Date of Award

2012

Document Type

Thesis

Department

Business

First Advisor

Dr. Phil Rice

Second Advisor

Dr. Marshall Horton

Third Advisor

Dr. Randall Wight

Abstract

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 the crisis, while the government bailout intervention itself was helpful in re-mediating the adverse situation.

Comments

This paper is the final part of an honors thesis study undertaken by Reuben Cash, a senior as of the publication date and a member of the Class of 2012 at Ouachita Baptist University.

The research and writing of this paper was completed throughout Cash's undergraduate career from Fall 2008 until Spring 2012. Each spring semester since 2009, Cash has presented a portion of this paper at the Carl Goodson Honors Program Scholar's Day event at Ouachita Baptist University. The entirety of the research from all four years is contained in this document, representing the fulfillment of the requirements to graduate with honors program completion from Ouachita Baptist University.

This paper represents the intellectual property of Reuben Cash. All rights reserved.

 
 

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