Choi, Yeera De la Paz, Abie Romero, Jorgia Sumaya, Allicamet Ventayen, Anton CONADEV Inside Job Group Discussion

n Paper

February 17, 2014

1. What factors caused the real estate bubble? What was the role of the bubble in the economic crises? Factors that caused the real estate bubble are things such as the illegal ways of using credits such as the sub-prime mortgages used by the financial firms by lying to the clients helping them choose wrong investments even though they are not financially stable to be able to pay those investments. Thus, they gain more money, the CEOs and traders richer because of this crisis that flooded the financial system. Another thing is that the a lot CDOs were rated as Triple As by rating agencies making investors who trust those ratings buy those bids. Also the improper use legal practices and regulations with regard to the top companies, monopoly of the top financial investment firms particularly in Wall Street and wrong political system since the ones appointed by the government itself are people who used to be CEOs or board of directors of the companies that are part of those who actually caused the real estate bubble such as AIG, Goldman Sachs thus making those companies more powerful with the connections they have in the government. The government even find ways to bail them out of bankruptcy making all the people suffer by paying for those companies wrongdoings with the use of the money they pay for taxes. 2. To what extent is the crisis attributable to deregulation? The crisis is attributable to deregulation 3. Do you think that compensation is/was the factor in the crisis? Would you support government regulation of compensation at certain levels? How would such regulation best be accomplished? Is there a role for tax policy in this type of regulation? 4. What about the professors interviewed in Inside Job? Consider specifically the dean of the Columbia Business School (Glenn Hubbard) and the Columbia Economics professor (Frederick Mishkin) and the interviews regarding their compensation for writing research articles. Should business schools encourage externally funded research? 5. What is the relationship between ethical behavior and legal behavior? Goldman Sachs appears to take the position publicly that there was nothing wrong with taking short positions against the securities it sold to clients, partly because those

positions were not substantial and partly because their clients should be presumed to be sophisticated in financial matters. Do you agree wit this view? 6. Do you think the justice department should pursue criminal investigations of major players and firms in Wall Street? 7. Are our economic problems limited to the financial industry? That is, if we fixed the financial system, would we be out of the woods? 8. To what extent are out economic problems attributable to our political system? 9. Are you optimistic or pessimistic about our economy over the next 12 months? 2 years? Longer? The economy is growing, as shown in the media but the growth isnt that big, and the improvement is hardly noticeable, since we are still not that huge, and dont have the power to really achieve economic stability I am quite pessimistic. Here in our country there are a illegal practices and transactions made by our government officials themselves, corruption is still widely relevant with our officials, which only makes them wealthy as individuals making our economy suffer. There are a lot of flaws that are hard to fixed in a few years since are economy already went down, we used to be wealthier as a country back then. There are still more people suffering from poverty and unemployment is still relevant which is also I sign that our economy in the next few years wouldnt improve that much in an instant, we should really fix our political and financial systems in order to attain a better economy. 10. What do you think are the most important steps to take to address our economic problems?

1 & 9 Alli 2 & 5 Yeera 3 & 7 Jorgia 4 & 6 Abie 8 & 10 Anton

check this link Some answers are here http://prezi.com/0gptcrdihuam/insidejob/