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Big Fail Title A Recent Book A Essay

¶ … Big Fail" title a recent book a movie HBO. It refers bailout major financial institutions began 2008, time concern,, United States fall a depression aid. For purpose discussion I include bailout General Motors Chrysler. Too big to fail

In the second half of 2007, the real estate sector in the United States of America showed the first signs of weakness. Devaluations were gradually observed and the investments made in the field came to lose value. The problem was mainly represented by the fact that the population did not afford the properties, but the financial institutions had traded in money as it had already been reimbursed. The bubble eventually burst and the financial institutions were the first to suffer the major hit.

In Too big to fail, the focus falls on the bankruptcy of Lehman Brothers, based on the recurrent assumption that it was this bankruptcy which onset the unfolding of the crisis (Weiner, 2009). A notable theme in the movie is represented by the struggle of the Secretary of Treasury (Henry Paulson) to avoid the bankruptcy of Lehman, but the eventual decision to let the institution...

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The message was that the government could not rescue the banks from their mistakes.
As Lehman went bankrupt however, it inescapably impacted the rest of the banks. To avoid the crash of the entire banking system, the United States Treasury adopted a plan to nationalize the banks by providing them with capital. In time, they also decided to purchase their toxic assets -- under the Troubled Assets Relief Program (Investopedia, 2011) -- and to expand the financial aid to the automobile industry as well, the largest recipient being General Motors and Chrysler.

The decision has been highly disputed and a universal conclusion has yet to be made; it is in fact mostly probable for a consensus to never be found. And this is due to the complexity of the problems, giving reasonable strength to the arguments on both sides. In this order of ideas, the intervention of the government is supported by the fact that its absence would have ruined the economy of the United States. Without the capital injections…

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Maggs, J., 2010, Criticism of TARP persists, Politico, http://www.politico.com/news/stories/1010/42995.html last accessed on November 14, 2011

Weiner, M., 2009, Biggest mistake of the financial crisis: Lehman Bros. Bankruptcy, Politics Daily, http://www.politicsdaily.com/2009/09/15/biggest-mistake-of-the-financial-crisis-lehman-bros-bankruptcy / last accessed on November 14, 2011

2011, Troubled Asset Relief Program, Investopedia, http://www.investopedia.com/terms/t/troubled-asset-relief-program-tarp.asp last accessed on November 14, 2011

Too big to fail, HBO Movie, Directed by Curtis Hanson, based on a book by Peter Gould and Andrew Ross Sorkin
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