Like all previous cycles of booms and busts, the seeds of the subprime meltdown were sown during unusual times. As the global financial crisis (GFC) of 2008 erupted, the worst recession since the 1930s elicited unprecedented action from nations and their central banks. However, through the chaos, Canada appeared to have weathered the storm unscathed. In his work, Canada’s Housing Bubble Story: Mortgage Securitization, the State, and the Global Financial Crisis, Alan Walks describes Canada’s experiences during and after the financial crisis. To do so, Walks outlines four broad objectives: cross-examine Canadian policy history, challenge Canadian exceptionalism propagated by mainstream media, evaluate the policies pursued by the Canadian government, and finally deduce the implications on Canada’s mortgage market and rising household debt.…
General Motors (GM) operates in a customer-centric atmosphere. Since GM’s bankruptcy and recall efforts, the company has been very sensitive about their customer base. GM indicates that they “are passionate about earning customers for life” (GM, 2015). In addition, GM suggests there team shares the same enthusiasm for “customers and a competitive spirit that drives us to excellence” (GM, 2015). According to GM (2015), this means that we are committed to delivering vehicles with compelling designs, flawless quality and reliability, and leading safety, fuel economy and infotainment features.…
contributions. They also eliminated dividends on preferred and common stock leaving the stock outstanding and continued payment on the debt instruments (Oesterle 2011). Finally in 2012, the U.S District Court dismissed the charges against the three Fannie Mae top officials ruling that there was no evidence to suggest that they intended to deceive anyone (Fiderer 2014). Effects and consequences According to Woiceshyn 2011, making an ethical or unethical decision is not a serious issue for anyone.…
Corporations, especially Corporate America, have usually nothing to do with the livelihood of the work force to gain economic power. It is much more interested in the stockholder's profit margin. Why do we allow corporations to replace our liberty, and the pursuit of happiness for the individual in favor of the stockholder? How can the employees even know what their rights are, if they are working in excess of 50 hours a week? Isn't it about time we start changing the basic structure of corporate America?…
Which of the monetary tools available to the Federal Reserve is most often used? Why? The Federal Reserve has many tools at its disposal to influence the money supply. There are 3 main tools, which are Reserve requirement, Discount rate (Discount loans), and Open market operations.…
After World War I, the US came into an era known as the Roaring Twenties. During this time, many Americans dedicated their time to buying consumer goods such as cars, telephones, and radios. This in turn led to a period of great prosperity in the United States and Americans were more geared to letting loose and having fun. Americans had so much fun, they spent money they didn’t have. However, a large segment of the population did not get to share in the wealth as the gap between the rich and poor widened.…
When people mention the state of Michigan there is nothing really positive that comes to mind because as a whole, the state is not doing very well for itself. Especially with Flint, Michigan being all over the news because of the unsafe water issue, most people think of it as another issue going on in the already suffering state. People fail to realize that Flint; Michigan was actually a thriving city at one point because it is where General Motors was founded. The nation fails to realize that Flint is a result of bad policy because the people of Flint, like many other states in America were told, “Demolition Means Progress”. The Flint water crisis is something that has been going on for a while but is just now getting attention.…
On Thursday, July 28, 2013, Detroit, Michigan became the largest city in America ever to file for bankruptcy. Established in 1701, detroit was founded by the french explorer Antoine de la Mothe Cadillac and a party of settlers. Not one of these men had any idea that Detroit would evolve into the thriving hub of the car industry in centuries to come. In 1756, the smallpox virus and a famine threaten the many lives of the settlers in Detroit, but did not decimate the population enough to cause the city to die off. Later on, Detroit officially became a chartered city in 1802.…
The overall purpose of the book End of Detroit by Micheline Maynard is to describe the impact on three major auto industries in the 1990s. The auto industry caused a detrimental fall to occur within America. Detroit at one point in America had three significant benefactors when it comes to producing automobiles which were the companies General Motors, Ford, and Chrysler. For many years being dominant in car market had lead to more competition and challenges these companies would face in the future. The author Micheline Maynard logic for writing a book on this economic history and theory during this period showcases how the Big Three impacted the American producers and consumers.…
Flint, Michigan is a rather small city of about 99,000 people, with a majority (56.6%) of the population being African American and about 41.6% of residents living below the poverty line. Once the home of the United States’ largest General Motors plant, Flint’s economy suffered a major blow when General Motors downsized during the 1980s. A low budget, contaminated water source, and outdated infrastructure have led to a water crisis in Flint, Michigan which is a danger to local residents in regards to public concerns for health, loss of confidence in government, and a larger deficit. Once General Motors downsized their plant in Flint, Flint’s economy went downhill.…
One major issue to do with the banking system and deregulation of the financial regulators was Lehman Brothers’ misrepresentation of financial statements caused by the freedom in shadow banking system. The examiners of the Lehman Brother’s bankruptcy stated that the company had been engaged in “accounting gimmicks” at the end of the years, decorating financial statements to make it seem healthy and strong when in fact the company’s financial situation was unstable (Valukas, 2010). In 2007 when the property market started to collapse with the skyrocketing number of defaults, Lehman began to suffer huge losses and billions of dollars of bad debts were forced to be written down in the books, which led to a downfall of its financial position. At…
The purpose of this paper is to show that throughout the 107 year history of General Motors, that the complex organizational structure suffered from fragmented divisions of mismanagement, the company culture remained secretive, unethical decisions were continually made, along with cover-ups concerning product safety. Research indicates that General Motors put profit before human lives and did not live up to its own ethics. Documented court cases against General Motor are referred to in this paper to show the unethical culture that existed within the corporation. In 2009, General Motors faced bankruptcy requiring a government bail out.…
GE International, Inc.(GEII) and CSC (Computer System Consultant) are two computer based companies. I represent CSC who received a contract opportunity from GEII to reprogram their computers with new software and update to the latest version. Various requirements from both the sides were discussed and iterated. However, after conferring with the senior manager of GEII, CSC finds that there are budget conflicts. This case study will show how the negotiation between GEII and CSC brings up new ways of accomplishing an agreement for the budget conflict.…
During August 2007 in Germany, a rescue package of €3.5 billion was arranged by the German government for the country’s IKB Deutsche Industriebank AG which had also been afflicted by the US sub-prime market crisis. The whole affair, however, was handled much more cautiously with the public being given no serious indication towards the extent of IKB’s plight. The rationale for this type of secrecy, in the event where wide-spread panic has not yet occurred, was set out in a speech by Eddie George, Governor of the Bank of England in 1994 (cited in Financial Stability Review, 1999, p.…
Chapter 13 Case Study Response 1. What would you say? In speaking with Elizabeth, I would mention that the store is performing well and has been meeting expectations thus far. After being positive about the store’s performance I would lead into the issues I am having with the management there.…