Mr. Fastow generated companies that were designed to absorb any of Enron’s financial losses. This allowed Enron to appear to be doing much better financially than it really was (Madsen & Vance, 2009). By August of 2000 Enron’s stock was trading at $90.00 per share. This was an all time high for the company. However, by November of 2001 Enron’s stock had plunged to $1.00 per share.
The imbalance has caused the middle class people to work longer hours to get out of terrible debt. In 1980, the average US household debt per person was less than $20,000. In 2008, it increased to nearly $50,000. According to director Charles Ferguson's lucid, probing exploration of what caused the recent financial crisis that nearly crippled the world market; the increase impersonal debt was one of the many consequences of a series of events that began with the deregulation of the financial industry under President Reagan in the 1980s. Just around the time Gordon Gekko was spouting, the virtues of greed in Wall
With the economy in the shape it is, it makes those full-time jobs seem like only part-time jobs. “We are spending more money fighting poverty than ever before, yet poverty is up,” said Michael D. Tanner, a senior fellow at the Cato Institute. “Clearly we are doing something wrong.”( Poverty Stats Show the Damage) Specialists say the government needs to rethink their calculations of poverty. According to Carol Morello’s article, “Poverty Stats Show the Damage,” about 44 million Americans (one in seven) lived in homes at the poverty level. For a family of four that level is $22,000 annually or less.
It is estimated that over three million students drop outs in the U.S. and a large portion of these are African-American. Education still remains as the major tool for empowerment and the economic, social and personal well-being of citizens in any society. Because so many have indeed dropped out it will have deep and wide-range economic consequences over the long-term outlook. This research takes a look into the graduation statistics of low-income students, with a null hypothesis of: As family income correlates directly to high school dropout rates in students. It has been concluded that there are millions of children leaving in poverty.
Today’s report, the centers second on the subject, involved a survey of 2,000 students and 400 administrators as well as 6 national studies. The center found that “the situation on America’s campuses has deteriorated” since 1993 when it underwent its first study. In the year 2002, approximately sixty-nine percent of college students drank alcohol in the past month compared to sixty percent of their non-enrolled college peers. Five percent of college students drank alcohol daily compared to four percent of their non-enrolled peers. College students are much more likely to engage in binge drinking than non-college students.
With the rising tuition education is going to be very hard to acquire. So it is time for America to change and find a way to lower these ridiculous prices. A College Board report found that about 66% of students who earned a bachelor's degree in 2008 graduated with a substantial amount of debt. This proves that the cost of tuition is rising and in another report, it determined that the average debt of the class of 2008 owed $23,200. This was determined by the Project on student debt, a non profit organization.
(Misra, 2000) Background Attending college can have a profound impact in one’s life from a personal, social and vocational perspective. (Astin, 1993) “Of the nearly 2.4 million students who entered higher education for the first time in 1993, over 1.5 million will leave their first institution without receiving a degree. Of those, approximately 1.1 million will leave higher education altogether, without ever completing either a two or a four-year degree program.” (Tinto, 1993, pg 1) Only about fifty percent of high school graduates who enter four year degree colleges complete their degrees. (Kuh et al., 2005) Furthermore, other research shows that the majority who drop out of college leave at the end of their first semester. (Tinto, 1982) Major factors that contribute to a student’s difficult first year transition may allow for insight into the new student’s experience during this period.
Total losses for the four days: $30 billion, 10 times federal budget and more than the U.S. had spent in World War I ($32B estimated). The crash wiped out 40 percent of the paper value of common stock. Although this was a cataclysmic blow, most scholars do not believe that the stock market crash, alone, was sufficient to have caused the Great Depression. And the next possible cause is bank failure.In 1929, there were 25,568 banks in the United States; by 1933, there were only 14,771. Personal and corporate savings dropped from $15.3 billion in 1929 to $2.3 billion in 1933.
On average, only 58% of students in America's 50 largest cities make it to graduation. The decision to drop out is a dangerous one for the student. Dropouts are much more likely than their peers who graduate to be unemployed, living in poverty, receiving public assistance, in prison, on death row, unhealthy, divorced, and single parents with children who drop out from high school themselves. The dropout problem is likely to increase substantially through 2020 unless significant improvements are made. So why students drop out of school and what can be done to decrease the number of dropouts?
The policy of reducing debt made MC leave the company with just $36 million cash which was well under the number of 1990 ($283 million cash ). MC’s stock prices fell more than two-thirds from $33.38 in 1989 to $10.50 in 1990, resulting in a drop of $2 billion in market capitalization; even if in 1991 it went up to $16.50. Another consequence was an important decrease of Times interest earned from 2.6 in 1989 to 1.4 in 1990 and 1.5 in 1991 which triggered a depreciation of bond rating from A3 in 1989 to Baa3 in 1991 quite close to junk bonds. For the future this is a strong signal of the MC financial crisis situation. Most liquidity and solvency indicators show that the group would have not been unable to cover its current obligations/liabilities and was close to bankruptcy.