StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Global Financial Meltdown - Essay Example

Comments (0) Cite this document
Summary
Global Financial Meltdown 1) Inside Job They say what goes around- comes back around. Inside job however seems to show an entirely different picture; what goes around keeps on going around and never comes around to haunt the people who initiated it. The documentary ‘inside job’ is pretty much about what its title suggests; the financial crisis was an inside job…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Global Financial Meltdown
Read Text Preview

Extract of sample "Global Financial Meltdown"

Download file to see previous pages 2) The downfall of Iceland In the case of Iceland, it was a perfect place for a family to live till the government decided to deregulate the banks and let multinationals exploit their natural resources. The result was a disastrous impact on the environment and the banks collapsed due to which unemployment tripled and many of the people lost their life savings. When the largest banks were privatized, they borrowed money totaling to 120 billion dollars which was roughly ten times the size of the economy. These banks and their activities were supported by American auditors such as KPMG and credit rating company which rewarded them highest form of grading; Triple A’s. In the end, regulators formed the role of mere spectators and did nothing. 3) Destructive growth of United States financial sector After the Great Depression, the financial sector was strictly regulated; most of the banks were local and were not allowed to use depositor’s money for any sort of investment. But then the investment banks went public and that is when the financial sector went berserk. The investment bankers now were owners of huge amounts of public money. When President Reagan came into power, he with his treasury secretary who was a CEO of Merrill Lynch, began a thirty year deregulation plan. The first firms to be deregulated were savings and loans companies. These firms were deregulated which provided them with a permit to use depositors’ savings for risky speculation purposes. They failed and many went to jail. Deregulation continued in Clinton’s era and by the late 1990’s you could identify the major financial firms. The deregulation activity was overseen by a Harvard economic professor Larry Summers, an economist Greenspan and Robert Rubin a former CEO of investment bank Goldman Sachs. This clearly shows us how economics was exploited for personal gains, politics was being influenced by the financial sector and the academia corrupted. Further on, the documentary (Ferguson, “Inside Job”) informs us about how financial firms became so strong that they could breach a law, be exempted by it for a year and then a new law is passed to facilitate their interest. The merger between Citicorp & Travelers is a mirror image of the above statement. While the financial sector continued to become powerful, the internet bubble crash gave the economy a huge blow. We realize through the documentary that the internet bubble was pre-planned because investment banks were involved in promoting firms which they knew would surely fail. Conversations between the personnel of investment banks termed those firms as useless while they were describing them as perfect investment opportunity to the public. With deregulation taking place and the technology advancements occurring; derivatives entered the economy. They were engineered in order to make more profit, but in reality it was explosive material that would make the market highly volatile. In order to avoid any discussion over its regulation, a bill was passed in favor of de-regulation of derivatives. As the industry was even more powerfully dominated by a few gigantic investment banks, security and insurance companies and credit rating agencies than before; financial sector became even more complicated. 4) Complicated financial products engineered to grow profits Inside job gives ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Global Financial Meltdown Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/business/1439221-watch-the-video-inside-job
(Global Financial Meltdown Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/business/1439221-watch-the-video-inside-job.
“Global Financial Meltdown Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1439221-watch-the-video-inside-job.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Global Financial Meltdown

Global Environment Change

A number of fields are involved in the study of environmental change, such as chemistry, physics, biology, oceanography, etc. In this paper, some of the major global environmental changes will be studied and explored and implications will be provided for the sustainability of the global environment.

Responses to the global environmental challenges have become one of the heated debatable matters around the world, as a number of organizations, researchers, and nations are endeavoring to sustain the continuity of the global environment, where is harmed by different natural and manmade causes. In order to come up with an effective solution, it is very important to understand and go into the core of the global problem. In th...
7 Pages (1750 words) Coursework

Global Culture on Fast Track

Lifestyles are changing fast to invite international practices. Youths in large numbers are instrumental to change to live in a free environment. They are resisting ‘no change’ attitude and fighting for the new environment where they can express freely what think right to make a modern culture. The change is undergoing automatically and being accepted by most of the resistant quarters.

Globalization does not create a common culture, values, attitude or beliefs as mentioned above. It gives way to a single arena in which people of different cultures interact and present their values for comparisons, analysis, acceptance or rejection on certain standard yardsticks. This is the internationalist version of global...
6 Pages (1500 words) Essay

Accounting & Financial Management

AWB’s operations can be categorized into areas ranging from ‘pool management services’ to ‘harvest financing’, and ‘International commodity management’. Only a company with such a big range of activities and financial outlays can become the benchmark for an equally big company like ‘Woolworth Limited’.

The performance of an entity can be better analyzed through its profitability analyses. The profitability ratios like Gross Profit ratio, Net Profit Margins, Return on assets (ROA), and Return on Equity (ROE). The calculations of such ratios are shown in the attached annexure. The Gross Profit ratio measures the percentage of each pound or dollar of sales remaining aft...
10 Pages (2500 words) Assignment

Financial Management Analysis of Rio Tinto Plc

Taking into consideration that Harmony is the sixth-largest in the world in the gold mining industry, the choice of Harmony God Mining Co. as a benchmark company is the most suitable and justifiable. Moreover, Harmony has also some investment stake in Rio Tinto, and this situation makes the company more suitable for the choice. At places, the benchmark company’s performances have been better than Rio Tinto, and thus Harmony has a competitive edge as well over Rio Tinto.

Profitability ratios like Operating Margin Ratio, Net Margin Ratio, Return on Assets (ROA), and Return on Equity (ROE) are the performance analyzer of any company. Profit Margin ratios show the relationship between profit and sales. Since profit ca...
8 Pages (2000 words) Case Study

Global Warming and Food Production

The carbon fertilization effect of increased carbon dioxide concentration in the atmosphere has an impact on plant growth, which benefits plant growth by facilitating photosynthesis, cannot balance the complex impact of increased temperatures around the world. Thus, although some regions will benefit from global warming, a total reduction in global agricultural production will result. This essay presents a discussion about the impact of global warming on agriculture and food production around the world.
Although the history of the planet earth suggests that for the last million years ice ages have been interspersed with warmer periods, evidence suggests that the average rate of global warming within the recent past has accele...
14 Pages (3500 words) Assignment

The Importance of Employee Empowerment in the Global World

Empowerment is the authority to make decisions within one’s area of operation without having to get approval; from anyone else. Here the operatives are encouraged to use their initiative to do things the way they like. To this end, the employees are given not just authority but resources as well so that they not only take decisions but implement them quickly. This empowerment means giving the employees the authority to make decisions and providing them with financial resources to implement these decisions (Koch & Godden, 1997 11).
Employee participation and empowerment participation means sharing the decision making power with the lower ranks of an organization in an appropriate manner (Lashley & McGoldrick, 199...
9 Pages (2250 words) Assignment

Global Challenges for Business Management and Leadership

This section aims at understanding the challenges faced by the United Nations due to political conflicts. In the summer of 2007, an issue in the Politically Speaking, the DPA had highlighted the increased focus on the conflict meditation. This report had also highlighted the interview with the Under-Secretary-General for political affairs. In the interview, he defended the UN against all the criticism and he also highlighted the need for finding political solutions for issues around the world. The interview also highlighted the importance of results to show the effective working of the UN. This interview also highlighted and urged critics to look at the positive along with the negatives of the UN. “The UN has knowledgeable a...
7 Pages (1750 words) Research Proposal

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages (2500 words) Research Paper

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages (5000 words) Literature review

Global Employee Information and Consultation: Replicating the European Model

...Global Employee Information and Consultation: Replicating the European Model INTRODUCTION The only way for the employees and their representatives to reach the level of multinational corporations is to create an effective transnational mechanism that facilitates consultation and information disclosure. The European model (EWC) is an example of an institution that intends to provide employees voice in the transnational arena. The information dissemination and consultation arrangement enable employee representatives to participate in discussing issues that pertains to their employment. However, there is a need to analyze whether EU style of legislating a mechanism shall be effective if replicated globally. The answer in part depends...
9 Pages (2250 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Global Financial Meltdown for FREE!

Contact Us