Reflection On Academic Discourse

The effects of transparency in a market on the financial crisis Maastricht University School of personal line of acknowledgement and economics Maastricht, 23 January 2012 Nicolas Münzer, NM; Kevin Leurs, KMM; Max van Zoest, MCJ ID numbers: i6039536; i6039559; i6042051 Studies: International Business; Economics; Econometrics Course code: EBS1508 Group number: 5D motorcoachs name: C. Bach Writing Assignment: Reflections radical 1. Introduction Seven hundred meg dollars, that is the price the Ameri dissolveful Senate paid for the bailout bill on tertiary October 2008. The velocity and order of magnitude of the financial crisis in 2008 is unique. All this has been triggered by banks and hedge funds, desire for short-term profits and driven by greed, trading with tangled derivatives of which an average citizen has never have perceive of before. High defective mortgage bonds and insurances have been put unneurotic and sold as packages. Oversimplified and sho rtsighted the risks of those packages have been valued incorrectly. The mint of the so-called credit default swaps and collateralized debt obligation market exploded. Banks traded these derivatives among from each one other, direct to an opaque mesh of toxic assets. The bankruptcy of Lehman Brothers, a US-based investiture bank, built the peak of the financial crisis (Amadeo, 2012).

Months and still geezerhood aft(prenominal) the peak, the scope of the crisis is inestimable. The mesh of toxic assets has to be scanned human racetrack by piece, revealing the complexity of the financial administration. The question arise s, how can such a crisis be prevented in the! future? Was it a lack of transparency, which enabled the growth of such a morbid constitution? This paper examines the impact of non-transparency on the financial crisis in 2008. With supervision and repair of examples of the major banks, it investigates which role the lack of transparency compete and concluding, if more transparency could prevent a future crisis. 2. enhancer Transparency is a state of mind. It means that a company, macrocosm or...If you want to trace a full essay, order it on our website: OrderCustomPaper.com

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