Presentation on theme: "Supporting Banking Bailouts Drew Thurman PA 7. Intro/Thesis Current research indicates that most professionals in the economic and political areas agree."— Presentation transcript:
Intro/Thesis Current research indicates that most professionals in the economic and political areas agree that bailing out failing major banks in times of financial crisis is key to preserving a healthy economy.
Point #1 If major banks fail, smaller companies attached to them will also fail almost in a domino style aspect.
Point # 2 Part of taxes is saved for potential financial disasters. Some states refer to them as “rainy day funds”.
Point # 3 Safeguarding major banks will ensure economical stability and less chaos in the financial world. Often times financial chaos leads to economic downturns such as more unemployment, housing market crashing, because no one is able to spend their money.
Counter Utilizing tax money to bail out failing banks due to risky financial decisions is unethical and only continues to motivate such bankers to continue to make irresponsible decisions. The research behind this argument pushes for more independent agencies to regulate this market and look for economical shifts and trends.
Rebuttal Safeguarding major corporations and preserving the economy takes precedence over any so called ethical questioning. A healthy economy is valued higher than risking financial disaster yet preserving ethical and moral standards.
Conclusions Independent agencies do not have the capacity to float entire banking bailouts nation wide, just isn’t realistic comparative to the potential costs. The research clearly indicates most individuals care about healthy markets and utilizing tax as such and giving up small ethical standards.
Work Cited Calabria, Mark. “An End to Bailouts.” The National Review 65.1 (2013): 33-35. Web. 20 Jun. 2014 Cordella, Tito. “Bank Bailouts Moral Hazards Vs. Value Effects.” Journal of Financial Intermediation. 12.4 (2013): 300-330. Web. 18 Jun. 2014 Gadinis, Stavros. “From Independence to Politics in Financial Regulation.” California Law Review. 101.2 (Apr 2013):327-406. Web. 2 July. 2014 Guillermo, Rosas. “Bagehot or Bailout.” American Journal of Political Science. 50.1 (2006): 175-192. Web. 15 Jun. 2014 Guynn, Randall. “Are Bailouts Inevitable?” Yale Journal On Regulation. 29.1(Winter 2012):121-154. Web. 8 July. 2014 Kauko, Karlo. “Do Bailouts Cause Moral Hazards or Franchise Value in Banking?” Kyklos 67.1 (2014): 82-92. Web. 18 Jun. 2014 Lee-Myung, Bak. “How Korea Solved it’s Banking Crisis.” Wall Street Eastern Edition.253.5(2009): 11-13 Web. 16 Jun. 2014 Smith, Roy. “The Dilemma of Bailouts” The Independent Review Vol. 16.(Sum.2011):15-26.Web. 16 Jun. 2014. Wall, Larry. “When is ‘Big’ Too Big?” Econ South Vol. 7. (2005):5-27.Web. 8. July. 2014