The fictitious company chosen for this exercise is a medium-sized investment bank called Armor Bank, which has a footprint in states in Southern United States. The bank has plans for penetrating markets in the rest of the country and is mulling options for a merger. Explain why government regulation is needed, citing the major reasons…
Tag: Wall Street
Criticism of Efficient Market Hypothesis
“When the price of a stock can be influenced by a “herd” on Wall Street with prices set at the margin by the most emotional person, or the greediest person, or the most depressed person, it is hard to argue that the market always prices rational…in fact market prices are frequently nonsensical.” The Efficient Market…
How is American foreign policy made and implemented?
It is a popular illusion that the United States is the leading democratic nation in the world and that its policies are a true reflection of public preferences. The truth, in fact, is quite the opposite. To begin with, let us consider the electoral system in the country. For many years now the voter turnout…
Is unequal distribution of wealth & income a causal factor in the Great Depression and the 2008 Wall Street collapse?
In economies where income and wealth are unevenly distributed, the supply-demand equilibrium is threatened. In both the cases of the Great Depression and the present crisis, this factor had played a major role. According to Paul Gusmorino, “the mal-distribution of income between the rich and the middle class grew throughout the 1920’s. While the disposable…