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.
Nobody downloaded yet

United States Bail-out of Banks - Case Study Example

Comments (0)
Summary
This has been done despite the White House's initial rejection of such a plan for homeowners who could be facing foreclosures, banks and mortgage companies which participated in the creation of the problem…
Download full paper
GRAB THE BEST PAPER
United States Bail-out of Banks
Read TextPreview

Extract of sample
United States Bail-out of Banks

Download file to see previous pages... Many public and quasi public institutions are therefore dispensing huge amounts of money quietly to financial institutions which are saddled with almost worthless mortgage securities. Unfortunately, many homeowners who are actually at the core of the problem have been left out of the equation. The central bank on its part has implemented a process for auctioning that makes it cheaper and easier for cash-strapped mortgage institutions and banks to borrow from the government.

While some economists have argued in favour of the bail-out plan, an almost equal number have argued that the move will not save the country from its economic downturn as the country's economy continues on its way towards a deeper recession. Proponents of this move argue that without the institution of such measures to rescue banks and mortgage firms, the recession would most probably get longer with a potential for developing into a depression.

Immediately after the announcement of a tentative bailout plan, data showed rising unemployment, a hunkered-down consumer and declines in business spending. The biggest challenge however is the tight credit market after WaMU (Washington Mutual) bank collapsed - the largest bank to fail in the country's history. The government's bail-out plan involves the release of a stimulus package that includes a proposal to allow some companies purchase mortgages worth up to 730, 000 US dollars.

Others argue that without capital injection from private businesses, banks and other financial institutions will find it very difficult to continue loaning, and the economy will not be able to grow. Analysts predict that it could take up to four years for banks to recover from their losses with the economic slowdown expected to continue into 2009. The government's lending operation according to others will prevent mortgage companies from collapsing but will not in any way solve fundamental problems that face the housing sector.

The United States' government bail out of banks has been an issue of great controversy. It is an issue that has received much attention in the media with strong opinions being voiced in its favour from some quarters and against it in other quarters. Given that different groups and individuals have different views regarding this program, it is necessary that an analysis should be performed using a representative sample to accurately determine the general attitude of citizens regarding the move.

ATTITUDE DISTRIBUTION

The attitude distribution of a group of respondents on a particular issue can be represented as a frequency distribution (Armitage and Conner, 2001). In this case, the baseline represents the entire range of views with one end comprising those who strongly favour the issue while the other end comprises those who are against it in similar measure. Between these two extreme ends on the baseline will be a neutral zone that represents of indifferent attitudes on the particular subject under study. The ordinates of the distribution will be a show of the popularity of each attitude relative to the others.

Louise Thurstone developed one of the first theorists to develop a productive measurement scale (Armitage and Conner, 2001). He invented three distinct methods that can be used in the development of a one-dimensional scale. These included the method of paired comparisons, method of successive intervals and the method of equally-appearing intervals. While scale values are constructed differently for each of the above methods, the scales that are developed are similarly rated by ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Should the top executives of the major banks that received bail-out money be allowed to receive large bonuses
The poor governmental regulations on banking sector also contributed to this disintegration. It is said that inefficient usage of monetary tools initiated by regulators was one of the main issues associated with the strategic failure of the banking industry, which intensified the scale of bailout.
5 Pages(1250 words)Term Paper
United States Postal Service
United States Postal Service The hazards identified in the report therefore, pertain to a mailing company. The hazards are associated with the three kinds of mechanized mail processing machines. The report has been analyzed on the basis of the three aspects, the ergonomic issues, the research conducted, the findings and the recommendations.
4 Pages(1000 words)Case Study
United States v. Wade
United States v. Wade Two weeks after his arrest, Wade was placed in a line up with other similar looking men where the two employees who were present during the robbery positively identified Wade as one of the perpetrators. The witness identification procedure was undertaken by the FBI without considering the need of the accused to have legal counsel present.
4 Pages(1000 words)Case Study
United States v. Salerno
United States v. Salerno Therefore, there was no violation of the 5th amendment nor the Excessive Bail Clause of the 8th Amendment. This case was based upon the arrest and subsequent indictment of La Cosa Nostra boss Anthony Salerno on violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act).
2 Pages(500 words)Case Study
The United States Air Force
Virtually everything the military does is covered by a written regulation, manual, directive, instruction, or policy letter of some sort. In the military, knowledge is power. We must remember that its people who conduct and perform the Air Forces mission and it is important to understand how personnel fit into the USAF’s organization.
10 Pages(2500 words)Case Study
Begay v. United States
Begay had initially been charged and convicted 12 times for driving under influence (DUI), which in the jurisdiction of New
3 Pages(750 words)Case Study
United States Postal Service
ing its services and operations to serve customers better in the light of their needs and emerging technologies, and embracing change in a rapidly changing business environment. USPS is the only postal service that serves the length and breadth of America. However, it does not
2 Pages(500 words)Case Study
HALL v. UNITED STATES ANALYSIS
The content of the case is relevant to the scope of this course. It elaborates on chapter 12 of the U.S laws on Internal Revenue Code (IRC) and the guidelines followed upon declaration of one’s bankruptcy and forced to sell his or her
3 Pages(750 words)Case Study
United States v. Martha Stewart
The Securities and Exchange Commission, the FBI, and the United States Attorney's Office for the Southern District of New York started investigations in January 2002. On February 4, 2002, Martha Stewart took an interview at the office of the United States Attorney and on April 10, 2002 by telephone.
4 Pages(1000 words)Case Study
Wong Sun v. United States & Nardone v. United States
Wong and a second petitioner, Mr. James Wah Toy, the prosecutors convinced the court of Wong Sun’s guilt of drug trafficking. Reasoning: The process of collecting evidence and witness statements must follow a particular structure, one that upholds the basic human
2 Pages(500 words)Case Study
Let us find you another Case Study on topic United States Bail-out of Banks for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us