hen such biases enter into the decision-making process, they eliminate some potential courses of action.
Related to bias is the illusion of validity. The biased parties envision an outcome that they would like to see and work backwards to justify their chosen course of action. That course of action may not lead to the outcome at all, but biases leave to the view that it does. Therefore, bias guides us to actions that do not result in the outcomes we have imagined. Alongside bias, the illusion of validity reduces objectivity. The parties making the decision cannot be truly objective if they have biases; nor can they be truly objective if they already believe they will have success. hat this does is eliminate the possibility of the worst-case scenario. By mentally eliminating some of the possible outcomes from consideration, the analysis of the situation becomes distorted.

As a result of these defects,….

Bailouts
The current recession was precipitated in large part by all Street, which fuelled an asset bubble in the housing market and repackaged bad loans as good ones. One of the initial consequences of the bursting of that bubble was that the banking system became unstable. This situation led to the first all Street bailout in September, 2008. This bailout was priced at $700 billion and was intended to stabilize the financial system, in effect stabilizing the economy (Stout, 2008). hile the bailout has ultimately proven to cost less than $700 billion as the result of strong returns (Onaran & Leondis, 2010; Faler, 2010), the plan did not have the desired impact on the American economy at large. hile the banking system was more or less stabilized, the GDP shrank and unemployment soared. These are the primary impacts on Main Street and they were not impacted by the all Street bailout.….

In some ways, the AIG bailout is viewed more favorably -- bonuses not withstanding -- in part because of the ownership stake. ith a substantial, profitable business the taxpayers may yet break even on AIG. ith the automakers, taxpayer ire is higher because there is little chance that this will happen. The government has less control over the automakers, and as a result there is less likelihood that the industry will reform itself sufficiently. Even if it did, the taxpayers would not see any benefit since they have no stake.
In light of this, the government treatment of the auto industry compared to financial institutions seems reasonable. Both have received bailouts, in proportion to the amount of damage that would be wrought on the U.S. economy if they failed. The lack of ownership stake in automakers makes for more public application of leverage than with AIG, were the 80% ownership….

GM Chrysler Bailouts
Government Bailouts of Chrysler and General Motors

An Examinations of the Factors that Led to the Bailouts, the Terms of the Bailouts, as well as a Discussion of the Current State of the Arrangement

The global financial crisis of 2008 worked to decimate many sectors of the economy. The government responded with quick action and intervened as they saw fit. However, from the beginning, there has been a debate over whether it was the right course of action for the Treasury and the Bush and Obama administrations to use the 2008 Troubled Asset Relief Program (TARP) money to support the struggling auto manufacturers. The financial support to General Motors and Chrysler, which was actually made in part by both administrations, represented a large financial investment on behalf of the United States tax payers. Although the results of this intervention are heavily contested, it was found that there is sufficient evidence….

Government Bailouts
Bailing out American capitalism in the present depression was far more expensive than most of the public will ever realize, especially since many of the costs were deliberately hidden. This Great Bailout was much larger than the Troubled Assets Relief Program (TARP), which went to the large banks, insurance and automobile companies. All but $50 billion of this has been paid back, but that was only one small part of the bailout. Governments concentrated on bailing out the banks and corporate elites rather than creating public works and jobs programs as Keynes would have recommended, and the costs in low wages and high unemployment for the working class and middle class was at least $5 trillion. Wall Street is profitable and the bankers are getting their bonuses, but ordinary workers and consumers at the lower and middle levels of the economy are suffering the worst conditions since the Great….

" This German form of mercantilism has been labeled as called "predatory" by other European economists and officials. Thus Germany bears some of the burden for the decimation of Greece's economy, and that of other European states, to begin with.
During its bailout of Greece, Germans banks do not have to incur any costs. In fact, German banks are buying high-interest bonds that are effectively guaranteed by the euro-zone governments. The best part of this plan for the banks is that German taxpayers are guaranteeing the interest and the amortization. While only time will tell if this plan works in the long run, it is appears successful enough to implement in a second country, if necessary. Thus a continued bailout is not only in the best interest of the EU, it is also in Germany.

Finally, providing funds for others states to get out of debt is the only way to ensure….

hat is less certain is the benefits of the bailout -- those can only flow from taking advantage of the bailout to restore credit markets and prevent a repeat of this financial crisis in the future.
orks Cited:

Baker, Dean. "Subprime Rescue Plans: Backdoor Bank Bailouts." (2008): 9 pages. EconLit. EBSCO. 10 May 2009

Mishkin, Frederic S. "How Big a Problem is Too Big to Fail?" (2006). 18 pages. Journal of Economic Literature. Vol. XLIV (December 2006) pp.988-1004.

Glasberg, Davita Silfen, and Dan Skidmore.. "The Dialectics of hite-Collar Crime: The Anatomy of the Savings and Loan Crisis and the Case of Silverado Banking, Savings and Loan Association." American Journal of Economics and Sociology 57.4 (Oct. 1998): 423-449. EconLit. EBSCO. [Library name], [City], [State abbreviation]. 10 May 2009 .

Manchester, Joyce, and arwick J. McKibbin.. "The Macroeconomic Consequences of the Savings and Loan Debacle." Review of Economics and Statistics 76.3 (Aug. 1994): 579-584. EconLit.….

Ethics, Values, Social esponsibility
Bailout of Banking Industry in United States

Ethical Compliance by Banking Industry

It is quite common in American history that government comes for the rescue of companies and organization in the time of financial crisis. General motors' acquisition was one such example where saving GM meant saving the nation. When Government takes measure for the welfare of any segment of the economy, it then becomes responsibility of the organizations that they comply with social responsibility and ethical standards so that it should respond to its social character and use the benefits provided by the government in the honest fashion. The recent bailout of banking sector by U.S. government, and the misappropriation and misuse of these funds, have raised a big question mark on the compliance to ethical standards by the bank.

United States government has a long history of bailing out its financial institutions. Some of the most famous financial….

Auto Bailout
In the years leading up to the auto industry bailout, all of the so-called Big Three automakers were struggling. They had been losing market share for many years as more import companies had entered the American market. Some of these companies, notably Honda and Toyota, were able to deliver better cars at lower prices, putting the Big Three at a significant competitive disadvantage. hile the automakers had some good years, by the last 2000s they were losing money. They did not have competitive products, and were saddled with substantial retirement costs. These companies had tens of thousands of employees at one point and need to pay retirement benefits to those workers; the problem is that there are fewer workers today because of automation to cover those benefits. The automakers headed for bankruptcy, and successive contract restructurings with the unions had failed to reverse the trend. The federal government stepped….

S. lawmakers have passed a $700 bailout bill to buy troubled assets from banks in hopes that they will start lending again. it's almost ironic that the government is encouraging more of the very same thing that caused the problem in the first place. It seems that the government will do anything it can to continue to fuel the consumption-based economy even though Americans are awash in debt. Further, there's no guarantee that banks will respond in the way lawmakers intend them to given that they will no doubt be held more accountable for their lending decisions and the precarious condition of the economy that makes lending more risky. For all these reasons, the bailout is a misguided policy effort that will not address the fundamental causes of our current economic downturn.
ibliography

aker, D. (2008, February 14). Own to rent? Yes we can. Center for Economic and Policy Research. http://www.cepr.net/index.php/op-eds-columns/op-eds-columns/own-to-rent-yes-we-can/

Crotty, J.….

At the core of the economic argument is Schumpeter's theory of creative destruction. In his seminal economic work, Capitalism, Socialism and Democracy, Schumpeter (1942) argued that innovation is the process by which economic growth occurs. At times, this means that old, established technologies and companies must be destroyed, but that the net effect will be beneficial. This sentiment runs counter to the theory that the economy would be better off if GM were saved. The economic costs might be high today -- the $150 billion or more figure is not disputed -- but that in the long-run the benefits would outweigh these costs.
In a later elaboration, it was demonstrated that big business turnover specifically resulted in smaller government, stronger rule of law, less bank dependence, stronger shareholder rights and greater transparency (Fogel et al., 2008). Bailing out General Motors therefore harms the economy because it stifles growth and innovation,….

Greece Bailout
oadmap

The Greek government has faced an ongoing fiscal crisis for the past several years. ecently, for the third time, its Eurozone partners have been compelled to offer a bailout to the country. This is done to stabilize Greece's finances and to impose further measures on the Greek government to remedy the nation's budget and to ensure that there are no similar issues in future. The first part of the paper is a brief overview of the situation. The second part will outline some of the key issues that lead both to favor the bailout and to oppose it, and finally there will be analysis and a conclusion about whether or not bailing out Greece is the right thing to do. It will be argued that it is not, at least in the current form.

Background

There are several key issues at work with the Greek bailout. Greece was admitted to the….

Political leaders in charge of this decision will not take into consideration only the effects that a possible bailout might have on the automakers. They will take into consideration the macroeconomic effects and challenges that are expected to emerge in case the bailout is approved.
The symbolic frame probably has the least importance regarding this subject. In case the bailout will not be approved, the cultural or symbolic aspects related to the big automakers affected by this situation will not have the strength to clarify the situation.

2. The important lesson provided by the organizational behavior consists in improving organizational effectiveness. This lesson should be important for all the managers or aspiring managers and it should always be taken into consideration when deciding upon important aspects that affect the organization in case.

Effectiveness and efficiency must characterize all types of organizations, private, profits oriented ones, but non-profit and governmental organizations also. The….

Conclusion
If AIG would not have been helped by the Federal eserve, it is more
than obvious that the financial group would have declared bankruptcy.
Although the bailout reached an enormous sum, the action was justified.
Given the current market conditions, an eventual collapse of AIG would
contribute even more to the fragility of the financial market. Also, it
would have led to a reduction of public wealth, and it would have reduced
economic performance.
The opinion of U.S. taxpayers is that the AIG bailout was not
justified. For them, it did not seem fair that they should pay for the
mistakes made by financial corporations' CEOs and by the defective policies
and strategies practiced by financial groups.
There are two sides to this issue, one opposing the other. U.S.
citizens have strongly declared themselves against the bailout. Their
pressure determined the country's officials to reject financial saving
plans initially.
However, the efforts of these taxpayers had to be sacrificed, and AIG
has to be helped to….

It was irresponsible for banks to operate from a position of absentee management, and the careless ownership enabled reckless conduct from their "agents" who ran the day-to-day operation. While some blame must be placed on the public for continuing to spend at outrageous rates, the bank itself promoted and enabled such activity. Blankfein's argument that no one had been arrested is irrelevant since the issue at hand is whether the financial industry was responsible, not whether bank officials should be arrested. Banks made profound miscalculations concerning interest rates and loans, and should have been aware that their business practices were not feasible toward long-term success (Murphy).
Issue 7 places the theories of authors oger Lowenstein and obert Samuelson against one another. Lowenstein contends that government should bail out economic institutions; however, he does not argue that bailouts are necessary in order to assist the careless companies, but instead asserts that….