Chapter 9 of the Constitution: Bankrupcy

The creation of the first national bank in the United States was of utmost importance in setting precedence for how much power the constitution actually grants the government. The debate over whether to create a national bank raised many questions over the constitution that hadn’t been tested before. It also raised questions about what the government can do when the constitution has no written clause on a certain subject. In looking at the arguments from Alexander Hamilton, James Madison, and Thomas Jefferson regarding a national bank, people can find out more about how some of the leading founders of the Constitution wanted to see the United States government run.

Due to the 2008 financial crisis, the Bank of England employed quantitative easing (an unconventional monetary policy used to stimulate the economy) by cutting interest rates down to 0.5 % and has been keeping it until now. The Bank made the decision to keep QE and the interest rate unchanged in March. Spare capacity (the ability of a firm to produce more of a product than is now being produced) is used by the BoE to justify its use of forward guidance policy (a communicative tool for monetary policy). Low interest rates improved the economy by increasing consumption and investment, which are the components of AD. The AD curve shows the total spending on goods and services in a period of time at a given price level. In constructing on AD

The relationship between States and their localities in many cases is strained. State government gives their local governments life, they create the laws for them. However, throughout history, state governments have not treated their localities as they suppose to. That is why the National Conference of State Legislatures (NCSL) stated on the state-local relation “Legislators should place a higher priority on state-local issues than has been done in the past. The time has come to change their attitude toward local governments.” They want the state governments to see localities as partners in the federal system.

During the trial of McCulloch v. Maryland, Maryland believed it had the power to tax the national bank, as stated in 1819, based off the “elastic” clause (Document C). However, Chief Justice John Marshall denied Maryland the right to tax the bank and destroyed the ideal of implied powers. This was a major blow to state’s rights as they believed that since they make up the government, they should be able to review actions from the federal government. Upon Marshall’s decision, state’s rights weakened and the federal government grew stronger. Next, an illustration of population density in the year 1820 is shown (Document E).

Since its beginning, the United States of America has gradually and steadily expanded the oversight and power of its own federal government. This expansion has resulted in a plethora of effects on the relationship between local state government and federal government both negative and positive. However, the increased impingement from the federal government onto local and state government constitutional rights, has created an imbalance. A major part of this imbalance has stemmed from unfunded mandates being imposed upon states. This imbalance has caused enough problems between the states and the federal government that the states have not only begun to question if federal mandates should go unfunded, but also whether or not the federal government has the authority to impose these mandates in the first place.

The tall, thin, aggressive Chief Justice John Marshall continues to dominate our high tribunal. His recent decision- perhaps the most famous- strengthen the power of the federal government at the state's expense. The remarkable case of McCulloch v. Maryland involved an attempt by the State of Maryland to destroy a branch of the Bank of the United States by enforcing a tax on its notes. Marshall, on behalf of the court, declared the bank constitutional. At the same time, he bolstered federal authority and slapped at state infringements, denying the right of Maryland to tax the bank. Chief Marshall affirmed: “That the power to tax involves the power to destroy, that a power to create implies a power to

I have nothing but respect and admiration for our forefathers’ foresight. Before and after the war, America was in financial crisis. Not having an efficient centralized government to address the mounting financial crisis added to the conflict. Something had to be done, as the saying goes, “desperate times call for desperate measures”. As a means of generating capital, congress passed the Land Ordinance of 1785. They planned to sell the area commonly known as the Old Northwest, located north of the Ohio River, east of the Mississippi River, and south of the Great Lakes. As you stated, there were a number of other ordinances that were passed as part of The Northwest Ordinance of 1787 including the prohibition of slavery as well as guaranteed

On June 1, 2015, the Supreme Court of the United States held that a debtor may not void, or “strip off,” a wholly underwater second lien in Chapter 7 bankruptcy proceedings. In doing so, the Supreme Court reversed the Eleventh Circuit’s affirmation of a decision from the Middle District of Florida, which had granted the debtors' motions to void the underwater second liens.

The banking industry consists of almost sixty-five hundred banks that are insured by the Federal Deposit Insurance Corporation (FDIC). Out of these, there are eighty-one substantially large banks in the United States that are publically traded, which is where the market structure and industry information will be based. However, as with the rest of the country, these banks are very concentrated, with the largest banks accounting for over half of the market as well as accounting for the largest amounts of revenue.

The Virginia Plan was the proposal to create a strong national government and which had a bicameral legislature. The New Jersey Plan was a proposal to create a weak national government and had a unicameral legislature. The Great Compromise was a plan to have a house elected based on state population and a state selected Senate with new members for each state.

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social

It is the federal government’s duty to take action on behalf of the state and its people. History has shown us when the federal government does not take affirmative action and assure the people matters are in order; people become frantic, hence the 1920’s stock market crash. According to the Wall Street Journal, the federal government should not be held accountable for everything. In their views, the current level of expectation regarding the federal government is extremely unrealistic. It is only fair to agree with the Wall Street Journal. The people should realize that the federal government cannot supervise every aspect of government or the citizens or each individual. The federal government should not feel obligated nor should they provide funding to any cities to preserve them from going into bankruptcy. Unless the federal government is a direct contributor, the government should not be held responsible to bail out any city and I believe the idea alone is very detrimental to the current economy. At this very moment the United States total national deficit currently stands at $16,787,451,118,147. Opening the door for bailouts is comparable to opening Pandora’s Box, a very dangerous thing for our economy and for our children’s futures. I do expect the federal government to step in, formulate a plan, and seek ways to get the city out of debt;

The Bank of the United States is a symbol of the long held American fear of centralization and government control. The bank was an attempt to bring some stability and control and was successful at doing this. However, both times the bank was chartered, forces within the economy ultimately destroyed it. The fear of centralization and control was ultimately detrimental to the U.S. economy.

INPUT DATA: Amount Needed to Raise Flotation Costs Stock Offer Price Market Value/Book Value Ratio (Dollars in thousands) Assets Cash U.S. Treasuries Mortgage-backed Securities Municipal Bonds Government Agency Securities Total Cash & Securities Residential Mortgage Loans Consumer Loans Business Loans Total Loans Fixed Assets Total Assets Liabilities Passbook Savings Non-interest Checking N.O.W. Accounts Money Market Accounts Certificate of Deposits Total Savings Borrowed Money Other Liabilities Total Liabilities Capital Stock ($100 par value) Retained Earnings Total Equity Total Claims Loan Loss Reserve Allowable Risk Adjustment Weights: No default risk Low default risk Res. loans &

Over the years, the process of declaring bankruptcy has become incredibly simple. Because of this change, the number of people declaring bankruptcy is at an all time high. Today, bankruptcy is a common thing among companies and individuals alike. The American bankruptcy law allows people to avoid paying their debts by offering the debtors a discharge without a harsh consequence. By not having repercussions for their actions, bankruptcy filers often plan future bankruptcies, allowing them to steal even more money from creditors with no punishment. There are 13 different chapters in the bankruptcy system with the principal chapters being 7,11, and 13. You can only file for bankruptcy under these three chapters, the others are there to