Healthcare management capstone by nikita brown Essay Example for Free

Healthcare management capstone by nikita brown Essayhebdomadary tasks or assignments (Individual or Group Projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE All submission posting times are based on midnight central Time. Administrators must continuously seek opportunities to increase the profitability of their practice or facility. Throughout this course, you will develop a plan to integrate a up-to-the-minute and emerging trend in health care in your scheme.Your Executive Summary to integrate a period or emerging radical into your organization will include the following week 1 Topic seek/Selection and Literature Review Week 2 Organizational Assessment Week 3 Project Plan Week 4 Implementation Plan Week 5 Evaluation Plan Week 1 Topic Research/Selection and Literature Review Part 1 Topic Research and Selection Begin this process by researching what health care organizatio ns are doing or attempting to do to increase profitability. Remember, profitability can be improved from many different angles.A nonexclusive list of potential ways would be adding additional services, decrease costs, increasing the amount of services that are provided, or implementing a quality improvement program that qualifies for incentive monies. Check trade journals or professional intelligence boards, or reach out to existing health care managers. Part 2 Literature Review Perform a literature review of the solution that you have decided to apply to your organization. The review will encompass several articles, and at least 1 of the articles must be peer-reviewed.Look at current material (within the last 2 years). Remember, a literature review includes a summary of the information that you found that is relevant to your topic as well as an APA reference for each resource that you reviewed. Identifying what topic to execute research on should be accomplished quickly becau se you will need sufficient time to perform your literature review. Review a minimum of 10 documents. The review should be between 1015 pages, including the bibliography. Use APA format.

Effects of Tourism on the Economy of the Mauritius

Effects of Tourism on the Economy of the MauritiusAbstract This dissertation is base on touristry in Mauritius concentrating on how the country became one of the worlds best tourer destination and a detailed report on how tourism influencing the economic growth of Mauritius. The overall development of the country can be assumed by the GDP and per capita in drive, luxury tourism sector is the main(prenominal)(prenominal) economic growth of the Mauritius which is playing a reveal role for the social and economic aspects. The technique which used in Mauritius has progressed them from a low-income thriftiness based on agriculture to a middle-income diversified economyKeywords Tourism, GDP, per capita, low-income, diversified economy1. IntroductionIn the sub-Saharan region and in Africa Mauritius is one of the most performing and fastest growing countries. The country has moved from a mono-crop sugar-dominated economy to being services oriented. The main economic pillars of the i sland be framework, sugar, tourism, and services. People from different parts of the world atomic number 18 commited towards the real beauty of Mauritius which is in its crackers interior, waterfalls, lush forests and endemic wildlife, striking mountains, mild weather. Mauritius offers inspiring beaches and indigo waters, fascinating accommodation, world-class golf courses, spas, waterskiing, windsurfing, fishing, parasailing, and warm hospitality from the locals. Mauritius-simply divine n.d.Mauritius has progressed from a low-income economy based on agriculture to a middle-income diversified economy .The main economic growth has been the result of the increase of the luxury tourism sector. When world sugar prices pay off turn down and the manufacture of textiles has become economically impracticable, the country concentrated on tourist labor. Because of the limited space available for tourism and the need to maximise income while minimizing environmental impact, tourist poli cies in Mauritius endorse influential and specialist tourism Low budget tourism is not promoted. The Mauritian government encourages dress shop luxury hotels, 4 and 5 stars beach resorts, golf courses, and spas and beauty centers for steepschool-end tourism.Accordingly, thus rising from 103,000 in 1977 to 656,450 in two hundred0, a more(prenominal) than six-fold increase in tourist arrivals. Total quash of nights spent by tourist was estimated to about 6.5 million, representing an increase of 13% over 1999. The usual duration of stay works out to nigh 10 nights and average expenditure per tourist reached about Rs.22, 000. In 2000, take in tourism receipts were 14.2 billion rupees (508.3 million US $) and contributed to about 11% of our GDP. In 2010, tourist arrivals were estimated at about 934, 000 compared to 871, 000 the previous year and 2010 tourism earnings were estimated at about MUR 39.5 billion, up from MUR 35.7 billion in 2009. Gross foreign manoeuver investment fu nds (FDI) stood at MUR 10.6 billion at the end of September 2010 against MUR 8.8 billion for the same period in 2009, a 20% gain. The investment went mainly to wellness and social work activities, real estate, finance and insurance. Tourists are mainly European, French and British. In 1970 Mauritius had about 18,000 visitors in and between 1985 and 2000 the size of its tourism sector, work out by the raise in tourist arrivals, grew by approximately 340%. In 2000 Tourism forced 30,000 full time job equivalents in Mauritius thus the country ecstasyds to be a high cost tourist destination and in 2004 Tourist arrivals were almost 720,000 and in 2008, 970 482 tourists came to Mauritius. Air travel and accommodation are reasonably expensive. Most tourists are on package holidays at that place is very little independent travel or backpacking. Charter flights shake been banned, the resort hotels have been built to high standards and there are high standards of cuisine and service to en courage up-market tourism there are bring flights from Britain and South Africa. Tourism in Mauritius n.dDespite concerns about pollution and suffering to coral reefs, the amount of resorts come together in parts of the coastline is growing and policy in the country has generally been to regulate contact between Mauritian society and tourists because of concerns about cultural and social problems. The main tourist attractions in the country are its environment, with white beaches, sea, and warm climate and the friendliness of the people and its policy-making and social stability. By attracting Foreign Direct Investment the country is equipped with a super skilled labor force and a very salutary infrastructure. Over the last 3 years the average economic growth was 5.6%. As a result the standard of living has gone up the income per Capita has reached 4000 US Dollars. The Government has taken several steps to face globalisation and a new economic environment. On the priority list there are high value-added, capital intensive and knowledge-based activities. The Information Technology sector is undergoing rapid changes so as to be fit for the next millennium. The aim is to make Mauritius a mall for high-tech and software services, which can be exported.African Economic Outlook n.dThe government of Mauritius has adopted new strategy for developing the local tourism industry which is referred as the devoteing of the sky action plan. The main idea is to develop new markets, which include penetrating to new countries and new client profiles. Tourism to Mauritius has accomplished agreeable growth in recent years and following the government efforts for developing the local tourism sector, it is most likely therefore that the tourism sector testament hold out growing in coming years. The developed infrastructure, access to cost effective and educated labor, attractive investment incentives and existing linkages with industry representatives in European Union and Eastern and Southern Africa put Mauritius in an excellent position to take advantage of growth opportunities. Following these efforts, the Mauritius government expects an increase in the number of tourist arrivals to as much as 2 millions tourist per annum by 2015. To have a optimistic and flourishing tourism sector Mauritius is well know in the African region. With a value added of 9.2% of GDP and has been a key factor in the overall development of Mauritius tourism has emerged as one of the main pillars of the economy and contributes significantly to economic growth. About 65.7% of the tourist arrivals are of European origin, with France supplying nearly half. The Government has been very helpful to investors local and foreign by setting clear policies, get rid of bureaucratic procedures, contributing incentives and creating an environment favorable to investment. There are many factors which attract investors offer- primarily beach tourism and the sun, our strategic locatio n, the image that Mauritius has, hospitality of Mauritian, infrastructure, availability of skilled workers, political stability, business incentives, facilities and environment that make possible investment among many others. The Government of Mauritius conducts its marketing activities through the Mauritius Tourism Promotion Authority. Hotels, though, carry their own marketing and deal mainly with foreign tour operators.The tourism sector has paying attention to considerable FDI. Recognizing the importation of Foreign Direct Investment in toll of capital for further investment and overflow of technological know-how and skills, the government has put forward openhanded incentives to attract foreign direct investment to advance increase the sector. FDI policies towards tourism were once quite preventive as there were fears at that time of creating over-capacity of hotel agencys. However, foreign investment is now permitted in restaurants, yacht, travel agencies among others. It is expected to contribute towards showing the livelihood impact of the tourism sector in damage direct and indirect use creation, infrastructure and amenities improvement, preservation of the environment and job opportunities for women among others. It allow for also be a stepping stone in identifying the main challenges facing this sector from the go steady point of all stakeholders involved. Economy of Mauritius n.d2. MotivationTourism creates jobs and wealth for the countries, increase GDP/ national income, economic and educational growth of people, and broadens peoples understanding of different cultures. There is a continuous flow of money between countries/states/towns. Depend heavily upon travel expenditures by foreigners as a source of taxation and as a source of income for the enterprises. and past, the development of tourism is often a strategy to promote a particular region for the purpose of increasing commerce through exporting goods and services. It provides direct employment for the people associated with occupations in bars and hotels. The standard of living of people increases well and at the same time unemployment is on the decrease. Tourism is an extremely productive process in loads of countries, especially those in which the process of development continue to depend on this industry because this industry does not require a lot of literacy and also it yields maximum profits with less investment.Concerning public there has been much development made for the infrastructures, many buildings has been built incoastal regionsfor the homely of tourists, road also have been built to ease the travel in those regions. It can say that much has been do to make tourist feel preventive in the coastal regions and there are many police stations and police patrols (policemen patrolling on bicycles also). Much work and employment has been created in hotels, that indirectly create jobs for tour operators, tourist guide, taxi drivers. Many places have been protected and the government is doing much to preserve places, fauna and flora in the island. Thus theTourism industryhas had a much more positive impact on the industry on Mauritius and it has been a boon to the economy of the country as many foreigners come to the country and spend much money during their stay3. Findings and ResultsUsing a number of statistics compiled by the Central statistical Office an analysis of tourism has done by the government authority. A number of ratios are devised and plotted as time series from 1979 onwards. The Ratios calculated are as follows Number of Nights spent per Tourist, Discounted mesh per Tourist, Discounted Earnings per Night, Contribution to GDP per Tourism Earnings, Discounted Contribution to GDP per Tourist, Percentage of Nights spent in Hotels, Nights spent per Tourist in hotels and nights spent per tourist in internal accommodation, average expenditure per tourist residing in hotels and average expenditure per tourist residing in informal accommodation.It was bring into being that there has been a flesh out in the number of nights spent per tourist for the past years and low-cost earnings per tourist has stayed flat from 1988 to 1998. It was also found that although only 25% of tourists lay outside the hotel sector, those tourists make up 40% of nights spent on the island and represent 14.5% of the earnings accrue from tourism. It was found that from 1990 to 1997, GDP (in 1997 Us $) for European countries has increased by 10% on average, and arrivals from Europe has gone from 43% of the total to 58%, discounted spending per tourist from a number of European countries has remained flat. The main result are that the constant achievement of tourism in Mauritius respites significantly on tourists exist in outside the hotel sector and that in real terms Mauritius has grow to be a cheaper destination for Europeans.Tourists in hotels spend less time in Mauritius than tourists in informal accommodation and this is due to the carnal knowledge expense of staying hotels compared to staying in informal types of accommodation. Over a lapse of six years the number of nights spent per tourists in both type of accommodation has fallen significantly and it is not a good trend A paper on tourism in Mauritius n.d.Table 1 Nights per Tourist in hotelsVsNights per Tourist in informal accommodation courseNights per tourist (in hotels)Nights per Tourist (informal accommodation)19909.4018.5719927.86231994916.3619968.3315.6519987.9217.18Figure 1 Nights per tourist (in hotels) Vs Nights per tourist (informal accommodation)Tourism industry adds considerably to economic growth and has been a key factor for the whole progress of Mauritius. In the past two decades tourist arrivals increased at an average annual rate of 9% and in 2000, gross tourism receipts contributed about 11% of the GDP of Mauritius.Table 2 Number of tourist arrivals in Mauritius from 1974 to 2010YearNumber of tourist arrivals(in 1000)19741 001978200198230019864001990500199460019987002002800200690020101000Figure 2 Number of tourist arrivals in MauritiusIn particular, monetary globalization undeniably presents new challenges and benefits to developing economies, to a small island economy (SIDS) like Mauritius. Given the special features of SIDS in terms of their economic vulnerability, their participation in the global financial markets raises a number of policy issues such as market access, direct of financial development, international support and financial stability.Since the late 1980s, with the onset of the financial liberalization computer programme the integration of the domestic financial system in the global financial markets has been high on the agenda of policy makers. The internationalization of the financial system molded part of the overall strategy of reaping the full benefits of economic liberalization. Policy makers have been aggravated by encouraging the financial services sector as some other s tudy pillar of the economy and creating Mauritius as a regional financial center. In order to integrate the global financial markets the purpose of this work is to show the institutional and policy changes, which took place in the Mauritian financial system.In terms of capacity building capital flows and improved competence an introduction judgement of the impact of the liberalization of workmanship in financial services on the financial system will be attempted. In the trade liberalization of financial services, there has been a significant increase in the volatility in net capital flows, namely foreign direct investment and portfolio investment inflows. It is operose to state that financial services liberalization has led to financial stability. In some sections of the financial sector there has been a move towards high financial efficiency.Domestic financial integration has greater than before but the diversification process is going at a slow pace. The banking activity rema ins highly concentrated and there are signs of rigidity in banks interest rank. Especially in terms of capacity building and governance the developments in the financial markets have been significant and number of legislations has been passed to modernize the Mauritian financial system and amalgamate the world financial markets. Following an econometric investigation of the impact of financial globalization on consumption volatility, find an evidence of a positive and significant relationship. This is an indication that the level of financial sector development has not reached the threshold level so as to reap the benefits from financial globalization. A higher level of financial sector development will be helpful to harness the benefits from financial globalization. The main policy implications is the further development of the financial sector is crucial for participating in the globalization process of financial markets and reap the benefits in terms of higher economic growth an d welfare. Trade liberalization in financial services has guide to higher volatility in capital flows policy makers should continue to implement institutional changes to integrate world financial markets. International support should be sought for financial sector development and harmonization of regulatory framework.In 2008 real gross domestic product(GDP) grew by 4.1%in 2010,up from3.1% in 2009 but lower than the 5.5%. The government has maintained a growth path, in spite of challenges at home and abroad. In 2011,GDP growth is estimated to remain around4%. Nevertheless,thiswill depend on the improvement in themain European trading partners, but could be faster if Mauritiusreduces its dependence on sending exports toslow-growing traditional marketsand charting a new economic modelmore malleable to future shocks. Projections for 2012 put economic growth at 4.1%. To taken as a whole 2010 budgetdeficitwas estimated at 4.7% of GDP against 6.6% in 2009. It is communicate to fall back to 4.4%in 2011 and4.3%in 2012.In 2010,the key Repurchase Agreement (Repo) rate was reduced from 5.75% to 4.75% and theheadline inflation ratestood at 2.9% compared to 2.5% in 2009. In 2011 Inflation is expected to increase to 3.0% and 3.9% in 2012. The current account deficitstood at 7.9%of GDP and isprojected to rise to 9.2% in 2011 and 9% in 2012. Amidvolatility in the foreign exchange market, the Mauritius rupee (MUR) ended 2010 appreciating against majorcurrencies. Against the US dollar (USD),it gained from an average of MUR 31.94 in 2009 to MUR 30.89. Financial globalization n.dThe government has already act to a target of one million tourist arrivals on the short term and two million before 2020 in the up-market segment, regarding the volume of tourism. The TDP bring to a close that tourist development in Mauritius will not be controlled. Given these targeted growth Figures the tourist burden on the country in terms of environmental and social impact remains limited. with an accelerating growth especially in the last few years in correspondence with the targets for the first five-year period room capacity is increasing from 9,024 rooms in 2001 to 12,830 rooms in 2006.For example the French coming through Reunion despite the low volume and high quality hotel sector there are regional and domestic markets that seek inexpensive accommodation. Through the informal sector this accommodation has developed. According to a descry executed for the TDP this accommodation has substantial capacity an estimate of 7,000 rooms resulted from this survey. In comparison with the hotel room capacity in the formal sector the occupancy rates are much lower in the informal sector Bed nights sold in the formal hotel sector are about 3.5 times higher than in the informal sector according to the TDP. It should be emphasized that there is a complementary value of the informal sector product in the tourism product portfolio. In the 2000 survey repeat tourists accounting for 33% of the tourists interviewed and probably there are more or less captive customers of the informal sector. If this is the good example a value added strategy for this sector will contribute to the economic development without undermining the high quality profile of the formal hotel sector. Master plan for air pane in Mauritius, n.d.The United States has become Mauritius second largest market. The Americans and Mauritian are expecting that the new American trading relationship will not drop out or it did in the early 1800s. Due to that today, architect of the Mauritian economy as well as Americans who are being actively trade with Mauritius. This invigorated trade with the United States comes at an important time for Mauritius. To weaken the profitability of sugar and clothing exports the country faces many confronts into the future, as a removal of preferential intercession and increased disceptation in world trade. The government has taken some measures to point out these issue s such as investing in dressing and education, engineering science sector, introducing more competition in key services, creating an information and communication end also privatizing the communications industry. Mauritius has great hopes for future growth in the U.S. market. The Africa growth and luck Act, which offers preferential access for apparel exports to the U.S. market. The country today is planning for the future with an eye in international trade just as Mauritius did in the 1790s to open the island for foreign trade. Economic growth in Mauritius, n.d.4. ComparisonsFrom 1990 to 1997, the GDP per capita for ten European countries sources of tourists to Mauritius has increased. The average increase is of the order of 10% for the 10 countries listed below.Table 3 GDP per capita for ten European countries sources of tourists to MauritiusCountryPercentage increase in real GDP per capita from 1990 to 1997GDP per capita in $ US(1997)Austria14.7%25550Belgium10.9%23792France9.8% 23786Germany14.9%25592Italy8%19912Netherlands18.6%21370Spain13%13511Sweden5.5%25735Switzerland0.7%35978United Kingdom12.5%21823 norm Increase10.86%The spending per tourist expressed in 1997 has diminished by 5.6% when the GDP per capita for the above-mentioned European countries has improved by 10%. The proportion of arrivals from the above-mentioned European countries has gone from 43.5% in 1990 to 58.7% in 1997 of the total arrivals respective years. Those simple figures do show evidently that for Europeans, Mauritius has become a cheaper destination. A paper on tourism in Mauritius, n.d.Mauritius has received a substantial proportion of its visitors from Europe since the 1980. Today in Mauritius more than 20,000 jobs are produced by tourism sector. Mauritius is having predominantly European Tourists. It is calculated that expense on tourism in Europe is going to increase stronger than its GNP. Even though the GNP-growth per capita in Europe is relatively low compared to the USA a nd Japan, long-run growth prospects in the European market are positive. As a matter of fact like other sectors, tourism is also a war-ridden market. Tourist operators are now having more number of tourist destinations in their brochure. In competing markets, like the tourist market, price sensitivity is very high. Given the quality, relative small price changes can lead to large market share changes. Globally, there are many reasons for the increasing value for money. The cost of a characteristic long distance holidays have dropped substantially. The air fare component is the main contributor to this decline. Mauritius whitethorn loose important market shares in the distinct originating markets. Therefore one must conclude that the current tourist strategy has some risks in it, whereas until today the image could justify the high price of the Mauritius tourist product, this may not be the case in the future especially if promotion efforts diminish. But even if Mauritius would be able to pertain its value perception by promotion, this would bring in some views too few tourists with insufficient economic multiplier effects into Mauritius. The current state of the economy may require a significant increase in tourist demand volume. Recent volume developments in the up-market segment make it impossible to compensate the current lay-offs in the textile sector. Among other things the current pricing strategy in the tourism sector is not expected to provide the new employment perspectives. It can even be questioned whether Mauritius is able to retain its current market share in the up market segment as such. Enlargements of the tourist market may imply major changes in the environmental and social structure. Careful environmental planning and design is essential to prevent the island from an urban sprawl of hotel developments. A good water worry is necessary to take care of the increase of both the demand for drinking water and the volume of wastewater. Next t o that, the residents of Mauritius will be increasingly confronted with tourists, whether in competition for the beach or in associate with the informal sector. Therefore the developments have to go with a balanced social program Master plan for air transportation in Mauritius. Rodriguez and Mauritius also have similar comparisons of tourism industry Tourism and development n.d. Antigua and Mauritius are the islands which have developed tourism as the major industry and along similar lines with big resorts. Business Mega n.d.Figure 3 Distribution of respondents by purpose of visit, 2000The proportion of tourists coming on holiday went up from 72% in 1998 to 74% in 2000, while honeymooners fell from 15% to 11%. In 2000, tourists coming on business or to attend seminar accounted for 9% of the sample, a figure which is more or less the same as that recorded in 1998. Tourism Strategy n.dTable 4 Percentage distribution of respondents by purpose of visit, 1998 2000Purpose of lambast1998 2000Holiday71.673.7Honeymoon15.111.3Business/Seminar8.79.2VFR2.33.6other2.32.25. Conclusion and Future recommendationThis dissertation has shown how tourism industry has developed into a major pillar of economic development in a small island economy like Mauritius and comparisons with other countries dealing with the achievement of tourism industry and how tourism helping Mauritius both in economic and social aspects. And also about the drawback of stay in hotels and informal accommodation due to the relative expense in hotels which is not considered as a welcome trend. In future if the government will study more about this and try to solve it according to the welfare for the countrys economic aspects then Mauritius will become a cheaper destination in all aspects. At present the marketing strategy of tourism in Mauritius is mainly based on European countries which can be considered as a negative aspect because if the country concentrate on the advertisements based on a global techn ique then it will help the economy to a better extent. Government can take necessary actions, if need be, to improve the impact of tourism on businesses, community, environment, training andinfrastructure.AcknowledgementsI would like to thank Ms.Georgia Balta for the direction, assistance, and guidance and I also wish to thank my friends and colleagues.

The reasons that caused Lehman Brothers to collapse

The reasons that caused Lehman Brothers to collapseThe bankruptcy of Lehman Brothers was a result of the investment banks exposure to the 2007-2010 financial crisis. In fact, the demise of the investment bank would come to symbolize the crisis. Therefore, in articulate to understand the Lehman Brothers bankruptcy, a consummate understanding of the 2007-2010 financial crisis is requisite. As such, an examination of crisis pass on perform as introductory. some(prenominal) factors contributed to the fall of Lehman Brothers. Perhaps most important, however, was the period of deregulation that preceded the crisis.Arguably, the period of deregulation started during the Reagan Era. Reaganomics, the lassiez faireeconomic policies advocated by the former president, may ache served as the starting point for the deregulatory climate that ensued for the following two decades. Either way, the following two decades witnessed an overriding belief in the virtues of deregulation.In 1999, Preside nt Clinton signed the Gramm-Leach-Bliley monetary Services Modernization Act into law. The act repealed portions of the Glass-Steagall Act (Banking Act of 1933). The Glass-Steagall Act prohibited universal banking. Universal banking is defined as a single universe acting as an investment bank, a mercenary bank, and an amends company(Investopedia). The repeal of Glass-Steagall allowed for harmful activity on the part of several financial intermediaries, including Lehman Brothers. For example, commercial banks play a crucial single-valued function as buyers and sellers of owe-backed securities, credit-default swaps and other explosive financial derivatives. Without the watering down and ultimate repeal of Glass-Steagall, the banks would fox been barred from most of these activities (Demos 3).Several other factors contributed to the financial crisis, includingsubprime impart, credit conditions, financial instruments, and an outgrowth in dwelling prices. Many subprime owes we re predatory in nature. Often, the borrower had little chance of repayment. As mortgages were often bundled and sold, lenders were less(prenominal) concerned with a borrowers ability to repay the mortgage. In addition, over 80% of subprime mortgages were adjustable-rate mortgages (ARMs)(Lee).A combination of declining home prices and higher reset rates for ARMs caused delinquencies to maturation dramatically.Subprime lending was fueled by low interest rates. After family 11, 2001, the Fed lowered rates. In periods of low interest rates, lending becomes more profitable. As such, banks were pressured to increase subprime lending. By 2006, subprime loans accounted for 20 percent of all mortgage loans (Kratz).The use of financial innovation to create complex financial instruments (derivatives) played a significant role in both subprime lending and the financial crisis. For example, banks sold mortgages, through the securitization process, to investors, in order to finance subprime lend ing. Asset-backed securities (ABSs) were a common securitization arrangement. A portfolio of income-producing assets (loans) is sold by the originating banks to a special purpose vehicle and the cash flows from the assets argon then allocated to tranches (Hull 190). The securitized loan is then sold to investors as an ABS. The process is depicted below.ABSCDSIn addition, another derivative, a credit default swap (CDS), was designed to provide insurance to protect against default. CDSs allowed investors to synthetically bet against the asset-backed securities. The process is akin to multiple people buying insurance on the same house (Demos). As such, when mortgages began to default, causing the value of ABSs to decline, the losses to insurance agencies were magnified.The combination of all three of the aforementioned factors caused a remarkable increase in home prices. Low interest rates encouraged borrowing. In addition, many subprime borrowers believed home prices would continue to appreciate in perpetuity. As such, subprime borrowers acquired ARMs. ARMs were a product of the financial innovation mentioned earlier. Between 1997 and 2006, the amalgamation of these factors resulted in a 124 percent increase in home prices (SP/Case-Shiller).Market MakingIn order to better understand the collapse of Lehman Brothers, it is necessary to examine the functions and practices of an investment bank. The sales and affair desks at investment banks had primarily acted as commercialise makers. Market makers are a broker- trade winder households thataccept the risk of holding acertain number of shares of a particular security in order to facilitate trading in that security (Investopedia). In other words, market place makers provide liquidity to markets by quoting both bid and offer prices. In contrast,investment banks eventually began proprietary trading. tradepronounced trading involves fetching positions in assets, as opposed to profiting from the bid-offer pass on (market making). Lehman Brothers, through proprietary trading, had large levered positions in both subprime mortgages and mortgage-backed securities. When the value of these assets began to decline, the firms equity was purifyd out and the bank became insolvent.Proprietary TradingCollapseOn September 15, 2008, Lehman Brothers filed for chapter 11 bankruptcy. This was the largest bankruptcy filing in U.S. history. The bank declared a debt of $613 zillion, bond debt of $155 billion and $639 billion worth of assets. The demise of Lehman Brothers was caused by a combination of the rejection of bailout from the political sympathies, lack of a willing buyer, and the mortgage crisis.The reasons behind the government rejection of a Lehman Brothers bailout are hotly contested. antecedent to Lehmans bankruptcy, the government had saved both American Insurance Group (AIG) and Bear Sterns from a similar fate. According to Treasury Secretary Henry Paulson and Federal sustain Chairman Ben Be rnanke, the government failed to bailout Lehman Brothers for two reasons. First, the government lacked legal authority to intervene. Second, Lehman had insufficient capital. The Federal Reserve could only make a loan, Bernanke explained, if collateral supported it bragging(a) Lehman a loan then would be lending into a run, Bernanke felt The assessment was that if there was a run, which there would be . . . all we would pass on realised would be to make counterparties whole and not succeed in preventing the collapse of the company (dailyfinance.com).Many theorize that the government didnt save Lehman Brothers in order to teach market participants a lesson. However, Bernanke refutes, I speak for myself, and I think I can speak for others, that at no time did we say, We could save Lehman, but we wont. Our concern was close the financial system, and we knew the implications for the greater financial system would be catastrophic, and it was (dailyfinance.com).Lehman Brothershad potent ial buyers in bothBank of America and Barclays Capital. However, without government assistance,both Bank of America and Barclays Capital walked. Lehman was forced into liquidation.September 16, 2008, the twenty-four hour period following Lehman Brothers file for bankruptcy, Barclays signed a definitive agreement to acquire certain parts of Lehman as well as their New York headquarters building. The deal was revised days later for Barclays to acquire the core business of Lehman Brothers including their $960 million Midtown Manhattan office skyscraper and 10,000 employees for $1.35 billion. With few other options, Lehman had little choice but to acquiesce. On September 22, 2008, Nomura Holdings Inc. acquired Lehman Brothers franchise in the Asia Pacific region including multiple locations and 3,000 employees.The mortgage crisis played a significant role in the collapse of Lehman Brothers. Lehman was a major fraud in subprime lending. Lehman was a leader in both mortgage lending and loans securitization of mortgages. Subprime lending and securitization represented an increasing large portion of Lehmans revenues. As such, the firm was irrevocably linked to the mortgage market.When mortgage default rates began to rise, demand for MBSs decreased. Lehman was stuck with billions of dollars of nephrotoxic assets on its balance sheet. Lehman would eventually close its mortgage lending operations. The following year, imputable to holding on to large positions in subprime and other lower-rated mortgage tranches, Lehman faced significant losses. By 2007, Lehmans leverage ratio (measurement of risk) also increased tremendously to 311 putting them in a very vulnerable position because they were too thinly capitalized for the leverage used.This was allowed because they were not subject to the same regulations as depositary banks. Deregulation allowed for Lehman to take those increasingly risky positions.Market EffectsLehman Brothers bankruptcy filing on September 15, 2008 caused the DJIA to drop over 500 points (-4.4%). September 15, 2008 marked the biggest one day drop since the markets reopened following September 11, 2001. The DJIA would eventually lose an additional 43% of its value, erasing more than US$ 1 T in market capitalization. World stock market indices suffered a similar fate. The FTSE All-World Index would eventually lose 2400 points (44% of its value).The prospect of Lehman liquidating $4.3 billion in mortgage securities sparked a selloff in the commercial mortgage-backed security (MBS) market. Several money and institutional funds had significant exposure to Lehman. BNY Mellons institutional cash fund and the primary reserve fund (an MMMF) both trim back below $1 per share delinquent to exposure to Lehman. The Net Asset Value (NAV) of MMMFs normally stays constant at $1 because investment products commonly do not produce capital gains or losses (Investopedia). This event was referred to as the breaking of the buck.Overall systemat ic risk increased drastically as a result of the bankruptcy filing. Due to the increase in systemic risk, there was a US$ 737 B decline in collateral peachy in the securities lending market. In addition, the TED Spread, the spread between U.S. treasury rates and LIBOR rates, increased almost 400 basis points. Essentially, the dramatic increase in the TED spread was due to overwhelming suspicion. LIBOR rates incorporate a small amount of credit risk U.S. Treasury rates are seen as virtually risk-free. The uncertainty caused the rate differential between a small amount of credit risk and risk-free to widen.After the Lehman Brothers bankruptcy filing, in order to address the escalating crisis, the government created the Troubles Assets Relief Program (TARP). TARP was designed to purchase both assets and equity from financial intermediaries (FIs). The purpose of its design was threefold. First, by purchasing assets, the government hoped to remove toxic assets from the banks balance sh eets. Second, by increasing equity positions, TARP recapitalized the troubled banks. Third, TARP was also implemented to encourage inter-bank lending.OpinionThe bankruptcy of Lehman Brothers was preventable. The preventability of the Lehman Brothers bankruptcy is primarily due to three factors. First, corporate culture is dictated by upper-level anxiety (this is especially true in top-down hierarchical organizations). At Lehman Brothers, CEO Richard Fuld created a culture of risk taking. A corporate culture that reflected conservatism could have prevented the banks demise. Second, as a corollary, tougher risk management policies could have prevented risk taking behavior. For example, by historical measures, Lehman had a tremendous used a tremendous amount of leverage. As mentioned, a 3 percent decline in asset prices would wipe out the firms equity. A leverage cap could have been used to prevent the overuse of leverage. Third, the weak economic climate was disastrous for Lehman. Le hman had large positions in the mortgage market. When the market began to decline, those positions went against the investment bank.To prevent the three factors, the firm should have hired a CEO that advocated a less risky business strategy. In addition, expurgate employees compensation based on profit generation. The firm could have also employed a more market neutral trading strategy. In doing so, Lehman would have avoided insolvency.As mentioned, several ways exist to prevent the failure of the investment bank. However,all the supra approaches Lehman CEO Richard Fuldare tailored to Lehman Brothers unique situation.They may or may not, however, be industry-wide or socially beneficial.To prevent another financial crisis and, therefore, the failure of financial institutions, we must align the self-interests of those institutions with societal interests. The following are recommendations for aligning the above interests-Long-term Incentive Structure-Fiduciary Responsibility-Promote Financial Education-Prevent the Manipulation of Social InterestsWe need to develop a long-term fillip structure to prevent executives trying to capture profit upfront at expense of the company and/or societys long-term interests. We could design a longer-term incentive structure that employees will be compensated for their performance over longer periods of times other than the currently yearly compensation. Also we could design compensation schedule make the compensations based on certain activities callable in the future, if the loss of the company is deemed directly related to the those activities that the compensations are based on.Fiduciary responsibility should be mandatory and financial institutions should be held legally accountable. We need to require full disclosure of conflict of interest, not only in the event that two parties have a direct interest conflict, but also full disclosure when companies providing a financial service have different opinions than the clients current position. In addition, we should cover the concept of full disclosure. We propose making academic researchers disclose the benefit they are getting from financial institutions, including board positions and monetary compensation.Promote education of the oecumenical public. Specifically, implement finance classes in public high schools, ensuring all students are aware of market basics. In addition, make firms provide optional education on specific products to clients.Lastly, we must reduce or eliminate attempts to make social interests subservient to self-interests. This concept could apply to all industries. We could limit the funding of lobbyists a firm could hire, and highly restrict the political donations from large firms.We must also eliminate the links between government regulators and market participants, eliminating the conflict of interest between corporations and society. In general, the aforementioned actions are attempts to align self-interest with the social interest. Self-interest, the invisible hand in the successful free market system, must be made to serve the interest of the society.ConclusionThis report has examined the following the Lehman Brothers bankruptcy, the bankruptcys causes, the culpable parties, market effects of the bankruptcy, and risk management errors relating to the bankruptcy. In addition, the opinion section of the paper answers the question, Was the bankruptcy preventable?In summary, on September 15, 2008, the Lehman Brothers filed for bankruptcy. It was the largest bankruptcy filing in U.S. history. Several causes forced Lehman into bankruptcy. Of primary importance, however, was the investment banks exposure to the subprime mortgage market. Deregulation and risk management errors allowed Lehman to increase that exposure. Lehmans CEO Richard Fuld, Treasury Secretary Henry Paulson, and Fed Chairman Ben Bernanke are each culpable. Mr. Fuld is responsible because he created a culture of risk taking and pay based o n short-term performance. Henry Paulson and Mr. Bernanke could have saved the bank and chose to do otherwise.We believe this event was entirely preventable. As mentioned, the banks exposure to the subprime mortgage market was, ultimately, its downfall. If more stringent risk management policies had been in place and Lehmans corporate culture had been more conservative, the banks exposure to the crisis would have been reduced. Reduced exposure would have undoubtedly increased Lehmans chances for survival.A singular theme continuously appeared while we conducted our research and, consequently, appeared throughout this report. That theme is greed. Greed is defined as excessive or rapacious desire, especially for wealth or possessions. Unquestionably, human greed contributed to the 2007-2010 financial crisis. Both financial intermediaries and individuals erred. For example, AIG reported record profits in 2007. Unfortunately, the insurer realise those profits by taking on enormous amoun ts of Off-Balance-Sheet risk. These OBS liabilities (contingent liabilities) resulted in an $85 B government bailout of the firm. Individuals speculated on home prices by refinancing mortgages. Often times, these loans were secured by home equity. When home prices declined, the mortgages went underwater.Mortgage defaults soared. In both cases, greed blinded the market participants.Lehman Brothers wasnt impervious to the rapacious desire either. Leverage is the use of either borrowed money and/or derivatives to engender gains and losses. The multiplication of gains and losses (greater volatility) implies an increase in risk. Recklessly increasing risk demonstrates an excessive desire for wealth.Therefore, leverage metrics (ratios) can be used tomeasure greed. prior(prenominal) to the crisis, Lehmans leverage ratios soared.Viewing a single financial product, event, action, or asset bubble as the sole cause of the crisis is overly simplistic. Greed served as a catalyst for each. By i gnoring this fact, we are doomed to repeat our mistakes.

Philosophy of Freedom

Philosophy of FreedomWhat is independence? Is it absolute right? If we ask this question to people around us, we result receive around a hundred different answers, because bothone will understand this phenomenon in his or her own way. Freedom can be defined starting from different aspects, according to different cultures, from different points of view and even from different beliefs. Everyone was born totally free and all of them must have the right to go bad freely. Based on some articles, we can see that out there people fatality to be free and independent from each other, but is this opinion possible and acceptable by the society?Freedom is the right to do what we want, live where we want, eat what we want, learn what we want to learn, for example we choose what religion we want to believe, without caring about others judgments Honestly, I am non sure if this in of right authentically exists because we were taught in a way where we be allowed to choose, but at the end soul will do that job (choosing) for us. So are we really free? Are we drawing the definition of Freedom? In my opinion, independence is an absence of pressure and enforcement from other people, where people is free to do what laws and social customs do not prohibit. We can hardly say that all societies are free in the same way.Personally, I believe that we, Human beings are God creatures. God is the one who made us and gave us the right to life. fit in to the Bible, God started to create the heavens and the earth, then the morning and the night where He allowed the existence of life, starting from birds to all the animals and till the end the creation of the Man, called Adam. Since Adam was so alone, God decided to give him a company, a partner. Based on all this, God made a society for Humans and with it, we were taught to obey and follow rules. Can we try to imagine what the world might turn into if every one of us could do whatever we wanted with no limitations and respect t owards the rules and others?after all, how can we live freely? From my point of view, we can live freely by respecting others rights to live freely too, by taking other people rights into consideration. In other words, the main idea behind the word immunity is to be respectful and responsible to the society. Freedom is a very fundamental thing to every piece being because as we had encounter in the past decades a lot of debates have started debating about this topic. For example, I would like to talk about the freedom of speech. I think freedom of speech is the some important part when we try to see what the meaning behind freedom is. As we know, out there is a lot of people that are convicted because of their creative mind and even, some of them are buried just because the society cannot accept their way of expressing their feelings. In my research, someone said that freedom of expression will never result in hostility among people if they respect each others ideas. As I menti oned before, freedom is not an absolute right, and there are too many limitation on it. First of all, the society right including national security which is very important, security is the some important thing in freedom. Our freedoms should never cause to threatening our national security.I have stated some of my opinions about freedom, now I would like to describe the word freedom by a definition. According to Wikipedia, freedom is innate to human and that he will fights as long as he lives to restore his innate right to be free man, I like this definition very much because I think it is true, our freedoms are settled by us, no one can set it Since God gave us freedom for free, we must do our best to maintain and keep this right.I think the most humiliating ways to punish a human, is to deprive him or her from freedom, for example when someone goes to jail, that person is deprive from freedom and so he is suffering. Freedom is not absolute, it must be limited. We cannot just do w hat we like and say I am a free man. We cannot kill, smuggle drugs or violate the laws and rules for freedom, they should be respected and I totally agree with this sentence the freedom of anyone ends where the freedom of another one begins.For me, every youngster should be taught to be free, planting in them the love for freedom, but they might be supervised, it should not be without limits. Freedom in teens state is very important for building a good character reference and a stable personality. Teens want to hang around with friends, do whatever they like, or do not like, they want to experience everything. If they are given freedom with no limits, they may get lost, so parents should tell them what is right or wrong, so there is no limit or restriction. That is why parents guidance is really important for our existence. Only freedom with no guidance will lead to a bad actions and cause destruction in the society.Freedom is a state, a process of interaction of individuals and gr oups with the environment, when the society is changing or a person makes some changes so that there appear more opportunities of choice and realization of important purposes and values. The most important thing that we must care about is enjoying our freedom without harming our security.For conclusion, freedom is an innate right, something that humans are born with. Nothing in this satellite can threaten our freedom, deprive us from our rights. As mention before, our right of freedom must never cause harm to any other human being, directly or indirectly. We must respect freedom as everyone in the world/society has it, if you want others to respect your freedom, firstly you must learn to respect them. And following this ways, we can enjoy and live our freedom through our life. Last but not the least, I want to quote a sentence that my instructor in high school used to say Quanto mais liberdade, mais responsabilidade., it means the more freedom you have, the more responsibilities y ou face. After all, this sentence is really reflective and I want that that people out there have realize this little secret

Science has Revolutionized the World :: essays research papers

Science may be described as the draw to the prevailing mode of life in a so-called developed community. We revel on the idea that we are living in a modernized world which has been given a new look and shape due to science. Science has in fact transformed the world into one of wonders and blessings as hearty as one of deceit and curse The wonder of science which is dominating the work-place today and which is powered by an separate boom of science, electricity is none other than the railway car. Today more and more work are being performed by machines. Machines are the key to success in various fields. As a result, this is increase the production rate which in turn is enabling many business to flourish. With the advent of machines, people are getting more time to pursue their hobbies, among which ceremony television occupies an important place. Television serves as a means of entertainment. Switching off from daily routinization, the husband can watch live match es available with the satellite while the wife can enjoy watching her favorite soap-operas, resting assured that her household chores are being done by the washing machine or dishwasher. Actually, machines have freed people from performing dull drudgeries and have make life less arduous. In the past, the lady was more healthy as she was non assisted by any electric appliance, she used to cook on the hearth. She had to bring bundle of woods from the neighbouring. In that way she used to entertain the witness of nature. While chopping the wood at her place, she was doing some physical exercise. But it is a pity to note that a modern lady depends on gaseous range and rice cooker. The electric washing machine washes her clothes. The electric grinder powders the spices and the electric juicer mixes juices. Owing to absolute reliance on those household appliances, she tends to become bulky, trifling and even look diseased. She hardly entertains a long and happy life. Radio plays a significant role in the context of entertainment.

Education System in the Philiphines Essay -- Education

The Philippines has a recent overflowing issue on its study system, which is the capital punishment of K+12 education system as the basic education curriculum (BEC). This issue is one of the most controversial things that Aquino Administration proposes. First of all, K+12 is an education system that includes Kindergarten with twelve years of elementary and secondary education (Department of direction, 2010). The Kindergarten is basically started at the age of 5 and the elementary education (primary education) holds for 6 or 7 years of education while secondary education, which holds for 5 or 6 years of education, is defined as high school (Department of Education, 2010). In comparison to the current 10-year education system, the K+12 system adds two extra years of education. According to the Department of Education of the Philippines (DepEd), their main purpose is non just adding two extra years of education rather to enhance the BEC in the Philippines (Department of Education, 2 010). Discussions over the K+12 program have already been on since the Commonwealth era. The Americans has suggested this system to be implemented but President Manuel L. Quezon has set aside the issue to deal with more important problems in the country at that time (Vargas, 2012). Throughout the years after the Commonwealth era, suggestions have been made by foreign organizations (Department of Education, 2010). Then, a survey made by Presidential consignment to Survey Philippine Education in 1970 has recommended the government to give a high importance in implementing the 11-year program with 6 years of elementary education and 5 years of secondary education but it never pushes through (Department of Education, 2010).The current 10-year program has n... ...s literacy rate and its quality of education system but likewise it would lessen the number of unemployment and underemployment in the country.Works CitedCruz, I. R. (2012, January 19). Preparing, Developing and Equipping K t o 12 School Leaders. Makati, NCR, Philippines.Department of Education. (2010, October 5). Discussion Paper on the Enhanced K+12 Basic Education Program. Manila, NCR, Philippines.Dizon, D. (2011). PH Education System Not Ready for K+12. Retrieved February 27, 2012, from ABS-CBN News abs-cbnnews.comManila Bulletin. (2010, October 6). Senators Divided on DepEds K+12 Years Education System. Retrieved February 27, 2012, from Manila Bulletin News mb.com.phValenzuela, E. (2012). K to 12 Trends in Southeast Asia. Manila, NCR, Philippines.Vargas, Y. (2012, February 11). K+12 as Basic Education Curriculum. (I. Stamboel, Interviewer)

On Another’s Sorrow. Essay -- English Literature

On Anothers Sorrow.There is a inexpugnable religious theme running throughout this poem. Blackuses the idea of sorrow to show, and how we deal with it to show thedifference between humans and God. He does this by ripping the poeminto two halves and looking at how a person and then God would dealwith sorrow. Blake asks several questions, as it is in first person atthis point I feel that it is Blake asking the questions, which are, faecal matter I see anothers woe,And not be in sorrow too?Can I see anothers grief,And not seek for kind relief?This is an example of Blakes use for the rhetorical question, whichstirs thoughts of how we cope with sorrow, which is shown when heasks, if I finish not feel sorrow when I see another feeling sorrow?, andwhen I see another feeling grief can I not go and pay off relief from it?He answers this with no it can never be. This then leads the readerto ask themselves where he will find this relief.Blake then in the second half of the poem shows that Go d is the onewho you can seek relief in and who is there to help in t...