Countrywide CEO - Angelo Mozilo

The once ranked top 25 people to blame for the financial crisis, Angelo Mozilo, the son of a butcher and raised in the Bronx, had a vision over 40 years ago.  He was able to join with a partner and make his dream a reality, he grew the company into a Fortune 100 diversified financial services company, and was able to grow internationally as well, providing services on 3 continents.  He was known to be a fierce competitor which is what sparked his success.  Not all would remain rosey for him, however, he would soon find himself in the middle of great controversy.  He caught the eye of many investors in early 2007 when he started selling off large amounts of stock options, which to many, is a huge indicator of "problems on the horizon."  It wasn't long after that they made the notorious "watch list", which was an indication to us mortgage folk, that a company was about to sink or go out of business.  The general consensus was "Move your loans now, or you won't get what your borrower needs."  Stocks plummeted and shortly thereafter the bank found itself heading into bankruptcy court.  Mozilo left Countrywide after it was acquired by Bank of America as a bailout purchase.  Bank of America ended up having to clean up the mess that was left behind, spending approximately $8.7 billion in order to settle claims of predatory lending.

Countrywide Financial Corporation

Countrywide Financials' stock prices started dropping about a year or so before the actual recession.  I remember, because I was in the mortgage banking industry.  It was a shock to me when lending practices did an about face virtually overnight.  Countrywide was one of the biggest lenders who performed not only subprime loans but had a large portfolio of "A" paper loans as well.  In July of 2007 their stock prices dropped drastcially to an anual low of $8.21 per share.  The writing was on the wall, there was a stormy road ahead, but noone wanted to admit it publicly.  They were facing bankruptcy by the time the recession had been acknowledged in the fall of 2008, and Bank of America was stepping in to acquire their book of business. Countrywide is no longer in business, but the legacy of bad loans lives on.  

Responsibility Starts Here

The U.S. workers have most definitely suffered as a result of global trade and free trade.  The loss of good paying union jobs, outsourced white collar positions is still taking its toll on our economy. I really believe that the bigger corporate companies have done us a huge disservice and perhaps will go as far to say that we have been set back in our true economic growth.  It is more difficult for the small companies to get business loans and sustain all of the required insurances, payroll, and taxes which are required in order to run a local company.  While these large corporations are being "rewarded" by moving their business offshore.  Tariffs have been lifted, payrolls reduced significantly, lowered taxes, and in many cases, huge tax benefits and shelters for them.  I ask myself  "what can I do as an individual to help my local economy?"  I may choose to buy local produce, as well as other products made or grown locally.  In reality, I will still need to go to the stores and purchase items made offshore.  There are just too many things not made here anymore.  Perhaps the question or reasoning then becomes "how many do I really need"  Since, it seems to me that our very natures are being exploited, perhaps I should take this as an opportunity to adjust my own thinking and habits.  It seems we all, or a large number of us, are suffering from a disease of "more", not better or what is good and healthy for us, but more.  When more of us start to open our eyes and realize this, then perhaps we can effectively start combating some of these issues.

Sweatshop Conditions

Closing down all of the sweatshops around the world would be quite a task, and more than likely do the world an injustice.  While the long hours, arduous hard work loads, substandard equipment, unsafe working conditions, health and safety infringements, and extremely low wages are not appealing to us here in the United States, they are a necessary stepping stone for others in impoverished countries.  They offer an opportunity for some that can afford them a way out of their current living conditions, make education a reality instead of a dream, open doors that were once not there.  While at the same time offering us low priced, or affordable goods.  It is the grim truth that large corporations are benefiting by exploiting underdeveloped countries and their eagerness to work.  Wouldn't it be nice if there were a standard for all companies to comply with regardless if they are located in a developed or non developed country.  Some kind of way to keep them accountable to us as consumers, after all we deserve it.  We pay for it!

Consumer Worksheet

Recently I did some light research on the labor conditions and pay for laborers in China.  I was asked to look at the items I had on me and in my possession including my clothing and such.  In the process, I learned that the majority of those items are made in China.  This was really no surprise to me, however, I was then asked to look a little bit closer at the working conditions, rate of pay, and living standards compared to my own, and this is what I found:

Most of the laborers in China are poor, old, young or migrants.  It is clear that they are or were disadvantaged and that these jobs provide them with a better living.  However, the working conditions for the most part are hazardous, provide little or no safety equipment, extremely long hours, few breaks, and are very demanding physically.  I highly doubt that I would be able to or desire to work in those same conditions.

The average laborer in China working in a factory is currently making about 7 yuan per hour/Chinese which is equivalent to $1.00 dollar/American.  They are working approximately 60 hours per week which affords them an income of approximately 28,000yuan or $4,282.60 dollars.  The standard of living adjustment would indicate that it would provide an american person with an annual income of about $12,847.80, hardly enough to live on let alone try to raise a family.

The brands that I chose to focus on for the purpose of this project were:

Nike, world headquarters located in Beaverton, Oregon and the Regional Headquarters located in the Netherlands.

Levi, located in Brussels Germany and San Francisco, California.