Short answer questions about an economic article Essay

Short answer questions about an economic article - Essay Example Housing craze bubble occurred due to Goldman’s by reducing the standards of underwriting mortgages rates. They were able to trick pension schemes funds and insurance into buying into their idea. The mortgage package they offered had hidden irregularities meant to exploit the investors. Many rushed into investing thus creating a large real estate whose investment were being speculated by Goldman. Eventually, the housing bubble crumbled and investors were fleeced of their investment (Higgins 89). $4 a Gallon bubble came into being when Goldman influenced large investment companies to invest in the speculative oil market. When the world market prices declined, Goldman’s investors lost billions of investment. However, it was instrumental in manipulating pump prices rise to $4 a gallon thus continually robbing from the public. In the Rigging the Bailout bubble, Goldman’s caused the collapse of insurance and investment giants like AIG who remained deeply indebted to them. When the government chipped into bailout them, Goldman had to be paid fully despite them being behind the investment and insurer downfall. Global warming bubble occurred when Goldman covered up their bad deeds in the name of environmental conservation plan advocating for a bill that will limit carbon emission. Thus, they will trick companies into managing finances meant to reduce these emotions (Higgins 112). Goldman used its political influence to win over lucrative initial public offer deals. Its activities included bribery of executives of other investment institutions in order to be awarded future underwriting deals. Their top executives participated in a long-term greedy behaviour. They also manipulated the prices of shares to gain bonuses at the expense of its investors. Goldman’s behaviour led to shareholders and investors launching several lawsuits and it walked scot-free after manipulating the prosecution by paying a $60 million which is a small