Why does Prof. St. Clair argue that allowing Lehman Brothers Investment Bank to fail in 2008 (i.e., during the Bush Administration) was a terrible decision?

Answers

Answer 1

According to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 breached the Fed's primary mandate, and worsened the financial crisis of 2008.

What caused the Lehman Brothers' failure?

The main cause of the failure of Lehman Brothers Investment Bank was its involvement in the subprime mortgage market.

Lehmann Brothers recorded unprecedented loss due to the 2008 subprime mortgage crisis.

The investment bank held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.

Thus, according to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 was a terrible decision because its failure breached the Fed's primary mandate, and worsened the financial crisis of 2008.

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Related Questions

Who first identified cyclical patterns in the economy and created what is often referred to as ""the business cycle""?.

Answers

Answer:

Clemente Juglar.

Explanation:

What should be considered before accepting a job which requires physical labor?.

Answers

What should be considered before accepting a job which requires physical labor is: Working extended hours.

What is physical labor?

Physical labor can be defined as the work perform by a person manually and this type of work are sometimes hard or tedious.

Before accepting a job that has to do with pysical labor the employee should check whether the job has an extended hours as this means that the job schedule is longer than the usual workdays schedule.

Therefore what should be considered before accepting a job which requires physical labor is: Working extended hours.

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Every year, Harini receives a check from the company in which she owns stock. What is the name for these periodic distributions of profits to investors?


A.

the rate of return


B.

speculative investments


C.

dividends


D.

corporate bonds

Answers

Answer:

(C) Dividends is your yearly profit


Which statement is true about third parties in a contract?
OA. They don't need to be specifically named in the contract.
B. They are involved in the offer of the contract.
OC. They can sue if contract performance is not met.
On They're always involved in the acceptance of the contract!

Answers

Answer:

euyecshsud the answer is B !!!

Answer:

the correct answer is C (Sueing, they can sue if the contract is not met.

Explanation:

Allowance for Doubtful Accounts on the balance sheet Select one: a. is deducted from accounts receivable. b. increases the cash realizable value of accounts receivable. c. appears under the heading "Other Assets." d. is offset against total current assets.

Answers

Allowance for Doubtful Accounts on the balance sheet: is deducted from accounts receivable.

What is a doubtful account?

This is a term that is used to refer to the account receivable that could become what is known as a bad debt later on in the future.

When people make credit purchases, the doubtful account is very important for their statement.

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The digital era and social media have caused major problems for businesses, including security breaches and ______.

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The effect of the digital era has caused major problems for businesses such as security breaches and a reduction in productivity in handling e-mails.

What is the effect of the digital era and social media?

The digital era has altered the laws of engagement, personal relationships, business, communications, and how people spend their time.

Social media, on the other hand, has always been connected with gaining more freedom, but it has also driven us to extremes levels of distraction and reliance that have altered how we interact with the world.

In business, the digital era has caused major problems such as security breaches and a reduction in productivity in handling large e-mails volume.

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Answer: The digital era and social media have caused major problems for businesses, including security breaches and false information.

After making a decision, Rosario seeks information that confirms the decision was a good decision and ignores conflicting information. This is an example of:

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Rosario seeking information that confirms her decision was a good decision while she ignores conflicting information, is an example of: confirmation bias.

What is a confirmation bias?

A confirmation bias can be defined as the tendency of an individual to search, favor and recall information in such a way that it's consistent, supports and favors one's existing beliefs and decisions.

In this context, an example of confirmation bias would be Rosario seeking information that confirms her decision was a good decision while she ignores conflicting information.

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An investment center has income of $3,000,000 and average assets of $25,000,000. If the company has a target income of 12% of average assets, then residual income for the investment center is:

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Based on the income of the investment center and the average assets, the center's residual income is $0.

What is the residual income for the center?

First find the target income:

= 12% x Average assets

= 12% x 25,000,000

= $3,000,000

The residual income is:

= Income - Target income

= 3,000,000 - 3,000,000

= $0

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Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership. Marco, Jaclyn, and Carrie each have an outside basis in his/her partnership interest of $104,000. On January 1 of the current year, Marco sells his partnership interest to Ryan for a cash payment of $137,000. The partnership has the following assets and no liabilities as of the sale date:

Tax Basis FMV

Cash $ 18,000 $ 18,000

Accounts receivable 0 12,000

Inventory 69,000 81,000

Equipment 180,000 225,000

Stock investment 45,000 75,000

Totals $ 312,000 $ 411,000

The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago

Required information

a. What are the hot assets $ 751(a)] for this sale?

i. Accounts receivable

ii. Inventory

iii. Stock investment

iv. Potential depreciation recapture in the equipment

b. What is Marcoâs gain or loss on the sale of his partnership interest?

c. What is the character of Marcoâs gain or loss?

i. $23,000 ordinary income and $10,000 capital gain

ii. $10,000 ordinary income and $23,000 capital gain

iii. $33,000 ordinary income

iv. $33,000 capital gain

v. None of these

Answers

a. The hot assets per Section 741(a) for this sale are as follows:

i. Accounts receivable

ii. Inventory

iv. Potential depreciation recapture in the equipment

b. Marco's gain or loss on the sale of his partnership interest is $33,000.

c. The character of Marco's gain or loss is iv. $33,000 capital gain.

What is a partnership interest?

A partnership interest refers to a partner's ownership and benefits that accrue from the partnership.

The partnership interest entitles the partner to participate in the distribution of profits and losses arising from the partnership business.

Data and Calculations:

Each partner's outside basis = $104,000

Sale proceeds of Marco's partnership interest = $137,000

Gain = $33,000 ($137,000 - $104,000)

Thus, Marco, who sold his partnership interest to Ryan, had a capital gain of $33,00 because of the difference between the sale proceeds and the partner's adjusted basis in the partnership interest.

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The power the Federal Reserve has to control credit terms on some loans made by banks and other lending institutions is called ______ controls. Group of answer choices selective credit selective debit secure credit demand credit interbank feedback

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The power the Federal Reserve has to control credit terms on some loans made by banks and other lending institutions is selective credit.

What is selective credit?

This refers to the policy of Central Bank related to selective sectors of economy.

It controls the credit terms on some loans made by banks and other lending institutions. This power, called selective credit controls, includes consumer credit rules and margin requirements.

Hence, the power the Federal Reserve has to control credit terms on some loans made by banks and other lending institutions is selective credit.

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2. Why has the online channel been more successful in the computer hardware industry compared with the grocery industry

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The online channel has been more successful in the computer hardware industry compared with the grocery industry Because computer hardware has a lot more useful compared to Groceries.

What is Supply chain management?

Supply Chain Management (SCM) is the process of managing the movement of goods and services from raw product manufacturing to consumer consumption.

To transfer a product through each stage of this process, an organization needs a network of suppliers (who act as links in the chain).

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10,000 kcal of producer could support approximately _____ kcal of tertiary consumer.

Answers

Answer:

The answer is 10.

Explanation:

10,000 kcal of producer could support approximately 10 kcal of tertiary consumer.

A firm conducting an IPO of common stock sold 1 million new shares in the offering at an offer price of $10 per share. After the offering, the firm had 5 million shares outstanding, and the price of those shares in the secondary market was $12. The firm's market capitalization is ________.

Answers

The firm's market capitalization after the Initial Public Offering (IPO) with an outstanding shares of 5 million and current market price of $12 is $60 million.

What is market capitalization?

Market capitalization is the value of a firm's outstanding shares based on the current market price.

For this firm, the market capitalization is calculated as $60 million ($12x 5million).

Thus, the firm's market capitalization is $60 million.

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As a CEO, Olivia tries to empower lower-level managers to have some decision-making authority and encourage values and norms that facilitate change and innovation. Olivia is making the organization more ______.

Answers

Based on this information, Olivia is making the organization more organic, which is based on a management model focused on human development.

What is an organic organization?

It refers to an organizational management system that tries to reduce the degree of formality and impersonality that exists in the bureaucratic organization, including people from all organizational levels.

It emphasizes the social system and the initiative of the people, it has a highly adaptive structure and it allows changes and innovations to occur as quickly as necessary.

Therefore, we can conclude that based on this information, Olivia is making the organization more organic, which is based on a management model focused on human development.

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One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where:.

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The major difference is that; a perfectly competitive firm produces has the choice to dictate the number of products to make, whereas a monopoly system has market power.

What is the difference between perfectly competitive firm and a monopoly system.

Perfectly competitive producers are those who can determine how the number of products to be made but not the price at which their output may be sold.

However, a monopolistic system has the power to dictate the price because there is only one producer and numerous customers. Hence, they possess a high market power than the perfectly competitive producers.

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L&L, a beverage company, has launched a new energy drink. It sponsors a marathon in the city as part of its promotional strategy. It also issues a press release about the sponsorship and persuades media reporters of different newspapers to print it. L&L is generating _______.

Answers

If it sponsors a marathon in the city as part of its promotional strategy. L&L is generating publicity.

What is publicity?

Publicity can be defined as a form of product awareness as it enables a company to create awareness or advertise their product to potential customers.

Monst companies tend to make use of publicity as a form of of brand promotion as well as sales promotion.

Therefore L&L is generating publicity.

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A seller wants to break even after the broker’s commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?

Answers

At $315,789 the house must be sold after taking into consideration the broker's commission.

What do you mean by broker’s commission?

A broker’s commission is a brokerage firm employee who is compensated for the number of trades they execute for clients.

These brokers typically earn a percentage of the assets traded by their clients, which means that the more a client trades, the more money they make.

In order to calculate the selling price, we have to start with 100% minus a 5% commission, which is 95% or .95.

Take $300,000 and divide this amount by .95.

This will give the amount or the price at which we can sell the house which is $315,789.

Thus, At $315,789 the house must be sold after taking into consideration the broker's commission.

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The current yield on a bond is the yearly interest of the bond divided by the cost of the bond at closing. Group startsTrue or FalseTrue, unselectedFalse, unselected

Answers

The statement that the current yield on a bond is the yearly interest of the bond divided by the cost of the bond at closing if false.

What is current yield?

The current yield is also defined as the interest yield or income yield or flat yield or market yield or mark to market yield or running yield.

It is a financial term that is used in quotation to bonds and another fixed-interest securities like golds.

The formula of calculating the current yield are as follows:

[tex]\text{Current Yield} = \dfrac{\text{Annual Interest Earned}}{\text{Current Price of the Bond}}[/tex]

Therefore, the given statement is false.

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The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and __________. Group of answer choices transport vendors. rack jobbers. point of purchase wholesalers. display vendors.

Answers

Answer:

Rack jobbers

Explanation:

Kensington, Inc. is considering an investment in new equipment. The project has a payback period 3.25 years and its initial cost is $36,000. Determine the missing cash flow from the list below. Year 1: $9,000 Year 2: $12,000 Year 3: $

Answers

The amount of missing cash flow for the year 3 is $12,000 on the amount of investment of $36,000 made by Company K.

What is the payback period?

The payback period is one of the methods of capital budgeting that enables us to know the number of years in which the invested amount gets recovered. It is determined by dividing the cost of investment by the annual cash flows.

Given values:

Amount of investment: $36,000

Cash flow of Year 1: $9,000

Cash flow of Year 2: $12,000

Computation of cash flow for the third year:

[tex]\rm Payback \rm\ period= \rm \ Number \rm\ of \rm \ year \rm \ before \rm \ breakeven + \frac{\rm\ Cumulative \rm\ cash \rm\ flow \rm\ for \rm\ 2nd \rm\ year }{\rm\ Cash \rm\ flow\rm\ for \rm \ third \rm\ year } \\\rm 3.25 \rm\ years= \rm\ 2 \rm\ years + \frac{\$36,000-\$9,000-\$12,000}{\rm\ Cash \rm\ flow\rm\ for \rm \ third \rm\ year } \\\rm Cash\ \rm flow \rm\ for\rm \ third \rm\ year=\frac{\$15,000}{1.25 \rm\ years}\\\rm Cash\ \rm flow \rm\ for\rm \ third \rm\ year = \$12,000[/tex]

Hence, the amount of cash flow for the year 3 come out to be $12,000 by using the payback period formula.

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An item that requires separate disclosure on the income statement after income from continuing operations is Multiple choice question. discontinued operations. interest expense. research and development costs. restructuring costs.

Answers

An item that requires separate disclosure on the income statement after income from continuing operations is discontinued operations.

What is discontinued operations?

Discontinued operations is a term that describe when an organization shutdown it's operations on somethings and it is a statement that shows previous income statement of the organization because there is no continuous running or operations of a segment of the company.

Therefore, An item that requires separate disclosure on the income statement after income from continuing operations is discontinued operations.

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A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

Answers

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

A) Cash-and-carry wholesaler

B) Broker

C) Retailer

D) Wholesaler

E) Commission merchant

Answer- B) Broker

The most important advantage to the corporate form of business is:.

Answers

Answer:

limiting the personal liability of its directors toward the company's creditors,

Debbie is a kindergarten assistant at Atkins' Elementary School. Since Debbie suffers from obesity, she is not able to use the chairs provided for teachers in the kindergarten rooms. Debbie requests a different chair, but her employer refuses. Debbie is protected under the Americans with Disabilities Act (ADA) only if:

Answers

Debbie is suffering from obesity which is not considered a disability under the Americans with Disabilities Act but if she proves that the obesity is occurred due to some psychological condition or disorder only then she can be protected under the concerned Act.

What is a disability?

Disability is an impairment condition of an individual where he/she is not able to perform some activities. It can be a physical or mental condition.

According to the Americans with Disabilities Act, if an employee is suffering from a mental or physical disability then he/ she should be provided with an appropriate setting of work like a wheelchair so that he/she can perform his/her duties well. The employer of the company should not be allowed to discriminate against the employees on the basis of their disabilities.

In the provided situation, the obesity problem suffered by Debbie would not be covered under the ADA Act but if she proves that the problem is caused to her due to some psychological disorder, only then it will be considered a disability under ADA.

Therefore, the obesity suffered by Debbie is not treated as a disability under ADA unless it caused her some kind of disorder.

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According to the _____________, many African Americans live in areas where there has been a reduction in work for low-skilled workers, and African-American men in particular often do not have the skills required to secure work in the current economy.

Answers

According to the b. skills mismatch hypothesis, many African Americans live in areas where there has been a reduction in work for low-skilled workers.

What is the skills mismatch hypothesis?

The skills mismatch hypothesis is an attempt to explain the reduction in work for low-skilled workers, especially African Americans.

The skills mismatch hypothesis argues that skill demands in urban labor markets increase over time.

Unfortunately, African Americans do not have the job skills and educational attainments, unlike other population groups, thereby causing a skills mismatch.

Answer Options:

a. residential segregation theory

b. skills mismatch hypothesis

c. deindustrialization perspective

d. "wage of whiteness" perspective

Thus, according to the b. skills mismatch hypothesis, many African Americans live in areas where there has been a reduction in work for low-skilled workers, and African-American men in particular often do not have the skills required to secure work in the current economy.

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Over a period of years, Engineers' salaries have increased at a rate of 8.5% per year. If inflation has been 5.5% per year, what is the real, inflation-adjusted salary increase

Answers

Answer:

3% salary increase

Explanation:

simply 8.5%-5.5%

The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. [Note: 1 unit of apparel is 1,000 items and 1 unit of chemicals is 1 ton].

China Production Possibilities

Product A B C D E F

Apparel 80,000 64,000 48,000 32,000 16,000 0

Chemicals(tons) 0 32 64 96 128 160

U. S. Production Possibilities

Product R S T U V W

Apparel 240,000 192,000 144,000 96,0000 48,000 0

Chemicals(tons) 0 48 96 144 192 240

Instructions:

a. Are comparative-cost conditions such that the two countries should specialize? If so, what product should each produce? b. What is the total gain in apparel and chemical output that would result from such specialization?c. What are the limits of the terms of trade?d. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 32,000 units of apparel are exchanged for 48 tons of chemicals. What are the gains from specialization and trade for each nation?

Answers

The opportunity cost for producing 1 unit of apparel is higher for China, therefore China should produce apparel and the US should produce chemicals.

What is opportunity cost?

It should be noted that opportunity cost simply means the real cost of forgone alternative.

Without trade, China was producing 64000 units of apparel and 32 tons of chemicals. After specialization, China produces 144000 of apparel and US produces 144 tons of chemicals.

The gains from trade will be:

= 144000 - 64000

= 80000 apparels

The tons of chemicals will be:

= 144 - 32

= 112 tons of chemicals.

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You need to revise your budget to meet your short-term goal of buying a new computer. you will need to budget $50 a month. how will you revise your budget to meet this goal?

Answers

To revise a budget to meet a goal is to compare cash flow(In flow and flow) in conjuction with the target one is expected to hit.

What is Budget Revision?

In simple terms this can be described as the act of checking and balancing the fund at hand currently with the suppposed amount to meeting a need and adjusting by cutting cost to meet this amount

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Answer:I could increase my discretionary spending to $365, which would allow me to spend $50 per month on my computer.

I could also reduce other expenses to compensate for the change. For example, I could replace my entertainment budget with a computer budget.

Explanation:

got it right

Sound and Cinema is a company that will turn an ordinary basement into a home theater. It advertises in publications that are mailed to homeowners in subdivisions in which the least expensive home costs $550,000. These homeowners are the __________ for Sound and Cinema.

Answers

Companies S and C publish advertisements to the subdivision's homeowners where the cost of the house is not much expensive. These homeowners become the target market for Companies S and C.

Who are the homeowners?

The homeowners are the individuals who owned their homes. The owners can take the insurance policy in the name of their respective homes.

The target market is the place where the group of people has the same features which a company has been analyzed to be the most common buyers of a particular product or service. in the provided situation, Companies S and C have identified the homeowners to be their targeted customers as their work is related to home theaters.

Therefore, the homeowners where the cost of a home is minimal at $550,000 become the target market for Companies S and C.

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The regional Federal Reserve Banks A. regulate banks in their regions. B. are not allowed to make loans to banks in their region. C. are each headed by a member of the Board of Governors. D. have more voting members on the FOMC than does the Board of Governors.

Answers

The Federal Reserve Bank's regional offices A. regulate banks in their regions.

What do the Fed branch offices do?

The Fed divides the U.S. into various districts and has a branch in each of these districts and regions.

These branches will regulate the banking industry in their region to ensure that they abide by the overall Fed policy.

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