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Economic crisis: problems and solutions essays wnfall’ of the economy. CDOs were dangerous because they were based upon people actually paying those debts back in full. Now normally that wouldn’t be such a huge problem, except banks had begun making riskier and Fsu college essay help Help Writing ? loans. The reason for that is because the banks didn’t truly care about investing money you gave them wisely, nor did they care if you paid back your loans. Money was made just from your business there and the investments that they made with your money would yield money whether it succeeded or failed. The reason is because of CDS (Credit Default Swaps). Companies like AIG offered a service where you paid into it every month but, in exchange, would be paid for any CDOs which went bad. With that, it was a win-win situation to deal in CDOs and invest however you wanted. Further compounding the issue are the Fsu college essay help Help Writing ? rating agencies, who gave numerous AAA ratings (the highest) and a huge number of other high ratings to clearly dangerous/risky CDOs. These loans were known as Sub-Prime loans for the fact that they are far less than ideal, yet are still marketed as good investments. So how does one fix the economy and prevent this issue? There is one single answer, though it can present a number of different faces. That one answer would be re-regulation. Starting off an essay with a definition need to start regulating again. And we don’t just need to regulate as we did before, we must make stricter regulations and take measures to ensure that this doesn’t happen again, including, to some degree, measures to ensure that deregulation also doesn’t happen again. Yet that is easier said than done. New regulations must be strict on all fronts. Derivatives, which had been rumored to have a stabilizing effect, must be carefully monitored. Because of their nature and their innate complexity and lack of transparency, businesses must have a branch to manage all derivatives they deal with as well as thoroughly review them. It sho.