670 wk3 db1 res | Business & Finance homework help

Respond to… 

Don't use plagiarized sources. Get Your Custom Essay on
670 wk3 db1 res | Business & Finance homework help
Just from $13/Page
Order Essay

• How could government regulations have prevented or mitigated the credit crisis of 2008?
• Discuss whether too much governmental regulation of business or too little governmental regulation of business presents the greater danger to:
o the greater good
o business

After watching the video The Crisis of Credit Visualized, I have a much better understanding of the bigger picture of what happened in the 2008 credit crisis. I was aware that it was a result of the banks giving mortgages to people who they shouldn’t have given a mortgage to, but I didn’t fully understand the reasoning that drove that act. This was a very clarifying video that explained the credit crisis very well.

I think that if the government would have set regulations on the qualifications of a mortgage to regulate the irresponsible lending that occurred to people who could not possibly have afforded the loans that they were taking out, this could have prevented the crisis. Responsible lending and borrowing are important not only for the person taking out the loan and for the bank, but for the entire economy. This is what I think justifies the government regulation in this area because it affects the greater good, not just one person or company. Government regulation of the requirements of who qualifies for a loan, such as the debt vs income ratio, credit score, employment verification, etc., would have averted this crisis.

Government regulation is a tricky subject. Whether too little or too much government regulation poses the greater danger to the greater good and to business is a very difficult question to ponder. “As both government and government regulation have steadily grown, starting in the first half of the 20th century, agencies, as the instrumentality of that growth, have likewise swelled in size and power” (Seaquist, 2012, section 5.1). The government agencies have gained more power in business and have made more regulations and rules over time, but as we have seen in the video The Crisis of Credit Visualized this may be for the greater good of the people. Without these regulations and rules, it seems that wealth and greed can drive businesses and people to act in a way that is detrimental to the greater good.

Too much government regulation on business can be a bad thing for businesses because it imposes more rules and regulations that the business would have to follow, which means more work for the business. For a business this can also become costly because of the amount of money that the business will have to spend to remain compliant, and the amount of money that the business will have to spend in fines if they are found to be out of compliance. “A congressional grant of authority to an agency often includes the ability to carry out investigations, create rules that are the functional equivalent of statutes, hold hearings to adjudicate alleged violation of agency rules, and assess punishment (usually by way of fines) to those adjudicated to be in violation of the agency’s rules” (Seaquist, 2012, section 5.2). The company that I work for in insurance is highly regulated by the government, and as a company we focus a lot of time and money on being a compliant company.

Seaquist, G. (2012). Business law for managers [Electronic version]. Retrieved from https://content.ashford.edu/
The Crisis of Credit Visualized (Links to an external site.) on Vimeo. (n.d.). Vimeo, Your Videos Belong Here. Retrieved October 19, 2012, from http://vimeo.com/3261363

Respond to… 

How could government regulations have prevented or mitigated the credit crisis of 2008?

Government had the power in their hands to have prevented the credit crisis in 2008. I remember working for a financial institution at the time and we as a bank had a quota to meet in lending. I recall we were pulling out loans like hot cakes, we were lending to people we knew there was no way on earth they were going to be able to pay back that loan. Our loans consisted of no income verification, if a client told us they made $100,000.00 a year working at McDonald’s and wanted to purchase a home for $400,000.00, we gave them the loan. We would take their word for it. It was really sad really, we knew the bomb was going to go off any minute, but we did as we were told.

Many families lost their homes due to the fact, that home prices went up so quickly, people now had so much equity to play with. They were flocking to the banks to pull out the equity of their homes. If the government had not pushed banks to lend as much as they did and had regulated how they lend, this might not have happened.

Discuss whether too much governmental regulation of business or too little governmental regulation of business presents the greater danger to

As per government regulation for greater goods, it is important to implement some form of regulation to give businesses some sense of responsibility. “Many sectors of the business world have long complained about government regulations and their restrictive nature” (Davis, 2018, sec 1). It makes the business take the extra steps so they don’t get fined. “If a big business could speak with one mouth, it would likely say that regulations hold it back and cost everyone in the long run” (Davis, 2017, sec 3).  As per too little regulation, it allows the business to cut corners and take the easy way out to save money. A great example was the banking industry in 2008, they were not regulated, and that caused most of the issues with the Credit Crisis.


Davis, M.  (2017, August 15, updated).  Government regulations: Do they help businesses?  Investopedia US. Retrieved July 22, 2019, from http://www.investopedia.com/articles/economics/11/government-regulations.asp#axzz2NKQbBiWH

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

At 111papers.com, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

Read more

Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

Read more

Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. 111papers.com prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Read more

Privacy Policy

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

Read more

Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages