Introduction to the Financial Crisis The near-collapse of the financial system in the United States was the most substantial economic crisis in the U.S. since the Great Depression of the 1920s and 1930s. Since the crisis began in late-2007, more than 6 million Americans have lost their jobs, large and important financial institutions have failed, and trillions of dollars in savings and retirement accounts have been lost. It is generally accepted that problems in the United States housing market
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THE INSIDE JOB The documentary is split into five parts. It begins by examining how Iceland was highly deregulated in 2000 and the privatization of its banks. When Lehman Brothers went bankrupt and AIG collapsed, Iceland and the rest of the world went into a global recession. Part I: How We Got Here The American financial industry was regulated from 1940 to 1980, followed by a long period of deregulation. At the end of the 1980s, a savings and loan crisis cost taxpayers about $124 billion. In
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Andrew Sorkin wrote a book titled Too Big To Fail. This book focus on the collapse of the investment bank Lehman Brothers, Merrill Lynch was sold by Bank of American, Freddie Mac and Fannie Mae was nationalized, and the government took 80 percent of AIG that took place on the weekend of September, 15, 2012. Significantly, he examined the financial markets reactions to the bankruptcy of Lehman Brothers. It starts with the failure of Bear Stern, one of the biggest banks in American. Bear Stern found
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in a position where he is forced to make some very unfavorable decisions as the investment banks, such as Lehman Brothers and Bear Sterns, begin to fall. When Bear Sterns was almost forced into bankruptcy, the Department of Treasury offered them a bailout, and was able to save the bank. Richard Fuld, CEO of Lehman Brothers, expects the same treatment when his bank begins to fall. Because of some of the investments Lehman Brothers had made, outside investors were wary of putting money into this bank
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Financial Fiasco Paper Financial Fiasco: How America’s Infatuation with Home Ownership and Easy Money Created the Economic Crisis is a book written by Swedish writer Johan Norberg, which traces the causes of the late-2000s financial crisis, showing the mistakes made in by the Federal Government in Washington D.C., politically connected finance institutions on Wall Street, and in communities across America that led to the economic meltdown. While many analysts have placed the blame solely on
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The 1907 Panic and the ensuing response led by J. Pierpont Morgan made one thing clear: it was necessary to move beyond personality cults of individuals to tackle future financial crisis. Different plans to create an independent organization representing diverse financial institutions started to gain traction but the debate over the inherent subjugation of public interest in this arrangement raged on as well. Woodrow Wilson, as the winner of 1912 presidential elections, eventually started to shape
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“The Big Short” Report One of the topics I found most interesting in this book was the differences between the stock market and the bond market that Michael Lewis to some extent explains in the beginning of chapter three. While the stock market was intensely regulated and mostly transparent, the bond market consisted of primarily large institutions and escaped serious regulation. This lack of legislative control played a great part in allowing the credit default swaps on subprime mortgage bonds
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Political Ideology I have chosen the Republican ideological position, commonly referred to as the Grand Old Party (G.O.P). The Republican Party absorbs Libertarianism, fiscal Conservatism, and concepts of Progressivism. I believe in the voice of capitalism, competition, and that the overall welfare of the people comes first before all else. Since the creation of the Republican Party in the mid nineteenth century, the G.O.P has grown to represent social conservatism. Despite misplaced
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html Banking: Fight over the Federal Reserve Intense criticism among the general public was a major feature of the 2010 midterm elections. Critics reached a wide audience that reacted against the Troubled Asset Relief Program of 2008-9 and the bailout of major banks, insurance and mortgage companies, as well as the industrial companies General Motors and Chrysler. http://en.wikipedia.org/wiki/Criticism_of_the_Federal_Reserve Criticism of the Federal Reserve The fundamental promise of a central
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provides more historical background for the crisis in this country. The premise is that it all began in the 1980's with deregulation of the banks under Ronald Reagan's presidency. The disastrous result was the Savings and Loan debacle and subsequent bailout. The banks stepped up their debauchery under the Clinton administration. Clinton put Robert Rubin and Lawrence Summers in charge of the economy, letting the business school-investment banking cabal call the shots. And shoot they did. By now most
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