Lamontrey PattersonPOLS 23115/5/2019Inside the Meltdown1.) With both Paulson and Bernanke’s ideology being that they were for moral hazard, they wanted to let the big company’s suffer for poor management and not get involved. Seeing that Paulson believed thefree market will overcome. The recession caused by banks not giving out loans forced them to abandon their beliefs and eventually use the government’s money to buy into big companies to help the economy.2.) I agreed with Paulson’s ideology throughout the documentary and that these big corporations should be held accountable. But in hindsight I do think the federal government did the right thing to bail out thebanks, because if not the effect on the economy would have been detrimental. 3.) I do believe the bailout could incentivize risker behavior, especially if the corporation has ties to multiple other big corporations. When CEO’s know that their bank has a big hand in the economy, they could be risky in business deals, because the economy is needs them to stay afloat. On that same sentiment I would like to believe the example made out of Bear Sterns would deter banks from doing
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