The Big Decisions Affecting Our Financial Markets

The free marketplace represents a superlative model of capitalism, since it denotes the most proficient and profitable way of production. In a free market, economic actors are capable of conducting business devoid of political interferences, such as the burden of a minimum wage, or trade in tariffs. Without these limits, economic actors are abridged to a state of clean competition, driving costs downstairs and resulting in senior quality and lower price products.

Now what most people may be wondering is what does education really have to do with government and why is education's purpose to create better citizens? Well it has everything to do with that by being educated and more aware, or a slang people may use nowadays would

On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is commonly referred as the Dodd-Frank Act. This act was passed as a response to the Great Recession in order to prevent potential financial debacle in the future. This regulation has a significant impact on American financial services industry by placing major changes on the financial regulation and agencies since the Great Depression. This paper examines the history and impact of Dodd-Frank Act on American financial services industry.

The current issues that have been created by the market have trapped our political system in a never-ending cycle that has no solution but remains salient. There is constant argument as to the right way to handle the market, the appropriate regulatory measures, and what steps should be taken to protect those that fail to be competitive in the market. As the ideological spectrum splits on the issue and refuses to come to a meaningful compromise, it gets trapped in the policy cycle and in turn traps the cycle. Other issues fail to be handled as officials drag the market into every issue area and forum as a tool to direct and control the discussion. Charles Lindblom sees this as an issue that any society that allows the market to control

If we were to govern the greed, this would keep over ambitious bankers and people on Wall Street from going too far and forcing them to follow astute regulations. Greed hasn’t been the only component in getting us all this way. It has been a slow but long process of changes and removal of certain restrictions over time. For instance, pharmaceutical companies were never allowed to advertise before; now you can’t turn on a television or read a magazine without reading an ad for a certain drug on the market. It’s the markets who have overstepped and have entered into our lives usually directed by nonmarket measures. Markets are no longer only there to benefit the good of the public. The ante has been raised and these market values are now being pushed into our everyday lives.

How can I, and my fellow young adults, not be informed, this day in age, if we have such a glut of information available to us? That is to say, how can we be apathetic to the issues around us and not question their significance? Furthermore, how can we not strive to make the largest positive impact on society we can? These issues will be crucial in solving problems which may face America in the future. As a result, my responsibility to America lies in not only addressing these concerns for myself but also ensuring that my peers are able to address them, as well. Therefore, I hope to express my concerns, and then explain how, starting with myself, I could help alleviate these problems.

The financial crisis of 2007-2009 resulted from a variety of external factors and market incentives, in combination with the housing price bubble in the United States. When high levels of bank and consumer leverage appeared, rising consumption caused increasingly risky lending, shown in the laxity in the standard of securities ' screening and riskier mortgages. As a consequence, the high default rate of these risky subprime mortgages incurred the burst of the housing bubble and increased defaults. Finally, liquidity rapidly shrank in the United States, giving rise to the financial crisis which later spread worldwide (Thakor, 2015). However, in the beginning of the era in which this chain of events took place, deregulation was widely practiced, as the regulations and restrictions of the economic and business markets were regarded as barriers to further development (Orhangazi, 2014). Expanded deregulation primarily influenced the factors leading to the crisis. The aim of this paper is to discuss whether or not deregulation was the main underlying reason for the 2007/08 financial crisis. I will argue that deregulation was the underlying cause due to the fact that the most important origins of the crisis — the explosion of financial innovation, leverage, securitisation, shadow banking and human greed — were based on deregulation. My argument is presented in three stages. The first section examines deregulation policies which resulted in the expansion of financial innovation and

The financial crisis that happened during 2007-09 was considered the worst financial crisis in the world since the great depression in the 1930s. It leads to a series of banking failures and also prolonged recession, which have affected millions of Americans and paralyzed the whole financial system. Although it was happened a long time ago, the side effects are still having implications for the economy now. This has become an enormously common topic among economists, hence it plays an extremely important role in the economy. There are many questions that were asked about the financial crisis, one of the most common question that dragged attention was ’’How did the government (Federal Reserve) contributed to the financial crisis?’’

Although there are many problems that arise throughout the United States over time, only a select few will ever make it to the policy-making agenda of the federal government. Many average American citizens will designate these problems to be addressed by the government, yet those elected officials that make policy will rarely respond to these requests. All of this is due to a multitude of factors that will cause an issue to be placed on the agenda that is deserving of review and action.

The stock market is what one would know as a collective group of buyers/sellers that trade stocks, also known as shares on a stock exchange. These securities are listed on the exchange itself and trade freely each and every day. On the exchange, stocks move hands day in and day out. Companies are able to get their stock listed on the exchange at any time that they want. There are other stocks, too...known as OTC stocks or over the counter stocks that go through a specific dealer. Larger companies tend to have their stocks listed on exchanges all throughout the world. Participants in the market can be anyone from your grandma, to retail investors, day traders, institutional investors, and so forth. One notable exchange is the NYSE; also known as The New York Stock Exchange. Moving forward, a stock market crash is when a decline of stock prices takes place throughout the stock market that results in a catastrophic loss of wealth via paper. The crashes are driven strictly by panic 9 times out of 10 a crash takes place. As a crash is happening, panic occurs; the panic keeps evolving and ends up like the snowball effect before you know it. A crash occurs when economic events take place. These events are always bad news... The behavior of traders follows, which leads to a crash when panic ensues. Crashes normally occur of a seven day period and may extend even further. Crashes happen in bear markets as the market is already weak to begin with. Once traders see a drop in prices,

Since the financial crisis of 2008 the SEC’s mission has been to protect investors and win back the trust of the public in capital markets. In efforts to combat fraud and preventing another financial crisis, the SEC has grown their staff and is working on revamping their technological capabilities. For the last 3 years we have seen aggressive enforcement, strategic reforms and new regulations with in the division.

The Meltdown is a PBS special on the events of the financial crisis of 2008, in a timeline format, revealing the thinking behind decisions made during the fateful months before the stock market crash in August of that year. Some financial gurus on Wall Street devised a plan to bundle several mortgages together into a group, and then selling that bundle to another group of investors looking to invest in securities. The lender did not need to earn money from the loans he was giving out, he merely gained enough of a profit from the bundling operation that billions were being made on Wall Street from 2005-2008. The problem is that these bundles were risky, and as credit unworthy individuals defaulted on their mortgages, the entire system crumbled into what is now known as the Stock Market Crash of 2008, and have subsequently lived during the Great Recession.

It can be said that the mainstream American news media holds objective reporting in a high regard, and rightfully so. Such a journalistic culture finds its roots in the Fairness Doctrine, a policy implemented by the Federal Communications Commission in 1949(Boliek) in response to muckraking and irresponsible journalistic practices of prior times. The Fairness Doctrine mandated that news organizations provide contrasting views of controversial issues in an equal manner. Though the Fairness Doctrine was repealed in 1987, and its official language removed in 2011, the effects of this policy still seem to play a significant role in the mainstream media (Boliek). It can be argued that the residual effects of this policy have mutated into a heavy emphasis on fairness and balance (in some cases, and in other cases not as much) that has made many journalists lose their focus on what objectivity actually means.

The Wall Street Crash was one of the most important events of 20th century America. Many factors likely contributed to the collapse of the stock market. Among the more prominent causes were the period of rampant speculation (those who had bought stocks on margin not only lost the value of their investment, they also owed money to the entities that had granted the loans for the stock purchases), tightening of credit by the Federal Reserve (in August 1929 the discount rate was raised from 5 percent to 6 percent), the proliferation of holding companies and investment trusts (which tended to create debt), a multitude of large bank loans that could not be liquidated, and an economic recession that had begun earlier in the summer. The Stock Market

life, liberty, and the pursuit of happiness, common good, just, etc.), and how to develop positive attitudes, character traits, and virtues (dispositions) that is needed as a democratic citizen (i.e. honesty, lawful, responsible,