The Causes of the Financial Crisis in 2008 Essay

The Causes of the Financial Crisis in 2008 - Essay Example It played a striking role in the failure of key businesses. It also contributed to the decrease in consumer wealth estimated to be in trillions of US dollars and a downturn in economic activities that led to global recession of 2008 – 2012 and also contributed to the European sovereign – debt crisis. It led to the increase of the TED spread that reflected an increase in perceived credit risk. The TED spread is the difference between rates of interest on interbank loans and on short – term U.S government debt. The spread of TED increase is shown in the graph below: The spread (in red) increases significantly during the crisis. The spread size is usually denominated in basis points e.g. if the bill rate (T - bill) is 5.1% and ED trades at 5.5% then the TED spread is 40 basis points. The TED spread has fluctuated over time but generally has maintained the range of within 10 and 50 basis points except during the financial crisis. In general the financial crisis cause d a very big damage to the world economy and many researchers have carried out studies to explain the causes of this crisis. We try to look into some of the causes below. Imprudent mortgage lending is considered a cause to the crisis as compared to a backdrop of abundance in credit, reduced interest rates, and over the roof prices for houses, lending standard became hassle free enabling many people to engage in the purchase of houses they couldn’t afford. ... Competitive pressures contributed to the increase in the amount of subprime lending during the years preceding the crisis. Source: U.S census bureau, Harvard University. State of the nation’s housing report 2008 The graph shows the dramatic expansion of subprime lending in the U.S between 2004 and 2006. Another cause was the housing bubble where the Federal Reserve allowed housing prices to sour to an all-time high that was unsustainable. Once the bubble burst as it was bound to, it triggered the crisis. The Federal Reserve maintained interest rates artificially low, per month payments to mortgage were low too and housing prices went up. Home owners took equity loans to pay their initial mortgages and credit card debts until the home prices peaked and the house of cards started to crumble. Mortgage debts would not be increased to pay previous debts. Lack of transparency and accountability in mortgage financing also did contribute to the 2008 financial crisis. Many participants in the housing finance sector contributed to the crisis through the creation of bad mortgages and selling of bad securities with confidence that they won’t be held accountable. Lenders would sell exotic mortgages to home owners without considering the repercussions in case the mortgages failed. Similarly, a trader would sell to investors’ securities that are toxic with fear of personal responsibility in case the contracts failed. The system collapsed through the maximization of personal gains and passing of the problem down the chain from brokers, to realtors, to individuals in rating agencies, and to other market participants. The great promise of managing risk by the ‘originate – to – distribute’ model of finance failed with

American Indian Essay Example | Topics and Well Written Essays - 500 words - 2

American Indian - Essay Example on in the modern world of the Americans, American Indians or the Native Americans have a number of conflicting policies toward the American Government who makes the law. The American government have policies that separate the American Indians from their lands while they are making policies to recognize their sovereign rights to their territories (Brookeman, 1990). Let us tackle how certain government policies which have been promulgated by different presidents of the United States have influenced over the overlapping of Native American policies and how being their presidency affected the rights of the natives to recognize their rights to live in the present society. President Lyndon Johnson on August 6, 1965 after years of fighting for Civil Rights signed into law the Voting Rights Act (VRA) which was considered by many as the most significant civil rights law ever enacted. This law gives the minority groups for equal voting protection and power and it removes other laws that prohibit African Americans, Latino-Americans, Asian-Americans and Native Americans to vote. This defines broad political equality and their political participation to determine their choice for political leaders. In 1970, President Richard Nixon has declared a national policy and self-determination for Indian tribes. This policy was promulgated into Executive Order 13336 which states its adherence to a government-to-government support and relationship for tribal sovereignty and self-reliance. This has resulted with the ratification Executive Order 13175 in 2000 which relates to the Consultation and Coordination with Indian Tribal Governments (USDJ, 2007). Jimmy Carter the 39th US President signed into law S.J. Resolution 102 which is the American Indian Religious Freedom Act of 1978. This law has empowered the political rights of the American Indian, Eskimo, Aleut and Native Hawaiian people to protect and preserve their inherent rights to exercise their traditional religions under the

GFP Bunny Essay Example for Free

GFP Bunny Essay Oswald Chambers once said that, We are in danger of forgetting that we cannot do what God does, and that God will not do what we can do (http://home. att. net/~quotesabout/god. html). In a society which is constantly making progress, human beings do not understand the repercussions of new scientific discoveries and often cross the delicate line of being human and playing God. Science gives us security as it is considered to be the cure to all evil. What eludes us is that in the act of eradicating this evil, we inadvertently bring into being a newer, more powerful evil. Victor Frankenstein, the focal character in Mary Shellys novel Frankenstein and Aylmer, the antagonistic character in Nathaniel Hawthornes short story The Birthmark both become so devoted in their pursuits of creation, that they forget their human limitations ending up with chaos and destruction. In the story, The Birthmark, Aylmer tells his newly wed wife that he is shocked by the birthmark on her face, as it is the visible mark of earthly imperfection (Hawthorne 1131). His thoughts and words hurt his wife greatly, which drives her to a point where she would rather die than live on another day with the hideous birthmark on her face. As Georgiana imparts on to her husband, her wish to get the birthmark removed once and for all, Aylmer is fueled to succeed at all costs. He rents out an extensive apartment where he observes Georgina and delves in a variety of natural philosophies so that he can remove her birthmark once and for all. Aylmer is so engrossed in playing God to remove a human imperfection so his wife can get rid of her mortal nature that he does not realize that he lacks the powers to make things around him flawless. It is this obsession, which eventually eradicates the birthmark. But along with the birthmark, a fair Georgiana becomes a martyr for her husbands cause. Similarly Victor Frankenstein, the character created by Mary Shelly, wishes to indulge in the secrets of heaven and earth (Shelley 45); however, despite having the intentions to banish disease from the human frame (Shelley 47), he is completely careless in accepting responsibilities for his creation. After his mothers death, Frankenstein becomes a victim of fate. It is fate coupled with his eternal thirst for knowledge that leads to the monsters creation. An ambitious Frankenstein eventually goes against Mother Nature by creating the monster. Frankenstein and Aylmers actions of creating life and beauty respectively parallel the nature of recent cloning efforts by the Clonaid Corporation. According to The Economist On December 27th Clonaid, a firm associated with the Raelians, a religious sect, announced that it had succeeded in producing the worlds first human clonean allegedly healthy baby girl called Eve, born to an unnamed American woman at an undisclosed location (61-62). Cloning has been going on for years and numerous animals have been cloned. Critics, skeptics and supporters have paid minimal attention to this sensitive subject because it has never affected our lives in a direct way. But as our own species are being cloned, we cant help but to stop and think about the implications of cloning. In sciences great pursuit to take over gods duties, one wonders whether creating clones is ethical and moral, not only to the clone that may suffer serious deformities but to the society it will be unleashed upon. Science is trying to create a life which they cannot govern later on as natures will eventually take over. Paranoid. Human Beings have always been inclined towards art and beauty. It is in our nature to lay emphasis on beauty and creation. It is something that mesmerizes us and wheels us into great depths. Art that is created naturally can be exquisite at times, but when our obsession with superficiality drives us to inject science into this artistic force, we are looking at a grotesque and unethical piece of creation. Aylmer was so fixated on his wifes beauty that he saw the birthmark as a sign of her mortal nature. He saw the birthmark as a symbol of imperfection, sorrow, decay and death; all things ugly. He is eager to remove the birthmark and tells Georgiana, his humble wife that he is convinced of the perfect practicability of its removal (Hawthorne 1132). Aylmer with his previous experiences at taming nature sees no reason why he should not further beautify his nearly perfect wife upon whom nature has placed its ugly stamp. Frankensteins creation The monster has also been judged at a superficial level from the very beginning. Following the birth of his creation, he instantly gives the monster a feeling of being on the outside of society. Victor responds to his creation by saying, I beheld the wretchthe miserable monster whom I had created (Shelley 61). It is his initial rejection which leads the monster to plead with Frankenstein: You, my creator, abhor me; what hope can I gather from your fellow-creatures, who owe me nothing? they spurn and hate me (Shelley 94). The creature struggles with the thought of being unwanted because of his grotesque looks. The monster was a benevolent creature, but as he was shunned by people for his external appearance, he turned miserable and vengeful.

The Grace That Keeps This World Essay -- Literary Analysis, Bailey, Ha

The Grace That Keeps This World, by Tom Bailey, is an enthralling novel about the Hazen family who have lived in Lost Lake their whole lives. In this novel Kevin Hazen, a young man of 19, is searching for where he belongs in the world and in his own family. He wants more for his life than the life of survival that his parents have lived their whole lives. The story of the Hazen family is centered around the first day of deer season. For the Hazens, this hunt is more than just a sport. They use the meat of every deer they shoot to help them survive through the winter. Traditionally Kevin, his Father, Gary Hazen, and his brother, Gary David, all go out on the first hunt together at two in the morning after a breakfast of homemade pancakes, but this year is different. Kevin wants to break free from the life of his family and doesn't want to go on the hunt with his father and brother. He can't comprehend why his father is so set in his ways and Kevin doesn’t want to live his father's life. Gary is a forester and finds it important to work hard to most provide for his family and to conserve nature. Kevin, like most kids, doesn’t understand his fathers way of thinking, and wants to live his own life. A life away from Lost Lake. Kevin attempts to break free of his fathers lifestyle by attending a nearby college, in hopes to eventually become teacher. Gary isn't happy with his son's decision to go to school and Kevin can't understand his fathers views, which causes the two to butt heads throughout the novel. But a tragic accident sudden ly leaves Kevin fighting for his and his fathers lives. Having to use the knowledge and skills that his father had taught Kevin suddenly suddenly realizes his dad was right after all. Bailey tell... ...ce with his family. He continues to study and work towards reaching his dream, but he begins working hard to support his family. He understands why his dad tried to teach him all of the things he felt were pointless or unfair. Just like when Odysseus finally makes it home to his family, Kevin finds his way home to his. Although at first Kevin felt that home would be leaving Lost Lake and stepping away from his fathers lifestyle, he later found that he was wrong. This new home was unexpected, he would have never predicted this being the out come of his life. But never the less, he was home. Our Odysseus, in The Grace That Keeps This World, goes through struggles, but in the end finds his way home. Bailey ingeniously writes his novel as a modern-day odyssey, with our tragic hero Kevin pushing through all of the problems that come his way to return home in the end.

A Visit to a Fair Essay

A fair means a periodical gathering in some open place. I had got the rare opportunity of visiting the Baliyatra Fair in Cuttack. The fair was held on the full moon day in the month of Kartika. The fair is conducted every year on the bank of the Mahanadi. Thereby we commemorate our sea-trade with other countries in past. I had been to the fair with four of my friends. On our way to Cuttack, we discussed many things about our racial past. The Sadhavas of the then Kalinga were known for their richness and caliber in trade. They set sails for Java, Sumatra, China, Ceylon (Srilanka), Borneo, Indonesia, Rangoon for trade. They exchanged their goods for jewels and gold. The sea-trade does not exist now. So we float toy-boats down the stream to remember our past-glory. We reached the fair-in the evening. The place of fair was overcrowded with children, men and women. Men of different occupations had assembled there. Goods of various kinds had been brought to the Baliyatra for show and sale. People amused themselves in a great variety of ways. Some people had come to dispose of their articles. Some had come to buy and some for sightseeing. Mostly the people were from the neighboring villages. The fair continued for about a week. The place was full of stalls made of straw and bamboo. The place was spacious and there was proper sanitary arrangement. The stalls were full of fancy goods. They were giving a gorgeous look. Many people were coming to those stalls. They were in festive dress too. The dealers in shops dealt in various goods. It was a rare occasion for me to see those beautiful stalls. It relieved of my monotony. The vendors sold toys and ballons for children. There were horse-wheels and merry-go-rounds for children too. The volunteers and scouts from the high schools of the town took prominent part in controlling the crowd. There was enough enthusiasm amongst the villagers in holding the fair. We had some snacks and tea in the fair. In the fair there was display of skill in craftsmanship. We had an opportunity to visit a circus there that evening. We also purchased a few filigree works and horn works of Cuttack. Of course the prices of those articles were high. Still the people were purchasing those-things because they loved their rich tradition. A note worthy feature of the fair was that children were arguing with their guarding ns to purchase balloons and dolls in the fair. They pulled the sarees of their mothers and emended the balloons and sweets. It was an opportunity for the businessmen to reap profits. However, in book-stalls, books were being sold on rebate. I purchased a few books on Oriya literature. The police were alert in the fair to provide security to the visitors. There was fear of pick-pockets, theft and loss of goods, money and ornaments. Loudspeakers had been arranged at different places in the fair to warn the people of antisocial elements and black-marketers who sold stale sweets. The Baliyatra is a grand fair in Orissa. The visit to this fair is still afresh in my mind.

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Apple The Icloud Loophole ( Theverge ) - 2147 Words

Mossberg: The iCloud loophole (TheVerge): Walt Mossberg s article highlights the fact that Apple has the ability to decrypt the bulk of data that is uploaded via iCloud backups. Furthermore, Apple has unencrypted and provided iCloud backup data to both the FBI as well as other law enforcement agencies on numerous occasions (once a valid warrant has been issued), according to this article. This article indicates that Apple views iCloud data differently from the iPhone for a variety of reasons:  ¥ Apple claims that the security policies for the phone relate to a physical object which can, therefore, be lost or misappropriated and consequently the physical device requires heightened security protocols;  ¥ Apple indicates that the iCloud†¦show more content†¦If Apple s primary motivators surround data privacy and protection for its customers, then why does it retain the ability to decrypt iPhone backups? Did Apple choose this battle merely to highlight what it deems to be a larger privacy issue or does Apple truly believe that data on an iPhone is more sensitive than data on an iPhone after it is backed up to iCloud? Before proceeding, I should say that on a personal level, irrespective of the position I may have extolled in previous blog posts I think that data privacy and encryption, in particular, are valuable tools that are available to citizens within the digital realm. Specifically, I am not in favor of encryption backdoors, master keys, or â€Å"clipper-style† chips that would allow government intrusion into electronic communications. That being said, it seems a bit disingenuous to argue that modifying the iOS code to remove the timing delay between successive passcode unlock attempts, and to bypass the auto-delete functionality so the Government could launch a brute-force attack against an iPhone somehow places user data in greater jeopardy than putting a bow around a decrypted iCloud backup and delivering it to the Government. Frankly, it seems shocking that more users aren’t distraught by Apple’s past and seemingly future compliance with requests for decryption of iCloud backups. A number of arguments have been raised with respect to