The 2008 Wall Street crisis caused the world to experience the most devastating economic disaster since the 1930 Great Depression. \u00a0A significant cause of this crisis was due to defective mortgages (i.e. mortgages that did not contain all of the required documents) which created the housing bubble of 2006.\u00a0 With little or no regard for the welfare of the general public, the companies writing high-risk mortgage loans eventually left people homeless and themselves penniless.<\/p>\n
I believe that the basis of business ethics is the feeling of sympathy.\u00a0 Only when people can feel sympathy for each other do the standards of ethics begin to take affect.\u00a0 As Adam Smith said in The Theory of Moral Sentiments, humans have an inherent tendency to sympathize with others.\u00a0 However, this is usually when the two subjects are closely related to each other or are directly observing the each others\u2019 situation.\u00a0 In the case of the 2008 economics crisis, a group of highly intelligent people manipulated the system unethically in order to maximize their profits, because their sense of sympathy during the process was reduced due to the complexity of the process itself.<\/p>\n
Informative Video on the Wall Street Crisis:\u00a029 Oct 2008 Wall Street Expects Collapse<\/a><\/p>\n Works Cited:<\/p>\n “Wall Street: Wall Street’s crisis.”\u00a0The Economist – World News, Politics, Economics, Business & Finance<\/em>. N.p., n.d. Web. 18 Nov. 2012. <http:\/\/www.economist.com\/node\/1088<\/p>\n","protected":false},"excerpt":{"rendered":" The 2008 Wall Street crisis caused the world to experience the most devastating economic disaster since the 1930 Great Depression. \u00a0A significant cause of this crisis was due to defective mortgages (i.e. mortgages that did not contain all of the … Continue reading