Enron & Inside Jobs

Enron: The Smartest Guys in the Room does two things exceptionally well. It provides a detailed autopsy of what happened (without becoming so technical that everyone except the lawyers and accountants in the audience become lost) and it warns against the culture of “synergistic corruption” that has infiltrated all of corporate America. The film also offers insight into some of the unsubstantiated rumors that have been whispered since the energy giant’s collapse. Just because director Alex Gibney doesn’t venture deeply into areas where there aren’t facts to support his claims, that doesn’t mean we aren’t able to draw conclusions about things like payoffs, bribes, and the possible benefits accorded to Enron by the close relationship between Ken Lay and the Bush family. However, I watched Inside Job. It’s a movie about the global financial crisis that began in 2008 and continues to this day. This movie was made in 2010 and is narrated by Jason Bourne. The movie begins with a bit of history and how the situation arose. The eighties in particular were very good to the financial industry. In 1972 Morgan Stanley had about 110 personal, one local office, and working capital of 12 million dollars. By 2008, it had 50,000 workers, offices in many nations, and capital of several billion dollars. Other firms saw a similar increase. The director draws a direct comparison to the savings and loan crisis in the righties, of how these firms used depositor money to engage in speculation and eventually required their own bailout.

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Keynes –The Long-term Expectations

Keynes expresses his optimistic outlook for the economy through his use of logic and key terms,economic will be back on the right track, but the politics has triumphed over logic and we forget all the crucial things he explained.He also try to talk about people who run business as livelihood, as opposed to the sake of profit. According to Keynes “The state of long term expectations” is based on mathematical equations combined with the gut feeling of the investor.
Investment in current period is depend on a lager extent about expectations in the future. In the present, since capital equipment can hold it a long time, the entrepreneurs expect about the state of demand, production techniques, etc., some year in the future. It is not just the expectations, but the confidence with those expectations are held. Uncertainty can make entrepreneurs hold back to do negative expectations held with some certainty. No one can pretend to predict economic conditions in five or ten years down the track. But companies need to make decisions now because it have a big impact on the fixed capital with people in its. Keynes makes a interesting point that how investor deal with uncertainty during the financial change. Moreover, Keynes used a lot of key term,like ” prospective yields”, “the state of confidence”, “cold calculation” etc.key term to show that the his positive at his point of view of current economics.
As Keynes said that when enterprises were run by the individuals who owned them, this was very much a lottery and “investment depended on a sufficient supply of individuals who embarked on business as a way of life, not really relying on a precise calculation of prospective profit.” At this point , Keynes uses rhetorical strategies techniques to express his feeling of economics, like he uses “Logos” and “Ethos” techniques to let the reader catch up his optimistic point of view on economy. The key term “scale of investment” means an economic principle that says as production or sales increase, the cost of each unit decreases. For example, a company that increases the production capacity of a factory by adding a second shift can create economies of scale because many costs (such as the lease for the property) do not increase, or increase only slightly, while output doubles. Executives announcing merger agreements often tout economies of scale as one of the advantages of merging. Keynes use inductive reasoning to take a specific fact to represent the larger situation.
Consequently, Keynes thinks the rate of interest will be swamped by swings in expectations as a determinant of investment, and therefore monetary policy will be less effective. Hence, investment is likely to be more surely undertaken by the State. In conclusion, Keynes come to the answer for the how long we will take for expectations, long term or short term, is in chances that if we are take or not. I like his optimistic on economy, and he gives the “hope ” on the recent economy. The way his writes, he uses a lot of key term and the specific facts and evidences to prove his thoughts.

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The summary of “The Tipping Point”

Gladwell begins by discussing the inexplicable resurgence of then-terminally-uncool Hush Puppies shoes among a handful of hipsters in Manhattan’s cutting-edge enclaves in the 1990s, a trend which soon spread across the United States and resulted in exponential increases in the company’s sales. Using this phenomenon as an introduction to the book’s analytical theme, the author states that he will identify, dissect and explain the mechanisms by which certain trends take hold, while others fail.
Gladwell asserts that most trends, styles, and phenomena are born and spread according to routes of transmission and conveyance that are strikingly similar. In most of these scenarios, whether the event in question is the spread of syphilis in Baltimore’s mean streets or the sudden spike in the popularity of Hush Puppies sales, there is a crucial juncture, which Gladwell terms the “tipping point,” that signals a key moment of crystallization that unifies isolated events into a significant trend. What factors decide whether a particular trend or pattern will take hold? Gladwell introduces three variables that determine whether and when the tipping point will be achieved.

The three “rules of epidemics” that Gladwell identifies are: the Law of the Few, the Stickiness Factor, and the Power of Context. He concludes the chapter with a preliminary discussion of the Law of the Few, noting that the origins of most major epidemics of sexually transmitted diseases can be traced back to the disproportionate influence of a few “super infectors” who are personally responsible for dozens, or in some cases, hundreds of transmissions. This role is analogous to the category of people that Gladwell identifies as “Connectors,” who play an inordinate role in helping new trends begin to “tip,” or spread rapidly.

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Milton Friedman-“Essays in Postivie Economics”

It ‘s a very hard to understand to what the autor going to write, and I really don’t understand it! Moreover, compare to the Keynes’ article ,this one is more struggled. I know he talks about the difference of the postive and normative economics. But I still don’t catch up his point!!

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