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Global Financial Crisis Essay

831 words - 4 pages

There is no smoke without fire. The global financial crisis caused from hundreds of thousands of decisions and changes from different areas. The America government, Wall Street and the Rating Agencies put on this world-shaking show together. And to be more specific, the top officials in politics and finance pull strings behind the senses. Applying Mintzberg’s ten management roles model as a frame, the America government, Wall Street and the Rating Agencies are correspondingly divided into three categories as interpersonal, decisional and informational.
Government is obviously and absolutely a leader for the people in the country. People count on their government and on the other side, every ...view middle of the document...

In this case, a leader like US government was using telling style, which “reflects a high concern for tasks and low concern for people and relationships” (Samson &Daft, 2012). Millions of people in the bottom with poor ability and little experience were the followers of US government and even when the information government gave was wrong, they bought it. That makes a leader or a government responsible. It has been proved that the deregulation of US government in the global financial crisis caused huge damage in economics and hurt people in the country. The leadership on this issue was not good enough.
Wall Street is an epitome of the financial market of United States. And because of the existing of giant companies and banks like Lehman Brothers, Citigroup and Goldman, Wall Street represented development toward of the financial system at that crisis time and every movement and decisions from Wall Street had huge influence. Hence, Wall Street can be seen as a decision maker in the global financial crisis but an unwise one who put his own profit over the bottom people. CDO is the typical product during the global financial crisis. Government and companies encouraged people who may had low skills, poor English and low education level to buy houses and cars that they cannot offer, therefore people would borrow from the banks. Investment banks then sold CDO to investors and once they transfer their risks, they didn’t have to worry about repayment anymore. Without liability of repayment, investment bank issued more...

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