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The United States government did a number of things to prop up failing/failed companies to the detriment of the United States deficit and through the enabling of companies that were clearly doing wrong. However, they did so because NOT doing so would have been much, much worse. A company like AIG or General Motors falling into the abyss (the latter in particular) would have probably damaged the United States automotive industry for years to given that Chrysler is now longer United States owned, technically (owned by Fiat, an Italian company) and that only leaves Ford as the lone large domestic car company.
The Cyprus situation is no less a moral hazard than the government moral hazard of the United States. Even further, much the same thing happened when GM's bankruptcy...
In the case of Cyprus, high depositors are feeling the brunt of the poor choices of others (including the government and the bank itself) and this will lead to money (from all sources) going overseas or under the mattress. That all being said, the shift from all taxpayers/the government shouldering the burden of the bailout to the high depositors, while not a perfect solution, is better from a moral hazard standpoint than any of the other alternatives. Not doing anything was simply not an option because the banks failing and/or a run occurring on the banks would have been much more disastrous.
A moral hazard is a situation where there is a risk but the person taking said risk will not tend to feel the aftermath or effects if the risk goes wrong. For example, a person betting, in any form, on the collapse of the housing market that occurred in the United States from 2007 to 2009 would be an example of someone that would either not be hurt or would specifically gain from that prediction coming to pass yet many people would feel poor effects of that same event happening, including the people who bet on strength and the customers who lost their homes or were otherwise impacted.
The United States government did a number of things to prop up failing/failed companies to the detriment of the United States deficit and through the enabling of companies that were clearly doing wrong. However, they did so because NOT doing so would have been much, much worse. A company like AIG or General Motors falling into the abyss (the latter in particular) would have probably damaged the United States automotive industry for years to given that Chrysler is now longer United States owned, technically (owned by Fiat, an Italian company) and that only leaves Ford as the lone large domestic car company.
The Cyprus situation is no less a moral hazard than the government moral hazard of the United States. Even further, much the same thing happened when GM's bankruptcy was coordinated by the United States government with investors getting talked to like children and otherwise getting the short end of the stick while GM itself and its union made out like bandits. In the case of Cyprus, high depositors are feeling the brunt of the poor choices of others (including the government and the bank itself) and this will lead to money (from all sources) going overseas or under the mattress. That all being said, the shift from all taxpayers/the government shouldering the burden of the bailout to the high depositors, while not a perfect solution, is better from a moral hazard standpoint than any of the other alternatives. Not doing anything was simply not an option because the banks failing and/or a run occurring on the banks would have been much more disastrous.
national culture on project control: emirates project manager in *xyz company case study This work addresses effects of national and international culture upon business, using a corporate organization in the UAE as an example. Theoretical aspects of culture are discussed and a detailed research program is outlined, with data from a Pilot Study being presented, as a basis to plan and delineate the best approach to the overall research protocols. Intent The
Bosch Company and Social Media The Bosch Company appears to have a strong and comprehensive presence within the world of social media. This is crucial as social media is a truly powerful and invasive tool that can be used to build relationships with new customers and strengthen already existing relationships with old customers. "Building a social strategy takes time and careful attention, but the point is: you need one. Many
Winsome Manufacturing Company Describe the possible risk events for the project. Identify the high probability, high-impact risk events. For each of those risk events, identify the possible actions to mitigate the risk. According to the case, Winsome Manufacturing Company operates along with its sister concern with various functional units divided between the two entities. The sister concern of Winsome Manufacturing Company is primarily a unit that deals with purchasing products from outsourced
Motivating a Cross/Multi-Cultural WorkforceGlobalization has transformed nearly every facet of society including the modern workforce. As a result of the increased connectedness brought by globalization, today�s workforce is increasingly diverse. Terry (2007) states that the modern workforce comprises people from diverse national and cultural backgrounds. This has presented new challenges for human resource departments by generating the need for promoting inclusivity amidst diversity. Similar to the experiences of modern business
Company Apple is a personal electronics manufacturer and marketers. The company competes in personal computers, mp3 players, tablet computers, software and smartphones (Apple.com, 2011). Apple has improved revenues and profits rapidly of late (Apple, 2011). Apple is financially strong with a great balance sheet (MSN Moneycentral, 2011) and strong brand loyalty (Withers, 2008). The company's stock is currently trading at very high multiples because of its multi-year track record of
This was usually the case with the proliferation of British rule at the time; trade was the predecessor to British Colonialism. For administrative purposes, Singapore became a part of Penang and Malacca which were two other settlements in the region. By 1826 these areas were grouped together and became known as the Straits Settlement. Initially the centre of the Straits Settlement was Penang. Penang was governed by Calcutta and