How Might the Behavior of Professional Investment Managers Prior to the Financial

question 50

Essay

How might the behavior of professional investment managers prior to the financial crisis of
2007-2009 contributed to the depth of the plunge of corporate and mortgage security prices during the crisis?

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Definitions:

Globalization

Term that became prominent in the 1990s to describe the rapid acceleration of international flows of commerce, financial resources, labor, and cultural products.

Immigration

The action of coming to live permanently in a foreign country, often for personal, economic, or safety reasons.

Gulf Oil Spill

Environmental disaster that occurred in 2010 after an explosion on the Deepwater Horizon oil rig. Hundreds of millions of gallons of oil were spilled into the Gulf of Mexico, resulting in one of the largest environmental calamities in human history.

Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.