House of Cards describes in particular the complicated series of events that led to the downfall of Bear Sterns in March 2008. Its actual appeal, however, deduces from its complete and careful analysis of the history of the firm since its origination as an upstart brokerage firm in 1923 and a gripping account of the demise of Bear Sterns in 2007. This failure prognosticated a lot of issues that would eventually stultify the firm, and the author puts forward that its deviation from various historical operating practices led to its ultimate sale to JPMorgan Chase at $10 per share, down from over $170 just a year earlier. Cohan, also the author of “The Last Tycoons,” a 2007 book about Lazard Frères & Company, gives us in this book a shuddery, almost microscopic account of the 10, vertigo inducing days that disclosed Bear Stearns to be a fragile house of cards in a perfect storm. Why I choose this book?
Even though there was an abundance of goods mass produced and at a cheap price because of that, so many people now had no jobs so the goods were not being purchased. Even though, from 1920 to 1929, consumerism and overproduction partially caused the Great Depression, the unequal distribution of wealth and income was the most significant catalyst. From 1920 to 1929 consumerism partially caused the Great Depression due to speculation and installment buying. Speculation is the act of investing in a stock with the hope of a big gain but the risk of a big loss. Many of the investors were sure that the stocks they were going to buy were going to grow, therefore they received big loans that, once the market crashed and all the money was gone, they could never pay b... ... middle of paper ... ...e excessive speculation in the late 1920's kept the stock market artificially high, but inevitably led to the big crash.
Before the crash many previous presidents and their administrations practiced lassiez fairer, and for the most part kept out of the market and its issues. However, in 1929 the situation was so immense that Hoover had no choice but to get involved. He came to the aid of the people as best as he could. Never before had a president had to deal with such a situation. President Hoover didnt recieve enough credit for the things he did.
After an exceptionally slow start, the blockade was never able to seal off Southern shipping. Thousands of superior blockade-runners passed through the ramshackle blockade and made incredible profits with relatively low risks. There are many misconceptions that the blockade was responsible for the horrible economic situation and lack of supplies, but this was due more to the Confederate inability to take advantage of the weakness of the blockade. Through their cotton embargo and lack of government-controlled blockade-running, they did not work to give themselves a large portion of the profits and bring in the supplies the Confederacy needed. As it turned out, private enterprises kept the rich Southerners supplied with all the silks and wines they needed, while the Confederate troops were without shoes and the Confederate government without money.
The answer is no, because some of these banking executives have robbed the American people of their life savings and have put America’s banking system’s in a downward spiral with no real help by the government to help stop this and help bring the executives to justice. The American government has done very little to help in the efforts to bring these executive’s to justice. Congress didn’t oppose strengthening criminal enforcement of federal fraud laws regarding financial institutions after the 2009 financial crisis. They passed the House’s bill by a very large margin. The bill is called the Fraud Enforcement and Recovery Act.
Therefore, farmers lost validity because monopolies inflicted little harm to the agrarian lifestyle in the late 19th century. Railr... ... middle of paper ... ... American agrarian empire was defeated by railroads issuing rebates and drawbacks, foreign competition, and a booming population that pushed the farmers west to a point that arid conditions strangled profits. However, in some cases, these farmers complaints were not justified. Many of the threats farmers thought monopolies posed to them, such as the idea of unfair and unreasonable price increases, rarely were a reality. The debate between silver and gold also proved to be unrelated to the farmers troubles, as silver couldn’t serve as the means to end deflation and lower crop values.
In fact the original AAA didn’t even provide anything for the sharecroppers, tenants, or farm laborers, this end up leading to mass unemployment in the farm industry. This mass unemployment would have been seen in the graph Unemployment of Non-farm Workers in Percentages and Numbers. (J) But even though the farmers were doing better who or what wo... ... middle of paper ... ...ally made there own rules. But when the stock market crashed it was fairly clear that they were going to need something to help build the economy back up again. President Hoover didn’t consider this because it was thought that it would give the government too much power.
Big business also led to monopolies, where one company would have full control over a specific area leaving others struggling. To resist big business labor unions, such as the American Federation of Labor, formed although they were usually no competition for big corporations. Between the end of the Civil war and 1900 manufacturing increased by four times leaving many farmers and small business owners moving to the city. After the stock market crash of 1929 everyone seemed to suffer an economic decline and it was no longer limi... ... middle of paper ... ... wealthy and did not want the President to have a large hand in social and economic control. During 1885 and 1933 many politics were corrupt from the business leaders developing an alliance with politics causing Presidential control to be small.
Moore states that Americans have no health care. This is true because Bush did nothing to reform the corruption of the health care insurance companies. His new policies for health care just cut funding and left many Americans with no medic... ... middle of paper ... ...nd the Dow hitting a record low. The economy may just be going through a normal cycle, but the decline was certainly propelled by Bush being in office. Many people felt unsure with him as president and, therefore, felt unsafe about how he ran the economy.
Accurately established by many historians, the capitalists who shaped post-Civil War industrial America were regarded as corrupt “robber barons”. In a society in which there was a severe imbalance in the dynamics of the economy, these selfish individuals viewed this as an opportunity to advance in their financial status. Thus, they acquired fortunes for themselves while purposely overseeing the struggles of the people around them. Presented in Document A, “as liveried carriage appear; so do barefooted children”, proved to be a true description of life during the 19th century. In hopes of rebuilding America, the capitalists’ hunger for wealth only widened the gap between the rich and poor.