The Current Scenario And Its Causes Economics Essay

The Current Scenario And Its Causes Economics Essay INTRODUCTION: The current picture of the economic and financial state has caused a huge literature study evaluating its origin and how to respond with the pertinent strategy. Before going in depth let us discuss about general financial crisis [1] ( Charles,P et al 2005) . The situation can be termed as an economic crisis when a financial institution or an asset lose a large part of its value. It takes many factors into account when defining a global recession, but the International Monetary Fund  (IMF) states that general recession can be declared when the worldwide economic growth is 3 percent or less than that [12] (Rogoff,K.2002). FINANCIAL CRISIS- AN OVERVIEW: Financial crisis occurs when there is a sudden drop in market after a steady growth. It can be said that, it is the harbinger for the decline of market. Due to the volatility of the market and economic growth, this becomes the crux of the financial crisis. Stocks and real estate properties will reach the rock bottom after a period of growth. When the investors predict the market and invests in any sector, due to the market instability, the demand of that investment may decrease and their value of the estimation substantially diminishes. This trend follows a period and significantly investors huge investment does not return the expected revenue and this in turn affects their loan payment. They abruptly stop further investments and they begin to sell assets. [2] ( Aiginger,K. 2009) This trend persists in individuals private income too, they also follow the same practice by selling their assets and luxury objects. Over-optimistic companies and such individuals are the main cause for the crisis during the preceding economic growth epoch. They lean to believe that the general market growth will persists forever without any suspension. This optimism makes everyone to borrow colossal quantity of principal and invest them in homes, luxury objects and expansion of their business. Another cause are executives in banking companies tempted to lend out as much money as possible to the borrowers, regardless of the consequences for the bank and the borrowers, because this behavior gives the executives an enormous short term personal gain. When the supply decreased, the demand too got reduced. Hinder all the financial institution which lends out more money to the borrowers who pays back when they are comfortable [7]( carmassi et al, 2009). The government should interfere and has to lay proper regulations to set clear criteria that must be satisfied when the money lending process is done. Employment contrac ts for the bank executives should be forbidden by the bank which rewards them directly for the amount of mortgages they establish. When did it happen? The global financial crisis hit when there is a blooming economic trend persists. It happened in number of occasions, but the Great depression (1930) and the current financial crisis (2007-2010) are the core calamities which collapsed the global economy. [1] ( Charles,P et al 2005) THE CURRENT SCENARIO AND ITS CAUSES: The current financial crisis period started during 2007. It is the worst economic meltdown since the Great depression. The collapse of the US sub-prime mortgage market and the housing boom turnaround had a ripple effect around the world. Some financial goods and tools have become so difficult and abnormal, and things start to disentangle. The trust in the whole system started to fail. The origin of this present state is due to the extravagant lending of money by banks which permitted various groups to buy expensive assets that they could not afford. This was welcomed and encouraged by the politicians and was cleverly sold by the middle men. This created the trigger for the current scenario [9] ( Cooper,G. 2008) .The survival of excessive land use regulation which helped to drive up the prices. Innovations and internationalization are also cause for the regulation failure. Oligopoly structures in the agencies, insufficient regulation followed in the market, neglected cumulative system ic risks are the additional grounds involved in this trigger. Heterogeneity of profits across businesses, novel forms of equity standards, leveraging of banks, the firms and consumers are the factors which caused misinterpretation that the expected returns will be high. Bubbles in currency, oil and food shortages, short-term view on profits, inappropriate accounting rules and analysts reports, shortages of raw materials, energy deficit and unequal income and wealth distribution are the other aggravating factors which influenced the crisis [7]( carmassi et al, 2009). Consequently the demand decreased as the supply increased. This forms the nucleus of the present crisis. EFFECTS: As a result of this, unemployment increases and companies lay-off the employers in order to muddle through this recession, many banks filed bankruptcy and shortage of food supply too had its effects. The Gross domestic product (GDP) of the world declined for the first time since the Great depression of 1930. World economy growth dropped from 5% in 2007 to 3 % in 2008. USA and Europe economies already shrank during 2008 last quarter and those GDP from 2% to 4% [2] ( Aiginger,K. 2009). During the first quarter of 2009 production and orders declined when compared to the previous years. In order to compensate the cutback in the stipulated private sector caused by the crisis, the government passed large fiscal stimulus. During 2008-2009 alone US implemented two stimulus packages, totaling nearly $1 trillion [3] [2] ( Aiginger,K. 2009). The government has also bailed out many organizations due to large financial obligations. About 70% of GDP growth attained in the euro area and 40% of the same in the US due to the financial sector leverage [7]( carmassi et al, 2009). This is the key issues for the prevalent pressure in the European banking system. United States may be precursor of this current scenario, but the fragility persists in the European financial sector caused them badly and exposed to losses from US assets. An additional feature that made Europe more exposed to the crisis situation like the US is asset price bubble [7]( carmassi et al, 2009). Europe experienced the same real estate price bubble. During 2006-2007 house prices are less in US when compared to Europe, this is the key distinction involving the United States and the Europe [7]( carmassi et al, 2009). The banks in United States and Europe had excessive leverage and also the renovated maturity which are mistakenly manipulated by the regulatory system and allowed by the monetary policy. AGE WAVE THEORY: The additional cause for this economic slowdown was given by Ken Dychtwald, Ph.D in his Age wave theory [4] (Dychtwald, Ken, 1989). According to him, the persons who were born during 1947 to 1966 are called as baby boomers. According to the statistics the economic trend suitably followed as the baby boomers grow. Baby care books sales recorded a high during those initial years. Baby foods were consumed more during 1950s. The toy industry sales also reached record growth as the children grows. When they reached the teenage soft drinks sales and movie tickets sales reached the maximum. When the boomers enter the workforce during 1970s there was a record growth of 29%. Mini vans and SUVs dominated the automobile industry during 1980s and 1990s as the baby boomers started to raise their families. During 2007-2009 the workforce growth is just 12% due to the retirement of the baby boomers , and this may also be one of the reasons which kindled the crisis [5] (Dychtwald, Ken et al 2006). FUTURE REMEDIES: In order to tackle future recession, the UK government needs to follow some regulations. The economic policy should support the total demand by increasing the public demand or by providing inducements to encourage private expenditure [2] ( Aiginger,K. 2009). Monetary policy should be reintroduced to increase the money supply which has reduced interest rates. To improve the structure of taxation, fiscal policy is to be followed. It includes national and international stimulus packages. The European model to be followed [2] ( Aiginger,K. 2009), it includes strategic spending i.e., to invest in future technologies, education, research and development and green technology. Government and financiers should try to compress the scam and increase the capital requirements for banks .They also should follow the regulations and it would be compelled to hold sufficient funds to cover their normal operations. In order to reduce the jeopardy, the bank should bear all the risks and also increase their transparency, their accounting ethics are to be modified accordingly and also to be included in the asset definition. It is crucial that the current land rationing policies should wither as soon as possible. Capital requirements are to be set adequately so that it cannot be evaded by the mediators to raise liquidity [8] (Minsky, H. (2008) .The simple way of doing it is to set capital requirements with reference to total assets and no gimmicks allowed. The main cause for the delude information for investors and obstinate incentives are the assets with maximum risk. [6] (Gros, D. (2009). These assets should be scrapped to maintain the economy. The government should provide guarantees by affording small pensions and loans and also it should fight poverty by employment. The youth unemployment problem can be tackled by training and also making informal jobs more professional. By increasing the choices the supply and demand stability can be maintained. These aforementioned strategies are to be followed by the UK government in order to maintain the stability and also to prevent the arrival of the current scenario [10] (Greenspan ,A. 2009). CONCLUSION: Brian Cowen, the former finance minister says that, If I am right, the next financial crisis, when it comes, stands to make the last two years look like a warm up [11]. So the optimism and complacency natures should be discarded and follow the policies and also the remedies as mentioned above to restore the trust and balance in the system.

Diana of the Crossways: A Novel :: Free Essays Online

Diana of the Crossways: A Novel Before reading Diana of the Crossways it is important to understand the facts surrounding the life of George Meredith, as corresponding elements can be found in many of his works. George Meredith was born on February 12, 1828 in Portsmouth. During his early years he faced several accounts of hardship. His mother died when he was hardly five years of age. Shortly after her death, George Meredith's father, Augustus, inherited a failing business and heavy debts from his own father. Augustus was forced to declare bankruptcy and travel to London to earn a living, leaving young Meredith in the care of relatives. At age fifteen, Meredith attended the Moravian school at Neuwied on the Rhine. He remained there for less than two years accounting for his only formal education. Meredith was apprenticed to Richard Stephen Charnock who introduced Meredith to his literary circle of friends. Among them were Edward Peacock and his sister Mary Ellen Nicolls. Mary Ellen Nicolls can be described as havi ng lively intelligence and wit. This seems to characterize many of Meredith's heroines. They married in 1849, but they had very little success as a couple. Since they were both intelligent and demanding they desired more from the relationship. In 1858 Mary Ellen Nicolls eloped with artist Henry Wallis ending her relationship with Meredith. From here, Meredith married his second wife Marie Vulliamy who was the contrast of Mary Ellen Nicolls. She was a very practical, domestic woman who was a good hostess and housekeeper. It is quite ironic that Meredith would desire a helpmeet relationship when all of his works surround the independent, headstrong woman. Meredith was an energetic man who would frequently toss around a weight nicknamed "the beetle" for exercise. In the 1870's Meredith began to develop symptoms of locomotor ataxia, which crippled him. In 1892 Meredith was elected president of The Society of Authors, a position that was previously held by Alfred Lord Tennyson. In 1905 h e was awarded the Order of Merit. Over the years, Meredith became increasingly disabled and deaf before passing away on May 18, 1909 (Casal, The Victorian Web). During his lifetime Meredith produced fifteen novels, eight poetry collections, and countless minor works; most of which are out of print today. His best work is characterized by brilliant insights, carefully chosen diction, and powerful imagery. Diana of the Crossways is rich and interesting with realistic characters that come alive for the reader.

In times of war one of the casualties is truth Essay

The word war to many people conjures up images of death and destruction and this is shown in the two poems, ‘Dulce et decorum est’ and ‘Disabled’. Wilfred Owen, who was a solider and experienced war first hand, wrote both of the poems, he did this from personal experience. In Both poems a negative view is portrayed, by describing the pain, suffering and the general consequences of war. The message he is trying to put across by writing these poems is that war is bloody, a waste of life and may leave you in a horrific state. The aim of the poet is to warn people of what war is all about: mainly death. On the other hand, war can also be shown as being honourable, heroic and patriotic, we know this from the poems ‘The Volunteer’ and ‘In Flanders Fields’. The poem ‘The Volunteer’ was written by a man called Herbert Asquith who was a politician and his aim was to get people to sign up and volunteer them selves to go to war, so his poem gives off a positive view of war. Herbert Asquith, in his poem, says that you will become a hero if you go to war and although you may die it is worthwhile because your country will be proud. These words create the positive view that Herbert Asquith was aiming for. A Canadian called John McCrae is the author of the poem ‘In Flanders Fields’. John was a military medical officer and viewed war from the sidelines and got a positive view from what he saw. His message is to other soldiers to tell them they must be brave and fight with pride or the soldiers who died previously will feel they have wasted their lives fighting. The poems differ a lot from each other as they create different images of war and disagree with each other. Two of the poems mention the good side of war, whereas the other two, shows the bad side of war. All four poems represent the truth in one way or another as War has many truths. The authors of the four poems are motivated by their different relevant experiences of the things they were doing during the war. Owens’ experiences on the front line in the battlefield influenced him to write the poem ‘Disabled’ as he witnessed the many casualties of war, also his poem ‘Dulce et decorum est’ describes the horrific conditions soldiers had to live and fight under during the war. Asquith, not being a solider himself, but a politician didn’t really understand what it would be like to experience war but it was his duty to persuade people to sign up and therefore this influenced his poem. John McCrae was only a medical officer but he saw the pain and suffering of the soldiers. He took this to be a good sign as it shows a result of being brave and fighting for your country. Wilfred Owen in both his poems wants the readers to feel moved by the message they portray and does this by using emotive language and emphasis. Owen also hopes that his poem will make people consider the consequences of war before volunteering. On the opposite side, Herbert Asquith wants the readers to be taken in by his poem, which describes being in the army as essential and honourable, something that Owen does not appear to agree on. John McCrae makes the readers feel mournful for those who died but also that they died as a duty to their country. The structures and tones of these poems are different. â€Å"In Flanders Fields† is concise but to the point. Whereas â€Å"Disabled† and â€Å"Dulce et Decorum est† are long and descriptive, the tone of these two poems is very serious, depressing and shocking. â€Å"The Volunteer† is short and persuasive. All of the poems have strong description of war and create powerful images, whether they are good or bad. From the two poems â€Å"disabled† and â€Å"Dulce et Decorum est† we can get images of bloody deaths and horrific consequences. â€Å"Disabled† tells us about a young man who went to war to serve his country, became a hero but suffered severely from it; He ended up in a wheel chair and has no future ahead of him. â€Å"Dulce et Decorum est† however describes war conditions in detail and paints a dreadful picture in our heads, using description such as â€Å"the froth-corrupted lungs† and â€Å"blood-shod†. Death is discussed in all 4 poems, but more evidently in Wilfred Owens’ work. In â€Å"the Volunteer† Herbert Asquith tells of man who is dull and seems to carry out the same duties day after day â€Å"Half his life had spent toiling†. Asquith then goes on to describe the glorious lifestyle of the man when he as became a soldier, implying that joining the army is a way of escaping a dull and boring life. In this poem and â€Å"In Flanders Fields† death is described in a soft way by using the word â€Å"falling† and terms such as â€Å"now we lie†. Emotions run high in all of the poems, contrasting happiness and fear. I agree with Owen’s view on war, it is dreadful and a waste of time. There are more consequences than you can imagine, why put yourself through War, the glory is minimum. â€Å"The Volunteer† is a reflection of my down side of war, as I don’t think people should be encouraged to go to war, although I do understand that people have to fight for their country.

North Americ The World For Its Excellent Professional Sports

Layne Greeson Introduction North America is known around the world for its excellent professional sports. Athletes from around the world come to the North America with the dream of becoming a professional athlete in their respective sport. Organized professional baseball in North America was developed in 1876 with the creation of the American League (AL). In 1901 the National League (NL) was formed in order to compete with the AL hence Major League Baseball (MLB) was born. From 1901 till now Major League Baseball has grown into a multi-billion dollar industry consisting of 30 MLB teams residing primarily in the United States with one team in Canada. The AL consists of 15 teams split into three separate divisions. The NL also consists of 15 teams split into three separate divisions. MLB teams compete in a 162 game season in order to determine which 10 teams, five from each league, will compete in an end of the season tournament and have a chance to win a World Series which is the most prestigious award an MLB t eam can accomplish. With this goal in mind MLB teams attempt to hire world class athletes in order to produce a winning team which in turn generates revenue. Baseball is statistical driven sport more than any other because the game is structured in a way that allows for easy comparison of players performance through the use of statistical aspects. Baseball teams pay athletes based on their statistical performance such as the number of homeruns they hit, the number of