Regulatory Interventions in the 2008 US Post-Economic Crisis Assignment

Regulatory Interventions in the 2008 US Post-Economic Crisis - Assignment Example However, there is a need to generate productivity following the series of Stimulus Funds in order to multiply the capital infused in trillions of dollars. Or the economic recovery will be transient and may return to perform another economic recession, right after funds are consumed. Regulations spearheaded by the Dodd-Frank Act are meant to make the financial institutions and big corporations more careful in their risk management. Such regulations were found to be critical after deregulation was given a chance to work for over 30 years and yet failed with its grandstanding recession. The question remaining is how funds can be effectively channelled to entrepreneurs given the past experiences wherein a greater part of the Stimulus Funds never reached the Small Business Entrepreneurs (SBEs) who can use capital to generate more productivity, hire people, and earn profits. Most of the Stimulus Funds went to social welfare and large corporation bail outs. Further study is required to eval uate the possibility of reinstating the Glass-Steagall Act for the purpose of further regulating the banks to focus on diligently supplying funds to SBEs and supporting those SBEs with sufficient guidance in order to earn successfully. This can logically stop the banks’ vested interests on Investment Portfolios since they will not be allowed to engage in other investment activities except to lend entrepreneurs what they will need in order to progress. I. Introduction Right after the economic recession declared by the National Bureau of Economic Research (NBER) to have lasted December 2007 all the way to June 2009, the phenomenon was described as not only â€Å"the longest and deepest recession of the post-World War II era† but also the â€Å"largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession† (Labonte, M. 2010, p.2). Stimulus funds from the Federal Reserve worth more than a Trillion Dollars along with the monetary policy of maintaining almost zero interest rate, facilitated the recovery. $700 billion, which was later reduced to $ 470 billion infused into the financial system was done via a program called Troubled Assets Relief Program (TARP) in October 2008. The US Government purchased real estate properties that lost their values as a result of the recession, for the purpose of adding some liquidity to the banks. As of mid-2012, most programs under the TARP were reported closed. Major beneficiaries rescued were Fannie Mae and Freddie Mac, AIG, Citigroup, and Lehman Brothers of the financing sector, and later included General Motors and Chrysler of the automobile sector. Saving the giant enterprises reduced the need to retrench and lay-off employees. However, there were economic

Connex Market Research Essay Example | Topics and Well Written Essays - 3250 words

Connex Market Research - Essay Example en the system was established, it was set up under assumptions and predictions made for stricter working hours and it is for the same reason that express trains were rarely run. However, express services had to be introduced as time passed and the 1970s saw a major revamping of the Melbourne Train System. These changes were welcomed by commuters and the 1980s and 1990s saw an increasing number of people choosing to take the train rather than to drive to their destinations (Morphet, 2008). However, the system was not designed to meet an exponential increase in passenger demand and had to be stretched in its functioning in order to cope with the same. Issues began to develop in scenarios where train paths crossed each other and express trains had to share tracks as well as junctions, causing delays to take place. Considering the nature of the train system, it is evident that a single delayed train can cause a chain reaction of delays for other trains as well. Once a delay occurs or a train is taken off operation, it causes an increase in the number of passengers trying to board an individual train, causing an increase in the time required for passengers to get on and off the trains. This time is also often referred to as Dual Time (Middeldorp & Klop, 2005). The increase in dual time causes trains to take longer at each station, causing even more increased delays. It is therefore clear that the implications in the case of a single delay in the train transport system are very similar to a Domino Effect. Needless to say, there is a strong need for safety to remain uncompromising at all times but it is imperative to note that unless a balance between safety and efficiency is maintained, the train begins to lose its utility as a commuting mean. On January 28, rail commuters in Melbourne found themselves facing what came to them as nothing less than an odyssey when they discovered that nearly 200 trains had been cancelled, bringing a halt to services on three lines.