Deregulation

Sterns during March. However, it was later rescued by JPMorgan Chace, which they dealt to buy it for a bargain price of $10 per share. Overall, an average of 33.8% of banks and businesses lost its value. The financial crisis was caused mainly by deregulation in the financial industry (The Balance). Housing prices started failing as supply outpaced demand (The Balance).…

growth. In other words, the market… was undone by growth itself” (Jackson 26). Therefore, these policies that aimed at the system-wide deregulation of the financial markets – in order to induce growth – ended up being the root cause of the 2008 financial crisis. Although in Canada’s case, the debt crisis cannot be linked to explicit policies of market deregulation, the same logic can apply. The Bank of Canada systemically impacts the financial markets when they lower interest rates, as it…

Marxian Analysis and the Realities of the Modern Economy Far from becoming a historical relic, the role of Marxian analysis in today’s economy is both predominant and relevant in modern economic thought. Although the twenty-first century does, at first glance, appear to be a different reality from Marx’s nineteenth century entirely, the core principles of Marx’s work remain relevant and useful, although some of the interpretations made by Marx do need to be modernised somewhat. The modern…

Over the past century, the pace of globalization has accelerated considerably. While globalization is certainly not unique to this period of increased growth, the establishment of a “worldwide network of fast cables and telegraph systems, in tandem with developments in railways and steamships, eroded some of the obstacles of geography and made it easier to organize transcontinental business” (Winseck and Pike, p.1). In this context, debate has emerged amongst scholars as to the consequences of…

the improbable. Motivated by the amount of money he could make because of deregulation or having the government not meddle with energy prices, Kenneth Lay founded Enron as a gas company in 1985 (Enron). Lay was an advocate of deregulation and he used his position and contacts in the government as leverage. He was fascinated with the amount of money he could make in the energy business with this new privilege of deregulation. In the documentary, Enron: The Smartest Guys in the Room, it was…

It is widely accepted that the features of the developmental state model played a vital role in East Asian states, guiding them to historically unprecedented industrial transformation, and it is unanimously agreed upon that the developmental state model was successful in economic growth of the East Asian countries such as Korea, Japan, and Taiwan. However, the puzzle we have to solve is whether the developmental state model delivers development without limitation, or if the model is doomed to…

The current trends in consumer culture is shafting fast with the advancement of technology. As more and more people become connected with one another, a realization occurred when most no longer need intermediate industries to help them progress through the economy. The result of this shift is the sharing economy. This new economic sector covers a wide range of services, and to narrow down this topic, the conflicts and solutions of Uber Vs. Taxies will be the focus here. Uber is not going…

entry or exit barriers, the core challenge for this industry and the lesson for other businesses is how to compete successfully when all of the competitors do not face the same structural forces of competition. Synopsis of the Case Since the deregulation of 1978, the airline industry weathered wave after wave of major challenges; recessions, labor issues, terrorist attacks and fluctuating crude oil prices. Thirty-five years later, legacy carriers, those carriers in business prior to 1978…

Financial innovation Another reason attributable to the GFC, which was regarded by David T Llewellyn as the ultimate cause of this catastrophic recession, is the emergence of new financial innovations such as CDOs, CLOs and MBSs. These financial instruments adopted to lower the risk and create a more easily accessible market for borrowers, were of extreme use, hence brought about the inverse effect. Moreover, since these innovations require the separation of different tranches of lending…

because of the mass effects it has had on the United States’ economy and the world’s economy. Neoliberalism and Milton Friedman believe that profit should drive businesses and encouraged the mass amount of deregulation that happened in the United States. Some of the case studies showed how deregulation hurt many people, like the Enron case. Capitalism is something that is constantly being debated in current times about whether it is a good or bad type of economy. Since chapter one through six…