History of Business

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Main Lecture points

* Regulation began after the great depression
* Deregulation began in the late 1990’s
* Obama appointed Summers and Geithner who are against regulation, thus nothing has changed

The Great Recession (2008)

* golden age in banking industry in the late 1990’s
* lots of liquidity, lots of access to capital (all of what the bankers wanted) * Complexity permitted the financial markets to carry on for so long; it confused polices makers * 1930’s great depression happened when there was no social security net; made policies makers to create regulation to avoid it happening again * 1970’s and 1980’s deregulation begins; people forget what the 1930’s were like * people forget why governments tax them and begin to revolt against taxes because they don’t think they need the government supported things that taxes fund * new consensus formed that the government didn’t know what they were doing, thus wanted deregulation * Clinton, Bush and Obama are all the same in the big picture as they all thing big government are bad

Obama vs Romney

* Obama does not look like a good candidate Romney does (physical looks) * Obama won at the start of the 2008 recession, he was a breath of fresh air – people hated George Bush * Since Macain didn’t understand 2008 and everyone hated Bush, Obama had a relatively easy election * Romney is of the belief that there was no 2008 crisis and everything is fine * People view democrats as socialist

* Geithner was one of the key figures behind the deregulation in the late 1990’s * Obama appointed Geithner as secretary of the treasury, many people were confused, not really a democratic thing * Larry Summers was the secretary of treasury in the Clinton administration and was a huge proponent of deregulation * Larry summers was beneath Geithner in the Obama administration as the director of the national economic council * So Obama...
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