...Background September 18th 2008 - They had bailed out one bank, that unless we give bailouts, the financial system will fail. Spring 2008 - After the housing bubble burst. - Wall St gambled on risky loans. CNBC is important in Wall St. Bear Stearns Bear Sterns, the stocks go down. - Stocks fall for 171 to 60, people nervous. Ran out of cash. But they have cash and no problems. They bought bundled subprime mortgage. - Because they thought housing can only go up. - The value of houses have gone down. - High-risk loans in the reaper market. Goldman Sachs may be deserting Stearns. - Public acknowledgement of its bad. They only had option, to raise capital. - Federal System, Tim Gygner - Morgan, The Fed found toxic assets. Billion in hidden subprime mortgage loans and credit default swaps. - Credit Swap: - I sell you insurance, if they cannot pay, we pay. - They bought so many, hundreds of billions of dollars. If they can’t pay people back, it would cause collapse - There would be systemic risk, because Stearns is so connected to the banking world. - If we allowed them to fail, they would collapse. Federal Reserve and JP Morgan payout - JP Morgan and Federal Reserve provided secure bailout. Moral Hazard If you bail someone out of a self-inflicted problem, what can they do Paulson made millions of dollars, anti-government. There is no responsibility, Bear Stearns was bought by JP Morgan. Post-Bear...
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...economist testifies before Congress, is interviewed in the press, or otherwise weighs in on policy debates without disclosing that, in addition to his academic affiliation, he also has financial/professional ties that may color (or appear to color) his objectivity. Several recent developments have drawn attention to the issue. First, there’s Inside Job, a documentary film that explores the causes of the financial crisis and deals harshly with high-profile academic economists who had undisclosed financial ties. For example, the film includes a painful-to-watch interview (available online) in which Frederic Mishkin, a professor at Columbia University’s Graduate School of Business and a former Federal Reserve Governor, reluctantly admits that Iceland’s Chamber of Commerce paid him $124,000 to write a paper endorsing the country’s stable business environment, a fact not disclosed in the paper. Next, there’s Financial Economists, Financial Interests and Dark Corners of the Meltdown: It’s Time to Set Ethical Standards for the Economics Profession (available online), a research paper in which two University of Massachusetts scholars review publicly available information about 19 prominent economists. The UMass scholars found, among other things, that when writing articles, granting interviews, or providing testimony on policy matters, the economists typically identified themselves only by reference to their academic positions, without mentioning Wall Street ties. One example cited...
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...ADMAP REVIEW OF THE MOVIE – INSIDE JOB Rohan Rambhia | PGP-10-155 Inside Job is an exemplary recount of how administrator’s role when exploited to form risky administrative strategies by means of faulty processes lead to a crisis of the stature of the recession of 2008. It is a comprehensive documentary which narrates the history of the collapse, not only going into great, informative depth about the risk-based strategies that put the global economy on the line, but looks back to the rise of the financial industry. The biggest question which the documentary arouses is that knowing what happened, why are the miscreants not being punished? As the director, Charles Ferguson, himself stated while receiving the Oscar, “Forgive me, I must start by pointing out that three years after our horrific financial crisis caused by massive fraud, not a single financial executive has gone to jail, and that's wrong.”1 Lets us first look at the prelude (context) of this financial crisis: ADMAP REVIEW OF THE MOVIE – INSIDE JOB The Clinton era (1990s) worked as a bridge between the Wall Street and the government. More and more Wall Street CEOs gained access to the government, taking up administrative positions like 2 • Robert Rubin On Wall Street: Chairman and COO of Goldman Sachs For the Government: Secretary of Treasury under Bill Clinton Laura Tyson On Wall Street: Board director of Stanley Morgan For the government: Chair of the US President's Council of Economic Advisers during...
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...“Inside Job” Movie review -Deepshikha Dubey SYBCOM (Hons) Roll number-1071 ‘I nside job’ true to its title, is an exasperating documentary about the actual causes and consequences of the financial crisis of 2008. Directed by Charles Ferguson and narrated by Matt Damon, the movie is not a piece of muckraking or breathless support. It rests its infuriation on proper reason, research, figures and careful argument. Several interviews of eminent personalities from political, financial and academic backgrounds, along with news clips and aerial shots of New York, Iceland, London and other disaster areas — are all in there! Though dealing with a very complex issue, the movie has beautifully dealt with the topic and made it much easier for common man to understand the reason behind the nerve wrecking recent financial crisis that hit USA and then the world’s economy. The film is divided into five main parts, covering a wide scope- Who, what, when, why, how… it is all answered! Unlike most other documentaries that have been released over the past several years, ‘inside job’ bases its arguments on numbers and facts and doesn't just emotions. The first part of the movie- “How we got here?” Takes the viewers back to history in the 1930s when US had a strong financial system. The regular banks were local businesses and were not allowed to mess around with the depositor’s money. The investment banks were private partnerships and thus did not make risky investments...
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...economist testifies before Congress, is interviewed in the press, or otherwise weighs in on policy debates without disclosing that, in addition to his academic affiliation, he also has financial/professional ties that may color (or appear to color) his objectivity. Several recent developments have drawn attention to the issue. First, there’s Inside Job, a documentary film that explores the causes of the financial crisis and deals harshly with high-profile academic economists who had undisclosed financial ties. For example, the film includes a painful-to-watch interview (available online) in which Frederic Mishkin, a professor at Columbia University’s Graduate School of Business and a former Federal Reserve Governor, reluctantly admits that Iceland’s Chamber of Commerce paid him $124,000 to write a paper endorsing the country’s stable business environment, a fact not disclosed in the paper. Next, there’s Financial Economists, Financial Interests and Dark Corners of the Meltdown: It’s Time to Set Ethical Standards for the Economics Profession (available online), a research paper in which two University of Massachusetts scholars review publicly available information about 19 prominent economists. The UMass scholars found, among other things, that when writing articles, granting interviews, or providing testimony on policy matters, the economists typically identified themselves only by reference to their academic positions, without mentioning Wall Street...
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...this radioactivity cannot spread by contamination, like fire or disease. In a severe nuclear accident in a common area, the heat unleashed by this perish can put an end to a reactor. A lot of people who get radiation treatment have skin changes and some weakness. Other side effects depend on the part of your body being cured. Skin changes may include dryness, burning, peeling, or blistering. These changes take place because radiation therapy compensates healthy skin cells in the treatment area. In 2011 about 19,000 people were lost in the tidal wave that triggered the destruction of several reactors at Fukushima Daiichi. (National Geographic, 2012) Three years have passed since the atomic power plant in Fukushima had to cope with that meltdown. (McCurry, 2013) Twenty-five years prior, in April of 1986, a disastrous nuclear calamity of the same magnitude 7 on the International Nuclear Disaster Scale (INDS) happened at the Chernobyl Nuclear Power Plant in the Ukraine. Following the Chernobyl experience, biologists were able to collect biological samples and data after widespread delays. These postponements in the beginning of biological studies give rise to a loss of important information on the impacts of ionizing radiation to environments and human populations. To avoid repeating such inadequacies, biologists in Japan, with the additional effort of the worldwide scientific community, began in the summer of 2011 to study results of the nuclear accident in Fukushima. The gigantic...
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...Ideologies and Ethical implication of Society [Name of the Writer] [Name of the Institution] What moral obligation Government has to citizens and Communities The matters of every Country existed in this universe is handled by certain group of people that are elected by residents of that country is called Government, this elected body of people has certain moral, ethical and Social obligation toward their citizens. On the basis of following ethical concepts the moral obligation of the government will be discussed by providing clear examples from the Inside jobs Social Contract theory The basic concept of social contract theory is that it provides the need to maintain social order among them to maintain the level of ethical morality, it is very important to develop such order in order to leave the life among each other with mutual respect and trust. According to modern authors like Hobbes who explained that without social contract the live of the people will be dangerous as everyone will be willing to do what he wants (Browne, J, K, 2008). There are four important factors that every individual require to live the life comfortably and if these are not provided and society without any mutual agreement will be doomed • Equality of life: (all the basic needs like food, clothing and shelter must be equally provide to everyone) • Scarcity: (supply of food, clothes and shelter is limited so if it is not equally distributed that economic scarcity...
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...Fukushima Radiation Causes Growing National Concern: Time for New EPA Policy Eric Zoppi 3279672 2 December 2013 On March 11th, 2011 the Tōhoku earthquake and the resulting tsunami wreaked havoc upon Japan. Unfortunately, this natural disaster resulted in the largest nuclear disaster since Chernobyl, as the tsunami crippled the Tokyo Electric Power Company (TEPCO) Fukushima Daiichi Nuclear Power Plant. Following this severe breach in security, numerous radioactive isotopes and radioactive particles were released into the environment, specifically the Pacific Ocean and the surrounding air/atmosphere, thus contaminating groundwater, soil and seawater, as well as effectively shutting down a myriad of Japanese fisheries. The ocean and air mainly came in contact with high levels of Iodine-131, Cesium-137, and Cesium-134, as well as lower levels of Tellurium, Uranium, and Strontium, which were concentrated closer to the surrounding area of the nuclear power plant. However, the impact that these radioactive materials will have upon the United States, in particular, has caused quite the national controversy. Despite heavy national acceptance of the occurrence of the disaster, two popular and opposing hypotheses have formed as a result of the Media’s lack of focus on recent analyses of the impending effects of Fukushima Disaster upon the U.S.: (1) the radioactive material that leaked as a result of the TEPCO nuclear power plant failure will not have a drastic, threatening...
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...In the spring of 2008, the world was hit by the worst Financial Crisis since World War 2. The crisis began during the Reagan administration and concluded a couple decades later with the collapse of the housing bubble. Behavioral Finance defines the term “bubble” as an event occurring before a market crash due to overvalued market prices (Ricciardi 2000). The housing bubble, which grew alongside the stock bubble in the mid 90’s, eventually burst, and a financial meltdown ensued. Initially, one bank was crippled and two of the worlds’ largest mortgage investors followed, plummeting our country deeper into debt. In this paper, I will discuss the days leading up to the housing bubble, causes of the bubble, the grim days after the bubble burst and the solutions which quelled the global crisis. The crisis began during the Reagan administration when free market believers, such as Alan Greenspan, were in power. As chairman of the Federal Reserve, Greenspan believed that any problem in the market would work itself out, and paid little attention to regulations and fraud. After Clinton was elected to office, Greenspan would team up with Robert Rubin, the assistant to Clinton on economic policy and Larry Summers, Rubins top deputy. While power shifted in New York, Washington started to look into over the counter derivatives. Washington would hire Brooksley Born, a long time securities lawyer with ties to the Clintons, of the Commodities Futures Trading Commission to step in and look over...
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...Tom Fernandez Professor James Terry HIST-102-H1 25 April 2013 The 2003-2007 real estate boom which led to the eventual 2008 meltdown of the U.S. financial markets unfortunately was not contained to the big banks and investment firms based mostly in New York City. By the time bailouts were implemented by the United States government, the effects of the financial crisis were exported to Europe. States similar, but not limited to Portugal, Ireland, Italy, Greece, and Spain (PIIGS) have each been in the media spotlight in recent years as attempts to rescue their respective financial markets are implemented. Unfortunately, many efforts made by Eurozone member states and other international actors have failed in alleviating the financial stresses of the region. Considering this, then, is there really a permanent solution that can not only relieve financial markets but also prevent the crises from spreading? To date, the European Unions’ collective response up to this point has been insufficient in order to curb the further slide into Europe’s second recession. I contend, then, that Europe and the Euro would greatly benefit from following many if not all of Germany’s internal budgetary constraints in order to fix the overall problem of debt and spending. One of original intentions of the euro when it was established in 1992 was to limit the amount of budget deficit a sovereign member state could have. Furthermore, the euro was designed to prevent a “bailout” should a state be...
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...America By Touré Health » Teen Sex Ed Helps Kids Wait Longer By Bonnie Rochman Must See Pictures of the Week: March 2 – March 9 From the Presidential election in Russia to fires in Congo, TIME's photo department presents the most compelling images of the week. Mohamed al-Sayaghi / Reuters Al-Qaeda, and Saleh, Cast Long Shadows Over 'New' Yemen By Tom Finn / Sanaa The Challenges Facing Yemen's New President Photos: Yemen on the Brink Rick Santorum Wins Handily in Kansas GOP Caucuses By Associated Press House Upset in Ohio: Signs of a Weak GOP Majority? Why Do We Want an iPad So Badly? The Psychology of Gadgets, Explained By Susan Krauss Whitbourne Five New and Noteworthy iPad Features Inside TIME.com Photos Iditarod: The Last Great Race on Earth Palestinians Protest in the West Bank South Asia Celebrates Holi Videos Marvin Quasniki: A Muppet for President? Five New and Noteworthy iPad Features Policing the Olympic...
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...Current Financial Crisis: a review of some of the consequences, policy actions and recent trends1 By Sameer Khatiwada and Emily McGirr, International Institute for Labour Studies2 What is happening? On the heels of the near bankruptcy of a major insurance company and the effective end of all major US investment banks, financial markets around the world sustained severe losses in the first two weeks of October, 2008, accelerating the downward trend that started at the beginning of the year. As a consequence, from New York to Moscow, and London to Sao Paulo, equity prices have fallen sharply – with the major stock indices of the G7 and BRICs losing nearly half of their value since the beginning of the year. This has seriously damaged banks’ balance sheets and restricted their lending capacity. With the cost of short-term credit rising dramatically and liquidity drying up, these events have been dubbed the worst financial meltdown since the Great Depression in 1930s. More importantly, the shock waves from the US financial market have spread throughout the globe, with many countries on the brink of recession (see Figure 1, Appendix). How did a “house fire” in America turn into a global banking crisis? Sub-prime mortgages are a financial innovation designed to provide home ownership opportunities to borrowers in the U.S. with a higher risk profile (such as borrowers with low incomes, bad credit histories or limited disposable income). Most of the sub-prime ...
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...Critical Book Review of Boris Yeltsin`s “Midnight Diaries” Boris Yeltsin was the first freely elected President of Russia. He was President during the first turbulent decade of Post-Communist Russia. In his third memoirs Boris Yeltsin talks about his last years in presidential office: the presidential election campaign in 1996 and the role of his daughter Tatiana; the special relationship between Germany, France and Russia, which had developed after 1997; the inclusion of Russia into the G8-summits in 1998 and his attempts to maintain Russians position as a global power; the economic decline after the financial crisis of 1998 and his efforts to reform the economy; the wars in Chechnya and in the Kosovo in 1999 and the crisis of the military; his last public appearance to an international audience - the OSCE summit in Istanbul in 1999. Yeltsin talks not less frankly about his clashes with the Duma and his maneuvers with the new domestic political forces; the qualities of his five Prime Ministers and the transfer of power to Vladimir Putin; the eastward enlargement of NATO and the EU and his attempts to include Russia in the political and economic institutions of the West; his relationships with the Western leaders (Bill Clinton, Helmut Kohl and Gerhard Schröder) and his health problems that prevented him repeatedly from performing his duties. Boris Yeltsin’s career reflects the changes in Russia throughout the 20th century. He was a communist apparatchik who supervised the...
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...recommended by CR, the trajectory shows significant decline for Toyota models from 85% recommended in 2008, to 73% in 2009, to 47% in 2010 the sharp drop in 2010 partially reflects recent recalls. By comparison, CR recommended 70% of Nissans in 2008, 77% in 2009 and 95% in 2010. EOQ June 2011 4 Figure 1: How Toyota’s Reliability Compares to Selected Competitors (Toyota shown in blue dotted line; Competitors shown in red solid line) Chevrolet Ford Honda Hyundai INITIAL QUALITY STUDY, problems per 100 cars measured at 90 days of ownership. J.D. Power & Associates VEHICLE DEPENDABILITY STUDY, problems per 100 cars experienced by original owners of three year old vehicles. Source: Author’s estimate on data shown in “Inside Toyota, Executive Trade Blame Over Debacle”, Wall Street Journal, (April 14, 2010): EOQ June 2011 5 A18. Different scales for the two different figures reflect WSJ’s mode of presentation. U.S. Media Attention Regarding Toyota Recalls • Extraordinary media attention • A media...
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...FROM RESEARCH TO INDUSTRY Nuclear Energy Division 4 -GENERATION SODIUM-COOLED FAST REACTORS THE ASTRID TECHNOLOGICAL DEMONSTRATOR th DECEMBER 2012 SUSTAINABLE RADIOACTIVE WASTE MANAGEMENT ACT OF JUNE 28, 2006: RESULTS OF RESEARCH CARRIED OUT ON THE SEPARATION AND TRANSMUTATION OF LONG-LIVED RADIOACTIVE ELEMENTS, AND ON THE DEVELOPMENT OF A NEW GENERATION OF NUCLEAR REACTORS 1 4th GENERATION SODIUM-COOLED FAST REACTORS THE ASTRID TECHNOLOGICAL DEMONSTRATOR 1 2 FOREWORD The objective of the Generation IV International Forum (GIF), in which France is actively involved, is to prepare the future nuclear sector in an international framework by jointly developing the R&D of 4th generation reactors, based on clearly identified objectives: achieve sustainable development of nuclear energy by optimising the use of natural uranium resources and by reaching the highest levels of nuclear safety; minimise the production of the most radioactive waste, in particular long-lived waste; ensure high resistance to nuclear proliferation; develop applications of nuclear energy for other uses than production of electricity. After an analysis phase carried out jointly by the founding partners, the GIF selected six concepts of nuclear reactors and their cycles4 which exhibited the most promising potentials to achieve the abovementioned objectives: SFR: Sodium-cooled Fast Reactor; GFR: Gas-cooled Fast Reactor; LFR: Lead-cooled Fast Reactor; SCWR: Supercritical Water-cooled...
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