Article Review: Market Turmoil May Require New Ways to Build Capital Article Review by Nicky

Article Review: Market Turmoil May Require New Ways to Build Capital
An article review of Michael Goldman's "Market Turmoil May Require New Ways to Build Capital".
# 149115 | 1,082 words | 1 source | APA | 2011 | US
Published on Nov 25, 2011 in Economics (International) , Business (General)


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Description:

The following paper reviews the article "Market Turmoil May Require New Ways to Build Capital" by Michael Goldman. A synopsis of the content provides an acknowledgement that financial times are changing. The changes, Goldman argues, are largely uncertain. The writer specifies the articles main points and provides three supporting opinions of the article. Finally, a summary and opinion of the thesis is presented.

Outline:
Introduction
Article Synopsis
Specification of Thesis's Main Point
Three Supporting Opinions/Reasons
Three Opposing Opinions/Reasons
Summary

From the Paper:

"The Internal Revenue Service is Goldman's (2009) second supporting source. Not known for their empathy, the IRS has eased rules so that homeowner's facing tax liens can sell or refinance their homes. In fact, in some instances, "the IRS is willing to subordinate its interests in favor of mortgage holders" (p. 24). Of course, as Goldhorn notes, there is a 50 percent chance now that the federal government is the mortgage holder.
"Lastly, Goldman (2009) uses the state of the banking industry's stranglehold on capital currently as a third support for his position about how the economic environment has changed. Despite the fact that the government is giving money hand over fist to the banks, banks don't appear to be following suit. Where bankers are aggressive on the calling-loans-in front, they're much less aggressive on extending-new-credit front. Goldman notes that equity investors are nearly extinct as either their own resources have dried up or they're waiting for an even better deal. This, he purports, makes it very difficult to calculate "the cost of something (capital) that at the moment is scarcer than snow in the desert" (p. 24)."

Sample of Sources Used:

  • Goldhorn, M. (Jan/Feb 2009). Market turmoil require new ways to build capital. The Value Examiner. pp. 23-30.

Cite this Article Review:

APA Format

Article Review: Market Turmoil May Require New Ways to Build Capital (2011, November 25) Retrieved September 18, 2020, from https://www.academon.com/article-review/article-review-market-turmoil-may-require-new-ways-to-build-capital-149115/

MLA Format

"Article Review: Market Turmoil May Require New Ways to Build Capital" 25 November 2011. Web. 18 September. 2020. <https://www.academon.com/article-review/article-review-market-turmoil-may-require-new-ways-to-build-capital-149115/>

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