Blog Post 5: Final Essay Outline

Paragraph 1 – Thesis

In the last twenty years, various corporate scandals and bankruptcies have had terrible effects on the public, which has called for better Federal and State regulation of Corporate Control in both private business and the operation of the stock market. Specific incidents involving the Exxon Valdez accident, the massive fraud at Enron, WorldCom, Arthur Anderson, and the serious mortgage value calculation failings by nationwide mortgage brokers associated with Freddie Mac and Fannie Mae are several examples of the need for better corporate control in firms and on Wall Street to better protect the public.

Paragraph 2 – The Goals of corporations

Ø  Supporting Idea – Their goal is to expand and maximize profits

Ø  Supporting Idea – Corporations have a responsibility to the community. They should be a goal

Paragraph 3 –     Corporate Business Ethics

Ø  Supporting Idea – Corporations should help expand the economy

Ø  Supporting Idea – Businesses need to take care of their employees

Paragraph 4 – The American Dream

Ø  Supporting Idea – The Booming American Economy in the 1990’s causes owning a home to be achievable.

Ø  Supporting Idea – Mortgage Companies were offering minimal credit test mortgages.

Paragraph 5 – Mortgage Rates and Borrowing Money

Ø  Supporting Idea – Mortgage Rates were low allowing more money to be borrowed.

Ø  Supporting Idea – Rising home prices gave a false sense of wealth and equity.

Paragraph 6 – Wall Street

Ø  Supporting Idea – The Goal of wall street is to make money

Ø  Supporting Idea – Mortgage broker and Bankers were over optimistic and acted recklessly.

Paragraph 7 – National Credit Agencies

Ø  Supporting Idea – They overvalued subpar mortgages.

Ø  Supporting Idea – Triple A ratings were given to mortgage backed securities which tempted investors.

Paragraph 8 – Reckless Behavior Became Public Information

Ø  Supporting Idea – When the knowledge became public people started defaulting on their mortgages.

Ø  Supporting Idea – The rates of Adjustable Rate Mortgages skyrocketed.

Paragraph 9 – Banks and Investors

Ø  Supporting Idea – Banks and investors began losing huge sums of money.

Ø  Supporting Idea – The Banks themselves began to fail and the government bailed them out.

Paragraph 10 – Recognition of the Crisis and Summary of Early issues

Ø  Supporting Idea –Instead of recognizing the issues that were arising companies encouraged dangerous behaviors

Ø  Supporting Idea – The system awarded fraud and falsely believing in a housing bubble that wouldn’t burst.

Paragraph 11 – What has been done since the crisis – Wall Street

Ø  Supporting Idea –Wall Street Reform act was passed

Ø  Supporting Idea –Mortgage Reform and Anti Predatory Lending act were passed

Paragraph 12 – What has been done since the crisis – American Public

Ø  Supporting Idea – Local Heroes have been working on a more sustainable form of housing.  

Ø  Supporting Idea – Private Lenders are realized that banks weren’t lending

Paragraph 13 – What has been done since the crisis – Banks

Ø  Supporting Idea –Regulators are trying to pass a minimum down payment of 20%.

Ø  Supporting Idea – Banks are fearful to Lend and are only accepting people with proper financial backing.

Paragraph 14 – Conclusion

Ø  Supporting Idea – Summary

Ø  Supporting Idea – Final stance