Financial Crisis And Responsibility With The Toxic...

Abstract The case study discusses about the problems of meltdown of American economy due to the toxic subprime mortgages. This study combines the financial crisis and responsibility with ethical issues and moral hazards. It also gives a detailed description about the failure of world’s largest economy and tried to calculate its impact across various stakeholders. It goes inside the facts and analyzed different stakeholders’ roles and responsibilities towards the crash. It also discusses about the government’s policies which further contributed towards the destruction and had huge impact not only in one sector but also to many other countries, which took years for its recovery. Introduction The author discusses about the meltdown of American economy which was in danger due to the toxic mortgages. The crisis happened after US housing market crashed and it created problems for all those investors who had invested billions of dollars in it. Many banks and insurance companies started failing one after another and it created a cascading effect not only to other sectors in US but also to other dependent countries as well. Credit market froze and trust in the financial system was decreasing day by day. The problem was so severe that the entire economy would have crashed in a matter of days if no action was taken on time. This case studies and analyses about the issue based on Frontline’s coverage from the board rooms of the Wall Street to the banks in Washington (Pbs,Show MoreRelatedCentral Causes of the Global Financial Crisis1295 Words   |  6 Pagesglobal financial crisis By Norbert Tallosi The global financial crisis of 2007-present caused the largest meltdown of major economies worldwide since the great depression of 1930. It involved the collapse of large investment banks and as a result affected all markets in the western world. 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