As I was sitting in my economics class waiting for the teacher to begin the lecture, I couldn't help but to think of what a mess the U.S. was in a year or two ago. If any of you remember, the Clinton administration saw a huge rise in business as regulations were eliminated all in the name of capitalism and laissez-fairz. A woman by the name of Brooksley Born preached that there would be an inevitable collapse in the near future. She was right. Here are some of the things that were occuring:
- Derivatives, An unregulated financial practice of predicing the movement of prices and betting on it. A trillion dollar+ market. Largely backed by nothing. Sometimes, they were backed by other derivates (?)
- Sub-prime Morgates, basically, you don't have enough money to purchase a home, so you would get approved for this mortgage. It doesn't take into account that if you lost your job or are suddenly in dept. You were screwed. But no one cared because they got an extremely nice house.
- Credit Card scandels. Incredibly high interest rates, multiple charging of late fees, ridiculous overdraft fees, and purposful lowering of the credit limit were just some of the bad practices that Credit card companies were involved in.
- Oil? Tell me if I need to include this.
Okay, so those were just some, and I know they are plenty more problems out there pointing against Big Business's favor. But what about Government?
- Political Machines, a boss or a leader has control over a small or large group of individuals who are business owners and perform actions in favor of the organization for reward. There is one in Chicago. Currently. No joke.
- Corruption, super simple to understand.
- Abuse of power, self-explanatory.
And, of course, there is alot more. Leave a post adding more to the list.
So with all of these stated, which one would you choose?