Bailouts Essays (Examples)

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.…

Works 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 White-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 Warwick J. McKibbin.. "The Macroeconomic Consequences of the Savings and Loan Debacle." Review of Economics and Statistics 76.3 (Aug. 1994): 579-584. EconLit. EBSCO. [Library name], [City], [State abbreviation]. 10 May 2009 .

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…

References

Amadeo, K. (2012). What Exactly Was the Bank Bailout Bill? retrieved from  http://useconomy.about.com/od/criticalssues/a/govt_bailout.htm 

Applebaum, B. (2009). Financial Rescue I.G. Says Banks Funneled TARP Aid to Various Expenses, The Washington Post, Retrieved from  http://www.washingtonpost.com/wp-dyn/content/article/2009/07/19/AR2009071901770.html?nav=hcmodule 

Congressional Budget Office. (2010), Report on the Troubled Asset Relief Program -- November 2010, Retrieved from  http://www.cbo.gov/publication/21942 

Davis, M. (2009). Top 6 U.S. Government Financial Bailouts, Retrieved from  http://www.investopedia.com/articles/economics/08/government-financial-bailout.asp#axzz1ujUlc2ZS

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…

Works Cited:

BLS. (2012). Automotive industry: Employment, earnings and hours. Bureau of Labor Statistics.

Cauchon, D. (2012). In Ohio: Voters choose Obama as auto bailout resonates. USA Today. Retrieved November 30, 2012 from  http://www.usatoday.com/story/news/politics/2012/11/06/ohio-election-results/1658389/ 

CNN. (2009). Obama defends auto bailout, touts new fuel rules. CNN. Retrieved November 30, 2012 from http://articles.cnn.com/2009-09-15/politics/obama.autos_1_auto-industry-auto-bailout-tighter-auto?_s=PM:POLITICS

Reuters. (2009). Obama to announce auto bailout plan Monday. USA Today. Retrieved November 30, 2012 from  http://usatoday30.usatoday.com/money/autos/2009-03-27-new-autobailout_N.htm

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.…

Bibliography

Baker, 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. (2008, September 24). The great switch: Banks rob people. Dept. Of Economics, UMass, Amherst and Center for Popular Economics. http://209.85.173.104/search?q=cache:l_kBTAczCMkJ:www.populareconomics.org/Bailout%2520-%2520Crotty.doc+%22housing+prices+would+keep+rising%22&hl=en&ct=clnk&cd=7&gl=us

The financial mess: How we got here. (2008, October 3).  http://messageboards.aol.com/aol/en_us/articles.php?boardId=455943&articleId=694828&func=6&channel=News&filterRead=false&filterHidden=true&filterUnhidden=false

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,…

Works Cited:

Krisher, Tom & Thomas, Ken. (2008). Advocates: Automaker bailout essential. Associated Press. Retrieved April 30, 2009 from  http://www.azcentral.com/business/articles/2008/11/12/20081112biz-automakers1113-ON.html 

Langfitt, Frank. (2008). Automakers Lobby Pelosi for Bailout Cash. NPR. Retrieved April 30, 2009 from  http://www.npr.org/templates/story/story.php?storyId=96713932 

Ross, Brian & Rhee, Joseph. (2008). Big Three CEOs Flew Private Jets to Plead for Public Funds. ABC News. Retrieved April 30, 2009 from  http://abcnews.go.com/Blotter/WallStreet/story?id=6285739&page=1 

Karnitschnig, Matthew; Solomon, Deborah; Pleven, Liam & Hilsenrath, Jon E. (2008). U.S. To take over AIG in $85 Billion Bailout. Wall Street Journal. Retrieved April 30, 2009 from  http://online.wsj.com /article/SB122156561931242905.html' target='_blank' REL='NOFOLLOW'>

Greece Bailout

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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…

References

BBC. (2013). IMF admits mistakes on Greece bailout. BBC. Retrieved April 17, 2014 from  http://www.bbc.com/news/business-22791248 

Bloomberg. (2012). Greek crisis timeline from Maastricht Treaty to ECB bond buying. Bloomberg. Retrieved April 17, 2014 from  http://www.bloomberg.com/news/2012-09-05/greek-crisis-timeline-from-maastricht-treaty-to-ecb-bond-buying.html 

Chu, B. (2012). Interview with economist Paul Krugman: Greece will leave Eurozone within 12 months. The Independent. Retrieved April 17, 2014 from  http://www.independent.co.uk/news/world/politics/interview-with-economist-paul-krugman-greece-will-leave-eurozone-within-12-months-7804753.html 

Esparza, A. (2013). Chinese investment in Greek port the biggest FDI after the crisis. Marketpulse. Retrieved April 17, 2014 from  http://www.marketpulse.com/20131127/chinese-investment-greek-port-biggest-fdi-crisis/

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…

Reference List

1. U.S. Automakers Bailout - a Bridge to Bankruptcy or a Road to Salvation. Saving to Invest. Retrieved December 12, 2008 at  http://www.savingtoinvest.com/2008/11/us-automakers-bailout-bridge-to.html .

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.…

Reference list:
1. Chronology: Financial Crisis Spreads from U.S. to World
Markets (2008). Deutsche Welle. Retrieved November 7, 2008
from http:www.dw-world.dedwarticle0,2144,3689713,00.html.

2. Subprime mortgage crisis (2008). Wikipedia, the free
encyclopedia. Retrieved November 7, 2008 from
http:en.wikipedia.orgwikiSubprimemortgagecrisis.
3. DiMartino, D. & Duca, J. V. (2007). The Rise and Fall of

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…

References

Newton, L., Englehardt, E., & Pritchard, M. (2012). Taking Side: Clashing Issues on Business Ethics and Society. New York: McGray Hill.

Murphy, a. (Nov. 4, 2008). An analysis of the financial crisis of 2008: Causes and solutions. SSRN. Retrieved from  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1295344 .

Andrews, E.L. (2008, Oct. 23). Greenspan 'shocked' that free markets are flawed. International Herald Tribune.

Social evolution to rapid revolutionary change and contemporary globalization dynamics: Emphasizing the an Analysis of Global Economics.

An article that recently appeared in The Korea Herald, "U.S. And Germany stress cooperation" details a visit to Germany by U.S. Treasury Secretary Tim Geithner, who met with his German counterpart to discuss the financial crisis that has enveloped Europe as of late. The context for this meeting was important, as the European Union's currency, the Euro, has consistently been devalued in the past few years and several countries that are part of this alliance (17 altogether) are contemplating various measures in which the currency and the economic solidarity of the EU could be saved.

The crux of this article, which directly correlates to Hans-Werner Sinn's opinion editorial, "Why Berlin is Balking on Bailout" actually has less to do with the meeting between the two financial heads of the U.S. And Germany and…

all Street Bailout -- Part II

all Street Bailout

The government-orchestrated bailout of the banks has been hailed and yet also condemned due to its perceived efficacy or lack thereof. Jeffrey Fuhrer suggested a path that was a lot cheaper and perhaps a lot less encouraging and propagating of the bad habits of banks and government entities that led to the crisis. This alternative, of course, was the individual homeowner bailout. Indeed, bailing out homeowners directly would have cost a mere fraction of what it did indeed cost to bail out Citibank, ells Fargo and the other banks. However, neither solution alone has a clear advantage over the other when looking at all relevant circumstances. hile doing a homeowner bailout would have had its merits, doing just the bank or homeowner bailouts individually probably would not have been as effective as doing them both in concert.

Analysis

This report will…

While some may view the bank bailouts as encouraging bad behavior, the money had to be and was paid back. Further, letting the banks fail would have imperiled a lot more bank deposits and assets that belonged to homeowners than would have been savable for a scant fifty billion. Indeed, the same bad consumer behavior that helped feed the mortgage monster would similarly feed runs on banks based on perceptions and hysteria. While the economic conditions of 2007 and 2008 were quite bad, they never approach Great Depression levels. On the same note, while unemployment reached roughly ten percent during the Great Recession, it was 2.5 times that during the Great Depression in the 1930's and the United States economy was quite dismal until the ramp-up during World War II (Perry, and Vernengo). However, when one inserts widespread panic into the equation, the Great Recession could have been a lot, lot worse. If the banking system had not been shored up at all in favor of bailing out only the consumers, it could have been quite cataclysmic because just bailing out the homeowners when the banks are failing due to their own or created problems would have negated much of what a homeowner bailout would have accomplished (Peicuti).

With that said, the housing bubble was not just the fault of the banks and the homeowners who procured the foolish loans had their part as well. A similarity regarding all of the bailouts is that everyone in the chain misbehaved and that includes the federal government, the homeowners and the banks. Indeed, part of the problem that created the housing bubble was improper oversight by the federal government. This oftentimes manifested with near-direct or entirely direct participation and complicity of the federal government. For example, Fannie Mae and Freddie Mac were not technically part of the government prior to the Great Recession but only in the sense that the United States Postal Service is not part of the federal government either. Referred to as government-serviced enterprises (or GSE's for short), those two entities had to be bailed out to the tune $66 billion had to be paid back to the federal government as those two groups had to be bailed out as well. Just as with AIG and the broader TARP program, all of that money was paid back and with a tidy profit on top of it to boot. The government really has no excuses about Fannie Mae and Freddie Mac going forward as the two groups became part of the federal government via conservatorship in 2008 and they are now federalized agency. There is some talk of those groups being wound down and done away with but that has not happened as of yet (Phillips).

While it may be more attractive to some to help homeowners directly and leave the larger banks hanging, proof of why that is an exceedingly bad idea was easy to spot during the Great Recession when banks were folding left and

Such problems are not overcome easily, but in time and with sustained efforts. To better understand my standpoint of defending the bailouts, consider what would have happened had the TAP never been implemented. All of the companies would have commenced bankruptcy procedures and the millions of workers they were employing would have been fired. At a first level, the state would have had to offer those former employees social aid. Then, the national purchasing power would have decreased even more, to impact the national demand and the national production. Also, the country's competitive position within the global market would have decreased dramatically. Overall then, while the bailouts may not have been fairly and efficiently allocated and while they did not revive the economy immediately, they did prevent it from taking an even more damaging turn.

eferences:

Haugen, D., 2010, Bailout Money Should Not Be Used to Pay Executive Bonuses, Detroit:…

References:

Haugen, D., 2010, Bailout Money Should Not Be Used to Pay Executive Bonuses, Detroit: Greenhaven Press

Haugen, D., 2010, the Government Bank Bailout Plan Is a Fraud, Detroit: Greenhaven Press

Haugen, D., 2010, the Government Bank Bailout Will Not Jump Start the American Economy, Detroit: Greenhaven Press

September 2008, Government Bailouts Must Put Americans First, U.S. Newswire

Yet, today, they sell only about 47% and this market share loss has accelerated over the past decade (Sullivan, 2008). The major issue, according to Sullivan, is the inability of the ig Three to effectively compete with their more efficient and market savvy Japanese rivals, even on their home turf. Opponents of the auto industry bailout feel that placing more money into a failed business strategy makes no sense and that everyone is better off if the free market, not the federal government, choose the winners and the losers in the economy (Moran, 2008). The end result of the auto bailout could well result in a return to protectionism which could unfairly impact other American industries' ability to compete in a global market. A policy analyst at the German-Marshall Fund voices a common concern that a bailout of the auto industry has the potential "to be the torch that lights…

Bibliography

Abouhalkah, Yael T. "The Big Three Bailout vs. Big Bank Handouts for AIG, CitiGroup." Kansas City Star 4 Dec. 2008. http://voices.kansascity.com/node/2983

"1979 Chrysler Bailout Holds Lessons" The Washington Times 24 Nov. 2008.  http://www.washingtontimes.com/news/2008/nov/24/1979-chrysler-bailout-holds-lessons/ 

Grossman, Andrew M. And Gattuso, James L. "TARP: Now a Slush Fund for Detroit?" 12 Dec. 2008.  http://www.heritage.org/Research/Economy/wm2170.cfm#_ftn2 

Kiley, David. "Auto Bailout Hung Up in the Senate." BusinessWeek 10 Dec. 2008.  http://www.businessweek.com/bwdaily/dnflash/content/dec2008/db20081210_152585.htm

Conclusions -- Was TAP Necessary -- A five member Congressional committee echoed a number of criticisms regarding TAP that many consumers, academics, and fiscal analysts were considering. What exactly was the Treasury's strategy with the $700 billion dollars for the supposed bail out? How can Treasury explain the significant gaps in their ability to find hundreds of billions of taxpayer money? In a nutshell, it appears that the departments that control the money given by the Congress (from the American people) have no ability to ensure that the bailed out banks will do what was needed and lend money; have no real standards of measuring success of failure of the program; and for ignoring pointed and specific questions from Congress about their performance (M. Crittenden).

The fact that many of the institutions bailed out with TAP funds, funds from the American taxpayer, did not distribute these funds back into the…

REFERENCES and WORKS CONSULTED

"2007 Public Company Bankruptcies Surpassed, According to BankruptcyData.com." 17 September 2008. AllBusiness.Com. 11 April 2010  http://www.allbusiness.com/company-activities-management/financial-performance/11564300-1.html 

Andrews, E., et.al. "Fed's $85 Billion Loan Rescues Insurer." The New York Times 16 September 2008:  http://www.nytimes.com/2008/09/17/business/17insure.html?_r=1&hp .

Bardeesy, Karim. "Bailout Baloney." 2 October 2008. The Big Money from Slate. 11 April 2010  http://www.thebigmoney.com/articles/juicy-bits/2008/10/02/bailout-baloney 

Bucznski, Richard. "Economic Crisis: When Will It End?" 2010. IBIS World. 9 April 2010  http://www.ibisworld.com/recession2009/

Big to Fail

The phrase "too big to fail" is a term used to describe certain institutions that are so large, interconnected and significant to the American economy that their failure would be disastrous. Because of this perception American public policy has evolved into government support for these institutions when their frequently poor management, greed, and risk-taking behaviors put them in jeopardy.

A partial list includes: Fannie Mae, Freddie Mac, AIG, General Motors, Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, GMAC, Chrysler, Goldman Sachs, Morgan Stanley, Bank of America subsidiaries (Countrywide), U.S. Bancorp, Capital One, Regions and SunTrust.

The issue of taxpayer funded bailouts for institutions deemed too big to fail is one of the most controversial subjects that can be brought up. Bailouts for U.S. automakers like GM and Chrysler can at least be credited with saving jobs of U.S. employees. By preventing massive layoffs, bailing out these…

Bailing out the American economy: Banks vs. mortgage-Holders

In 2008, the United States teetered on the brink of an economic crisis. If the United States were to suffer a financial meltdown, the global economy could spiral downward in a manner unprecedented since the Great Depression. The crisis had begun in the U.S. subprime mortgage market but had rapidly spread to other sectors of the economy. The remedy of the U.S. government was the creation of the TARP (Troubled Asset Relief Fund) ("Troubled Asset Relief," Investopedia, 2012). Almost every major banking institution, deemed in the infamous phrase 'too big to fail' was given some form of relief. However, homeowners who were behind on their mortgages were angry that they received relatively little support from the government even though they perceived themselves as far less culpable than the banks. Even the plan proposed by Jeffrey Fuhrer (Foote et al. 2009) on the…

Works Cited

Calmes, Jackie. "Audit finds TARP program effective." New York Times. 20 Dec 2009.

[17 Oct 2012].

 http://www.nytimes.com/2009/12/10/business/economy/10audit.html?dbk&_r=0 

Carter, Adrienne. "Big Banks Pay Back TARP Funds -- But Still Get Government Aid."

To examine the causes the independent variables will be the costs associated with the production and sale of the cars, looking a both the direct and the overhead costs in the years prior to the bailouts, to assess the degree to which the firms appeared to have control over their costs. If there was a lack of control over the costs, the level of costs may be a predictor of future problems.

Definition of Terms

Before undertaking the research it is necessary to define some of the terms which will be used. The failure of a firm relates to whether a firm entered into bankruptcy. Bailout funding was the funding that was received from the government as part of an official bailout package in order to help the firm survive.

The costs will be assessed in terms of the overall costs incurred to manufacture cars; this may be the cost…

References

Isidore, C. (2008, November 17). Auto Bailout: Showdown. CNNMoney.com. Retrieved from  http://money.cnn.com/2008/11/17/news/companies/gm_showdown 

Hiraide Norikatsu; Chakraborty, Kalyan, (2012) Surviving the Global Recession and the Demand for Auto Industry in the U.S. -- a Case for Ford Motor Company, International Journal of Economics and Finance, 4(5), 85-94

Ooghe, Hubert; De Prijcker Sofie, (2008), Failure Processes and Causes of Company Bankruptcy: a typology, Management Decisions, 46 (1-2), 223-242

Watson, Thomas, (2009), Automotive Trouble, Journal of Domestic Car Production, 82(7), 11-12.

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…

References:

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

Videos

Mayor Nutter's budget speech contained several effective elements. The mayor is delivering a challenging budget. IN order to deliver this news, he begins with two effective devices. The first is that he rallies the support of the people by pointing out that he is a leader they can trust (had an open house at City Hall) and that the people of Philadelphia had rallied to meet challenges before (picking up trash, etc.). The second effective device was that he wanted to create a sense of urgency about the situation. In order to deliver bad news, it is important that a sense of urgency is created because it compels the listener to want to act right away, as opposed to delaying action. Thus, the mayor effectively recounts how bad the recession is, and the ways that it has already had a negative effect on the national economy and on the…

Works Cited:

Peterson, J. (2012). 12 effective speech tips and checks. Speech Topics Help. Retrieved February 15, 2012 from  http://www.speech-topics-help.com/effective-speech.html 

Video: $14B auto bailout dies in Senate. Retrieved February 15, 2012 from  http://www.youtube.com/watch?v=L7PMnKUcL1U 

Video: Nutter paints bleaker picture on budget crisis. Retrieved February 15, 2012 from http://abclocal.go.com/wpvi/video?id=6492270

Economic crash can be viewed from a number of perspectives ranging from causes and effects to the 2008 Crash's resemblance to the Crash of 1929, which began the Great Depression. This paper will consider the 2008 recession from the standpoint of the financial banking industry, which, according to economic journalists like Matt Taibbi (2010), played a major and significant role in the crumbling of the nation's economy -- just like it did in the Lawless Decade also known as the oaring Twenties.

Big Banking Meets Big Government

What has now become known as the Era of De-egulation actually had its beginnings in the 80s decade known just as much for its rampant excess as the early 20s were known for their unbridled lawlessness. Yet, while the latter enjoyed the snubs-to-the-law bootlegging speakeasies, the former enjoyed the merging of the financial sector with the political -- which began during eagan's tenure…

Reference List

AP/HuffPost. (2011). Charles Ferguson's Oscar Speech Rips Wall Street: 'Inside Job'

Director Levels Criticism During Acceptance. HuffPost Business. Retrieved from  http://www.huffingtonpost.com /2011/02/28/charles-ferguson-oscar-speech-inside-job_n_828963.html

Sann, P. (n.d.). The Lawless Decade: A Pictorial History of the Roaring Twenties.

Retrieved from  http://lawlessdecade.net/

Fiat / Chrysler -- Leadership - Teambuilding

The Chrysler merger with Fiat was met with skepticism and doubts when it was first proposed. Chrysler had just recently emerged from near bankruptcy -- saved by a U.S. government bailout -- and Fiat is a strong internationally respected corporation building cars, earth-moving machines, and more. The merging of Chrysler and Fiat was seen as having a greater opportunity for success than did the merger between Chrysler and Daimler-Benz, but still there were doubters in the industry. However, as of May, 2012, the blending together of the two companies (Fiat and Chrysler) has produced a profitable situation. This paper examines the cultures -- and leadership -- shown within the two companies, a strong combination that has allowed success to be achieved. The paper also critiques the leadership styles in the dynamics of this merger, and delves into the concept of teambuilding when two…

Works Cited

Associated Press. (2012). Fiat Gets Another 5% State In Chrysler Thanks to Dodge Dart.

HuffPost Detroit. Retrieved May 11, 2012, from  http://www.huffingtonpost.com .

Buss, Dale. (2012). "Gordian Knott" Sliced Through Chrysler Woes with Suppliers. Forbes.

Retrieved May 11, 2012, from  http://www.forbes.com .

Boom in Busts: Good or Bad?

There are several pros and cons in the bankruptcy legislation issues. In the current European systems, entrepreneurs forced to file for bankruptcy protection carry business failures and associated debts for years, may be liable to criminal charges and may even be driven to suicide by crushing failure and ongoing debt (Peng, 2014, p. 145). Those consequences and the "fear of failure" rampant in Europe causes some entrepreneurs to abandon their ideas without ever trying to develop them. The "advantage" of the current system, however, favors the creditors because creditors are still supposed to get paid; the money owed to them does have to be simply written off as losses (Peng, 2014, p. 145). The American system, which gives bankrupt entrepreneurs two options -- either complete liquidation and walking away from debt or restructuring to renegotiate with/pay creditors according to court-approved schedules -- also has…

Works Cited

Carroll, L., & Youngman, C. (2015, September 21). Fact-checking claims about Donald Trump's four bankruptcies. Retrieved March 20, 2016 from www.Politifact.com:  http://www.politifact.com/truth-o-meter/statements/2015/sep/21/carly-fiorina/trumps-four-bankruptcies/ 

Crum, B. (2013). Saving the Euro at the Cost of Democracy? . Journal of common market studies, 51(4), 614-630.

Peng, M. W. (2014). Global strategic management, 3rd edition. England: South-Western Cengage Learning.

nature project, sources information plan, important concepts techniques applied. You receive feedback proposal Instructor Week 6, give time make adjustments.

Proposal for new strategic endeavors of production, pricing and resource utilization at Ford Motor Company

In the context of the global economic recession, the American automobile industry faces demise. Out of the three main players in the United States, Ford Motor Company has rejected the bailout from the government and has focused its strategy on internal restructuring. As part of this effort, the future project would set out to provide some recommendations of how the company can reshape its production, pricing and resource utilisation strategies in an effort to create more value for the organisation.

Introduction

With the commencement of the 2007 economic crisis, the American automobile industry has been facing endless challenges. The number of customers has decreased, as has their purchase power and the subsequent demand for the…

References:

Pride, W.M., Hughes, R.J., Kapoor, J.R., 2011, Business, Cengage Learning

Rosenfeld, H., 2009, The North American auto industry in crisis, Monthly Review, Vol. 61, No. 2

Soy, S., 1997, The case study as a research method, Texas University at Austin, http://www.gslis.utexas.edu/~ssoy/usesusers/l391d1b.htm last accessed on May 24, 2012

Vasudev, P.M., Watson, S., 2012, Corporate governance after the financial crisis, Edward Elgar Publishing

fiscal and monetary policy.

On the most basic level, the primary difference between fiscal and monetary policy is that fiscal policy pertains to the actions of the federal government designed to influence the national economy through government spending and taxation while monetary policy refers to the actions of the central bank to govern the money supply. Tight or restrictive monetary and fiscal policy is used to curb inflation; a liberal monetary and fiscal policy is used as an economic stimulus (What is the difference between fiscal and monetary policy, 2002, As Dr. Econ).

2-Compare and contrast Keynes and Hayek

According to Keynes, it was sometimes necessary for the federal government to take a role in managing the economy, to correct the ebbs and flows of the business cycle. During severe recessions consumers became wary about losing their jobs, stopped spending money, and this further curtailed economic growth. Eventually, more and…

References

Koehn, Nancy. (2011). Tale of the dueling economists. The New York Times. Retrieved:

 http://www.nytimes.com/2011/10/23/business/keynes-hayek-views-origins-of-an-economics-debate-review.html?_r=1&ref=books 

Nasar, Sylvia. (2011). Hayek, Keynes and How to Prevent Economic Crises. Bloomberg.

Retrieved:  http://www.bloomberg.com/news/print/2011-09-13/hayek-keynes-and-preventing-economic-crises-commentary-by-sylvia-nasar.html

Macroeconomic Analysis

Economically, recession is described as a significant drop in economic activity over a short period of time usually a few months (bbc news, 2008). Gross Domestic Product (GDP), household income and other macro-economic indicators drop while others such as unemployment and bankruptcy rises. ecession can be caused by many factors e.g an external trade shock or the burst of an economic bubble such as the United States housing bubble. Most governments deal with recession by applying expansionary macroeconomic policies like reducing interest rates and increasing government spending. By lowering interest rates, governments hope to entice business into expanding.

Fiscal policy refers to the use of the government taxation (revenue collection) and expenditure (spending) to influence the economy of a country. The changes in the two key pillars, revenue collection and expenditure influence macro-economic variables such as aggregate demand, resource allocation pattern within the government and the distribution of…

References

Bernanke, Ben (13 January 2009). "The Crisis and the Policy Response." Federal Reserve.  http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm 

BBC news, (8th July 2008). "Q&A: What is a recession?"

Marc L., (2013). Federal Reserve: Unconventional Monetary Policy Options.  http://www.fas.org/sgp/crs/misc/R42962.pdf

Mill and U.S. Constitution

None of the issues being raised today by the Occupy all Street (OS) movement are new, but rather they date back to the very beginning of the United States. At the time the Constitution was written in 1787, human rights and civil liberties were far more constrained than they are in the 21st Century. Only white men with property had voting rights for example, while most states still had slavery and women and children were still the property of fathers and husbands. Only very gradually was the Constitution amended to grant equal citizenship and voting rights to all, and even the original Bill of Rights was added only because the Antifederalists threatened to block ratification. In comparison, the libertarianism of John Stuart Mill in his famous book On Liberty was very radical indeed, even in 1859 much less 1789. He insisted that individuals should be left…

WORKS CITED

Dahl, Robert Alan. How Democratic is the American Constitution? Yale University Press, 2003.

Kaplan, Lawrence. S. Alexander Hamilton: Ambivalent Anglophile. Scholarly Resources, Inc., 2002.

Main, Jackson Turner. The Antifederalists: Critics of the Constitution, 1781-1788. University of North Carolina Press, 1989, 2004.

Mill, John Stuart. On Liberty. London, 1859.

fall 2007, the United States economy was rolling along in a healthy fashion having enjoyed 24 consecutive quarters of positive Gross Domestic Product growth. The Standard and Poors Index was over 1,500 and unemployment was below 5%. There was essentially no inflation. These were all good numbers and normally indicative of a health economy (Bloomberg Business eek).

Roughly 12 months later everything had changed. Treasury Secretary Henry Paulson surprised everyone by announcing that the Government was intending to intervene in the U.S. economy by holding reverse auctions where the troubled assets of several domestic financial institutions would be bought (Landler). As matters worsened quickly, the proposed auction concept was expanded to the point that the Government would actually purchase equity positions in some of the country's largest banks. The argument offered by Paulson was that such measures were needed to stabilize the troubled financial markets, avoid bank failures, and prevent…

Works Cited

Ashcraft, Adam B. "Are Banks Really Special? New Evidence from the FDIC-Induced Failure of Healthy Banks." The American Economic Review (2005): 1712-1730.

Bloomberg Business Week. "The Economy on the Edge." 19 November 2007. Bloomberg Business Week. 12 December 2011 .

Carliner, Michael S. "Development of federal homeownership "policy." Housing Policy Debate (1998): 299-321.

Case, Karl E. "Is There a Bubble in the Housing Market?" Brookings Papers on Economic Activity (2003): 299-362.

2007 Economic Crisis on American Car market

Effect of the 2008 global economic crisis on automotive industries

Crisis in the United States

Crisis in Canada

Crisis in ussia

Crisis in European markets

Crisis in Asian markets

Effects by other related crisis events

In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will also have a look at how this crisis had affected car manufacturers in other major markets around the world notably Europe, Canada and the prominent Asian markets such as China and India. Finally, we will look at some of the other factors which were important to this event namely the energy crisis since the cost of fuel is directly related to the car industry.

Introduction

The automobile industry is a very important part…

References

Lee, C. (2003). Financial Liberalization and Economic Crisis in Asia. New York: Routledge.

Pempel, T.J. (1999). The Politics of Asian Economic Crisis. New York: Cornell University Press.

Arestis, P. (2001). What Global Economic Crisis? New York: Palgrave.

Liou, K.T. (2002). Managing Economic Development in Asia. Westport, CT: Praeger.

" To that end, the Treasury Department would limit executive compensation for institutions receiving "exceptional assistance" (Geithner and Summers, 2009).

Troubles continued in the financial sector -- both Citigroup and the Bank of America needed second rounds of capital infusions, and federal guarantees against losses totaling tens of billions more -- while Ben S. Bernanke, the Federal Reserve chairman, warned that more capital injections might be needed to further stabilize the financial system. On Jan. 16, the Senate voted 52-42 to release the second round of funds (Gerth, 2009).

THE GEITHNER PLANS -on Feb. 10, Mr. Geither presented the rough outlines of the Obama administration's plan. A central piece of the proposal would create one or more so-called bad banks that would rely on taxpayer and private money to purchase and hold banks' bad assets. Another centerpiece of the plan would stretch the last $350 billion that the Treasury has…

Conclusion

Overall the automobile industry must make a more concerted effort o behave in ways that are consistent with accepted business ethics. From a utilitarian standpoint the automakers must begins to consider the consequences of their actions in the decision making process. At the current time Toyota is fighting to rebuild its brand image because the company6 did not thoroughly take into consideration the consequences of their actions. From a deontological standpoint the automobile companies have failed to act in ways that are just as it relates to the bailout and the recall of defective vehicles by Toyota. Going forward the companies that make up the industry must learn from the issues they have been confronted with in recent years. It is only through such a process that the entire industry will reflect a more ethical business model. An increase in ethical responsibility will likely prove effective attracting customers back…

Works cited

Brady F.N., Dunn C. P 1995. Business Meta-Ethics: An Analysis of Two Theories. Business Ethics Quarterly, Vol. 5 (3) pp. 385-398

Finch, J. 2010. Toyota Sudden Acceleration: A Case Study of the National Highway Traffic Safety Administration. Retrieved from:  http://www.luc.edu/law/activities/publications/clr_vol22_issue4/pdfs/finch_toyota.pdf 

Fuhrmans, V., Catan, T. (2010) Daimler to Settle With U.S. On Bribes. Wall Street Journal. 255 (68), pB1-B2

Newman, a. Auto Bailout: Lemon or Lemonade. New American 25 (1), p21-24

Economic Environment

The economic environment of Greece is that of a capitalist economy, but with significant public sector contribution – about 40% of total GDP is from government activity. This speaks more to the relatively small size of the Greek private sector than to excessive government ownership of industry. Tourism is one of the major drivers of the Greek economy, accounting for 18% of GDP (CIA World Factbook, 2017). Thus Greece would be characterized as a mixed economy with some government-owned entities. Greece is a member of the EU, but has also received several bailouts in recent years, and struggles with tax collection, and overall economic development. Tax evasion ranges between 6-9% of total GDP in Greece, which makes it a significant economic problem (Georgakopoulos, 2016).

Recent Macroeconomic Data

In recent years, Greece\'s economy has flatlined. The country has received several infusions of capital from other EU countries, but there…

The U.S. is a property owning civilization and a number of the people wanted land and housing. Americans however scarcely ever create savings. "The country itself lives on other countries' savings by issuing bonds to finance its excessive consumption. The current crisis began with cheap housing loans offered by banks. Banks provided loans but instead of holding the loan in their books, they packaged them into collateralized debt obligations (CDOs) and sold them to other agencies. These agencies passed them on to others and spread them globally as assets" (the Current Economic Crisis, its causes, its impact and possible alternatives, 2009).

Interest rates were lowered and housing loans went up with construction activities leading to land prices increasing. The real estate was booming, generating employment and incomes. But as the rate of interest on housing loans came down, banks started to compete to get more business. Because of low interest…

References

Avizius, R. 2009. Financial Crisis Big Picture: What has the Government Response Been? [ONLINE] Available at:  http://www.marketoracle.co.uk/Article9229.html . [Accessed 22 May 2012].

Centeno, M.A. & Cohen, J.N. 2012. The Arc of Neoliberalism. [ONLINE] Available at:  http://www.yale.edu/macmillan/transitionstomodernity/papers/CentenoCohen.pdf . [Accessed 22 May 2012].

Crotty, J. 2009. Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture' . [ONLINE] Available at:  http://cje.oxfordjournals.org/content/33/4/563.full . [Accessed 22 May 2012].

Esteva, G. (n.d.). The Meaning of the Global Crisis and "Recovery" for Study Abroad: What are we Preparing Students for? [ONLINE] Available at:  http://digitalcollections.sit.edu/cgi/viewcontent.cgi?article=1110&context=faculty_symposium . [Accessed 22 May 2012].

In IBM's case, the Department of Justice found that their efforts were mired in failure. Unfortunately, IBM was so central to the economic operations of Germany and occupied Europe that it was necessary to preserve IBM's role in the economy of Europe so as not to jeopardize the postwar occupation.

Part II-Present Corporatist America and Comparisons with Fascist Italy-

When the Wall Street Journal, the United States' newspaper of record for financial affairs makes an explanatory note, it gives us all pause. Gerald F. Driscoll in "An Economy of Liars" takes aim at both the Obama and George W. Bush administrations when he speaks about the present economic reality and asserts "We call that system not the free-market, but crony capitalism. It owes more to Benito Mussolini than to Adam Smith ("An Economy of Liars" 2010)."

If a communist agitator on the proverbial soapbox spouted this statement, it could be…

References

Alter, J. 2006, the Defining Moment: FDR's Hundred Days and the Triumph of Hope,

New York, Simon and Schuster.

Black, E. 2001, IBM and the Holocaust, Crown Publishers, New York.

(1965) "The Economy: We Are All Keynesians Now," Time, Available from  http://www.time.com/time/magazine/article/0,9171,842353-1,00.html

Business: International Business

International Business: Business

The IMF often provides financial assistance to ailing economies after a crisis to enable them return to their pre-crisis levels of income. However, whether or not these bailout programs are able to achieve this objective is dependent on a number of factors. This text reviews the recovery processes of four European countries to obtain a view of what these factors are.

Currency Conversion

dollar = 102.28 Japanese Yen (¥); 0.75 Euros (€); and 0.6 British pounds (£)

Converting $1,500 into:

Japanese Yen

=$1,500 X 102.28

= ¥153,420

Euros

= $1,500 X

= € 1,125

British Pounds

= $1,500 X

=£ 900

What is the price in U.S. Dollars of purchasing:

A computer costing ¥167,000

= ¥ 167, 000/¥102.28

= $1, 632

Euro desks/chairs costing €1, 125

= €1,125/€0.75

=$1, 500

iii) Printer costing 575 Pounds

= £575/£0.6

=$958

Part Two: Effects of the Global…

References

Dapontas, D. (2011). Currency Crises: The Case of Hungary (2008-2009) Using Two Stage Least Squares. The Bank of Greece. Retrieved January 4, 2016 from  http://www.bankofgreece.gr/BogEkdoseis/SCP201113.pdf 

Hammar, K. (2015). Iceland Makes Strong Recovery from 2008 Financial Crisis. The International Monetary Fund. Retrieved January 4, 2016 from  http://www.imf.org/external/pubs/ft/survey/so/2015/car031315a.htm 

IMF. (2015). IMF Executive Board Concludes Article IV Consultation with Hungary. The International Monetary Fund. Retrieved January 4, 2016 from  https://www.imf.org/external/np/sec/pr/2015/pr15156.htm 

Lipton, D. (2015). The Case for Supporting Ukrainian Economic Reforms. The International Monetary Fund. Retrieved January 4, 2016 from  https://www.imf.org/external/np/speeches/2015/040715.htm

They will only respond to outcomes that they feel directly. Thus, the government's actions are not having the desired impact on consumer behavior.

A disagree with the government's approach. The interest rate cuts are particularly worrisome. The massive cuts in the early 00s helped to spur the crisis because they had a profound impact on the money supply and helped to restore consumer confidence. Cuts of the same magnitude have been implemented now, but without the same results that were seen in the early to mid 00s. orse yet, if those results were seen, we could find ourselves in a repeat of the housing bubble. If something spurs a surge in consumer confidence, for example a strong holiday retail season, this could help convince banks to loosen their credit. ith the low rates, the market would once again be flooded with capital. This would spur a resurgence in the housing…

Works Cited

Boeri, Tito & Guiso, Luigi. (2007) Subprime Crisis: Greenspan's Legacy. Vox. Retrieved November 19, 2008 at  http://www.voxeu.org/index.php?q=node/488#fn2 

Brown, Jeff (2008) Subprime Crisis: A Bouquet of Opportunity Masked a Reek of Risk. Knowledge @ Wharton. Retrieved November 19, 2008 at  http://knowledge.wharton.upenn.edu/article.cfm?articleid=1995 

Bagley, Nicholas. (2008). The Federal Role in the Subprime Mortgage Mess. Sacramento Bee. Retrieved November 19, 2008 at  http://www.treasurer.ca.gov/beyondthehorizon/20080128.pdf 

Thoma, Mark. (2008). The Fed's View of the Sub-Prime Mortgage Market. Economist's View. Retrieved November 19, 2008 at  http://economistsview.typepad.com/economistsview/2007/03/the_feds_view_o.html

Sorkin, however, posits no argument per se. ather, his book offers insight into how the financial crisis manifested from a far more personal perspective of those involved than anything else. The book is informative in nature, and give insight into some of the thought processes and activities those on the outside may not otherwise be exposed to or privy to. The title of the book sums it up best, and the book outlines how the banks and the primary players and stakeholders have become too big to fail. The book highlights the self-interest of those in charge of some of the biggest financial institutions in the world and their blatant disregard for Main Street.

The book has a place in the larger academic debates raised within public knowledge because it adds to the public's real knowledge of those involved in the nation's financial industry and government offices. Instead of speculating…

References

Cassidy, J. (2008). Anatomy of a meltdown, New Yorker, 84(39), 1-756.

Cherry, C. (1998). God's new Israel: Religious interpretations of American destiny.

UNC Press Books.

Cohan, W. (2010, Nov. 27). The power of failure. New York Times. Retrieves from www.thenewyorktimes.com.

What the Occupy Wall Street movement is doing, is questioning the entire system itself.

A good example of this can be seen with the Occupy Wall Street Oakland chapter. What happened was the city had removed their camp near City Hall Plaza. This is in response to reports of: deaths, drug use and unsanitary conditions. At the same time, the resources of the police department were stressed to the point that they were unable to deal with possible issues affecting the safety of the community. This is when the police raided the encampment and dispersed the protestors from the area. In response to what was happening, the Oakland chapter decided to begin occupying foreclosed homes and privately owned vacant lots near City Hall Plaza. As, they are trying to illustrate how: the risky activities of bankers contributed to the financial crisis by staying in these locations. This is significant, because…

Bibliography

About. (2011). Occupy Wall Street. Retrieved from:  http://occupywallst.org/about/ 

Bailout Statistics. (2009). Capt Karl. Retrieved from: http://captkarl.blogivists.com/2009/01/22/bank-bailout-statistics-the-score-board/

Just 21% Favor GM Bailout Plan. (2009). Rasmussen Reports. Retrieved from:  http://www.rasmussenreports.com/public_content/business/auto_industry/may_2009/just_21_favor_gm_bailout_plan_67_oppose 

Organizational Symbols and Culture. (n.d.).

In Marx's view, equality extends in terms of distribution, where there is no private ownership, but where the government manages all goods for the supposed good of all citizens. Hence, equality extends not in terms of power, but in terms of material goods, which is managed by a centralized government. Hence, the bailout plan is ideal, with the government taking possession of the company and allowing its former owners to manage it in a way that is beneficial for its survival and the employees who depend on it for their survival.

I believe that the bailout should have been done. Like many other companies, GM was in financial trouble. Since the government was in a position to provide assistance, it is right that they should have done so. However, I tend to be in agreement with Locke and Smith that the government should not have taken permanent ownership of any…

Economic Globalization

Has the 2008 financial meltdown in the U.S. And the ongoing economic crisis in Europe have practically ended the era of economic globalization?

Following the financial crisis that marred the U.S. economy along with other global economies as well as the ongoing Eurozone debt crisis, there have been projected concerns that this predicament would end economic globalization. The purpose of this paper is to assess this claim. Going by Immanuel Wallenstein's World Systems Theory, the political economy of Third World economies and developed economies of the West are mutually dependent. Wallenstein's conjecture is that the growth and expansion of Third World economies relies on constant interaction with Western developed economies seeing as the world is characterized by a structural division of labor where the developing nations of the Third World provide cheap labor and raw materials while the developed economies are the holders of capital and controllers of…

References

Ebrahimi, H, 2012, "John Lewis warns Amazon's tax avoidance 'will drive UK companies out of business" The Telegraph

Held, David; The Open University, eds. (2004). A Globalizing World?: Culture, Economics, Politics (2nd ed.). London; New York: Routledge, in association with the Open University. p. 84.

Katz, I & Christie, R (2011) "Geithner Called Housing Giants Biggest 'Moral Hazard'" Bloomberg

Lynch, Katherine (2003). The Forces of Economic Globalization. Kluwer Law International

The world's largest economy has seen much since the financial crisis of 2008 began the role toward the precipice in terms of the all Street corruption. Transparency president Nancy Boswell maintains that it is an "integrity gap "(Graham, 2010).

However, this author will identify a different issue. Indeed, this author's view is very long and will take a historical approach in order to prevent another Great Depression, the Congress under President Franklin Delano Roosevelt separated all Street investment banks and regular depository banks. This took away the potential to make incredible profits from trading mortgage-backed securities whose ratings were artificially high. These encouraged banks to take what otherwise would have been intolerable risks in the form of bad loans that were later termed "toxic debt." Under this regime, people were obtaining home loans too easily (known derisively as "liars loans") and that exacerbated the decline once it started (Krugman).

In…

Works Cited

Gettleman, J. (2010, March 16). Somalia's president assails u.n. report on corruption.

Retrieved from  http://www.nytimes.com/2010/03/17/world/africa/17somalia.html .

Graham, D. (2010, October 26). U.s. slips to historic low in global corruption index.

Retrieved from  http://www.reuters.com/article/2010/10/26/us-corruption-transparency-idUSTRE69P0X620101026 .

Economic Crisis Policies

US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans swallowed the banks and financial markets such as falling of Lehman's brothers and other anks and blow to rest of economy happened as the whole economy was relying on banks and ultimately it slows down investment in the country and capital flows to other parts of the world like China and India. ank losses cause reduction of bank capital which in turn requires capital reduction thus saving bank from lending. It is estimated that every $100 loss and reduction…

Bibliography

ISR international socialist review. (2009, april). Retrieved from The U.S. economic crisis:causes and solutions:  http://www.isreview.org/issues/64/feat-moseley.shtml 

Journal of accountancy. (2009, october). Retrieved from The U.S. economic crisis: root causes and road to recovery: www.journalofaccountancy.com/Issues/2009/Oct/20091781

Eyes on wall street. (2011, april). Retrieved from Levin coburn investigates casues of financial crisis:  http://www.eyesonwallstreet.com/2011/04/articles/financial-crisis/levincoburn-report-investigates-causes-of-the-financial-crisis/ 

Rude, C. (2009). World Economic Crisis and Fed Reserve Response to it. Studies in Political Economy.

Business Ethics Decision Making using Kidder' Ethics Check Points

Identification of the relevant facts

Identification of the moral issue 2

Potential for harm

Determination of the moral agents

The "trilemma" options

Test for right-versus-wrong issues

Application of resolution principles

The Decision

eflection of the decision

Identification of the relevant facts

In this case examination, we consider the case of the bailout of General Motors by the U.S. government in 2014. This is based on a report published by news agency euters on April 30, 2014, titled "U.S. government says it lost $11.2 billion on GM bailout." It is revealed in the news report that U.S. government lost $11.2 billion when it bailed out General Motors Co through its selling of the government shares in GM in December the earlier year. More than $50 billion was used to bail out GM from the brink of the company's 2009 bankruptcy ("U.S. government…

References

Liszka, J. (1999). Moral competence. Upper Saddle River, NJ: Prentice Hall.

Shafer-Landau, R. (2007). Ethical theory. Malden, MA: Blackwell Pub.

U.S. government says it lost $11.2 billion on GM bailout. (2016). Reuters. Retrieved 15 May 2016, from  http://www.reuters.com/article/us-autos-gm-treasury-idUSBREA3T0MR20140430 

West, H. (2006). The Blackwell guide to Mill's Utilitarianism. Malden, MA: Blackwell Pub.

While they still mention the financial artifice used by the company to repay the loan with other TAP money, they look at the issue from an accounting standpoint and explain the logics of the move.

Each of the three authors inserts himself in the story line and concludes his work with his own interpretation. Ed Morrissey for instance argues that the massive usage of governmental funds forces GM to increase the transparency of its dealings, which is in fact a positive aspect. Gillespie on the other hand is more sarcastic and, for consumer safety, states his hope that the engineers and technicians are better trained in mathematics than the CEO. The editors at Consumerism Commentary state that the severity of the solution found by General Motors is not that dramatic as argued by others. "It does look bad if a company appears to use TAP funds to pay off a…

References:

Gillespie, N., 2010, Reason tv: how did GM payback its TARP loans so fast? Well, it didn't…Big Government,  http://biggovernment.com/ngillespie/2010/05/02/reason-tv-how-did-gm-pay-back-its-tarp-loans-so-fast-well-it-didnt  / last accessed on August 13, 2010

Morrissey, E., 2010, How did GM pay off its bailout loans? Hot Air,  http://hotair.com/archives/2010/04/23/how-did-gm-pay-off-its-bailout-loans  / last accessed on August 13, 2010

2010, GM used bailout funds to repay loan: mostly irrelevant, Consumerist Commentary,  http://www.consumerismcommentary.com/gm-used-bailout-funds-repay-loan  / last accessed on August 13, 2010

Still, the future stated goal of GM is to develop an electric or hybrid version in all of its existing brands lines -- Chevrolet, Cadillac, Buick and GMC.

Outcome of changes

GM's most notable success has been overseas, where it is currently ahead of all of its competitors in the rapidly expanding Chinese market. "While GM is outpacing Ford in overseas competition, GM cannot solely depend on China for growth. While the emerging market contributed to GM's global recovery last year with 2.3 million in sales, it may not experience the same momentum this year [2011] because the Chinese government has ended incentives on small cars and rural purchases" (Benedicto 2011). Still, evidence of GM's health is seen in the fact that it recently announced that it will issue profit-sharing checks this month for hourly workers, the largest in a decade (Vlasic & Bunkley 2011:1). Talks with the UAW will…

References

Benedicto, Tanya. (2011, February 26). Should the new GM thank Waggoner? The Wall Street

Journal. Retrieved March 1, 2011 at  http://blogs.forbes.com/tanyabenedicto/2011/02/26/should-the-new-gm-thank-wagoner/ 

Bunkley, Nick. (2011, January 11). GM plans 2 plug-in hybrids. The New York Times.

Retrieved March 1, 2011 at  http://www.nytimes.com/2011/01/12/business/12volt.html?ref=generalmotorscorporation

Despite the fact that it also required heroic efforts on the part of Congress and the President, Time even gives credit to Bernanke for the $700 billion Troubled Asset elief Program (TAP) (Grunwald 2009, p.4).

Many, if not most of these decisions were profoundly unpopular and cost both the Obama and Bush Administration as well as Congress a great deal of political collateral. The relatively isolated Bernanke did not have to suffer such a risk in the court of public opinion, and even today critics of these policies ask: what of moral hazard? Supporters of the TAP and other aggressive government measures would counter that worshipping at the altar of moral hazard, caused the fall of Lehman Brothers and the freezing up of the microcredit market in the first place. But once the expectation of bailouts are created, one bailout tends to lead to another -- the bailout of Bear…

References

Grunwald, M. (2010, January). Ben Bernanke: Person of the year. Time Magazine.

Retrieved January 3, 2010.

 http://www.time.com/time/specials/packages/article/1,28804,1946375_1947251,00.html 

Thoma, Mark. (2009, December 21). Is criticism of Bernanke justified? Moneywatch.

Aspiring Intern

Current PAC-10 Consulting Management

REF.: The AIG Rescue

As the global financial crisis began to unveil, all of the financial institutions with positions on the market that exposed them to the crash began to feel under pressure. AIG was one such company, where a combination of credit swaps and other esoteric financial instruments weakened its position and its capacity to remain competitive on the market in the face of the financial losses such instruments generated. As of the that point, the U.S. Administration, usually in the form of the Federal Reserve or the Treasury Department, intervened with significant bailouts for many of these companies, including AIG, which received $85 billion in exchange for a 79.9% stake in the company

This memo will aim to briefly analyze the pros and cons of the governmental intervention, briefly analyze the future implications of this intervention and determine whether or not this…

Bibliography

1. Luhby, Tami. Fed in AIG rescue - $85B loan. CNN Money. September 2008. On the Internet at  http://money.cnn.com/2008/09/16/news/companies/AIG/index.htm . Last retrieved on November 26, 2009

2. AIG Bailout. On the Internet at http://www.homebiz.bukiki.com/aig-bailout/. Last retrieved on November 26, 2009

3. Solomon, Deborah. AIG's Rescue Bedevils U.S. The Wall Street Journal. November 2009. On the Internet at  http://online.wsj.com /article/SB10001424052748703819904574554241356640428.html?mod=WSJ_hpp_LEFTWhatsNewsCollection' target='_blank' REL='NOFOLLOW'>

The second recommendation I would make with respect to external communications is that Liddy adopt more stringent measures than the government has insisted upon with respect to spending controls. The government has set out some measures, but AIG should be tougher than that. This would demonstrate a sense of culpability on the part of the company for the fact that the situation it is in is of its own making. A major component of the public's offense is that it feels cheated in the deal. Taxpayers, many of whom are feeling the sting of economic hardship themselves, are insulted that they have been called upon to bailout a company that then pays six and seven-figure bonuses to its executives. Most of the people contributing tax dollars to those bonuses will never see money like that in their lives. Liddy has the luxurious advantage of not being directly responsible for the…

Works Cited:

Karnitschnig, Matthew; Solomon, Deborah; Pleven, Liam & Hilsenrath, Jon E. (2008). U.S. To Take over AIG in $85 Billion Bailout. Wall Street Journal. Retrieved April 25, 2009 from  http://online.wsj.com /article/SB122156561931242905.html' target='_blank' REL='NOFOLLOW'>

History of the euro can be traced back as far as World War II when European leaders agreed that economic ties could promote growth in Europe (Martel). As a result of the Bretton Woods (New Hampshire, USA) agreement of 1944, the International Monetary Fund (IMF) opened for business in 1947 and a fixed rate of exchange was set between the U.S. dollar and other world currencies, based on the gold standard ("Euro Timeline"). Between 1951-1952 on the initiative of obert Schuman and Jean Monnet of France, the European Coal and Steel Community (ECSC) was founded by six countries: Belgium, France, Italy, Luxemburg, the Netherlands and West Germany ("Euro Timeline"). The ECSC would become the basis for the future "Common Market" (EEC, EC) and European Union (EU) ("Euro Timeline"). On March 25, 1957 the same six countries signed the Treaty of ome, thereby creating the European Economic Community (EEC) and the…

References

"A Short History of the Euro." Guradian.uk.com. Guadian News and Media Limited. 9 June 2003. Web. 15 Dec. 2010.

Boskin, Michael. "Pros and Cons of the Euro at 10." The Japan Times Online. The Japan Times Limited. 1 February 2009. Web. 15 December 2010.

"Euro Timeline." The German Way & More. Hyde Flippo. n.d. Web. 15 Dec. 2010.

Evans, Stephen. "Eurocrisis: Germans Yearn for their Lost Deutschmark." BBC News. 7 December 2010. Web. 15 Dec. 2010.

Using a timeline from the peak of new housing construction to the present day, the following occurred. GDP growth slowed, followed by a three-quarter recession and slow growth has resumed on the other side of that recession. The unemployment rate skyrocketed, more than doubling in a short period of time, and has lingered at high levels for over a year. The rate of inflation fell well below the Fed's target rate, this despite aggressive expansionary monetary policy. The federal government, whose budget had previously oscillated between monthly surpluses and deficits, has been in deficit every single month -- and deeper deficits than every before -- as it has taken several fiscal policy measures to contain the economic damage. This evidence makes the clear case that steps should be taken to avoid a repeat of this housing crisis in the future, since the economic impacts are uniformly negative and in many…

Works Cited:

US Census Bureau: New housing starts. Retrieved March 8, 2011 from  http://www.census.gov/const/startssa.pdf 

Bureau of Economic Analysis: Gross Domestic Product. Retrieved March 8, 2011 from  http://www.bea.gov/national/index.htm#gdp 

Bureau of Labor Statistics: Unemployment. Retrieved March 8, 2011 from  http://data.bls.gov/pdq/SurveyOutputServlet-data_tool=latest_numbers&series_id=LNS14 

Bureau of Labor Statistics: Consumer Price Index -- all Urban Consumers (all items less food and energy). Retrieved March 8, 2011 from  http://data.bls.gov/cgi-bin/surveymost

" (Moseley,
1)
From a project management standpoint, delegating these funds is a
significant concern. The recent history of government financial
mismanagement, has caused the public some rightful wariness as these
massive bailout plans come to fruition. The Obama Administration must
devise a strategy which ensures that these bailout funds are designed to
protect American homes, stimulate job creation and help to improve the
infrastructural stability of the nation. The administration has the
unenviable task of prioritizing the countless areas of civil life in which
the U.S. is currently struggling with debt and the erosion of resource.
This requires a management approach that is informed by crisis planning and
intervention theories.
Another way to successfully plan the delegation of funds and resources
as yielded by the bailout is through information systems management.
Modern IT Systems such as the Enterprise Resource Planning (ERP) system
allow users to enter in a complex…

Works Cited:

Barton, P. (2001). Enterprise resource planning: Factors affecting
success and failure. University of Missouri - St. Louis. Online at
 http://www.umsl.edu/~sauter/analysis/488f01papers/barton.htm#Introduction .

Brewer, P. (2009). Root Causes of the Financial Crisis. WiseBread.
Online at  http://www.wisebread.com/root-cause-of-the-financial-crisis 

There is little indication in Ford's financial statements that things are going to improve any time soon. The company actually hailed the 14.2% market share in North America as "the lowest market share decline in the past ten years" (Ford Motor Company, 2009).

Ford's financial position is nothing short of awful. The company's condition has deteriorated steadily over the past five years, and its performance relative to industry peers is generally poor.

Appendix a

Ford Motor Company

Financial Ratios

2008

2007

2006

2005

2004

Industry

Analysis

Liquidity Ratios

Current Ratio

1.67

1.7

1.51

1.8

1.75

1.1

Good

Quick Ratio

1.56

1.59

1.41

1.68

1.63

0.8

Good

Efficiency Ratios

Inventory Turn

15.87

15.16

15.73

14.93

13.42

7.6

Good

Receivables Turn

1.47

1.47

1.4

1.54

1.49

8.1

Poor

Avg Collection Period

Fixed Asset Turn

5.12

4.76

4.43

4.34

3.97

Total Asset Turn

0.67

0.62

0.57

0.66

0.58

0.8

Bad

Leverage Ratios

Total…

Works Cited:

MSN Moneycentral. (2009). Accessed April 8, 2009 from  http://moneycentral.msn.com/detail/stock_quote?Symbol=f&getquote=Get+Quote 

No author. (2009). Henry Ford's $5-a-Day Revolution. Ford Motor Company. Retrieved April 8, 2009 from http://www.ford.com/about-ford/heritage/milestones/5dollaraday/677-5-dollar-a-day

No author. (2009). Ford Executive: Automaker doesn't need Bailout. NPR. Retrieved April 8, 2009 from  http://www.npr.org/templates/story/story.php?storyId=102665356 

No author. (2009). New Fiesta Boosts Ford of Europe Market Share. Ford Motor Company. Retrieved April 8, 2009 from http://media.ford.com/news/fordofeuropefebruary2009salesrelease.htm

"Management believes that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods."

ased on the data retrieved and the projections made, the accounting division will proceed to the development of the consolidated statements for all of GM subsidies and the overall group. There are 24 consolidated statements, as follows: Discounted Operations; Asset Impairment; Investment in Nonconsolidated Affiliates; Marketable Securities; Variable Interest Entities; Finance Receivables and Securitization; Inventories; Equipment on Operating Leases; Income Taxes; Property - Net; Goodwill and Intangible Assets; Other Assets; Accrued Expenses, Other Liabilities and Deferred Income Taxes; Long-Term Debt and Loans Payable; Pensions and Other Postretirement enefits; Commitments and Contingent Matters, Stockholders' Equity; Earnings per Share Attributable to Common Stocks; Derivative Financial Instruments and Risk Management; Fair Value of…

Bibliography

1. 2007 General Motors Annual Report. Page 9. On the Internet at  http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/download/gm07ar_full.pdf.Last  retrieved on February 15, 2009

2. General Motors Mission Statement, 2009, on the internet at  http://www.samples-help.org.uk/mission-statements/general-motors-mission-statement.html . Ast retrieved on February 16, 2009

3. Supplier Diversity, Website of General Motors, 2009, on the internet at  http://www.gm.com/corporate/dealers/diversity/index.jsplast  retrieved on February 16, 2009

4. Management's Discussion and Analysis, Website of General Motors, 2009, on the internet at  http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/content/financials/mda/mda_10.htmllast  retrieved on February 16, 2009

Spain

As of late 2010, rumors in the financial community persist that Spain is going to be the next Eurozone nation to suffer an economic crisis. Spain's high unemployment rate, coupled with a lack of economic recovery and being unable to adjust interest rates due to its participation in the euro, has resulted in a rapid appreciation of interest rates in Spanish sovereign debt in recent weeks amid speculation in the bond markets that Spain will be unable to meet its obligations (Krugman, 2010; Krause, 2010). The Spanish economy, it would seem, has been suffering in recent years and that suffering is not expected to end any time soon.

For a company looking to do business in Spain, the current situation is certainly cause for alarm. The economic fundamentals of the country look troubling, and there are significant structural reasons why Spain will not be a good place in which…

Works Cited:

CIA World Factbook: Spain. (2010). Central Intelligence Agency. Retrieved December 1, 2010 from  https://www.cia.gov/library/publications/the-world-factbook/geos/sp.html 

Dimireva, I. (2009). Spain investment climate 2009. EU Business. Retrieved December 1, 2010 from  http://www.eubusiness.com/europe/spain/invest 

Dowsett, S. (2010). Spain austerity plan scrapes through parliament. Reuters. Retrieved December 1, 2010 from  http://www.reuters.com/article/idUSTRE64Q54T20100527 

Dowsett, D. (2010, 2). Key party attacks draft Spanish labor reform. Reuters. Retrieved December 1, 2010 from  http://www.reuters.com/article/idUSTRE65B0ZT20100613

ecession

Effect of the recession on upon financial market, the real economy and over everyday lives

ecession is defined as the economic slowdown or decline characterized by slowing down of trade, a magnitude decline in the GDP, and a decrease in employment usually lasting between 6 months to a year. This was the situation in the U.S.A. The hardest times being from 2008 through 2009 and the early months of 2010. America is still recovering from the effects of the recession that the country experienced from 2007 to 2009.

The slow down in economy triggered a massive job loss and unemployment rates that shot through the roof, the prices went up and a great deal of uncertainty rippled through the country. This situation has now seen a reverse trend albeit at a slower rate than was expected by many. The unemployment rate in November 2011 fell by 0.4% to 8.6%…

References

Amitabh Shukia, (2009). Top 5 major Economic Effects of Recession on Economy.

Retrieved May 13, 2012 from  http://www.paggu.com/business/world-economy/top-5-major-economic-effects-of-recession-on-economy/ 

Browder, Laura, (1998). Rousing the Nation: Radical Culture in Depression America.

Amherst, MA: University of Massachusetts Press.