![]() Key terms and definitions related to the economy featured in the book are liquidity, collateralized debt obligation (CDO), and derivatives. businesses also appeared in the story as Sorkin included their stories and opinions to emphasize the severity of the crisis that was up to becoming global. The book states that the actions from the government’s end were irresponsible, leading the financial structures to unnecessary risk-taking (Sorkin 160). Sorkin provides the list of the characters, based on the companies affected, governors, and legislators. ![]() ![]() Paulson interacted with Lehman Brothers’ competitors and other enterprises like Freddie Mac or Fannie Mae, which could be at the highest risk caused by the housing boom (Sorkin 44). The characters of Too Big to Fail are the affected companies’ executives and Henry Paulson, the Treasury Secretary who initiated the bankruptcy of Lehman Brothers. The particular event that prompted Sorkin to write Too Big to Fail was the Lehman Brothers, an investment banking company, drowning in the credit crisis and the attempts to get support from the U.S. Merle (2018) states that “in the United States, the stock market plummeted, wiping out nearly $8 trillion in value between late 20”. ![]() The most significant cause of the crash was the housing market bubble filled with high-risk loans, which led the banks to fail and ask for a governmental bailout (Merle). ![]() The financial crisis of 2008 led the United States to the severest economic decline since Great Depression. ![]()
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