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The financial crisis of 2008 essay
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Inside Job and the Economic Crisis in 2008 The film Inside Job is a documentary film that had been conducted by Charles Ferguson about the World Financial Economic Crisis in 2008. The film attempts to show what happened during the Financial Crisis and what events lead to the economic collapse. In addition, the film also describes the greed of the ones who hold a higher position in financial companies that conduct to corruption for they manage to manipulate the economic meltdown in 2008, letting most of their middle-class citizen homeless and also jobless. Aside from that, the author wanted the viewer to take a glimpse of the reason why economic breakdown. For, it’s not because the higher up or the government does not do things that they are It also explains why so little has been done to straighten out the financial world or bring justice to the criminal instead of doing nothing. The movie review (2010) the financial sector in an establishment of fraud. It was stated that the large investment banks (Goldman Sachs, Morgan Stanley, Lehman Brother, Merrill Lynch, and Bear Stearns), politicians (whom many of them were previously a bankers), financial corporation (Citigroup, JP Morgan Chase), regulators, insurance companies (AIG, MBIA, AMBAC), credit ratings agencies (Moody’s, Standard&Poors, Fitch), and academics established a connection to one another in performing a fraud from wanting to gain Based on the fact that had been bought by Inman and Kingsley, it spotted that plenty of academics or economists that support the banks and the new deregulation without researching for the truth behind it. But in actually, they took a large amount of cash in writing a poorly researched report. An example for one of the economist that twists the written fact is Frederic Mishkin. In 2006, Mishkin was paid a large amount sum by the Iceland Chamber of Commerce to praise the Iceland’s economy stability and yes, he wrote it. But after the collapsed of the Iceland’s financial, Mishkin changed his report again (ByrnePoets, 18, & 2011, 2011). Thus, it explains the tight relations between both academics and government that appear to be more hand in
In “The Devil and Tom Walker”, Irving reveals many aspects of the humanity especially how economic depression plays in the society. Some may disregard what really happens throughout the world because they ponder that the situation is “inapplicable” to their lives. Others are able to determine the problems of it but the Media/News Organizations seem to be more anxious about the people’s entertainments rather than talk about the economy. As declared by John Bellamy Foster, a professor of sociology at the University of Oregon and also editor of Monthly Review, the world economy is “experiencing by far its worst economic crisis since the Great Depression.” In some instances, research illustrates that money is not the problem in the economy instead the problem is the people that are corrupt, “never was sinner taken more unawares” (Irving 16). The economic problems that have been gradually increasing over the past few years in established economies throughout world just continue to intensify.
Lindblom poses that the market entraps government because it fears the fall out of poor market function and the unemployment that it would create. The officials understand that the economy, at a basic level, is something that everyone can understand and that when it is doing poorly, they are in danger of losing their “privileged position”. According to Lindblom,
The United States had recently faced an economic recession that resulted in company bankruptcies, therefore causing unemployment spikes and home foreclosures. In the media, two movie have recently came out with two movies that plotted around recently unemployed middle-class families that are struggling to keep up with their standard of living and facing bankruptcy. In the movie, Mad Money, the main ch...
Madura, Jeff. What Every Investor Needs to Know About Accounting Fraud. New York: McGraw-Hill, 2004. 1-156
Saint Augustine once said, “In the absence of justice, what is sovereignty but organized robbery?” The criminal justice system in America has been documented time and time again as being a legal system that borders on the surreal. We as Americans live in a country where the Justice Department has failed to collect on $7 billion in fines and restitutions from thirty-seven thousand corporations and individuals convicted of white collar crime. That same Justice Department while instead spending more than 350% since 1980 on total incarceration expenditures totaling $80 billion dollars. America has become a place where a 71-year-old man will get 150 years in prison for stealing $68 billion dollars from nearly everyone in the country and a five-time petty offender in Dallas was sentenced to one thousand years in prison for stealing $73.
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm (A&E Networks Television). Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
“The wolf of wall street.” Dir. Martin Scorsese. Perf. Leonardo DiCaprio, Jonah Hill and Margot Robbie. Paramount , 2013.Film.
This essay will examine the causes of the 2008 Global Financial Crisis (GFC) from a Marxist perspective. This paper will specifically examine and critique how Marx’s Theory of Crisis can be applied to understand and interpret the underlying structural causes of the 2008 Global Financial Crisis.
Enron and their accounting firm Anderson Accounting brought what we know as “white collar crime” to the forefront. White-collar criminals are not known to be dirty criminals, because they use their heads to get what they want from society. White collar criminals do not use their muscle; instead they use their brain for mischievous way to manipulate people. These criminals are just as dangerous as the bank robbers and murderers in my opinion. In these times, even the most trusted people are being convicted of white-collar crimes, your neighbor, the banker you have trusted for ten plus years, the closest of family friends, no one can be ruled out. White-collar crimes can differ in the sort and magnitude of the crime. There are always new scams coming out every day that society falls victim
"This is why the market keeps going down every day - investors don't know who to trust," said Brett Trueman, an accounting professor from the University of California-Berkeley's Haas School of Business. As these things come out, it just continues to build up"(CBS MarketWatch, Hancock). The memories of the Frauds at Enron and WorldCom still haunt many investors. There have been many accounting scandals in the United States history. The Enron and the WorldCom accounting fraud affected thousands of people and it caused many changes in the rules and regulation of the corporate world. There are many similarities and differences between the two scandals and many rules and regulations have been created in order to prevent frauds like these. Enron Scandal occurred before WorldCom and despite the devastating affect of the Enron Scandal, new rules and regulations were not created in time to prevent the WorldCom Scandal. Accounting scandals like these has changed the corporate world in many ways and people are more cautious about investing because their faith had been shaken by the devastating effects of these scandals. People lost everything they had and all their life-savings. When looking at the accounting scandals in depth, it is unbelievable how much to the extent the accounting standards were broken.
In previous years the big financial institutions that are “too big to fail” have come to realize that they can “cheat” the system and make big money on it by making poor decisions and knowing that they will be bailed out without having any responsibly for their actions. And when they do it they also escape jail time for such action because of the fear that if a criminal case was filed against any one of the so called “too big to fail” financial institutions it...
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex, he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm. Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
The theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique for thinking, which helps the possessor to draw correct conclusions. The ideas of economists and politicians, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." (John Maynard Keynes, the General Theory of Employment, Interest and Money p 383)
White-collar crimes and organizational structure are related because white collar-crimes thrive in organizations that have weak structures. According to Price and Norris (2009), the elites who commit white collar-crimes usually exploit weaknesses in organizational structure and formulate rules and regulations that favor their crimes. Makansi (2010) examines case studies to prove that white-collar crime is dependent on organizational structure. For example, the financial crisis that Merchant Energy Business faced in 2001-2002 occurred due to the liberal Financial Accounting Board, which failed to provide a standard model of valuing natural gas and fuel. Moreover, a financial crisis that rocked the securitization market in 2008 was due to fraudulence in the pricing of securitization products. These examples ...
Money is an essential part of life where every people can satisfy whatever they need and every person in America has a chance to find a job. However, some of the people in the country wanted to go on with their life freely by being a part of a welfare. Furthermore, distribution of wealth is a huge demand of every citizen. Everyone today is trying to look down for every people in the lower class, as they did not give any benefit to the country, waiting for the benefits that they will receive from the government. For instance, when most lower class people have gone through a financial crisis due to overspending, insufficient fund or pay for their work to support themselves and/or their family. The example shows that lower class people made the economy of the country unstable, however, the middle class and the higher class is at fault as well. Furthermore, even though the benefit of that the lower class received is from the middle class, the middle class as well benefits from the higher class. To sum up, every class is at fault towards giving the country’s economy a positive