Factors Responsible For The Global Financial Crisis

Introduction In this essay, we are trying to look at the factors responsible for the global financial crisis in 2008-09 which started in US and later spread across the world. By now, a lot of studies have been done on the global financial crisis of 2008. We explain briefly the role of the financial engineering which leads to combination of various financial securities, the actual risk of which is not clearly assessed and hence leading to the financial crisis. There were also some serious lapses in regulation and failure of the rating agencies in assessing the risks assumed by the financial products which accentuated the crisis. In the USA and other developed countries, financial engineering created financial derivatives and financial†¦show more content†¦Economic derivatives could be so unsafe that they could even a great cause of financial disasters. This is because many investors turn to financial derivatives market to direct them into future funding, rather than of observing at the genuine market. This can lead to market distortions and hence can be extended to other parties of the market connected in the market and thus financial position of a country can be obstructed badly. Derivative instruments were created after 1970s as a way to manage risk and create insurance downside. They were created in response to the frequent oil market shocks, inflation and drops in the stock markets. Hence the initial intend was to defend against the risk and protect against the downside. However, the derivatives became speculative tools often used to take more risk in order to maximize profits and returns. Deriv atives do ensure against the risk when used properly, but when the packaged instruments became too complicated that neither the borrowers nor the rating agencies understood them or their risk and hence the initial premise just failed. Not only did investors, like pension fund, got stuck holding securities that in reality turned out to be equally as risky as holding the underlying loans, bank got stuck as well. Banks held many of these instruments on their books as a source of fixed income requirements and hence using these derivatives instruments as a collateral. However, later it was found out that they had lessShow MoreRelatedWhich Factor Was Most Responsible For The Financial Crisis895 Words   |  4 PagesWhich factor was most responsible for the financial crisis The financial crisis from2007 to 2008 is considered the worst financial crisis since the Great Depression of the 1920s and destroyed the U.S. economy severely. It led the housing prices fell 31.8%, the unemployment rate rose a peak of 10% in the United States. Especially the subprime market, began defaulting on their mortgage. Housing industry had collapsed. This crisis was not an accident, it caused by varies of factors. The unregulatedRead MoreFinancial Crisis Of A Single Country1671 Words   |  7 Pages Table of Contents Summary 2 Financial crisis 3 Impact of financial crisis 4 Effect of financial crisis on different on the economies of different countries 5 Mathematical problems 6 Conclusiom 8 References ..................................................................................................................................................9 Summary Financial crisis has long been a part of global economic recession throughout the history. Here, the purpose of this assignmentRead MoreThe Collapse of Bank of America: Causes, Effects, and Analysis1121 Words   |  4 PagesThe Collapse of Bank of America: The largest banking institution in the United States, Bank of America, has been characterized with numerous controversies in the recent past. While the institution only got bigger since the financial crisis and government intervention through bailouts, Bank of America headed towards collapse. 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Third, spreads on many different types of loans over comparable U.S. Treasury securities has expanded significantly (Chari, Christiano, amp; Kehoe, 2008). The financial crisis is the result of the collapse of the housing bubble in the U.S., which can be seen as the starting point of a crisis inRead Mo reEconomic Theory1225 Words   |  5 Pagesfor analysis, in addition to what you see happening in the market yourself. Compare and contrast the two articles and the two authors’ perceptions of the market. The global economy recovers from the crisis that engulfed global financial markets in the course of 2008. The effort to stave off total economic collapse has left governments burdened with massive debt that will take years of painful effort to work off. The policy prescriptions of market liberalismRead MoreThe Financial Crisis Of 2007-2008928 Words   |  4 PagesDefine: Introduction The Financial Crisis of 2007-2008 was considered to be the worst financial crisis since the Great Depression in the decade preceding World War II. The Global Financial Crisis threatened large range of the financial organizations. Although the central banks and other banks were trying to keep away from the crisis, the stock market still suffered a huge decline internationally. Other than the global stock market, the house market was also influenced greatly, causing the unemployment

Compare and contrast the Aztec civilization and the Mayan...

The Aztecs civilization and the Mayan civilization where the most important civilizations from the new world that amazed many of the Europeans that came to conquer this wonderful rich land. The Europeans where amazed with the Aztec and Mayan culture, their ways of life, their geographical surroundings and their technology. The Europeans and historians today find that the Aztecs and the Mayans where similar in some ways of life like their culture, their technology, their religious events and at the same time they had their differences in their cultures. The Aztec civilization dominated the valley of Mexico during the fifteen and the sixteen centuries. Their culture was seen as unethical to the Europeans that were in Aztec territory and†¦show more content†¦At the very top of Aztec society was the Tlacatecuhtli or chief men that dominated all religious ceremonies and was the military leader of the Aztecs. Below him were religious offices that served as military generals. The religion of the Aztecs was made up of mainly three gods: Huitzilopochtli, Tezcatlipoca and Quetzalcoatl. Below these three main gods were four creating gods. Below these four gods were many other gods, however the most important were Tlaloc, the rain god, Chalchihuitlicue, the god of growth and Xipe, the god of spring. The main thing that captures the attention of Aztec religion is their human sacrifice made to the different gods. Although human sacrifice was practiced around Mesoamerica, the Aztecs practiced human sacrifice in a large scale never seen before to date. The idea of human sacrifice was that Gods gave things to humans like food, rain, wealth, and other goods only if they were given human beings in return. The Aztecs believed that the goods liked best the living hearths of sacrificed captives. If the captive was a well skilled soldier and very brave then the Gods would return better goods to his people. This idea lead to wars were the Aztecs fought with other indians and capture their bravest men for sacrifice. As we can imagine,Show MoreRelatedCompare and Contrast Maya, Aztec, and Inca Culture Essay677 Words   |  3 PagesCompare and contrast Maya, Aztec, and Inca culture In history we the people have found to realize that the Maya, Aztec, and Inca culture was one of the most incredible findings of their accomplishments. The Maya, Aztec, and Inca civilizations were really smart in topics of engineering, writing, agriculture and astronomy. Also all three had their beliefs, and good with agriculture. All three cultures used great technologies in their agriculture like slash and burn, terrace farming. They all huntedRead MoreWhat Was The Political Structure Of The Mayans From 600 Ce?1568 Words   |  7 Pages AP World History 1st Semester Exam Study Guide What was the political structure of the Mayans from 600 CE to 900 CE? The political structure of the Mayans was split up into two city states with a governing body overseeing each of them, never under one ruler. How does Confucian philosophy attempt to create social harmony? His philosophies said that the goal of an emperor is to bring peace to the people, the philosophies also promoted fairness and loyalty among the state. Where was the eventualRead MoreA Study on iPhone Essay2433 Words   |  10 PagesCastillo went on to brilliantly declare the worst thing that can happen to a culture is to have its history told by its conquerors. Castillo ended by saying that we first have to make sure the historical records are accurate for both cultures and civilizations before they can be compared. The same flow of culture happens when a country occupies another country. The military aggressor and the dominant country’s culture invades, slowly but surely, the weaker state. Suffice to go back to the expansionRead MoreThe Birth of Civilization18947 Words   |  76 Pages1 The Birth of Civilization Mohenjo-Daro Figure. Scholars believe this limestone statue from about 2500 B.C.E. depicts a king or a priest from Mohenjo-Daro in the Indus valley in present-day Pakistan. Does this figure seem to emphasize the features of a particular person or the attributes of a particular role? Hear the Audio for Chapter 1 at www.myhistorylab.com CRAIMC01_xxxii-031hr2.qxp 2/17/11 3:22 PM Page xxxii EARLY HUMANS AND THEIR CULTURE page 1 WHY IS â€Å"culture† considered a definingRead MoreCeramics: Pottery and Clay17443 Words   |  70 Pagesin relatively small groups and developed pottery traditions and techniques that are similar to the African people - low temperature, no potters wheels or glazes and open firing methods. Larger more organized civilizations also developed in Mexico and Central America like the Maya and the Aztecs. These people used similar techniques but had more elaborate decoration using multicolored slips. Also like Africa, these early potters were either men or women depending on the culture. Mixtec culture Mexico:

Ted Kooser A Major American Poet - 1397 Words

Ted Kooser was born in Ames, Iowa, an area within the great plains of America. He credits his influences to both his mother and his father. His father worked as a store manager while his mother stayed home to raise him and his sister. During an interview he was asked how his parents influenced his poetry, he replied, My Father was a storekeeper, loved the public, and was a marvelous storyteller. I remember a women once said to me that shed rather hear my dad describe a person than see the person herself. (Meats, 335). One can tell from reading Koosers poetry that his father influenced him greatly. Ted Kooser also attained a strong work ethic from his father, which in his formative years allowed him to prosper and become the poet he is†¦show more content†¦With the publication of Sure Signs in 1980, Ted Kooser wrote Carrie, a poem about the morality of humanity and how life is cycle. Like most of his work, he used firsthand experience to forge his thoughts, this time his Aunt s life. The poem is only eleven lines long but its meaning it universal. Even though its a short poem, Kooser found a way to enrich it with figurative language, from similes to metaphors. With the lines, as her rag, like a thunderhead, (3), to and an elbow that creaked and popped / like a branch in a storm. (8-9), Kooser portrays to the listener of the environment his Aunt lived, which is an area hes accustomed to, the great plains. In the poem Kooser writes, seventy years with a ball / of compulsion closed in her fist, (6-7), meaning that in life you grow in age, and that theres no stopping it. Eventually, life will end with death, as seen in the lines, Now dust / is her hands and dust her heart. (9-10) meaning that once you die youll become dust. The last line of the poem, Theres never an end to it. (11) solidifies the poem with its meaning that theres a circle of life and it never ends. Later on in his life with the publication of Delights and Shadows, Ted Kooser writes a poem on what would be his fathers ninety-seventhShow MoreRelated Abandonment and Struggle on a Farm1327 Words   |  6 PagesSimplicity, especially in poetry, can be an often underrated and overlooked method of conveying a meaningful and extended message. Ted Kooser, an American poet and writer, is well known for his ‘simplistic’ style of writing and has been described as using an â€Å"[H]onest, accessible verse†¦Ã¢â‚¬  (Ted Kooser: The Poetry Foundation). Kooser was born in Iowa and now resides in Nebraska. Both Iowa and Nebraska are situated in the Midwestern United States, an area noted for its rural landscape and population

Acceptance of Differences free essay sample

It is clear that America would like all of its citizens and residents to learn to accept differences between people.   As an example, the philosophy of teaching students with disabilities has been changing.   Separated from regular students at first, they must now be moved into classrooms with the rest.   In these classrooms, regular students learn to respect those who are different from themselves and students with disabilities improve their social skills (Ripley, 1997). At the same time, business organizations of America are required to learn diversity management.   At the governmental level, we now have the first black president in the White House.   However, as soon as President Barack Obama stepped into the White House he had to state that America is not an enemy of Muslims. Seeing that there was a need for the American president to make that statement reveals that our nation still needs to accept differences between people based on religion. We will write a custom essay sample on Acceptance of Differences or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page    To support AmericaAmericans in accepting these differences, the government is required to change its political framing with regard to the Muslim world.   It is a known fact that political framing reflects through the media.   The government should work with the media to further resolve the misunderstandings between America and Muslims.   Americans are, after all, tired of wars. Response to Classmate’s Post: Your responses are all positive, and I agree that it is essential to applaud our nation for the leaps it has taken forward to end racism.   All the same, you have failed to answer the Muslim question that President Obama addressed during his first month in office.   I appreciated that you mentioned the role of media in ending stereotyping and supporting people in the acceptance of difference.   Yet, I cannot deny the fact that our nation needs to take greater leaps forward not only to become fully accepting of differences between people but also to become a model for other societies working on eradicating problems related to racism. References Ripley, S. (1997, Jul). Collaboration between General and Special Education Teachers. ERIC Digest.