Current Credit Crisis in the United States Understanding the Trigger Factors

Nearly four years after the collapse of the Lehman Brothers and the subsequent financial downturn that followed, and which most financial commentators blamed on the housing bumble and subprime lending (Mills, 2009), the economic environment of the United States continue to struggle as markets continue to be embraced by fears of new setbacks, defaults and the prospect of experiencing a new double-dip recession (Gibson, 2011).Advertising We will write a custom essay sample on Current Credit Crisis in the United States: Understanding the Trigger Factors specifically for you for only $16.05 $11/page Learn More This paper purposes to critically evaluate the underlying causes of the current credit crisis sweeping through the United States. Behind the current credit crisis lie many factors, including the free fall of the U.S. stocks, the obstinately high employment rate in the U.S., the politically-oriented scuffle in Washington over the federal debt ceiling, a nd the decision by credit rating firms, particularly Standard Poor’s, to demote the government’s AAA rating after its aftermath (Inman, 2011; Gibson, 2011; Morales Mendes, 2011). Perhaps one of the most overbearing causes of the current credit crisis is the just-ended political scuffle over hiking the U.S. debt ceiling by $2.1 trillion, while reducing future government spending by $2.4 trillion (Gibson, 2011; Rowley Dodge, 2011). Financial analysts observe that although the raised debt ceiling made significant strides in avoiding massive default, it also rattled investors just coming to terms with a shaky U.S. economy, precipitating the current credit crisis (Gibson, 2011). It is true that a political compromise was found before the U.S. Treasury missed interest payments on U.S. debt (Peauler, 2011), but the damage had already been done in terms of low investor confidence, hence low credit flow. The cumulative effect of political indecisiveness witnessed between the Republicans and the Democrats got the investors nervous, a fact that is so well demonstrated by the dipping U.S. stocks as investors attempt to sell them off (Peauler, 2011). This is precisely the second cause that has occasioned the current credit crisis.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More On the 1st of August 2011, one day before the presumed deadline to raise the U.S. debt ceiling or risk missing out on interest payments (Peauler, 2011), the Dow Jones Industrial Average shed off 265.87 points, or 2.2 percent, to 11,866.62, its worst day of trading since June 1, while the SP 500 projected a new closing low for 2011 and turned negative for the year (Gibson, 2011). Such a dip in stocks, according to this author, only serves to precipitate a cloud of uncertainty over the market, thereby contributing to a further loss of confidence among investors and, consequently, triggering t he credit crisis because financial institutions lack the capacity to offer credit to businesses (Peauler, 2011). The decision by credit rating firm Standard Poor to downgrade the government’s AAA rating cannot be said to have augured well with the United States’ continuously shaky economic environment by virtue of the fact that such a decision, by its very nature and scope, is enough to put investors into frenzy of disposing whatever they might have held in U.S. Treasury securities (Peauler, 2011). Once again, available evidence have demonstrated that when investors dispose off U.S. Treasury securities, the cumulative effect is that banks will no longer have the capacity to provide credit to businesses (Levinson, 2009), triggering a spontaneous credit crisis. Lastly, it can be argued that the high level of underemployment and unemployment witnessed in the U.S. is partly to blame for the weak economic outlook in general and the ensuing credit crisis in particular. A re cent Gallup study revealed that 18.5 percent (approximately 1 in every 4) of workers in the U.S. are underemployed, including 9.1 percent unemployed (Morales Mendes, 2011). The high level of underemployment and unemployment translates into lower consumer spending – a fact collaborated by these authors when they argue that Americans’ spending has remained fundamentally dormant since it plummeted dramatically in January 2009. The overall effect of these two variables – unemployment and low consumer spending – is seen in plummeting property prices, low business volumes, and sustained uncertainty in the financial markets as people are not spending and industries are not growing (Yerex, 2011). These factors are adequate to serve as a toxic trigger to a new credit crisis.Advertising We will write a custom essay sample on Current Credit Crisis in the United States: Understanding the Trigger Factors specifically for you for only $16.05 $11/page Learn More Reference List Gibson, K. (2011). U.S. stocks in worst streak since credit crisis. Market Watch. Web. Inman, P. (2011). Banks are in a capital crunch again. The Guardian. Web. Levinson, M. (2009). Guide to financial markets. New York, NY: Bloomberg Press Mills, D.Q. (2009). The world financial crisis of 2008-2010: What happened, who is to blame, and how to protect your money? Evanston, IL: Northwestern University Press Morales, L., Mendes, E. (2011). Three years after crisis, little sign of economic relief in U.S. Web. Peauler, R. (2011). Another credit crisis looming for business if debt ceiling is not raised. Web. Rowley, J., Dodge, C. (2011). House passes $2.1 trillion U.S. Debt-limit increase; Senate to vote Aug. 2. Web.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Yerex, R.P. (2011). The consumer-driven economy at a crossroads. Business Economics, 46(1), 32-42. Retrieved from MasterFILE Premier Database This essay on Current Credit Crisis in the United States: Understanding the Trigger Factors was written and submitted by user Emmitt B. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Urban Sprawl and Public Health Article Summary

Urban Sprawl and Public Health Article Summary â€Å"Urban Sprawl and Public Health†, a journal article authored by Howard Frumkin in 2001 gives a detailed account of the physical and mental effects of urban expansion. The concept ‘urban sprawl’ refers to rapid development of urban areas against slow development of social amenities (Frumkin, 2001, p.3).Advertising We will write a custom essay sample on Urban Sprawl and Public Health Article Summary specifically for you for only $16.05 $11/page Learn More The author expounds that some of the distinct features that characterize urban sprawl include; increased economic opportunities, poor regional planning, and overreliance on automotive travel, which has a negative effect on physical health (Frumkin, 2001, p.1). Subsequently, abrupt extension of metropolitan areas leads to the emergence of social homogeneity that is undeniably detrimental to the health of city residents. Frumkin (2001, p.1) highlights that the effects of urban sprawl ha ve been debated for long. However, little attention has been focused on health implications arising from this phenomenon. It is essential to note that, urban lounge affect people’s life both positively and negatively. Against this background, this essay provides a summative analysis of the impacts of urban sprawl on mental and physical health of urban residents. In-depth analysis of literature has shown urban sprawl have adverse physical effects among urban dwellers. From the article, it is evident that people are highly motivated to shift from rural to metropolitan areas, yet some essential natural resources are not available in city centres. For instance, in urban areas there are no trees and other aesthetic facilities such as open ground recreational amenities (Frumkin, 2001, p.3). Moreover, the author emphasizes that physical activities in the densely populated urban centres has become a notable challenge. Lack of recreation activities, which are known to alleviate stress , affects both the physical and mental health of urban dwellers negatively.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Secondly, research conducted by psychologists indicates that people enjoy automotive commuting, yet it exposes them to mental stress, especially in the eventuality of heavy traffic jam. Moreover, excessive noise originating from traffic and industrial activities deprive urban dwellers a tranquil and calm atmosphere (Frumkin, 2001, p.3). Consequently, due to lack of soothing and restorative atmosphere most people suffer from headaches and other stress-related complications. It is reasonable to illuminate that a shift from suburbs to urban results to social isolation, loneliness and breakup of family ties, and this further leads to mental stress among city dwellers. Besides, Frumkin explicates that urban dwellers are susceptible to illnesses that are associated wit h large crowds. Poor urban zoning and influx of large crowds leads to scarcity of basic amenities. It is definite that when mental health of an individual is threatened, then the physical and emotional state of the body is affected too (Frumkin 2001, p.3). Studies have revealed that excessive commuting results to backaches and self-reported stress. Additionally, cardiovascular ailments have become a common phenomenon due to lack of exercise and stress. Since urban sprawl is characterized by heavy traffic, cases of accidents are rampant especially in situations where traffic safety is neglected (Frumkin, 2001, p.3). Another point of concern is that pollution results to respiratory ailments. Poor urban planning results to scarcity of basic facilities such as water utilized by the public and this can result to an outbreak of waterborne diseases.Advertising We will write a custom essay sample on Urban Sprawl and Public Health Article Summary specifically for you for only $16.0 5 $11/page Learn More There is a need to hypothesize that social separation especially among married people due to urban employment results to immorality which has adverse effects to one’s health (Frumkin, 2001, p.3). Consequently, sexual immorality in the urban centres increases the risk of sexually transmitted ailments, thus increasing mortality rate. Reference Frumkin, H 2001, ‘Urban Sprawl and Public health’, Public Health Reports, vol, 117, no.1, pp.1-3.

Leadership Approach Essay Example | Topics and Well Written Essays - 750 words

Leadership Approach - Essay Example Different approaches tackle different ways of scrutinizing leaders in different organizations. However, they have a common feature which is the determination of effective leadership. The leadership study approaches have been in existence since the early 90’s. The approaches have evolved to more efficient and appropriate approaches. The leadership study approaches include the trait approach, behavior approach, power influence approach, situational approach and the integrative approach. All the approaches have three key variables; characteristics of the leader, characteristics of the followers and the characteristics of the situation. This paper will focus on behavior approach of studying leadership (Yuki, 2010). It will give an insight in the characteristics of this leadership study approach. Additionally, the paper will include an insight on its strengths and weaknesses and an example of its application in studying leadership. Behavioral approach of studying leadership was est ablished in the early 1950’s after the trait approach failed to provide researchers with the required results to evaluate leaders (Yuki, 2010). The behavior approach pays close attention to managers and leaders in organizations. It evaluates some personal attributes and skills at a closer perspective. The approach is divided into two categories of scrutiny. The first category focuses on the research on the manager’s job description, how they spend their time, their daily pattern of activities, their responsibilities and the functions of their managerial jobs. In this category some researches also focus on how managers deal with constraints and demands and how they resolve conflicts in their line of duty. In this category data collection is mainly done through observation, job description questionnaires, diaries and anecdotes from retrieved from interviews (Griffin, 2011). The mangers effectiveness in this subcategory is their ability to solve role conflicts cope with d emands, deal with constraints and recognize opportunities. The other subcategory in behavior study approach entails the identifying of effective and appropriate leadership behavior. In this subcategory research methodology is mainly done by a survey of the research field and using an appropriate questionnaire. The questionnaire is an inclusion of behavior description questions. Since the establishment of this approach researchers have been able to identify the correlation between a manager’s behavior and effective leadership (Yuki, 2010). This leadership approach has several weaknesses and strengths when it comes to application and results. According to Yuki (2010) the strengths of this approach revolve around the personal knowledge of a leader. This approach enables researchers to know a manager more when not and when in their job description. The personal attributes of a manager are very important in analyzing their effectiveness. By its method of data collection a managerà ¢â‚¬â„¢s skills and effectiveness is able to be scrutinized in a personal basis. The evaluation of a manager’s ability to solve conflicts is also a unique feature in this leadership study approach (Griffin, 2011). Additionally, this approach provides a perspective on the correlation between the personal attributes of a manager and their effectiveness in their job description. This approach mostly questionnaires as a tool of data collection. This

Business Process and Systems Essay Example | Topics and Well Written Essays - 1000 words

Business Process and Systems - Essay Example In operation management, the management of the entire process relating to the production and marketing of the products or services are involved. The distribution management consists of the organising and control of the basic functions of product distribution in the market. In the old system adopted by the company, each crop is decided by the tenant and the business receives rent and a percentage of the profit. Certified organic products would help to gain the market with greater profit. Expansion of the business requires greater access to the market through considerable changes in the organisation structure. It is better to modify the production operation by giving clear cut planning relating to each of the organic farm products that has to be produced by each of the tenant. It will be more effective in production as the targeted quantity of each of the product type can be ensured. Inventory management: Too much inventory and lack of enough demand will generate great financial loss to the business. Maximising cash flows should be the aim of the business. To gain this, the inventory management system should be strengthened by shortening the forecasting time and analysis of the sales and demand data. Improved communication process is another essential factor for the efficient distribution process. Best practises of inventory management, with advanced technology tools, are helpful for improving the inventory management. Online distribution management system can be applied for improving the efficiency. It will facilitate the integration of factors such as customers, stocks, distribution and services in cost effective manner. Distribution chain starting from the vendors to the customers’ electronic distribution system can be applied. Supply chain management is greatly related to the co-ordination of different functions in the business such as procurement of materials from the farmers, co-ordination between different players in the

Leadership and Action Article Example | Topics and Well Written Essays - 500 words

Leadership and Action - Article Example Leaders may play many roles and therefore are required to perform diverse actions to fulfill the requirements for the development of the organization. It is manifested that actions performed by the leader depends on the functions that leader is performing at that particular time (Krench, 1962). The following actions are performed by the leader: Purveyor of rewards and punishment: Leader is the one who can act as an encouragement for his subordinates by rewarding them and also encourage them to do the best and up to desired expectations by punishing them. Punishment is also an encouragement and brings the best within the individual. Father figure: A leader is required to act as a focused and have positive emotional feelings for the fellows for the identification of the problem and also for transference. It is desired for the transparency and to build trust among the fellows towards their leader. 1. Chemers, M. M. (2002). Cognitive, social, and emotional intelligence of transformational leadership: Efficacy and Effectiveness. In R. E. Riggio, S. E. Murphy, F. J. Pirozzolo (Eds.), Multiple Intelligences and Leadership.

Frankenstein | Feminist Interpretation

Frankenstein | Feminist Interpretation In most 18th century stories, men portray to be the more dominate figure in the story or family. Women in the stories tend to be less important than the males. In Mary Shelleys Frankenstein: or, The Modern Prometheus, women are mention that much and even if they are, they end up being killed or dying. Feminist interpreters tend to think Shelley has patriarchal man-centered views regarding gender roles. The idea of inactive women in a patriarchal society tremendously impacts the scheme of the novel. This is a complicated topic because most of her women characters are quiet, content women who, at first, share little similarities with self-confident women. Women did not have many rights as men and they could not stand up for themselves. If a woman were to do so they would be label as impertinent and unthankful. Shelleys approach on women is more complex than what we know it. She reveals to us that women are ambiguous and conflicting people, without a vast amount of control. Shelley reve als the injustice discreetly all through the book. All through the novel, Mary Shelley suggests that women are victims in a patriarchal world. In Frankenstein: or, The Modern Prometheus, Caroline Beaufort Frankenstein, Justine Moritz, and Elizabeth Lavenza are examples victims of a patriarchal world, dominated by men Caroline Beaufort Frankenstein, Victors mother is a victim in a patriarchal world. After her fathers death, Caroline is taken in by, and later marries, Alphonse Frankenstein. She ends up marrying Alphonse, a friend of her father. Alphonse later became her protector, he came like a protecting spirit to the poor girl, who committed herself to his care; and after the interment of his friend he conducted her to Geneva and placed her under the protection of a relation. Two years after this event Caroline became his wife (18). Alphonse is the dominate figure over Caroline, he is her protector. This shows women, like Caroline are not capable of taking care of themselves. In chapter 1, Shelley portrayal of Alphonses care for Caroline sounds as if she is in charge, Everything was made to yield to her wishes and her convenience (19). This short description shows that Caroline is cherished by Alphonse, making her more dominate. Shelley tells how Alphonse, strove to shelter her, as a fair exotic is sheltered by the gardener, from every rougher wind and to surround her with all that could tend to excite pleasurable emotion in her soft and benevolent mind (19). Shelley seems to portray women as a delicate person they needs to be care for by a man. Women, like Caroline appears to being incapable of taking care of themselves. This implies that women are victims in a patriarchal society, dominated by men. Justine Moritz lives with the Frankenstein family as their servant after her mother pass away. She is a victim in a patriarchal world, dominated by men. After William is murdered, the creature puts an image of Caroline, Williams mother, that William was carrying in Justines pocket and she is blame of murder. She later confesses wrongly to the crime out of trepidation of going to Hell. Victor did not believe that she has murder William saying, Justine Moritz! Poor, poor girl, is she the accused? But it is wrongfully; everyone knows that; no one believes it surely, Ernest? (62). Even after this she is still guilty of the murder and is executed. This reveals that Justine is a victim because even though she did not actually murder William, she was found guilty. The murdered was actually a male, the creature, yet Justine was punished. She is wrongfully executed for an action of a man. Justine is an innocent girl; she would rather face the consequences of a murder conviction than be excomm unicated by the church. Justine, a pure innocent soul, has no one defend her in trial. Yet, when Victor, a men, accused of killing Henry Clerval, has many people to defend him, a much more corrupt soul. For this reason Justine is put to death, therefore she is also a victim of a male dominate world. Elizabeth Lavenza is an example of women being victims in a male dominated world. Elizabeth is an orphan taken in by Victors parents. She is passive, waiting for Victors return. She is a victim is a mans whole because all she does majority of the time in the novel is wait for him to return. After receiving the news that Victor has fallen deeply ill she immediately writes him a letter, My dear Friend, It gave me the greatest please to receive a letter from my uncleà ¢Ã¢â€š ¬Ã‚ ¦my poor cousin, how much you must have suffered! I expect to see you looking even more ill than when you quitted Genevaà ¢Ã¢â€š ¬Ã‚ ¦My uncle will send me news of your health, and if I see but one smile on your lips when we meet, occasioned by this or any other excretion of mine, I shall need no other happiness (165-166). Elizabeth seems obsess with Victor, Shelleys portrayal of her seems to be as if she is in need of Victor, as if she would die without him. Elizabeth models the Victorian angel in the house. Victor describes her as a being heaven-sent. bearing a celestial stamp in all her features, fairer than pictured cherub (20). Victors description of Elizabeth makes us think that she is an angel. Victor is very fond of her, this show that Victor treasures her greatly, hence her being dominate over Victor for a moment. Victors action is the cause of Elizabeths death, because of the promise Victor broke to the creature he vows to take revenge on Victor. The creature ends up murdering Elizabeth on her honeymoon night with Victor. Even though at times Elizabeth appears to be dominating over Victor, he still surpasses and controls her, thus Elizabeth being a victim of a patriarchal world. Throughout the story Shelley suggests that women are victims in a patriarchal world, dominated by men. Frankenstein: or, The Modern Prometheus is an embodiment of Shelleys concern for feminine position and importance in the 18th century patriarchal society. Shelleys approach on women tells us that women are ambiguous and contradictory, lacking power. Shelley reveals the inequality inconspicuously all through the story. Throughout the novel, Mary Shelley suggests that women are victims in a patriarchal world. Caroline Beaufort Frankenstein, Justine Moritz, and Elizabeth Lavenza are victims of a patriarchal world, dominated by men. Men are the reasons why these women were punished. The novel exemplifies the unfairness of women in the 18th century and in the novel.

urbanization in third world countries Essay -- essays research papers

Urbanization and its effect on third world living conditions Urbanization is the spreading of cities into less populated agricultural areas. Most people would not think that this is necessarily a problem. They would say that it is good that the â€Å"developing countries† were becoming more developed. With urbanization comes factories and more jobs, so the people can make more money and be happier. Right? The problem is that these people must sacrifice their traditional lifestyles, for this new â€Å"Urbanism†(the way of life, attitudes, values, and patterns of behavior fostered by urban settings Knox 234). A lot of these people don’t choose this lifestyle- they are forced into it. Because there is a growing demand for natural resources in the core countries, the semi periphery and periphery countries (where many of the resources are) get exploited. The â€Å"civilized† world enters the other countries, buys land from the government and then forces the people who are on that land off of it. These people then move to the cities because they have nowhere else to go. Once they get to the city they are lucky to find a job. Sometimes these jobs pay as little as 80 American dollars a year and can barely support a family. As a result many turn to crime or prostitution to make ends meet. Our worst poverty is generally better than the average people in these third world cities.   Ã‚  Ã‚  Ã‚  Ã‚  The people in these cities lack not only those things that are necessary to sustain life- such as food, clean water and adequate sewage. But they also lack those things that we consider to be essential to life such as electricity, running water, and education, forget any of the things that we just have to enjoy, like cars clothes candy drugs television and entertainment. Eventually large slums develop around or inside of the cities, in these slums; large groups of poor and uneducated people end up living together in poverty. The World Bank met in 1999 to address these problems; in their report they write â€Å" Hundreds of millions of urban poor in the developing and transitional world have few options but to live in squalid, unsafe environments where they face multiple threats to their health and security. Slums and squatter settlements lack the most basic infrastructure and services. Their populations are marginalized and largely disenfranchised. They are expos ed to disease, c... ...ople off of it. If people were not forced off the land, into the city, the cities would grow at a natural rate. When Urbanization occurs at a natural rate (the United States) Poverty is present but not as magnified.   Ã‚  Ã‚  Ã‚  Ã‚  Truth is that these problems cannot be fixed by anyone. If there are people that have a lot then there are going to be people who have a little. These rules are written in the very laws of nature. The governing powers (companies, world bank, tri-lateral commission) think that if they can just raise these people up to a little bit higher living standards than they will be o.k. But the more you give people, the more they want, it’s just human nature.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Bibliography 1.World Bank Group. â€Å"cities alliance for cities without slums, action plan for moving and upgrading slums†. Annual meeting.1999 No authors were given 2. United nations human settlements program. â€Å" urbanization, facts and figures† New York, 6-8 of june 2001 3. another united nations human settlement report, no author no date