Reflection On Academic Discourse

The effects of transparency in a market on the financial crisis Maastricht University School of ancestry 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 handlers name: C. Bach Writing Assignment: Reflections story 1. Introduction Seven hundred meg dollars, that is the price the Ameri fundament Senate paid for the bailout bill on tertiary October 2008. The velocity and order of the financial crisis in 2008 is unique. All this has been triggered by banks and hedge funds, seek for short-term profits and driven by greed, trading with mystifying derivatives of which an average citizen has never have perceive of before. High questioning mortgage bonds and insurances have been put unneurotic and sold as packages. Oversimplified and shortsighted the risks of those packages have been valued incorrectly. The mint of the so-called citation default swaps and collateralized debt obligation market exploded. Banks traded these derivatives among from each one other, tether to an opaque mesh of toxic assets. The bankruptcy of Lehman Brothers, a US-based investing bank, built the peak of the financial crisis (Amadeo, 2012).

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

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