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Terms in this set (23)
How does Johnson describe the role of elites in the development of financial crises in 'emerging markets' or 'Banana's Republic's'? How do these compare with the case of the US financial crisis?
Global investors stopped lending and the weakness in the banking system was quickly ripping the rest of the economy.
-They played a central role in creating the crisis, making even larger gambles.
How has the financial industry changed over recent decades?
It has grown beginning with the Reagan years.
The flow of individuals between Wall Street and Washington
How has Wall-Street exercised political influence?
Amassing a belief system; what was good for wall street was good for the country
People of power in Goldman Sachs and other corporations held positions under former presidents
How has regulation changed over the years?
Measures for deregulation policies taken within the past decade
Government's response to the financial crisis
Delay, lack of transparency, and an unwillingness to upset the financial sector.
Who was James Theckston?
A former banker and regional vice president for Chase Home Finance which shoveled money at home borrowers.
Difference between prime and subprime loan
good credit, good income, low interest rate
A loan that is meant to be offered to prospective borrowers with impaired credit records. The higher interest rate is intended to compensate the lender for accepting the greater risk in lending to such borrowers
-lots of fees monthly fee shoots up after so many years
Which persons or entities are primarily to blame for the subprime crisis?
What kinds of loans did Theckston's bank earn greatest profit? Who were the targets of this loan and how did the bank deal with the potential losses from their most profitable loans?
Targets were people who were less educated, no previous mortgage experience or without fluent English. A bigger commission was made from the subprime loans.
Main reasons/examples provided that justify its designation of blame
Chase no longer wrote subprime or no-document mortgages and offered homeowners four times as many mortgage modifications as homes it has foreclosed on.
What is a professional and identify the key elements
-objectivity (professional knowledge)
-code of ethics
What s the author's primary thesis in the reading?
Professionals and managers are defining a new set of roles that partially reflect old, established roles played by their counterparts and also reflect new activities that are not straightforward combinations of managerial and professional work.
Brief case studies
Works at the trust department at a local branch until it ws purchased by a multistate banking conglomerate and John was the only trust manager left at the branch. There are no more advancements left at his bank.
Teaches small courses at several colleges. Fewer and fewer of her associates have regular, permanent schedules and most sign contracts on a year to year basis.
Graduated from the local medical school and looking for pediatric practice work. Expense of medical school and expenses associated with setting up a state-of-the-art practice were impossible in the 1990's. New arrangements increase the incentives to work physicians harder, leading more patients during typical day and spending less time with each patient. Mary accepts a job with a local outpatient surgical care center. It charges low, discounted fees for minor medical services and pays the physician it employs far less than those who work in other group practice arrangements.
An insurance agent working at a prestigious law firm. After about a year, Mark notices he and the other associates are expected to produce around 2,000 billable hours worth of work each year. The large corporation clients begin to do much of their work in-house, hiring salaried attorneys of their own to do work that used to produce revenue for Mark's firm. Mark has little chance to be promoted and quits.
Examine the nature of deindustrialization and its impacts
Deindustrialization is the systematic disinvestment in a nation's manufacturing capacity and infrastructure.
-many layoffs of manufacturing workers
-declines in capital investments leaving employees to maintain productivity with outdated and worn out machinery
-milking; running production at full speed but investing the profits from the existing operation in a new operation at another location
What is the meaning of capital flight and capital flow, the factors that facilitated their development and what implications do capital flight/flows have for local communities?
Capital investment increasingly moves more freely around the globe.
-advanced computer information technology
-lowering of trade barriers through global trade agreements
Communities must compete more vigorously for investment
Identify key features of the changing managerial project and how it reflects the end of the social contract between classes
Investors become more impatient, corporate managers increasingly asserted their prerogatives regarding when and how to invest, insisting other stakeholders must not interfere.
Post World War 2 compact;
Investors earned competitive returns on investments while workers provided hard work and received secure careers and full time benefits
Falling rates of corporate profits, high unemployment and inflation plus slow economic growth
workers' expectations for increased wages/benefits had grown excessive
too much regulation
-investors demand greater flexibility
How are business leaders changing the way in which professional work is carried out?
-professionals increasingly asked to account for expenses they incur
-computerized decision-making capabilities threatens to standardize professional work
-tight labor markets
Crisis of accountability and the role corporations play in driving the crisis
Questions resulting from economic changes of the increased questioning of professional practices as professional fees for service
-All professionals are asked to account for the expenses they bill for and incur.
Compare client capture and technical capture
Consumers of professional work gain the ability to control the activities, timing, and costs of professional work
Performing professional work which gains control over the skills involved in delivering professional services
The purpose of credentialing and its relationship to tight labor markets
Only certain groups of people with specific sets of educational experiences are qualified to practice a profession.
-A tight labor market can be produced when the profession loses control over credentialing
Different occupational groups compete for control of specific task domains.
-wall street/washington corridor
-belief systems "culture capital" free market ideas
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