Short answer questions about an economic article Essay

Short answer questions about an economic article - Essay Example Housing craze bubble occurred due to Goldman’s by reducing the standards of underwriting mortgages rates. They were able to trick pension schemes funds and insurance into buying into their idea. The mortgage package they offered had hidden irregularities meant to exploit the investors. Many rushed into investing thus creating a large real estate whose investment were being speculated by Goldman. Eventually, the housing bubble crumbled and investors were fleeced of their investment (Higgins 89). $4 a Gallon bubble came into being when Goldman influenced large investment companies to invest in the speculative oil market. When the world market prices declined, Goldman’s investors lost billions of investment. However, it was instrumental in manipulating pump prices rise to $4 a gallon thus continually robbing from the public. In the Rigging the Bailout bubble, Goldman’s caused the collapse of insurance and investment giants like AIG who remained deeply indebted to them. When the government chipped into bailout them, Goldman had to be paid fully despite them being behind the investment and insurer downfall. Global warming bubble occurred when Goldman covered up their bad deeds in the name of environmental conservation plan advocating for a bill that will limit carbon emission. Thus, they will trick companies into managing finances meant to reduce these emotions (Higgins 112). Goldman used its political influence to win over lucrative initial public offer deals. Its activities included bribery of executives of other investment institutions in order to be awarded future underwriting deals. Their top executives participated in a long-term greedy behaviour. They also manipulated the prices of shares to gain bonuses at the expense of its investors. Goldman’s behaviour led to shareholders and investors launching several lawsuits and it walked scot-free after manipulating the prosecution by paying a $60 million which is a small

AN ANALYSIS OF THE RELATIONSHIP BETWEEN WORLD BANK AND DEVELOPING Essay

AN ANALYSIS OF THE RELATIONSHIP BETWEEN WORLD BANK AND DEVELOPING COUNTRIES - Essay Example development, namely, means for a long and a healthy life, access to education and access to physical resources which help in a better sustenance of life (Sagar & Najam, 1997, p. 250). Human development thus, is multidimensional in nature, which is automatically served out of overall economic and social progress. The World Bank, however, had been actively involved in alleviating all elements which have been responsible for an underprivileged human life, through implementing investment projects in various aspects. Creation of the organization had been the consequence of the Bretton-Woods Commission held in 1944 following the World War II, to resolve issues such as financial insolvency arising out of depreciation in currency values. Developmental economics supports two approaches to prop up overall growth in an economy, namely, balanced and unbalanced. Though an external push is required in both the cases, in case of balanced growth, the effect is often considered to be a diluted one, which is why unbalanced growth is preferred more in nations suffering from a scarcity of resources.3 Unbalanced growth in fact, had been supported by a large number of economists. Rosenstein Rodan, the proponent of Big Push theory established the importance of unbalanced growth which he regarded to be essential f or the developing nations to break out of the low level equilibrium trap, i.e., for economies which did not have high growth potentials. These investments however, were emphasized for industrial or infrastructural development, which is considered as a fundamental area which can trigger economic growth. But given the lack of investible resources, it was not possible for the national governments themselves to carry on with their investments; in fact they had to seek the help of international organizations like the World Bank which were responsible for resource mobilization activities. The bank established in 1944, had been involved in such development activities hitherto, which