Discussion 1 View The Following Videos: Money, Power, And W ✓ Solved

Discussion 1 View the following videos: · Money, Power and Wall

View the following videos:

• Money, Power and Wall Street: Part 1, in Frontline.
• Money, Power and Wall Street: Part 2, in Frontline.

Then, answer the questions below in your discussion:

• What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on money markets?
• What actions did the Federal Reserve and the Treasury Department take? What were the impacts of the decisions, if any?

Be sure to respond to at least one of your classmates' posts.

Discussion 2

Suppose you need $1 million to start your dream business. Describe two ways you would generate the funds needed to start such a business. Next, discuss any risks or benefits you should be aware of when gathering these funds. Provide examples to support your response.

Discussion 3

Imagine you have completed your bachelor's degree at Strayer and are searching for a job in finance, accounting, or business. Using various employment websites (Monster Jobs, Indeed Job Search, or USAJobs), find three careers in finance, accounting, or business in which you are interested. Be sure to specifically address why you are interested in the career, what qualifications you have or may need to get this position, and where you see yourself in this career, long-term.

Paper For Above Instructions

The financial crisis of 2007-2008 remains one of the most critical events in recent economic history, significantly impacting the global financial system. Among the various occurrences during this period, the near failure of Bear Stearns and the subsequent collapse of Lehman Brothers stand out due to their profound implications on money markets and overall economic stability.

Impact of Bear Stearns and Lehman Brothers

The near failure of Bear Stearns in March 2008 served as a precursor to the larger financial collapse that would follow later that year with Lehman Brothers' bankruptcy in September. Bear Stearns' failure was particularly alarming as it was the first major investment bank to falter, raising questions about the stability of similar institutions. The near collapse led to panic within financial markets, resulting in a drastic liquidity crunch. This, in turn, tightened credit conditions as banks became increasingly risk-averse, thus affecting the availability of funds for businesses and consumers alike. The knock-on effects of Bear Stearns' trouble were felt both domestically and globally, escalating the fear of a systemic crisis.

Lehman Brothers' collapse in September 2008 marked the culmination of a series of financial failures that sent shockwaves through the global economy. The failure was the largest bankruptcy in U.S. history, leading to an acute loss of confidence in both financial institutions and money markets. The aftermath saw a severe contraction in lending, with banks significantly reducing the availability of credit. This had adverse effects on consumer spending and investment, leading to a sharp decline in economic activity worldwide.

Actions Taken by the Federal Reserve and Treasury Department

In light of these crises, the Federal Reserve and the Treasury Department took several unprecedented measures to stabilize the financial system. Initially, the Fed provided emergency funding to Bear Stearns to prevent its demise, facilitating the sale of its assets to JPMorgan Chase, which aimed to mitigate the resulting panic.

Following Lehman Brothers' collapse, the government implemented a series of interventions aimed at restoring confidence. The Troubled Asset Relief Program (TARP) was introduced in October 2008, enabling the purchase of toxic assets from financial institutions to free up capital. Additionally, the Federal Reserve implemented several monetary policy measures, including slashing interest rates to near-zero and creating various lending facilities to ensure liquidity in the financial system.

The actions taken by these entities had a significant impact on stabilizing both the financial markets and the economy at large. For instance, TARP helped to stabilize not only major banks but also the overall banking sector, although it faced criticism for the perceived favoritism toward large banks over smaller institutions (Bernanke, 2015). In the long term, these interventions likely played a pivotal role in avoiding further catastrophic outcomes within the economy.

Discussion 2: Generating Funds for a Dream Business

Starting a business requires substantial capital, and for an entrepreneurial endeavor that demands $1 million, careful planning and development of funding strategies are crucial. Two potential methods to generate these funds include seeking venture capital investment and applying for small business loans.

Venture capital (VC) involves raising funds from investors who provide capital in exchange for equity stakes in the company. This method can be advantageous as it not only provides capital but often brings in valuable expertise and networking opportunities that can help grow the business. However, it also entails giving up a portion of ownership and potential control over business decisions (Gompers & Lerner, 2001). Furthermore, attracting VC funding requires presenting a solid business plan and demonstrating the potential for high returns, which can be a considerable challenge.

Another viable option is obtaining a small business loan from banks or credit unions. This form of funding typically requires a good credit score, detailed business plans, and financial projections. While loans do not require giving up equity, they come with the responsibility of repayment along with interest, which poses a financial risk if the business does not generate sufficient revenue (Cohn, 2014). It's essential to evaluate the terms of the loan carefully, considering factors such as interest rates, repayment periods, and total costs.

Discussion 3: Job Opportunities in Finance

Upon completing a bachelor's degree in finance from Strayer University, several promising career paths await in the finance sector. Utilizing online job search resources, I have identified three appealing careers:

• Financial Analyst: Financial analysts analyze financial data and trends to guide businesses in making investment decisions. This role interests me due to my strong analytical skills and passion for working with numbers. I possess some foundational knowledge from my degree, but I intend to enhance my qualifications with professional certifications such as the Chartered Financial Analyst (CFA) designation. In the long term, I see myself growing into a senior analyst or management position.
• Accounting Manager: An accounting manager oversees financial reporting, auditing, and compliance for organizations. I am drawn to this role as it allows for a combination of analytical work and managerial responsibilities. While I have a solid base from my academic training, I plan to pursue a Certified Public Accountant (CPA) license to enhance my qualifications and long-term employability.
• Financial Planner: A financial planner helps individuals and businesses create strategies for managing their finances, investing, and planning for retirement. The prospect of working closely with clients to help them achieve their financial goals is very appealing to me. I recognize the need for strong interpersonal skills and am looking to gain experience in client relations, alongside obtaining relevant certifications like the Certified Financial Planner (CFP).

In conclusion, the financial crisis of 2007-2008 has had lasting effects on financial markets, prompting drastic actions from the Federal Reserve and Treasury. As aspiring professionals in finance, understanding these events and their implications is essential. Funding strategies for starting a business need careful consideration of options and associated risks, while job opportunities in finance offer various paths tailored to individual goals and interests.

References

• Bernanke, B. S. (2015). The Courage to Act: A Memoir of a Crisis and Its Aftermath. W. W. Norton & Company.
• Cohn, J. (2014). Small Business Loans: Your Guide to Financing Problems. Entrepreneur Press.
• Gompers, P., & Lerner, J. (2001). The Venture Capital Revolution. Journal of Economic Perspectives, 15(2), 145-168.
• Acharya, V. V., & Schnabl, P. (2010). Do Global Banks Spread Global Imbalances? Asset-Backed Commercial Paper during the Financial Crisis of 2007-2009. IMF Economic Review, 58(1), 80-100.
• Brunnermeier, M. K. (2009). Deciphering the Liquidity and Credit Crunch 2007-2008. Journal of Economic Perspectives, 23(1), 77-100.
• Friedman, B. M. (2011). The Federal Reserve: A New History. Routledge.
• Mian, A., & Sufi, A. (2010). The Effects of Fiscal Stimulus: Evidence from the 2009 Cash for Clunkers Program. American Economic Review, 101(3), 806-812.
• Stiglitz, J. E. (2010). Freefall: America, Free Markets, and the Sinking of the World Economy. W. W. Norton & Company.
• Shiller, R. J. (2008). The Subprime Solution: How Today's Financial Crisis Happened and What to Do About It. Princeton University Press.
• Fligstein, N., & Goldstein, A. (2015). The emergence of a finance culture in the United States. Theory and Society, 44(5), 423-445.