Ethical Challenge: Too Big to Fail

Description “Too big to fail” is a concept that claims large financial institutions and/or corporations should remain operational because their collapse would aggravate a financial crisis with disastrous consequences for the rest of the economy. During the 2007-2009 financial crisis, the U.S. government rescued the “too-big-to-fail” banking and automobile industries with a large stimulus package. This package significantly increased the national debt and the federal government’s budget deficit. Answer the following questions: What were the causes of the 2007-2009 financial crisis? Were there any ethical and/or moral issues in the banking and financial services industries prior to the 2007-2009 financial crisis? Should the government almost always rescue a giant corporation when it is in the danger of collapse? What are possible reasons of a big corporation’s collapse? Should the government rescue a big corporation unconditionally when it is in the danger of collapse? What would be your Christian recommendations to avoid another financial crisis in the future? Use biblical verses to support your recommendations. Requirements: 2,000 – 2,500 words APA-compliant formatting, including title and reference pages Include biblical foundations application section (500 – 750 words) Minimum of five scholarly references The following content is partner provided