Reflection On Academic Discourse

The effects of transparency in a market on the pecuniary crisis Maastricht University School of strain and economics Maastricht, 23 January 2012 Nicolas Münzer, NM; Kevin Leurs, KMM; Max van Zoest, MCJ ID be: i6039536; i6039559; i6042051 Studies: International Business; economics; Econometrics Course code: EBS1508 gathering number: 5D Tutors name: C. Bach Writing identification: Reflections Paper 1. Introduction Seven hundred billion dollars, that is the price the Ameri john Senate paid for the bailout bill on 3rd October 2008. The velocity and magnitude of the pecuniary crisis in 2008 is unique. All this has been triggered by banks and hedge funds, seeking for short profits and driven by greed, trading with abstruse derivatives of which an bonny citizen has never have get the picture of before. High risky mortgage bonds and insurances have been put unneurotic and sold as packages. Oversimplified and curt the risks of those packages have been valued incorrectly. The survey of the so-called credit default swaps and collateralized debt obligation market exploded. Banks traded these derivatives among from all(prenominal) one other, leading to an light-tight mesh of toxic assets. The failure of Lehman Brothers, a US-based investment bank, build the peak of the financial crisis (Amadeo, 2012).

Months and motionlessness geezerhood after the peak, the arena of the crisis is inestimable. The mesh of toxic assets has to be scanned human race 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 want of transparency, which enabled the growth of such a morbid system? This report card examines the impact of non-transparency on the financial crisis in 2008. With inspection and haunt of examples of the major banks, it investigates which role the inadequacy of transparency played and concluding, if more(prenominal) transparency could prevent a future crisis. 2. Transparency Transparency is a state of mind. It means that a company, institution or...If you want to touch modality a full essay, rules of order it on our website: Orderessay

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