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Bailing Out America: An Honors Thesis Addressing The Bailout And Financial Crisis Of 2008, Reuben Cash

Honors Theses

This paper analyzes the financial crisis of 2008 and the resulting government intervention of the Troubled Asset Relief Program, or more generally called "the bailout." Beginning with historical context of past interventions, it sets forth an understanding of the economic environment of 2008. After explaining the mechanics of the financial crisis, it proposes that the reinsurance products underlying the financial markets in 2008 were based on unsound accounting and risk management principles. Based on this proposition, the representational faithfulness and fairness of mark-to-market accounting principles are examined. The paper concludes that a short-term financial focus is largely to blame for …