This project is descriptive in nature and involves discovering myriad of factors that led to the financial turmoil in 2007-08, to where the purpose of this problem-oriented project work is to identify key-factors that preceded the financial crisis of 2007, particularly in the U.S. This financial breakdown that affected the global economic system is considered, by many economists, to be the worst since the Great Depression in 1929. To understand this phenomenon, an analytical presentation using U.S as a framework of case study has been conducted. A brief descriptive timeline including, references of historical events, prior legislation, and former provision of solutions will be provided to ensure a proportionate knowledge on the subject matter, as the project delves into the dismal of science and the changing mentality underlying the finance industry. Furthermore, discussing attitude towards risk is to depict corporate demeanor, when the objective is profit and profit only. In addition to discussing the concept of risk, preliminary concepts such as creative destruction and financial innovation encompasses by complexity. This complexity phenomenon caused to the mispricing of risk leading up to the financial cris. Prior to the discourse on mentality, the banking industry will be analysed concurrently with legislative proposals to showcase the outset of capital accumulation and chronic capitalism. On the basis of the authors’ novel interpretation, it seeks to shift the reader’s attention towards the direction the financial market is heading. Before the actual disclosure, a discussion paragraph have been included to demonstrate additional thoughts. This project discusses the concurrently changing mentality with the belief in a free market that led to the financial crisis in the U.S 2007-08 by permitting the financial institutions to subtly shift their practices.
|Uddannelser||Basis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis|
|Udgivelsesdato||2 jun. 2014|