News Paper Economic issue Article Example | Topics and Well Written Essays - 500 words

News Paper Economic issue - Article Example While discussing the proposed payments and buying of the assets, the article also deals with how the government would like to have control over the banks at a scale â€Å"not seen since the great depression of the 1930’s†. This is significant as they have been questions over the way the government has been bailing out banks without asking for accountability in return. The article is disapproving of the way in which the government is silent on â€Å"specifics† on how and where the money from the stimulus package is going to be spent. From an economic point of view, the government is well within its rights to print more money and flood the economy with liquidity. However, it would be prudent to consider the inflationary effects of such a move. Further, the direct involvement of the government in the running of the banks may be a welcome sign in these times when reckless corporate greed and unethical behavior have undermined the credibility of financial institutions in the United States. The effect of such governmental intervention may not be exactly in the spirit of laissez faire economics but the current situation is that it would not be a bad idea if the rampant speculation and recklessness are reined in. This paper is in response to the article, â€Å"To Fix Detroit, Obama is said to drop plan for ‘Car Czar’â€Å"that appeared in the New York Times on Feb 15, 2009. The article discusses the cancellation of the appointment of an ombudsman to oversee the restructuring of the Big three automakers: GM, Ford and Chrysler. Instead, the article points out that the president himself would like to oversee the restructuring of the troubled automakers and thus there is no need for a â€Å"Car Czar†. The article is economic in nature as it pertains to the rescue of GM and Chrysler from near bankruptcy and their bailout under a federally guaranteed scheme. The article

International Finance Paper (Home Depot) Essay Example | Topics and Well Written Essays - 1500 words

International Finance Paper (Home Depot) - Essay Example During the years 2008 and 2009, the company was forced to lay off more than a thousand employees and 54 stores across US had to be closed. This includes the whole of the EXPO Design Centre Chain, which was engaged in high end retailing. In the year 2009 the company logged a sales figure of $71.288 billion, which was $20 billion less than was at it was in 2007. This paper deals with the various financial issues encountered by Home Depot during the course of its operation and talks about the measures, which the company is undertaking to deal with the same. As a business policy, HDI was engaged in mergers and acquisitions from the early days of its operations. The company also later on diversified its operation into other countries like Canada and Mexico, where in it needed expert advice on the various complex issues related to international finance. In these circumstances the company made a deal with Invemed Associates, who are engaged in the business of investment banking. An investment bank has departments like the Corporate Finance, which deals in the areas of mergers and acquisitions along with providing finance related consultancy to the clients. Another important division in the company is of the Research, which is concerned with analysis and valuation of shares and bonds, the recommendations on which are then presented to the clients. An investment bank also provides consultancy to their client’s for raising debts and equity from the market. Invemed Associates is required to constantly monitor the financial health of HDI and report on the same to the Board of Directors of HDI. Invemed is also required to inform the board on any economic trend that is relevant to the type of business in which the company is engaged in. Invemed Associates advises HDI every time it wishes to borrow money from the market or issue securities to the public.  (FindLaw, 2009) Before the sale of Home depot supply in