The Stock Market Of The United States

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The stock market in the United States is run so anyone can view the trades, their values and no information is hidden. Compared to the stock market, the bond market is run behind closed doors causing problems in the economy. The difference between the two markets became more understood during the Great Recession. When the unethical ways of individuals in the selling of bonds caused corruption that contributed to the recession, many people were hit by the repercussions of the selfish actions. Selling the bonds to people who weren 't in good financial situations became a normal action which cheated many individuals out of money. The bond market would be better off being transparent parallel to the stock market because less people would…show more content…
While he knew what he was doing to earn money, not many other people did. His strategies to work the market in the way that he did was disreputable. He used the possibility of failure of other people to further himself financially. Morgan chose AIG’s Cassano to sell the bonds because he worked for "a triple-A-rated company willing to sell them" (Lewis, 70). The triple-A-rated company could sell the triple-A-rated bonds, which were really triple-b-rated bonds grouped together to appear as a better rating, even though the group was just a bunch of poorly rated bonds all together. When the bonds would be sold, no knowledge of the terrible ratings had to be disclosed. If the bond market had more regulations as to what had to be revealed, these companies wouldn 't have had the chance to bankrupt many people and have so many people default their payments due to the awful loans the banks were providing. AIG was selling the packaged credit default swaps (CDS) left and right. Banks and hedge funds were buying them from not only AIG but other banks and hedge funds who would package them again and sell them over and over. AIG was the only firm that was not buying the packaged loans, only selling them. These people who were selling the packaged CDS’ didn 't know the damage they were doing to themselves and others. They were selling bonds to people who they knew would default, which gave them worst
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