Too Big Too Fail Assignment

Too Big Too Fail Assignment

The movie Too big to fail is about the economic crisis in 2008, where everyone can see how some decisions made affected the different people involved in the economy of the U.S. Throughout the movie there is an ethical dilemma that was always present. Paulson wanted to stop the crisis in any way no matter what they had to do even if they had pass over the law. In the movie, the case of Bear Stearns already passed and now the turn was for the Lehman Brothers Company. In the case of Bear Stearns, Hank Paulson takes the decision to act and save the company. Fuld, Lehman Brothers CEO thought that the company was also going to be saved by the government, but this time Paulson didn’t want to do it because every CEO had to take responsibility of their actions. In this way he wants that everyone has an ethical behavior in the development of the economy.

Another dilemma can be seen in the negotiations of Lehman’s Brothers and the Koreans where Fuld didn’t want to sell the shares at a low price without thinking that this didn’t affected just him, but the entire market. In this case doing the right thing people has to sacrifice something; Fuld didn’t think how big the problem for the rest of the economy was. Another big dilemma in this crisis was the fall of Fannie Mae and Freddie Mac. The Chinese and the Russians could collapse the U.S economy if Paulson didn’t take actions about Fannie Mae and Freddie Mac. That is why he decided to save the company and the government took control of it. This showed how Paulson contradicted himself of what he said about the case of Lehman Brothers. This was not the only thing that happened. Also AIG was in problems and Paulson decided to act making that Paulson lose credibility in some way, but did everything in his hands to save the economic crisis of 2008.

Henry Paulson and Ben Bernanke had to do something about the crisis. With Bernanke, Paulson decided to go to the congress and ask for $700 billion to save the economic system of the U.S. The congress decided that this was not possible, and they had to consider other options. Paulson decided to apply something of the bill passed by the congress. They had the option to inject capital to the most important institutions of the economic system of the U.S. Paulson didn’t agree with this idea because every time, as the CEO of Goldman Sachs, he fought against the inclusion of the government in these institutions. Against his personal beliefs, Paulson in some way ordered the financial institutions to accept the injection of capital to create confidence to the customers and in some way save the economy of the U.S.

For me this decision made by the U.S Department of Treasury and the Federal Reserve was the correct one for that “Second Great Depression” if all the financial institutions collapsed. Creating confidence in the customers and investors was something that they had to do to unfreeze the market. In the long run I think that the government will have to spend more and more money to solve the issues. This economic crisis will affect the entire world, and some first world countries have really a lot of problems. Maybe some emerging economies (like Latin American ones) would have another picture of the world and will be leading the world in the future. In this case I agree that Paulson and Bernanke took appropriate actions, even acting against Paulson’s personal beliefs, but thinking about the best solution for a country that was in risk of blowing out its entire economy. I agree that they decided to act and save the economy that is why I think they took the appropriate actions.

Get Assignment Help Services with StudyAcer.

StudyAcer
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work With StudyAcer

StudyAcer

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

StudyAcer

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

StudyAcer

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

StudyAcer

Prompt Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

StudyAcer

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

StudyAcer

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

StudyAcer

Place your order

Fill in the order form and provide all details of your assignment.

StudyAcer

Proceed with the payment

Choose the payment system that suits you most.

StudyAcer

Receive the final file

Once your paper is ready, we will email it to you.

StudyAcer Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

StudyAcer StudyAcer

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

StudyAcer StudyAcer

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

StudyAcer StudyAcer

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

StudyAcer StudyAcer

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.