Welcome

Welcome to Surinder Sharma's blog regarding Subprime Loans: The Under-the-Radar Loans that Felled a Market for MGT7019-8 at NCU.

SharmaSMGT7019-8, Assignment #6

Surinder Sharma

Northcentral University

Ethics in Business

MGT7019-8

Dr. Roger Holt

July 7, 2013

Concept of Subprime Loans, History, Risks, and the Crisis

Bernanke described economics as, “a highly sophisticated field of thought that is superb at explaining to policymakers precisely why the choices they made in the past were wrong. About the future, not so much” (2013). To further contemplate on this view, in the first blog, I shall briefly describe the subprime mortgage market concepts, history, risks and the crisis.

Role of the Leadership Decision Making, the Failure at Social Responsibility in Subprime Loan Crisis, and the Findings

To pass the ethical muster, he continues and quotes the Gospel of Luke, “From everyone to whom much has been given, much will be required; and from the one to whom much has been entrusted, even more will be demanded” (Bernanke, 2013). During the medieval times, charging interest was considered a punishable sin and a disgrace (Watkins, 2011, p.364). On the other end of the spectrum, the Goldman Rule says, “pursue profitable opportunities regardless of the effects on others” (Watkins, 2011, p.363). 

Measures Taken Since the Subprime Loans Crisis to Assure This Will Not Happen Again

The questions that I would like to deliberate in this blog are: did the bailouts shield the people from learning the lessons or left them with old habits? Did we leave the Goldman Rule of “pursue profitable opportunities regardless the effects on others” intact (Watkins, 2011, p.363)?