1. What is the summarrization of the video?
2. what is your reaction to the video you saw making sure to tie it back to classroom topics or issues.

Videos: American Greed - Perry Griggs: Once a Scam, Always Scams (Radioplay) OR American Greed: Ponzi Scheme and Fake Suicide (both on youtube)

Classroom Topics for this week:

• creating value for investors
• determinants of value - high cash flow, low risk
• intrinsic value
• Short Run Focus RIsk = many Wall Street executives received huge bonuses for engaging in risky transactions that generated short-term profits. Subsequently, the value of these transactions collapsed, causing many of these Wall Street firms to seek a massive government bailout.
• Business Ethics - Ex: Similarly, several years ago Merck's research indicated that its Vioxx pain medicine might be causing heart attacks. However, the evidence was not overly strong, and the product was clearly helping some patients. Over time, additional tests produced stronger evidence that Vioxx did pose a health risk. What should Merck have done, and when should Merck have done it?
• Consequences of Unethical Behavior - Ex: Enron and WorldCom executives were busily selling their stock at the same time they were recommending the stock to employees and outside investors. These executives reaped millions before the stock declined, while lower-level employees and outside investors were left "holding the bag."