Too Big Too Fail Assignment Essay

September 26, 2017 General Studies

The film Too large to neglect is about the economic crisis in 2008. where everyone can see how some determinations made affected the different people involved in the economic system of the U. S. Throughout the film there is an ethical quandary that was ever present. Paulson wanted to halt the crisis in any manner no affair what they had to make even if they had base on balls over the jurisprudence. In the film. the instance of Bear Stearns already passed and now the bend was for the Lehman Brothers Company. In the instance of Bear Stearns. Hank Paulson takes the determination to move and salvage the company. Fuld. Lehman Brothers CEO thought that the company was besides traveling to be saved by the authorities. but this clip Paulson didn’t privation to make it because every Chief executive officer had to take duty of their actions. In this manner he wants that everyone has an ethical behaviour in the development of the economic system.

Another quandary can be seen in the dialogues of Lehman’s Brothers and the Koreans where Fuld didn’t want to sell the portions at a low monetary value without believing that this didn’t affected merely him. but the full market. In this instance making the right thing people has to give something ; Fuld didn’t believe how large the job for the remainder of the economic system was. Another large quandary in this crisis was the autumn of Fannie Mae and Freddie Mac. The Chinese and the Russians could fall in the U. S economic system if Paulson didn’t take actions about Fannie Mae and Freddie Mac. That is why he decided to salvage the company and the authorities took control of it. This showed how Paulson contradicted himself of what he said about the instance of Lehman Brothers. This was non the lone thing that happened. Besides AIG was in jobs and Paulson decided to move doing that Paulson lose credibleness in some manner. but did everything in his custodies to salvage the economic crisis of 2008.

Henry Paulson and Ben Bernanke had to make something about the crisis. With Bernanke. Paulson decided to travel to the Congress and inquire for $ 700 billion to salvage the economic system of the U. S. The Congress decided that this was non possible. and they had to see other options. Paulson decided to use something of the measure passed by the Congress. They had the option to shoot capital to the most of import establishments of the economic system of the U. S. Paulson didn’t agree with this thought because every clip. as the CEO of Goldman Sachs. he fought against the inclusion of the authorities in these establishments. Against his personal beliefs. Paulson in some manner ordered the fiscal establishments to accept the injection of capital to make assurance to the clients and in some manner save the economic system of the U. S.

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For me this determination made by the U. S Department of Treasury and the Federal Reserve was the right one for that “Second Great Depression” if all the fiscal establishments collapsed. Making assurance in the clients and investors was something that they had to make to dissolve the market. In the long tally I think that the authorities will hold to pass more and more money to work out the issues. This economic crisis will impact the full universe. and some first universe states have truly a batch of jobs. Possibly some emerging economic systems ( like Latin American 1s ) would hold another image of the universe and will be taking the universe in the hereafter. In this instance I agree that Paulson and Bernanke took appropriate actions. even moving against Paulson’s personal beliefs. but believing about the best solution for a state that was in hazard of blowing out its full economic system. I agree that they decided to move and salvage the economic system that is why I think they took the appropriate actions.


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