Why are CRAs (particularly, Moody’s Investors Service and Standard & Poor’s) so entrenched in financial markets? 3. What are the criticisms of CRAs and is it feasible for regulators to attempt to reduce the reliance of financial markets on CRAs? 4. The article refers to the various sovereign rating changes that have recently occurred.
In today’s current news nothing is more prominent than that of the American government and it’s struggles. The American Economy has been a main focus of thousands of Americans for the past few years. A lot that has been argued deals with the massive difference between the upper 1% of the nation and the angry 99% of the rest. Occupy Wall Street deals with these angry 99% looking for some sort of reciprocation from these individuals and the hopes that they can began to enjoy their lives without the fear of becoming broke and possibly homeless due to the failing economy of the U.S.A. ("Occupy Wall Street"). This movement has highly appealed to the youth of this nation especially that of the college graduate students that are still struggling to
This calculates how much of the business is financed through private investors; it is also expressed in percentage form. Generally speaking, as a firm's debt-to-equity ratio increases, it becomes more risky because if it becomes unable to meet its debt obligations, it will be forced into bankruptcy. (Glakas) Of the three companies, Wal-Mart has the lowest total debt ratio (.62) as well as the lowest overall debt to equity ratio (1.65). Target finds itself with similar footing at .65 and 1.89 respectively, however Kroger has over 80% of its operations (.81) financed with debt and has the worst three year average when it comes to debt to equity with 4.40 times.
International Financial Management’s Homework Name: Juan Maridueña Chan The documentary Inside Job This is a documentary about the 2008 financial crisis directed by Charles Ferguson. Ferguson has said it is about "the systemic corruption of the United States by the financial services industry and the consequences of that corruption." Through extensive research and interviews with respected financial experts, politicians and journalists, "Inside Job" explains the rise of a dishonest industry and unveils the corrosive relationships which have corrupted politics, the regulatory rules and scholars. The documentary focuses on changes in the financial industry in the past decades that have led to the crisis, the political movement toward deregulation, and how developments in areas such as complex financial derivatives market allowed large increases in financial risk taken by allowing circumvent regulations that were intended to control systemic risk. Also indicates that these conflicts regarding the risk rating agency as well as academics that are paid as consultants without informing you in your trials, obscuring and exacerbating the situation that led to the crisis.
All the interviewed analysts like International Monetary Fund head Dominique Strauss-Kahn, French Minister of Finance Christine Lagarde and Singapore Prime Minister Lee Hsien Loong talk about what went wrong in the nation’s economy and why and acted as witnesses, adding fuel to the comprehensive critique of the way business has been done in the United States and the other advanced capitalist countries for the past two decades. Many of the top executives who minted huge amount of money declined to interview, like executives of Goldman Sachs and other big investment banks. This movie is very serious, which is raising many serious questions and made people aware about some very scandalous facts. “Inside Job” is definitely worth taking a look at. It’s narrated by Matt Damon and has an obvious bias against conservative thinking.
Few saw this devastation coming. The Mortgage Foreclosure Crisis was arguably the most significant for the economy since the Great Depression. It forced millions to lose everything they have and have to live in lower standards than ever before. Criminal acts have skyrocketed due to desperate Americans having nowhere else to turn to but illegal lifestyles. The Mortgage Foreclosure Crisis has set back our economy and the lifestyle of the average American has changed astonishingly
It is still devastating jobs, bankrupting businesses, and forcing homeowners into foreclosure. “Approximately 2.8 million properties had foreclosure actions taken against them in 2010, about 1 in 45 US households in all and an increase of 2 percent over 2009.” The economic contraction is causing pain just about everywhere. There are similarities, but according to the experts,
This problem has been coming on for some time. From the 1960s to about 1980s workers in finance made little more than those in the rest of the private sector, on average as it should be. Then, things changed: from the ’80s on, administrations embraced deregulation, undoing many of the rules put in place in the wake of the Great Depression to limit banks’ riskiest, and most lucrative, investments. Gone were the limits on interstate banking; down came the wall separating commercial and investment banks. From 1979 to 2006, the financial industry’s share in the nation’s corporate profits grew from a fifth to almost a third.
What happened that we needed to have the bailouts? Mortgagers and bankers were making high-risk loans that they could not cover in case of default to increase their own profits, the U.S. government was forced to buy the bank loans since lenders would not lend to each other because financers were taking their money out of the money market as well as credit swapping, trigging a recession crisis. (Stout, 2008) This fueled the OWS anger penalizing taxpayers to pay for the corruption within our financial institutions and sending our economy into a recession, causing citizens to lose their houses, jobs, and insurance. President Obama signed the DODD-FRANK Wall Street Reform and Consumer Protection Act in July of 2010. This act within its 2500 pages requires certain financial derivatives traded in markets under the subject to government regulation and oversight.
An Inside Job The Academy Award winning documentary “Inside Job” by Charles Fergusson, analyzes and examines the 2008 global financial crisis, which resulted in the collapse of the financial sector and the loss of trillions of dollars. Fergusson accomplishes an excellent task of explaining the complexities and jargons of Wall Street in a comprehensible manner, and sheds light on the real culprits responsible for the 2008 market crash. The documentary is a total eye opener for the common man, who is shocked to realize that the biggest losers during the financial crisis were not the powerful companies or banks, but rather, middleclass America and the global blue-collar workforce. The director has based his accusations on extensive research and uses the tools of ethos, logos and pathos to put forward his arguments, in an attempt to convince the viewer. This paper will analyze the style in which Fergusson has utilized the three tools as an effective means of putting forth his argumentum, in his persuasive film titled “Inside Job”.