Recession And Fraud
The History Of The Modern American Economy
DOI:
https://doi.org/10.58445/rars.1969Keywords:
Fraud, Economy, Recession, Mortgage-backed securities, public holding companies, market-to-market accounting, economic bubbleAbstract
In this paper, I will delve into the root causes of both large-scale economic recessions and details of prolific fraud cases in history. Based on this information, I will also explore the consequences of these events, specifically how large groups of people were harmed by fraudulent actions and reckless economic trends. In prolific fraud scandals such as the Bernard L. Madoff Investment Securities LLC, the largest Ponzi scheme in history, and the fraudulent actions of Enron and FTX, illegal behavior was used to manipulate systems to make money and subsequently harm thousands of people. Additionally, in large-scale recessions such as the ones seen in 1929 and 2008, reckless behavior over several decades resulted in major crashes that left millions desolate. Across all events, reckless and fraudulent actions in different ways resulted in prolific collapses that harmed large groups of people, and this paper will draw similarities between the causes and consequences of each.
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