Analysis the Roots and future of Financial Problems in Wall Street
Introduction
Since the recent collapse on Wall Street about five year ago, the nation is still yet to recover from most of the negative effects that came with such a catastrophic event. Millions of American lost their job without prior warning (Barley,2). Most of the men who were adversely affected included those that held positions in the middle and lower income earning categories.
In the light of job loss and chaos in the nation, it was clear that some of the top managers had already acquired their golden parachutes. Investigations show that billions of dollars vanished from the mainstream. The CEOs and company owners siphoned money in the form of huge retirement bonuses, among other ways that ultimately crippled Wall Street. The use of high-risk lending strategy has been stated as one of the key factors that contributed to financial problems in Wall Street (Rapoport,4). The use of unethical lending practices and the total pollution of the financial system are also stated as contributing factors.
Investigations show that the financial problems in Wall Street can be avoided. On the opposite hand, we have to accept the fact that not so many companies are willing to play their cards right in an environment where dirty dealings rule (Smith,1). Without the development of proper ways to monitor the investment practices of the financial institutions in Wall Street, it would be impossible to tackle unethical behaviors including internal account trading. Before more ordinances are put in place, we might us well brace ourselves and face further effects of proprietary trading, rather than getting quality service from wall street.
Wall Street is controlled by experts in numerous fields. It is a key origin of employment to millions of Americans who once suffered as a result of its mis-management. In order to guarantee that the community is not crippled by a few selfish individuals again, it is important to investigate and find out; if a solid solution can be reached. This goes in line with ensuring that the adverse effects of financial problems in Wall Street are not felt again (Chaudhuri,6). The depression saw many institutions close shop, and a solution must be determined to avoid a repeat of the same.
Works Cited
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