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¶ … Berman, Dennis. (22 Apr 2008). "The game: So far, so good on bailouts, but how long will they last; as more firms need capital, rules may need update to open way for hedge-fund and bank investments?" Wall Street Journal. pg.
It is said that it is an 'ill wind that blows nobody good.' However, recently it has proven more and more difficult to find good economic news. And this is not simply in the United States. Now, the IMF predicts a mind-boggling $945 billion of credit- related losses amongst banks. According to Dennis K. Berman, however, "mind-boggling part isn't so much the losses, but what's come after: That there has been enough capital to save dozens of banks and brokers from the brink of disaster....However fragile, the system has remained self-repairing, feeding capital where it is needed" (Berman 2008). In other words, according to the Wall Street Journal, at least the system proved capable of correcting itself in a way that it would not have been able to correct itself in the past.
However, even the Journal worries that there is no guarantee that the capital will be there for the next round of infusions for failing banks. It calls on the government to give private-equity firms more leeway in exerting control over a bank investment and changing the accounting rules for bank acquisitions, allowing the firm to write down the bank's losses down over time, rather than having to take them on immediately.
The article seems to be treating the symptom, not the problem. The solution is not to make it easier for private equity firms to take banks during a period of successive, serious and massive bank failures. Instead, the government must address the causes of why so many banks are failing, and discover how to prevent this in the future. Also, further deregulation in a situation that was caused by deregulation in the first place seems unwise. Deregulation cannot cure the economic problems caused by deregulation and poor oversight by the federal government.
They have, on average, a thirty-five to forty percent increase in the number of scheduled departures and hub-and-spoke operations have made an increased number of destinations available to them. Airlines have cut frills during our current economic downturn, but the success of no-frills, low-cost airlines such as Southwest Airlines which do not offer many traditional amenities indicates that a substantial proportion of passengers are more swayed by price than
Marketing Strategies Changed Since Deregulation The objective of this study is to describe how marketing strategies have changed since deregulation. It is reported that over the past 25-year that the transportation system in the United States has undergone dramatic changes in both "size and form as it carried ever-increasing numbers of passengers and volumes of freight, both domestically and internationally." ( ) The demand for transportation services has been due to
Deregulation under the Trump Administration and Its Impact on the Non-Profit Sector Introduction President Trump touted deregulation as one of the issues he would push for during his campaign leading up to the 2016 election. Once placed in the White House, he held true to his push for deregulation and that policy has had some impact on the non-profit sector in the US. This paper will show how that impact has benefited
Deregulation The Glass-Steagall Act of 1933 was the first major attempt at regulating the financial industry. The Act was passed by President Roosevelt with the objective of restoring public confidence in the banking system. Glass-Steagall sought to, among other things "prevent the undue diversion of funds into speculative operations," in response to the market crashes that had sparked the Great Depression (Maues, 2013). The reason for this was simple -- speculation
Airline Deregulation Impact on Commercial Airline Industry as a Result of Deregulation The airline industry in the United States began functioning almost as soon as the Wright brothers made their first flight at the Killdevil Hills in North Carolina. In 1903, mail began to be carried by airplanes over short routes, so the United States government created an agency to help regulate how this was accomplished to make it safe for carriers.
Regulation and Deregulation Prior to the 19th century, most people would have voiced their support for the "concept of laissez-faire, a doctrine opposing government interference in the economy, except in" the maintenance of law and order (U.S. Department of State, 2014). The turn of the 19th century, however, saw attitudes begin to change, and labor movements as well as small entrepreneurs asking the government to intervene, following the apparent failure of