Causes Background Of The Current Economic Essay Example Pdf - Free Essay Example

Sample details Pages: 4 Words: 1195 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Background United States is currently going through the rampant financial crisis and economic depression, manifested by failures in financial institutions substantially and the collapse of stock market increasing the intense market instability. With the increase in the real estate and property bubble and the flexible rate mortgages (FRM), the housing prices rose gradually. The banks began to increasingly lend out more loans to potential home owners encouraging the home owners to take on significantly high loans paying back with the interest rates. This didnt last for long as the interest rates began to rise in mid 2007 and the housing price started to drop significantly in 2006 leading into 2007. Large number of people went from tenants to homeowners due to the increase in subprime lending and homeownership rate in U.S considerably increased in large margin. This resulted to increase in house prices with unsustainable supply relative to rents which were going down (Timothy.2008). The refin ancing became more difficult in many states like California resulting to a rise of the number of foreclosed homes. Certainly many subprime borrowers had difficulty making their mortgage payments when the rise in housing prices stopped in 2006. In mid 2007, many mortgage lenders become bankrupt due the excesses of the subprime mortgage market gaining the crisis proportions. Failure to take effective action by the financial authorities and the Federal Reserve triggered surprising mayhem throughout the international financial system affecting the global financial markets (Fred, 2009). Causes of financial crisis According to Timothy (2008), the origins of the financial crisis occurred as a result of number of forces on which some were the product of market forces while others were product of market failures. Liquidity insufficiency in the U.S banking system was a main cause of the financial and economic crisis in United States which has currently led to collapse of financial insti tutions, banks, and downturn in global stock markets. The incentives created by policy and regulation both market-based and regulatory reasons also contribute to the crisis leading to a substantial financial rumble on international scale. The short term interest rates which were reduced led to the decline in inflation rates, and subsequent deflation slowing down the growth of the economy. Central banks policy rates regulations led to the deflation risks with high rate of international savings than perceived in the real investment opportunities. The investors became more confident as the rumble continued in the comparative solidity of macro, economic and financial conditions of the country with financial instruments. This aspect increased the credit risk and widely exposed the financial institutions to the risk of a less compassionate world. More weaknesses and vulnerable continues inhibit to the financial system as the interaction of these forces increase. The assumptions made by the financial institution also exposed them to major risks with the proliferation of credit risk transfer instruments driven uninterrupted liquidity. According to the Stock market investors (2011), the housing bubble in the U. S.A housing market suffered a great loss contributing to the collapse of key businesses and declines in the economic activities in many areas. The huge mortgages and unprincipled lenders led to the collapse of the highly developed real estate and property bubble making it unsustainable in the market. The increasing demand and consumption of financial assets with unsustainable supply mainly led to the collapse of the markets on which many places failed to essentially provide such financial assets. Effect to the current economic crisis The financial crisis affected the confidence in many banks and other financial institutions with the stock market experiencing systemic weakness throughout the entire financial sectors. This was accompanied by the dropping of the share prices for large, small, and investment banks losing a third of their value. The capital from consumers experienced continuous depletion due to the continuous foreclosure scourge eroding the financial power of the banks and other financial institutions experienced in many banks today. The actions taken by the banking institutions had considerable negative effects on the performance and liquidity of market as the market contributors and participants have taken measures in reduction of the reduce further loss exposure. Banks and other financial institutions are experiencing different types of liquidity and funding challenges as they have engaged in funding a wide range of different reliant liquidity and credit commitments The extensive negative effects of securitization and syndication markets has reduced the financial institutions accessibility to liquidity and their capability to control their assets and finances off the balance sheets (Fred, 2009). The liquidity of the financial conditions has further eroded as the market value of many securities declines, and investors unwillingness to finance more risky assets. This has led to cautious in strongest institutions, building up extensive platform of liquidity, reducing the leverage and bringing down the funding for the institutions leveraged counterparties. Measured and counterparty financial risks and ambiguity on the value of the market has increased with many hedges performing poorly. The coherent measures taken by the financial and other banking institutions in reduction of future losses exposure and risks have negatively affected the market functioning, increasing the liquidity implications for a large number of financial institutions and banks. The financial and banking institutions in United States such as investment banks , regulated banks and hedge funds should increasingly play an important role in ensuring the economical recovery. These institutions play a major role in provision o f credit to the country economy and have taken considerable debt and credit burdens from the investors. The Chairman of the United States Federal Reserve Board should bail out major banks and financial institutions in the country initiating economic incentive programs and enhancing important additional financial commitments in effort of enhancing the economic growth. Crisis Resolution In economic crisis resolution dynamic policy measures should be intensified and reinforced in the financial markets in an effort to downside risks. This can accelerate the growth for an economy with significant regulation in housing and other real estate transactions. This includes the monetary policy, liquidity provision. Macroeconomic and supervisory policies need to be enhanced in containing the risks. Monetary policy and liquidity instruments should be used proactively in dealing with the critical risk potential for the damage in financial markets. Provision of liquidity should be used to mit igate this risk in sequence of processes in reduction of the intensified risks at market liquidity environment. This involves the adjustment process in credit markets with substantial flexibility adjustment of these particular liquidity tools dimensions. Encouraging the financial restoration in the countries financial structures and systems implementations as expectations of the future change encourages new equity capital increase preventing the capital ratios from falling mainly on events, such as asset sales or cheap lending, that might intensify the credit crisis. Fiscal stimulus plays an important role in reduction of the downside risks to growth. This policy structure, macroeconomic stimulus, liquidity support and the targeted support for housing reduces the level of the risks bringing long term returns and growth rates parallel to the economys long term prospective. The long term regulatory reforms of the U.S. financial structure and methods should be simplified and impleme nted in balancing the capital and the market infrastructure in an effort to stabilizing economic forces in reaction to future financial market. Don’t waste time! 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The Belgian Act Of Euthanasia - 2583 Words

On March 3rd 2014, the law was changed in Belgium to abolish all age restrictions on euthanasia. This amendment allows euthanasia for terminally ill children who are exposed to â€Å"constant and unbearable suffering† (1). The act was passed in the Belgian Parliament with 86 votes in favour, and 44 against (with 12 abstentions). This amends Belgium’s previous law, â€Å"The Belgian Act on Euthanasia†, which was passed in 2002 (2), whereby euthanasia was only available to individuals over the age of eighteen or emancipated minors. There are several arguments in favour of this amendment including the belief that the rights of autonomy and justice must extend to children. Furthermore, prolonging life where the child has a loss of dignity and a reduced quality of life is seen by some as inhumane. In contrast, opponents of the amendment believe that the child’s right to life and doctor’s obligation to save life are both severely undermined. Opponents are concerned that a child does not possess the capacity to make the decision to end their own life. There is also the worry that granting paediatric euthanasia may lead to a ‘slippery slope’ whereby children could be euthanized without making a fully voluntary request. Despite the fact that public opinion was broadly in favour of the amendment (3), the question must be asked, was the amendment of this law in favour of murder or mercy? In order to understand this debate, the term euthanasia must be defined. Euthanasia is literally translatedShow MoreRelatedThe Debate On Euthanasia Is Never Ending1263 Words   |  6 Pages The debate on euthanasia is never ending. It is an important topic that debates whether assisted death is ethical or In spite of this euthanasia is not discriminatory towards the mentally ill. They are reasons and law Euthanasia is ‘painless inducement of a quick death’. It is is a long living debate that challenges the morality of life. Due to its high controversy only certain countries have legalised the procedure however they have strict rules and procedures that must be followed. InRead MoreThe Need For Euthanasia Law For Nations2097 Words   |  9 Pages The Need for Euthanasia law for Nations Ending an individual’s life intentionally for the purpose of relieving the person from pain or suffering is considered as euthanasia. A good example of euthanasia is a case where a doctor opts to give a cancer patient an overdose of drugs that is supposed to make him die. Encouraging or aiding a person in committing suicide intentionally could be regarded as assisted suicide. An example could be acquiring a powerful sedative for a person who is terminallyRead MoreEuthanasia Is The Act Of Killing Someone1284 Words   |  6 PagesEuthanasia is the act of killing someone that is very sick or injured in to prevent a painful suffering in life. One type of euthanasia is physician-assisted suicide, which is the use of a particular medicine given to a patient by a doctor to cause a peaceful death. This a very controversial topic when it comes to the subject of terminal or severe illnesses such as cancer and dementia. Brittany Maynard is a well-known example of person who to ok her own live under Oregon’s aid-in-dying law due toRead MoreEuthanasia Is Morally Right Or Wrong?1740 Words   |  7 Pagesdispensable, we will have crossed a rubicon† (unknown) Currently, there is many conflicting opinions of whether euthanasia is morally right or wrong in society. This act of euthanasia is used on patients to end their suffering of terminal illnesses. It is sometimes requested but also, being that there is multiple types such as voluntary, involuntary, Nonvoluntary, active, and passive euthanasia, in some cases is given without the patient’s actual request and consent. In some ways, it has seemed to becomeRead MoreThe People : Ethics And Social Responsibility Essay1280 Words   |  6 Pages WRITTEN ASSIGNMENT 7 OGBE MOSES E VOLUNTARY EUTHANASIA For this week Unit 7 written assignment, I choose to talk about Voluntary euthanasia. A brief history and ethical and unethical dilemma of this topic will also be looked into in this assignment. A physician or doctor that carried out an act of voluntary euthanasia (Mercy killing), brings about the death of an individual who is in a state of bad medical condition because he orRead MoreSiya Kumar. Dying With Dignity. . Imagine Yourself With1360 Words   |  6 Pagesphysician assisted death. Physician assisted death and voluntary euthanasia should be legal in the the United States because if a person has the right to life, then they also have the right to death, it helps terminally ill patients to escape the pain that awaits them, and it can be safely regulated by government legislation. 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It gives the freedom to a terminally ill person or a mentally competent adult, to choose on their own free will and after meeting strict legal safeguards, takes prescribed medication which will end their life in dying. There are two types of Euthanasia. Involuntary and voluntary. Voluntary euthanasia is when a terminally ill individual decides to end their own life, whereas, inv oluntary euthanasia is when another person makes the decision toRead MorePhysician Assisted Suicide During The United States And Other Countries Essay1645 Words   |  7 Pagescountries. EUTHANASIA Euthanasia is a term that when asking friends and family, I found most often is associated with â€Å"putting our animals down† when they are ill, elderly or have experienced a traumatic injury that is not survivable, many do not associate it as an option for humans. There are several methods of physician assisted suicide (PAS) or assisted suicide which includes methods of euthanasia. There are two types of euthanasia, active and passive. Active euthanasia is euthanasia by performingRead MoreEuthanasia And Assisted Suicide : A Patient s Choice1742 Words   |  7 Pages Euthanasia and Assisted Suicide: A patient s choice in their type of death. When a patient is terminally ill or is experiencing extreme pain, often Euthanasia or Assisted Suicide can both be plausible options to end any suffering. Euthanasia is currently legalized in seven countries and parts of the United States (New Health Guide). This number is not likely to increase soon because of the high controversy, which is due to the very serious topic of this matter: a person s life. The general

Rational Choice Theory and Religion †Free Samples to Students

Question: Discuss about the Rational Choice Theory and Religion. Answer: Introduction: Religion is a broad field of study. Religion has many different views. There are different believers of different religion. Religion offers various beliefs and various thoughts. It varies from person to person and it varies within different communities. The religion is defined by different people in different manner. It is included in the academic curriculum in order to highlight the unidentified angle of religion. In the academic curriculum religion is described as the way of living life. The historical aspects related to the religion is being taught in the academic syllabus. While studying the religion in the academic course the people are not concerned whether the claims made are genuine or not. Apart from this the academic curriculum does not compel the students to join that particular religion. In the curriculum religion is studied as a historical, social and cultural phenomenon. The academic curriculum teaches the student how religion affects history, culture, politics and the social norms. The essay however presents a critical thought on the students who are involved in the study of religion has more advantage than the students who are not in the study of religion[1]. The students who are in the study of religion learns to be more rational and they learn to be more practical. They develop certain skills like they understand the skill of thoroughly understanding the religious practices and beliefs. The students develops the thought of the reason of the importance of the religion to the religious community and the society. It enables the students to the cultural context that makes the individuals to react either negatively or positively to the belief or the practices that prevails. The academic knowledge enables the students to judge the practice whether the practice is justified or not. The students are exposed to the social and the psychological aspects of religion[2]. The students who are aloof form the study of religion are not aware of the practical reasoning power of the religion. They are not aware of the fact that there are certain psychological reasons behind every religion. They are not exposed to the cultural reasons of following a certai n religion. Studying the religion as an outsider brings out more possibilities to the concept of religion. The study of religion brings out an outsider view. This is the reason studying religion in the outsider setting is important[3]. The students who are not in the study of religion are not aware of the different angle that are attached to the religion. They believe in a particular religion without knowing the practical reasons that are attached to the belief of the particular religion. Religion is seen by them form a superstitious angle. They treat religion as a means to end. The students who are not in touch with the appropriate study of religion misinterpret the religious texts and they fail to understand the real meaning of the text. The religious texts does not force the individuals to obey the laws. It gives practical and scientific justification of maintaining the aspects that are necessary to live in the society[4]. The students who are not in touch with the study of religion are unable to know the real reasons of believing in religion and the reason of leading the life in the way it is mentioned in the religious texts. Moreover the study of religion makes the students aware of the global culture and glob al religion. The students who are not in touch with the study of religion are not able to have global thoughts and they fail to realize the scope that the other religions have[5]. The students who are involved in the study of religion have the capacity to turn their childish thoughts into mature thoughts. They have the capacity to turn the darkness into light. The most important thing that the students are able to gain by seeking the religious knowledge is they will be able to make the world a better place to live in[6]. It has been observed in the recent times that there are many religious organizations who claim to have the authentic religious knowledge and they have the power to influence others to believe in a certain religion. The religious communities takes the advantage of the illiteracy among the people and they target those who are not literate enough. The religious communities commit the crime under the title of religion. They try to convince the people that they got the instruction from God and that it is written in the holy texts[7]. The students who are not in touch with the religious subject might believe the same and they might commit the crime as well. The person who will go through the religious texts thoroughly or will do an effective research on religion will know the difference between the right and the wring and can challenge the sayings of the communities. This would enable the students to make the world a better place to live in. The other advantage of getting involved in the study of the religion it can be dealt as the extreme power. Attaining knowledge is equivalent of attaining power. Attaining religious knowledge is the same. The knowledge about the religious cultures and religious lives makes it as one of the most powerful social as well as cultural forces in the human history. It makes the students realize that religion is present everywhere and it always remains integral to the cultures of the human beings. It develops a spiritual self-knowledge of the students who are involved in the study of religion[8]. Therefore this can be concluded by saying that the real motive of the study of religion is developing the personalities of the students and to make the students practical and rational. The reasoning power of the students are sharpened with study of religion. This is the reason the students who acquire the correct knowledge of religion is always on the advantageous side as they are not compelled to blindly follow the religion but they are exposed to different truths of the religion. This is the reason they must be studied. References Beidelman, Thomas O.W. Robertson Smith and the sociological study of religion. Wipf and Stock Publishers, 2016. Esack, Faird. "Redeeming Islam: Constructing the Good Muslim Subject in the Contemporary Study of Religion."Alternation Journal11 (2017): 36-60. Furseth, Inger, and Pl Repstad.An introduction to the sociology of religion: Classical and contemporary perspectives. Routledge, 2017. Guyau, Jean-Marie.The non-religion of the future: A sociological study. Vol. 39. HENRY HOLT AND COMPANY, 2015. Iannaccone, Laurence R. "Rational choice."Rational choice theory and religion: summary and assessment(2016). Klass, Morton.Ordered universes: Approaches to the anthropology of religion. Routledge, 2018. Lovejoy, Arthur.The great chain of being: A study of the history of an idea. Routledge, 2017. Mitchell, Claire.Religion, identity and politics in Northern Ireland: Boundaries of belonging and belief. Routledge, 2017.