economic edge" (Luangphinith 64). In effect,
society now surmises English as archaic and obsolete in the quick–paced world (65). Although the English major is plagued with a plethora of ... Show
more content on Helpwriting.net ...
Some assumed career paths include teaching or writing novels, but the English major's world is much broader than just a few tired options. English
majors can be found alongside science–based majors, penning articles for scientific publications because "'many [scientists] never received the
education in the humanities... that would allow [them] to explain to nonscientists what [they] do and why it is important'" (Jackson–Hayes). They are
seen drafting contracts in support of the Department of Defense or ensuring policy is followed in the spheres of information, communication,
industrial, and personnel security. They are chosen to head major companies due to their ability to communicate with others. Some even find a niche in
interacting with foreign customers because they are already equipped with the sense of appreciation for different cultures and customs. English majors
are not simply restricted to a classroom. They, with a plethora of literature under their belts, are taking on the world in an abundant range of

Dodd-Frank Research Paper
Dodd–Frank: A Guide to Financial Reform
Elizabeth Ables, Stefanie Gaines, Angela Howell, Samantha Johnston, and Christina Wright
This paper is submitted in partial fulfillment of the requirements for
Business Ethics and Legal Environment BUS 5933.49
Texas Woman's University
School of Management
H. Guy Smith, J.D.
December 8, 2012
Table of Contents
The Great Recession of 2008 and the Dawn of Dodd–Frank ................................. 3
The History of Financial Reform in the United States ......................................... 3
Who Are the Agencies Responsible for Implementing Dodd–Frank? .......................5
What is Dodd–Frank and Who Does it Affect? ................................................. 9
What is Wrong with Dodd–Frank? ...............................................................14
Dodd–Frank and Politics – To Reform or Not To... Show more content on Helpwriting.net ...
The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm–Leach–Bliley Act to reverse
Glass–Steagall's restrictions on bank securities (Heakal, 2003).
Financial Reform Today
Dodd–Frank is the latest financial reform passed by Congress, and by far the most extensive. According to Amadeo, Dodd–Frank is "the most
comprehensive reform since the Glass–Steagall Act of 1933" (2012, para.1). The goals of Dodd–Frank are to implement consumer protections, end
bailouts with tax payer money, create a council to identify risks, eliminate loopholes for risky behavior, implement say on pay for executives, protect
investors, and enforce strict regulations on Wall Street (House of Representatives, n.d.). Dodd–Frank lacks clarity and is lengthy, running over 1,000
pages long (New York, 2012). In many cases, Dodd–Frank does not contain explicit rules, but instead creates an outline whereby financial oversight
agencies have been charged with conducting research and writing and implementing the rules.
Who Are the Agencies Responsible for Implementing Dodd–Frank? Prior to the financial crisis, the overall responsibility for financial oversight was
divided among several different agencies. These agencies and their "varying rules and standards led to certain entities not being regulated at all, with

others subject to less oversight than their peer

Why The Bailout Plan Has To Be Passed And Its Adjustments...
It is necessary to pass the bailout plan in order to help and stimulate the economy. Not only will it have an impact on the American economy but on
global markets as well. Instead of focusing on bailing out failed companies, the plan should center more on homeowners and help them to pay off
their debts. By doing this, the bill would help homeowners as well as companies who are in possession of these kinds of troubled assets. Politicians
should be less focused on their reelection and more focused on voting for what will be best for their country and the global community. The
government has to pass the bailout plan in order to free up banks and restore some liquidity back to the markets by taking on bad loans. The whole
global financial ... Show more content on Helpwriting.net ...
This way the government will collect most of its $700 billion investment back. In addition, not all assets will be purchased. As an alternative, some
companies could choose to purchase insurance instead. However, the bailout plan as of today needs some modifications. Instead of only concentrating
on buying bad assets from financial institutions and banks, it should pay more attention to homeowners. The assets that the government plans on
buying are mostly impaired mortgages –related assets that have fallen because of the housing sector and knocked holes in firms' balance sheets.
Therefore, if focused on homeowners, this problem can be dealt with from the beginning. It will reinstate up to 80% of the $500 billion already
written off by Wall Street as toxic loans. This way, the government will put in $500 billion and instantly get back the $500 billion. It will also
refinance 100% of loans, thereby giving banks 100% of value on corresponding securities instead of the 30% to 50% if securities would be sold to the
government. Furthermore, refinancing homeowners will stabilize the entire real estate market and create a 30% to 70% greater monetary return since
taxpayers now own these mortgages. Homeowner loans should be refinanced through the Hope of Homeownership program, due to start in October of
this year. Property holders who cannot meet their current mortgage terms will be able to modify their loans into more affordable fixed–rate loans.

Occupy Wall Street
In 2008, the United States of America (US) experienced a financial crisis which affected the rest of the world. Investment banks and Wall Street
crashed. It left a good portion of US citizens in debt, unemployed, homeless, etc. As a result, Occupy Wall Street became a movement to demonstrate
that the people have had enough and started protesting and voicing their opinions. In terms of globalization, the development of 'Occupy' movements
have altered the notion of social movements to which it is not just about highlighting and fighting for causes, rather it desires to place the power back
into the hands of the people. The term 'movements' has become a catchall definition about the mobilization of people from short term causes to longterm
The American economy was plummeting and taking the world with it. After a few years, the citizens realize what caused the crisis and how it
happened which created the OWS movement and the population frustration with the capitalist system. In addition, one must note that those who
caused the financial crisis avoided punishment. They were the ones who lead the economy into failure and, now, promising that they are the only
ones who can fix it. In Inside Job, it demonstrated the consequences of the crisis and financial innovation, through the educational system. It means
that those who consulted with financial firms and companies were professors or on the board of directors of ivy league schools, who teach their
economic ideologies onto the future generation.7 Ergo, this is creating a vicious economic cycle that needs to change. Occupy Wall Street: Origin,
Purpose, Values and Goals As a result of the 2008 US financial crisis, the OWS was formed within the period of the US' recovery process to fight the
oppression of the current economic powers. From various sources, OWS seemed to have gained inspiration from Arab Spring. The Arab Spring is a
wave of protests for political change. The Americans realized that they desired a change of economic system because the capitalist system was creating
social inequality.8 Still, the movement of OWS is an 'occupy movement' that needs to be defined and understand the shift

Us Financial Crisis
The US Financial System: A Crumbling Empire
The financial system has been crucial to the role of free enterprise. "Financial markets have come to supply non–financial corporations with
mechanisms for managing their risks and for comparing and evaluating diverse investment opportunities in a highly complex global economy" (Cindin,
2008). "However, despite the lifetimes it took to build our financial institutions, bad luck and careless risk management have jeopardized careers and
mortgaged these institutions' futures"(Wallace, 2008). The nation is currently attempting to deal with the biggest financial crisis since the Great
Depression. It is now imperative that a way be found which will re–regulate finance without undermining finance's ... Show more content on
Helpwriting.net ...
The ongoing plunge in bank capital is already forcing banks to significantly cut back on outstanding loans, and businesses' plans for major investment
projects are being scaled back. These capital losses are resulting in financial institutions going bankrupt or merging with stronger banks. "Financial
services companies have cut more than one–hundred thousand jobs this year and deeper layoffs may come" (Berenson, 2008). Even while cutting back
on long–term loans seems to be unbearable, short–term loans pose a greater threat to the survival of the financial system. The fourth and final threat
facing our economy is the necessity of short–term loans. In an effort to reestablish tangible capital, banks are beginning to cut back on short–term
loans. "If the short–term commercial paper and money markets were to break down, the economy could go into a severe collapse because solvent and
profitable businesses would be unable to attract working capital" (Sachs, 2008). This kind of collapse in financial liquidity is the basic reason why the
United States economy fell by around twenty–five percent during the Great Depression (Sachs, 2008). Already, some of the biggest names on Wall
Street have disappeared into thin air. Some attempts have been made to bring liquidity back to financial institutions. In an effort to avoid an

Occupy Wall Street Equality
Three years after the 2008 financial crisis, the U.S. economy remained a mess, leaving millions unemployed. The housing market was struggling to
recover three years after the financial crisis, increasing foreclosures. Occupy Wall Street arose in response to the middle class people who are getting
battered by economic forces beyond their control, while elites in the private and public sector prospered. In this paper, I will examine Occupy Wall
Street's confrontation on the U.S. wealth inequality and its protest in New York, participants and its attempt to encourage equality. Occupy Wall Street
(OWS) is a leaderless resistance movement. People had joined the movement and participated, no matter what the gender, ethnicity, age, politics,
income, occupation and education degree they had. The majority of the protesters are young people under 30 and many of them are unemployed or
underemployed. They are frustrated that the hard–working middle class is getting poor, yet Wall Street stays wealthy. In response to the frustration,
Occupy Wall Street was initiated on September 17, 2011 in Zuccotti Park. The blog post that sparked the movement was by the Canadian magazine
Adbusters, Kalle Lasn and Micah White, Canadian anti–consumerist. In a blog post on July 13, 2011, Adbusters proposed a peaceful occupation of
Wall Street to protest about ... Show more content on Helpwriting.net ...
No one went to jail for the financial crisis and inequality remains. What began in September 2011 as a small group of protesters camping out in
Manhattan's Zuccotti Park ignited a national and global movement calling out the ruling class of elites by connecting the dots between corporate and
political power. The camps may be gone and Occupy may no longer be visible on the streets, but the gulf between the haves and the have–nots is still
there, and growing. Income inequality is a problem that all 2016 presidential candidates must deal with because they can no longer afford not

Financial Crisis in This Time is Different by Reinhart and...
People always think that the technology renovations, institutional changes and experience gains can make the world emerge from financial crisis
saying that 'this time is different'. But they may be too optimistic. The outrageous truth is that each new financial crisis is not predicted or forestalled.
As Reinhart and Rogoff said in their book 'This Time is Different', technology is changing, fashion is changing, but self–deception of governments and
investors are not.
A banking crisis usually refers to a situation in a general "market adjustment" when faith in banking institutions falls, and people start trying to move
their money to other places for safe keeping. (RationalWiki) If we need to find something in common for all financial crises, that will be excessive
build–ups of debt. Excessive debt accumulation makes banking industry more profitable and more stable than it really is and it will easily be ignored
at the beginning. However, if the equilibrate has been destroyed, systemic risk will grow and increases more quickly and greater than usual.
Cyprus is an island country in the Eastern Mediterranean Sea, which is based on agricultural production and tourism. In the first half of 2003, under the
influence of global economic crisis and the European Crisis, the crises of Cyprus struck and caused higher unemployment and lower economic increase.
As a country in Eurozone, Cyprus attracted large amount of deposit funding from overseas with its increasing nation's credit

Global Financial Crisis of 2008 in the Movie, How We Got Here
The global financial crisis of 2008 has caused millions of people to lose their homes, jobs and savings, and it nearly resulted in a global financial
collapse. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock
markets around the world. On top of that, the housing market was damaged, causing in evictions, foreclosures and prolonged unemployment.
There were many factors directly and indirectly caused the Great recession. The crisis resulted from a combination of complex factors, including easy
credit conditions during the period between 2002–2008 that encouraged high–risk lending and borrowing practices without assessing default–risk;
international trade imbalances; real–estate bubbles that have burst; fiscal policy choices; and approaches used by nations to bail out troubled banking
industries and private bondholders, assuming private debt burdens or socializing losses (Lewis 2011).
"Inside Job" is divided into five main segments– who, what, when, why and how.
The first part of the movie was "How we got here?". The movie brings the viewers back to the past in the 1930s when US had a strong financial
system. The regular banks were local businesses and they were prohibited from misusing depositor's money. The investment banks were private
partnerships, and thus risky investments were not made. Under the regime of president Ronald Reagan, the American financial sector was

The Collapse of the Domino --- Chinese Real Estate
With the outbreak of the U.S. financial crisis in 2008, the whole world's financial situation is not good, but except one, which is China. However,
many people find out that China is walking on the old U.S. economic way, which means China will have economic crisis either. So right now, all the
eyes from all the countries are watching at China's economy, because if Chinese economic collapse, there are no more people buy Japanese
animations and European luxuries. And after the economic crisis, China will recovery U.S. Treasury bonds, but American unable to pay, then the
whole world economy is facing collapse; we can call that butterfly effect. So right now, in this context, the same conditions, and the same nature of the
Chinese economy grows up, any black swan events are likely to be the fuse of Chinese financial crisis, and even the world economic crisis' fuse. For
example, the author of "Chinese Citizens Have Their Eyes on Bubble," C. Cindy Fan mentions that the fuse of Chinese economic crisis is real estate.
Right now, Chinese people put all their savings into real estate, which led to the housing bubble, but because of consumer demand, the government is
unable to stop it. (Fan) I agree with Fan's idea, which is Chinese economy will collapse because of Chinese real estate bubble.
Consequently, whether China will have the financial crisis, the focus should be on the how big is the China's real estate bubble, and when will it
burst. As for how big is the China's real

Global Financial Crisis Essay
Starting from problems of payment defaults on housing loans (subprime mortgage defaults) in the United States (U.S.), then ballooned damaging crisis
of the banking system not only in the United States but extends into Europe and into Asia. Successive cause a domino effect on the solvency and
liquidity of financial institutions in these countries, among others, led to the bankruptcy of hundreds of banks, securities firms, mutual funds, pension
funds and insurance. The crisis then spread to parts of Asia, especially countries such as Japan, Korea, China, Singapore, Hongkong, Malaysia,
Thailand, including Indonesia, which happens to have long had the letters beharga these companies.
From the various critiques by experts, that the problem is ... Show more content on Helpwriting.net ...
Lehman Brothers announced a gradual loss before finally bankrupt. On June 16, 2008, the company announced losses worth 2.8 billion dollars for
the second half of 2008. Followed by losses of 3.9 billion U.S. dollars in part–to–three in 2008 (10 September) and culminate in the announcement of
bankruptcy on September 15, 2008. Similar unrest was also experienced almost simultaneously by Merryl Linch, Citigroup, AIG and other large
financial institutions.
This affected the weakening of the real sector with the bankruptcy of major U.S. companies like General Motors, Ford, and Chrysler that threaten the
continuity of work thousands of employees. Sure enough, the U.S. unemployment rate rose to 6.7% in line with the increase in pessimism among
consumers and investors throughout the period from September to November 2008. That is the level of termination of employment (FLE), the
largest in the last 34 years. Carrying 533 000 employees laid off and reached a total of 1.91 million persons in 2008. (Source: U.S. department of
labor). Along with that, on 30 November 2008, the U.S. government also announced a decline in the value of real GDP for part III in 2008 amounted
to 0.3%.
Likewise, also in Europe, the banking crisis in Europe was marked by problems at a small bank in the UK, namely Northern Rock Bank, in mid–2007.
Northern Rock is a true small–scale private bank in the UK. However, when there broke down in

Effects of Finanacial Crises on Nigerian Capital Market
INTRODUCTION
With its roots in banking, the sub–prime mortgage crisis that commenced in the United States in 2007 soon resonated in other sectors of its financial
system, and the economy, at large. It spread quickly to the developed economies in Europe, including the United Kingdom, and Asia–with Japan
becoming well affected. The emerging economies were not isolated. A transmission channel of the globalfinancial crisis, which has been referred to as
the "Globalised Synchronized Slowdown" is the stock market SERE–EJEMBI, (2008). Around the world stock market indicators started falling. The
capital market, vis–Г –vis the stock market, is a channel through which national economies receive foreign capital flows that make their tendency ...
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5 in ESCWA (2009)). In an attempt to curb falling prices, the Organization of Petroleum Exporting Countries (OPEC) introduced a series of cuts in
output. At the time of writing, oil prices have begun to stabilize at levels ranging in the mid US$ 40 per barrel and also there was withdrawal of
investment from foreign investors or huge capital outflow
In Nigeria – Africa 's largest exporter of crude oil which amounts to 80 percent of its earnings, the impact of the credit crunch has been enormous, the
3.1–trillion–naira–budget is in deficit. illiquidity and Credit crunch leading to confidence crisis, weak consumer demand, Sub–prime crisis of 2007 and
breakdown of confidence in the banking system, De–leveraging and banks inability to improve capital adequacy, Possible protracted recession in the
US and Europe with upturn expected perhaps in 2010 and 2011, Declining real output growth–slowed economic growth (threat of global recession),
Weakened financial systems–takeovers and bankruptcy, Loss of jobs, Loss of confidence in financial markets– leading to inability to carry out their
intermediation role in the economy, Stock Market Crashes omyiuke (2010)
OBJECTIVE OF STUDY
The main objective of this paper is to examine the impact of global financial crises on the Nigerian capital market, other specific objectives include; *
To evaluate the

Who Was to Blame for the Banking Crisis? Essay
The banking crisis of the late 2000s, often called the Great Recession, is labelled by many economists as the worst financial crisis since the Great
Depression. Its effect on the markets around the world can still be felt. Many countries suffered a drop in GDP, small or even negative growth,
bankrupting businesses and rise in unemployment. The welfare cost that society had to paid lead to an obvious question: 'Who's to blame?' The
fingers are pointed to the United States of America, as it is obvious that this is where the crisis began, but who exactly is responsible? Many people
believe that the banks are the only ones that are guilty, but this is just not true. The crisis was really a systematic failure, in which many problems in the
CDSs are used as an insurance against the possibility that the borrower could not repay his or her loan. In such case the issuer has to pay a specified
sum to the buyer. Of course they are sold for a premium and if no credit events occur, the issuer makes profit. After thesubprime mortgage crisis began,
and many borrowers started defaulting on their loans, the pressure on the companies that had issued CDSs was rising. There were companies that
simply did not have enough money to repay everything they owed. A famous example is AIG. The subprimemortgage crisis and the bankruptcy of big
financial companies, like Lehman Brothers, meant that AIG had to pay much more money that it expected and made the company insolvent. The
company itself had AAA rating shortly before this. This made the investors confident that even their high–rating investments failed, the insurer would
certainly be able to repay them. A bailout from the US government followed. Generally, the issuers of these instruments can be held accountable for
issuing them, without the ability to pay what they had to, when the credit events occurred. Of course many of them were mislead by the credit rating
agencies and the overall conviction in the market that it was not as risky as it actually was. Many people argue that such instruments need to be
regulated much better. They can create clear conflict of interests. For example, a

Advantages And Disadvantages Of Millennials
The Great Recession was an economic crisis that caused the housing market to crash, and many people suffered greatly because of this event. The
generation to feel the recession's effects the worst though was the Millennials, people born from around 1981 to 1997. Many Millennials became
unemployed and where scared from this event, causing them to lean heavily on the government for support. Today, Millennials, also known as
Generation Y or Echo Boomers, are marked by their increase in the use of social media and other communication devices to stay with the advancing
times, however the economic troubles have stayed with them despite the generation's growing use of technology. Millennials have been late to buy
houses compared to other generations, and this is due to the Great Recession. Buying a house has many advantages and disadvantages, however
buying one later seems to be hurting the Echo Boomers. The benefits of buying a house stretch far beyond simply having a private place to stay; a
house has many economic benefits as well. Most things that people buy, like cars or phones, depreciate in value, meaning that the longer a person
keeps the item, the more its value will decrease. On the other hand, a house appreciates with time, meaning its value grows as more time passes,
making buying a house a sound and smart investment. Even if a person did not want to keep their house, they can typically sell the house for more than
they bought it for. Furthermore, houses bring financial stability that many other living arrangements cannot provide for residents. When someone buys
a house, he or she normally goes to a bank, takes out a loan, and uses the loan with some of their own cash to ease the burden of their purchase, and
afterwards, the person must pay back the loan in amounts called mortgages. These mortgages are regular payments of a fraction of the loan, and the
amount does not fluctuate much, allowing the owner to know ahead of time what the next payment will be. Rent payments may shift drastically from
one payment to another, and this may surprise the renter if they are not prepared like the homeowner. Also, owning a house give the owner tax
deductions, which can further help a person manage their

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