Medical Office Procedures Essays

Clinical Office Procedures Essays Clinical Office Procedures Paper Clinical Office Procedures Paper Re-appropriate Management Group offers various types of assistance to doctors and other clinical experts including: Medical Billing, Medical Coding, Electronic Claims Submission, Medical Billing Consulting, Medical Coding Audits, Staff Provider Training, Physician Credentialing, HIPAA Consulting, Complete Follow-up Functions, Patient Invoicing and Medical Coding Consulting. With broad altering and reviews being performed on electronic cases before their transmission to transporters, the level of suspension/dismissals is low. OMG understands the significance of working the maturing report. Insurance agencies are reached as ahead of schedule as about fourteen days after accommodation to guarantee snappy repayment to the doctors. Do you understand that around one fourth of all clinical practice pay is lost due to Under Pricing, Under Coding, Missed Charges or Un-repaid Claims? The truth is out; a huge number of dollars is lost yearly because of clinical charging blunders. Is your training among those workplaces that are just getting 70% of the accessible clinical charging income because of them? Redistribute Management Group can evacuate these deterrents and tell you the best way to invert this pattern. OMG can re-gain the income and ensuing benefits your training is qualified for using electronic cases and customized repayment methodologies.

Heat of Combustion Lab Essay Example for Free

Warmth of Combustion Lab Essay There are numerous powers on the planet and we use fuel regularly in our life. Anyway a few fills are helpful and some are most certainly not. Generally valuable fuel implies the fuel that is proficient in a modest quantity. To know the proficiency of every material, we estimated the progressions of mass and temperature when we consume them. Also, we determined changing vitality by utilizing the condition that we learned in the class by utilizing our estimations. What's more, we determined the warmth of burning to know the proficiency of the material. We additionally utilized the information booklet esteem for the standard enthalpy of burning of every material to get the blunders in our analysis. Mistakes in our analysis were normally more than 20 percent which is very enormous. Before we warmed the water, we made the temperature of water beneath than 10à ¯Ã‚ ¿Ã‚ ½C with ice to see the progressions of temperature all the more productively. On the off chance that we simply warmed it in ordinary temperature, for example, 20à ¯Ã‚ ¿Ã‚ ½C, we couldnt see the progressions of temperature well, and it could set aside more effort to warm it. We additionally measure the progressions of mass of material to perceive the amount we consumed. We put some ice in the water to make the underlying temperature of water as lower than 10à ¯Ã‚ ¿Ã‚ ½C. At the point when the temperature diminished up to 10à ¯Ã‚ ¿Ã‚ ½C, we took out ice from the water. After we took out the ice and top the chamber off to 200ml of water, the temperature was higher than 10à ¯Ã‚ ¿Ã‚ ½C in light of the fact that the temperature of the water changed rapidly. We estimated the temperature of water and afterward we hang the tin can on the holder, so the temperature may expanded again during we set up all the investigation frameworks. So we should quantify the temperature of water when we set up all the things. For instance we should quantify it after we turn the light on the flame wax and hang the tin can on the holder. We estimated the last temperature to see the progressions of the temperature. We extinguished the light when the temperature arrives at 35à ¯Ã‚ ¿Ã‚ ½C, and we estimated the most noteworthy temperature came to as the last temperature. At the point when the temperature arrives at 35à ¯Ã‚ ¿Ã‚ ½C, we immediately smothered the light. Anyway we are not precise as the machine so we would didnt victory it when it comes to precisely 35à ¯Ã‚ ¿Ã‚ ½C. Additionally it was hard to quantify the most elevated temperature of it after we blow it out. Despite the fact that we continued watching it, the temperature changes so rapidly, so our estimations are not right 100%. In our test we didnt measure the mass of tin can. On the off chance that we measure its mass, we could get increasingly exact estimation contrast with the standard enthalpy of burning. Our mistakes are very huge, so I consider one explanation is that we overlooked the measure the mass of tin. So we should study and ponder the trial before we do it. We could figure how much warmth we got by including the changing vitality of water and the changing vitality of the tin can, in the event that we estimated the mass of can. Toward the finish of the investigation, we estimated the mass of light to know the amount of them were scorched. During and after we victory the light, some of fluid were may vanished. For example, ethanol and butanol are unpredictable fluid, and the way that the light was hot shows that some of it would have dissipated. So they are scorched and vanished progressively after we measure the temperature. Another reality that we ought to consider is that the water was being warmed, yet additionally the thermometer, blending pole and the tin can were likewise being warmed. We ought to consider that they were additionally warmed, so we should gauge how much warmth were utilized to warm them. Additionally some other warmth would have been lost round the sides of the tin can, and from the water to the air. Because of our room temperature are not quite the same as the temperature of water. The beneficial thing that we did in our examination is that we made some space when we set up the enormous metal can to encompass the flame. As we make some space under the enormous can by putting some level chamber under the can, the light consumed all the more rapidly and well. In the event that we didnt make the space for it, air may stuck in there so it would require some investment to comes to up to 35à ¯Ã‚ ¿Ã‚ ½C.

MIT = Home

MIT = Home MIT is not about the challenges of problem sets. It’s about a community. This means walking down the hallway to greet smiling friends, then doing homework with them and talking until too late. It’s about the way the brain revs and pushes onward through a Problem Set. The feeling exhilarates because it means forward action, and not just in classes, but in clubs, jobs, and, most importantly, around people. The fog of existence lifts to reveal a fascinating life. I have found my perfect match, my ideal college, and now I get to grow here. The speed of the transition terrifies me, as I expected building strong connections to be difficult, and missing my family intolerable. But then I arrived in Cambridge, walked past the gorgeous murals of East Campus and the bank of the Charles river, and fell in love. I sit now between the columns that support the mighty MIT dome. I’ve been on campus for three weeks, but still every time I pass beneath it, I shudder. For years, I had admired it from a distant country, and then a far-off state. Now I’m here, and it’s so much better than the years of fantasies. The Infinite Corridor never disappoints either. I still have not unearthed a pattern in the numbering of its buildings. 16 flows into 26, and then 56, and once I think I’ve found a regularity, 32 appears. 4 abruptly transforms into 8, and I never know what I will find around the corner, what names I’ll read on the door, and what marvels of modern machinery will be displayed behind the glass. I am a mathematician, and I look for patterns in the world, yet I want to believe that the MIT buildings are truly random, and that this place is special and thus breaks the rules of nature. Like p. It’s college application season, and I envision swarms of anxious seniors staying up at night over one perfect finish to the college essay. I can almost feel the shivers of the final hours before my admissions decision, growing into tremors, and exploding into a primeval scream in the moment I knew my life would never be the same. I remember also the earlier hours spent perusing college information, comparing, calculating, and scrolling through the dark void of College Confidential for a sign that I had a chance. The college manuals will never convey what really happens here. They will state the fact that MIT’s location is urban, but not describe the intimate atmosphere of Boston at sunset, when no one looks at others, but feels them, and where the labyrinths of skyscrapers dissolve in the ocean wind. Manuals provide numbers and scores, but cannot enliven the people of MIT. I cannot tackle that challenge either, for the students here epitomize diversity. Every day I marvel at their stories. There is a boy on my floor from a rural area of Somalia, the first in his family to attend school, just as he resolved as a child. He will return soon to tackle the challenges of his community. There is a also girl from Hong Kong whose face lights up when she talks about debate or aerospace engineering, and she makes me want to try it. I constantly encounter people who remind me what it’s like to love science and math, be curious about the world, and remain a true friend. Although we come from distant lands, we share a purpose and a dream. My dorm, East Campus, never ceases to surprise. Last week an international biking champion arrived in our courtyard and jumped over six students, on a bike. Earlier I witnessed upperclassmen resting on a dorm-made disco dance floor while others fussed over the laser maze in the bathroom. Then we had an ice cream social, and the Graduate Resident Tutors of each floor competed over who served the most ice cream. Today, in a minute, we will all crowd in the kitchen for waffles and a good time, and I cannot wait to discover where the conversations will take us. I intended for this entry to be structured and helpful, but am sporadically gushing. I want to tell so much, but where do I even start? Perhaps with the first time I greeted my roommate while stuck on the lofted bed, or the next morning when I jumped on a trapeze and did not miss. I want to share the cool morning by the Charles river and the cold night at the Boston harbor. I think of all the dorm events, and the time I left a mark on my dorm’s hall by adding to the collaborative octopus mural. I remember also the first time I stayed up talking until 4 am even though I had an early start. When I called my parents the next day, I said, “I love it here. This is my home,” and I meant it. For four years since my move from Ukraine, I had been searching for “this.” I found it at MIT. Now I must rush for waffles and socialization. Then I will do math. And I will be very very happy.

Racial Bias in College Admission - 873 Words

Racial Bias in College Admission Racial preference has indisputably favored Caucasian males in society. Recently this dynamic has been debated in all aspects of life, including college admission. Racial bias has intruded on the students’ rights to being treated fairly. Admitting students on merit puts the best individuals into the professional environment. A university’s unprejudiced attitude towards race in applicants eliminates biases, empowers universities to harness the full potential of students’ intellect, and gives students an equal chance at admission. Minimalizing racial bias prevents students from being the victims of preference, rather than being judged on personal merit. As Roger Clegg’s response to the Wall Street†¦show more content†¦Stanford students David Sacks and Peter Thiel describe how, â€Å"rather than fostering harmony and integration, preferences have divided the campus†¦ if preferences were truly meant to remedy disadvantage, they would be given on the basis of disadvantage, not on the basis of race.† The bias present in Affirmative Action does not mend what it was originally put in place to fix, discrimination of the disadvantaged. Instead, it misplaces students who are qualified. The unfavorable system of preferential admission disregards a more promising system of admittance. Additionally, not taking race into account allows universities to enhance their selection system. Not only does this dismiss the possibility of being influenced by ethnicity, but it rewards excellency in more qualified students. Since in society, people choose to award high-skilled positions to highly qualified people, it certainly makes sense to admit the most capable individuals. Louis P. Pojman, in his article â€Å"The Case Against Affirmative Action,† states that, â€Å"In the end, we will be better off by honoring excellence. We want the best leaders, teachers, policemen, physicians, generals, lawyers, and airplane pilots that we can possibly produce in society. So our program should be to promote equal opportunity†¦ and reward people according to their individual merit.† Clearly the best course of action is to accept the mostShow MoreRelatedProblem With The School System Is Standardized Tests1248 Words   |  5 Pagesindividual students or groups of students. In many ways, the current crop of standardized tests are ineffective, outmoded and irrelevant. In concept, a standardized test is an efficient and egalitarian means of evaluation. However, in practice, college admissions exams have proven to be anything but. The SAT and the ACT exam reward cultural knowledge and repetitive practice, which often equate to being white and being wealthy. In order to take advantage of the opportunities standardized testing offersRead MoreHigh School Students Across America1165 Words   |  5 Pagesacross America. This test consist of 138 questions, all multiple choice except for several math graphs, divided into two sections-math and verbal, both scored on a scale of 200 to 800 (Pacenza). The SAT’s are currently a determining factor for college admissions. This paper will only address the SAT’s, not the PSAT’s or the ACT†s. The SAT was born in the 1920s-the product of a growing desire by American educators, led by Harvard president James Bryant Conant, to open up their universities to the bestRead MoreThe Fight For Civil Rights1602 Words   |  7 Pagesthe United States has had a long history of influencing college admissions decisions, especially at selective colleges and universities. Considering a large racial preference in college admissions in the decades immediately following the Civil Rights Act was acknowledged as important to remedying more than two centuries of racial discrimination. In today’s world, it is generally accepted that having racially and ethnically diverse college campuses is desirable, but the question is how to achieveRead More Affirmative Action: Keeping minorities down for 30 years. Essay1509 Words   |  7 Pagessubject of affirmative action in college admissions has been hotl y debated since its inception. Although affirmative action was originally supported by the vast majority, that same majority is now starting to wonder if there is a better way. Commonly asked questions include: â€Å"Is affirmative action still working?† and â€Å"Is there an alternative?† The answers to each of these questions will provide insurmountable evidence that affirmative action in college admissions no longer fulfills its intended purposeRead MoreIs Affirmative Action Racist? Essay1523 Words   |  7 PagesIt is responsible for colleges discriminating against Eastern Asians and whites and for employers hiring workers based off of skin color rather than skills or experience. People can’t change their race (except for former president of the Spokane N.A.A.C.P. chapter, Rachel Dolezal, apparently), yet many colleges and employers favor certain races over others by using quotas, or a fixed number of people of each race. U.S. News ranks Harvard University as the number one college in the world. HarvardRead MoreEssay Affirmative Action703 Words   |  3 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;Should a man be hired for his skills or for the color of his skin? Is racial diversity in the business world more important then the most qualified workers? Affirmative action has become an important topic in today’s society to better diversify the different races in America. Affirmative action is a set of public policies that were designed for the elimination of discrimination toward race, color, sex, etc. These policies are under attack today because of the unfairnessRead MoreAnalysis Of The Article The Model Minority Losing Patience 1278 Words   |  6 Pagesstill racial prejudice in America. Many may not realize this, but there is a growing problem between Asian-Americans and the American society. A growing issue is that minorities, especially Asian-Americans are being judged based on their race rather tha n the accolades and achievements they have accomplished. In the article â€Å"The model minority is losing patience,† the article discusses about a high school senior by the name of Michael Wang, who was denied six out of seven Ivy League colleges, evenRead MoreThe Founding Years Of America1692 Words   |  7 Pagesadmittance of students to colleges in order to foster a culturally diverse learning society that is in favor of people of the African American and Hispanic origins, over Asians and Whites, creating the belief of reverse discrimination (Pearson). Although a common assertion is that only people of non-Caucasian heritages are discriminated against, all races, face retribution, whether or not they are aware. Creating select data for numbers of students to be admitted to colleges is an unjust practice, becauseRead More Faults of Standardized Tests Essay918 Words   |  4 Pagesmany would argue, appear to be bias toward minorities, and especially Hispanic students. Mor e specifically though, the SAT is apparently under great scrutiny since it has long lasting, controversial effects on these students. History The SAT (Scholastic Aptitude Test), created by Carl Brigham of Princeton University, was introduced in 1926 by the College Board [1]. The SAT is an attempt to predict how well a student will perform during their first year of college without measuring past academicRead MoreAn Ethical Dilemma: Affirmative Action, Do We Still Need It?1706 Words   |  7 Pageslearning, affirmative action allows diversification in these places. All businesses, public and private, colleges and universities need to diversify their work force population through affirmative action. The idea of affirmative action came about because of discrimination against minorities in America. The executive order 11246 issued by President Johnson ensured equality on the job and admission rates to higher learning institutions. In a book written by Cahn (1993) it states: The original

Analysis Of The Adventures Of Huckleberry Finn By Mark Twain

Societal Standards in the Adventures of Huckleberry Finn Throughout the evolution of the world’s societies, the roles of women seem to act as a reflection of the time period since they set the tones for the next generation. Regardless of their own actions, women generally appear to take on a lower social standing and receive an altered treatment by men. In Mark Twain’s pre-civil war novel, Adventures of Huckleberry Finn, lies a display of how society treats and views women, as well as how they function in their roles, specifically in regards to religion and molding the minds and futures of children. The novel’s showcase of women affords them a platform and opportunity to better see their own situation and break away with a new voice. Lit Review Critics generally agree Mark Twain takes on a goal to hold a mirror to society in order to reflect the problems it contains regarding the hierarchy and power of social groups. As critic Heather Shrum points out, â€Å"the flawless family will never be found,† but Twain attempts to promote improvement so that each individual works together as a unit to create a solid unit (2). The role and value of women stand as a key issue for him, thus he displays their typical lifestyles that involve their entrapment in positions of inferiority. The efforts made by Twain go towards a demonstration of how basic principles of these families should be shared by means of all the members. Such becomes a necessity in order for a family to trulyShow MoreRelatedAnalysis Of Mark Twain s The Adventures Of Huckleberry Finn752 Words   |  4 Pagesit. In the 1880s classic American novel, The Adventures of Huckleberry Finn, Mark Twain urges individuals to release themselves from the current bonds o f society to achieve a greater level of happiness. In order to reach the greater level of happiness unreachable in the current circumstances of society, individuals must learn from and mimic nature’s methods which nature utilizes to better itself. Analysis of Literature Critics generally agree Mark Twain intentionally uses nature, more specificallyRead MoreAnalysis Of The Book The Adventures Of Huckleberry Finn By Mark Twain Essay1492 Words   |  6 Pagesyourself another†. TAG (Title, author, genre): The Adventures of Huckleberry Finn, Mark Twain, satire full of adventure Context/Background: The story follows a teenager boy as he sets off on an adventure with Jim, a runaway slave. Together, they overcome a variety of obstacles and experience what it’s like to go off in the real world. Thesis: Throughout the novel, Mark Twain frequently Southern society through the use of satire. 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In the book, The Adventures of Huckleberry Finn by Mark Twain, Huck and Jim travel down the Mississippi river, and encounter a lot of the aspects of the antebellum south. Because of the society Huck has grown up in, he often overlooks his traveling companion, Jim. Throughout the story, Twain creates a division, that widens as the story evolves, between how Huck views Jim and how the reader views Jim asRead MoreAnalysis Of Mark Twain s The Adventure Of Huckleberry Finn 1064 Words   |  5 PagesKirubel Sharpe Mr. La Plante Honors English 11 AA Fifth Hour 8 January 2015 Unit IV Essay Mark Twain argues that â€Å"self-moral code† votes society’s â€Å"moral code† in determining what’s right or wrong. He supports his assertion by juxtaposing Huck Finn s believes to society’s morality and making fun of the idea of speeches. In order to manifest his beliefs to the readers, Twain uses Juvenalian satire and irony to demand society to second guess the moral codes set by society and instead for each personRead MoreAnalysis Of The Book Adventures Of Huckleberry Finn By Mark Twain Essay2138 Words   |  9 Pages Period-4 MAJOR WORKS DATA SHEET Advanced Placement English Language and Composition Title: Adventures of Huckleberry Finn Author: Mark Twain Date of Publication: 1999 Genre: Satire Explain what makes this work an example of this genre. Explain what makes this work an example of this genre. Satire means to use irony, humor or exaggeration to show the context of society.I think that Twain uses Satire to compare the irony of life back then as it is today. Biographical Information aboutRead MoreAnalysis Of Mark Twain s The Adventures Of Huckleberry Finn 1307 Words   |  6 Pagesbehind the American Dream is that if people work hard then they can accomplish anything they desire. But in the 1800s, the American Dream had a different meaning: it meant achieving happiness for oneself and his family. In Mark Twain’s famous novel The Adventures of Huckleberry Finn, Jim has a dream that he would travel up to the free states where he would save up money in order to return back to the south and buy his family out of slavery. He tries to reach his dreams by taking the long journey downRead MoreAnalysis Of Mark Twain s The Adventures Of Huckleberry Finn 1701 Words   |  7 Pagesâ€Æ' A work of literature can be read by ten different people, and it will be understood ten different ways; Mark Twain’s The Adventures of Huckleberry Finn is no exception. At the end of the novel, Tom reveals his plans for the â€Å"evasion† which is relatively immoral, but Tom and Huck would never know whether it was or was not. In addition to its blind cruelty, it is misleading in that it seems as if it is meant to be interpreted, which is one reason why it is constantly critiqued. Another reason itRead MoreAnalysis Of The Book Adventures Of Huckleberry Finn By Mark Twain1917 Words   |  8 PagesStereotype in Adventures of Huckleberry Finn Civilization evolves over time, trading old ideas for new ones. Society grows in intellect and innovation. Though, despite the heights that humanity has soared, impurity still remains. Regardless of the best efforts, millennia of oppression have ingrained the tendency to hate into the psyche of man, despite centuries of reform. Racism continues to propagate every corner of the globe. Yet, in his modern American novel, Adventures of Huckleberry Finn, Mark TwainRead MoreAnalysis Of Mark Twain s The Adventures Of Huckleberry Finn2267 Words   |  10 Pageschanges in their freedom, they are still being oppressed. Oppression is a common theme throughout American Literature, weaving in and out of many that are seen as classic American novels and poetry. Some of these books include Mark Twain’s The Adventures of Huckleberry Finn, the poetry of Langston Hughes, Richard Wright’s Native Son and Toni Morrison’s Song of Solomon. The form of oppression that is evident thro ughout all these works, is racial oppression, and narrowing it down even further, the oppression

What can you learn from source A about Chamberlain’s policy towards Germany Free Essays

Source A tells me that Chamberlain did not want to go to war with Germany because he thought Germany was a power to be reckoned with, especially since she had Italy’s support. He feared that if it came to war Italy could take advantage of its position in the Mediterranean to attack British territory there (such as Gibraltar) and more importantly stop British shipping to and from her empire, which was very important to Britain. It also shows that Chamberlain thought that if it came to war, Hitler could hurt France where she was weakest. We will write a custom essay sample on What can you learn from source A about Chamberlain’s policy towards Germany? or any similar topic only for you Order Now Because the source is an unofficial, private document it can accurately show us Chamberlain’s opinion, and though it gives us a good idea of his intent, it does not properly show us his official policy. The source shows that Chamberlain did not think Britain’s armaments were strong enough to stand against Germany’s, and that therefore they must buy time to build up arms, just in case. It also tells me that Chamberlain felt that the dictators could still be reasoned with and were not devoid of any honour or reasonableness, and that he still held some hope of coming to an agreement to suit everybody. He thought that if he appeased Hitler and Mussolini by helping to fix their grievances, they would be happy and the peace of Europe would be assured. 2) Study A and B. In what ways does source B add to your understanding of Chamberlain’s foreign policy? (6) Source B shows me that Chamberlain genuinely believed that even if Britain and France did act, nothing could save Czechoslovakia from being taken over by the Germans if they wanted to do it. He knew that Czechoslovakia was hemmed in on 3 sides by Germany and believed that Germany had every tactical and military advantage around Czechoslovakia, and Russia could not help either because she was too far away. Source B supports source A in that Source B shows me that Chamberlain still thought that Germany was too strong for Britain and France to take on, and that to protect Czechoslovakia would be tantamount to declaring out-and-out war on Germany, which he was strongly against because he thought that Britain had no chance of an easy and quick victory. The source shares with source A the idea that Chamberlain was unwilling to risk going hastily into a war against a major power, which would cost British money and lives and if, as he thought, Britain was not ready, it could mean a repeat of the extended conflict of the first world war, which everyone was keen to avoid. Chamberlain makes it clear in his diary (source B) that he did not think that it was all worth it over one small country that he thought could probably not be saved anyway. Source B like source A is private and unofficial and therefore shows just what Chamberlain is really thinking, more so than A because it is his diary, presumably intended at the time only for him. 3) Study C and D. In what ways does the evidence of these sources help you to understand Chamberlain’s attitude towards Hitler? (10) The author of Source C was a British ambassador and Chamberlain’s main source of information in Germany, and as such Chamberlain must have trusted his views as a high-ranking British dignitary who had been living in Germany probably some time. However, it is possible that Henderson had come around to the German point of view from living there so long and is writing his own opinion, which is biased, as is apparent from his comment in C about how he dislikes the Czechs. If he really had come round to the German point of view, then it is possible that he felt for Germany and like many Germans, considered that Hitler could ‘make Germany great again’. If this were true, it would mean either that Henderson actually believed that Hitler was reasonable, or that he deliberately misled Chamberlain about Hitler’s intent. Alternatively, officials he had spoken to in the German government may simply have misled Henderson. The Germans knew that he was Britain’s main source of information and they may have decided to use him to convince Chamberlain that Germany was stronger than she was and that Hitler was open to options other than going to war, thus encouraging him to put off war by appeasement. In source C Henderson leads Chamberlain to believe that Hitler does not really wish to go to war if he has to, as war would help the opponents of Hitler and Nazism, but it would be disastrous for Germany. He implies that Hitler is reasonable and open to negotiation. If Henderson had not been corrupted by Hitler, then source C contains Henderson’s genuine idea of what Hitler must have been thinking, but as it turned out, his assessment of the situation was wrong. Henderson’s reports, whether genuinely what he thought or not, must have influenced Chamberlain to think that Hitler was a reasonable man who did not want war any more than Chamberlain himself. This would have simply built upon the view Chamberlain already had that Hitler had some sense of honour. Chamberlain was from a business background in Birmingham and must have found it hard to believe that the leader of a nation could be so duplicitous as Hitler eventually revealed himself to be. Source D shows us this exact trust Chamberlain had in Hitler – even though he did not like the look of him, Chamberlain still had faith that Hitler’s word meant something and that Hitler’s policies were only directed towards uniting all the German speaking peoples, not just getting all the territory he could. Because Chamberlain believed what he said in source D, and believed Hitler when he said he would be satisfied with the Sudetenland and not ask any more territory in Europe, he convinced France and Czechoslovakia to submit to the German occupation of the Sudetenland. ) Study E, F, G and H. What can you work out from these sources about: i) The demands made by Hitler (6) The very fact that Britain and France were willing to agree to Hitler’s demands at all shows that his first demands (Czechoslovakia handing over to Germany the parts of the Sudetenland comprised of over 50% Germans) were not perceived by the governments of Britain and France to be altogether too much to ask, and that they believed that he was genuine in his insistence that it was all he would take from Europe. The fact that they were so eager for a reply to the statement in source E and were so ready to give up Czechoslovakia to Germany shows how insistent Hitler was that he got his way. This is corroborated by the fact that Germany put a lot of pressure on Czechoslovakia to agree to Hitler’s demands; this could be the â€Å"unheard of pressure† of source F. Chamberlain was so convinced that giving in to Hitler’s demands was the way to peace that Britain and France even refused to support Czechoslovakia at all if she didn’t capitulate completely in the matter of the Sudetenland. However, source G shows us that Hitler was not to be trusted and as soon as Chamberlain had got Czechoslovakia and France to agree, he changed his demands to more unreasonable ones, which Hitler hoped would ultimately insure the disintegration of Czechoslovakia, by taking large amounts of land from her. These demands were completely unreasonable, even for the peacemaker Chamberlain, and only when Britain and France threatened to go to war did Hitler reduce his demands a little, although his demands mentioned in source G are so unreasonable it could almost be said he was deliberately aiming high so when he was forced to compromise he would get the better deal. Source H shows that Hitler could feel confident about making these demands as Chamberlain was still set upon peace despite all he had seen Hitler capable of. Chamberlain makes clear in this speech that he thinks all Hitler is after is Czechoslovakia and that Britain will not go to war just to protect one small country. ii) Relations between Britain and Czechoslovakia in September 1938? (6) When Hitler made his first demands of Chamberlain, Chamberlain agreed and then informed Czechoslovakia (source E), even though it would severely weaken Czechoslovakia (a state that Britain had helped to set up). Britain and France practically forced her to agree to Hitler’s demands, going so far as to refuse to support her if she did not. The Czechoslovak government was not even consulted in the future of its own country, which as source F shows was hurtful to the Czechs. Czechoslovakia could not even defend herself from her enemy because she had been let down by her friends. Czechoslovakia must have felt pressured into agreeing and very disillusioned with and even betrayed by France, its so-called ally; and Britain, France’s ally and one of the upholders of the Treaty of Versailles. As source G shows, when Hitler came up with his next outrageous demands, Czechoslovakia balked and refused point blank to agree, and the feelings of the Czechoslovak government are expressed to the British government in source G in no uncertain terms. Czechoslovakia may have had some hope in Britain’s support when she promised to support France in a war against Germany, although this soon faded after the Munich agreement. Source H shows that Chamberlain was still trying to uphold peace despite Hitler’s continually changing demands, and evidently still thought that it was worth sacrificing Czechoslovakia on the altar of peace. ) Study I, J and K. â€Å"The Munich agreement was very popular in Britain†. Use the evidence of the sources, and your own knowledge, to explain whether you agree with this view. (8) I agree with this view to a point. The Munich agreement was certainly popular with many people, especially the generations who had been through the Great War. They knew what it was to fight in terrible conditions or to lose a loved one in the war. The First World War was called ‘the war to end all wars’ and nobody wanted to go through it all again. This view is supported by source I, which is from a quality paper and written by the editor, who is presumably an educated person who knows what they’re talking about. The bad memories of the previous war would put the public in favour of avoiding another war if it could be possibly helped, so the peacemaking Chamberlain with his slogan from Benjamin Disraeli: ‘Peace in our time’ was well received by many. The Munich agreement, which guaranteed that Germany and Britain would not go to war in the future, seemed to sort out everyone’s worries. Source J shows a crowd outside 10, Downing Street, who look like they are there to support Chamberlain. However this is not really indicative of the agreement’s popularity as photographs can be deceptive, and Downing Street is not actually that wide a street so the crowd appears bigger than it is. Most of the generation who were making the decisions for Britain (the politicians and diplomats) had experienced the war and this may have influenced them and their decisions in favour of appeasement and the Munich agreement. The government also feared that if war broke out, thousands of civilians could be killed by bombing raids. Also the British army was not strong enough to handle another big war at that time. People like the author of source I did not want to involve Britain in European affairs again, as they thought it was nothing to do with Britain. Many, like Henderson in source K, felt that Chamberlain had done something special in making Hitler agree to peace and so supported the Munich agreement because they thought it was a great feat of negotiation and diplomacy on Chamberlain’s part. Source K shows that at least one person thought that what Chamberlain did was the only option in the circumstances. Many British people felt sorry for the Germans because the Treaty of Versailles was so harsh and felt that they had been unfairly treated. Many could sympathise with the desire to bring the German-speaking people together. People did not even disagree wholly with Germany claiming the Sudetenland, as it was thought of as practically a part of Germany anyway – both geographically and culturally. However, being in favour of the Munich agreement was far from universal and it had many critics. They thought that Germany was being allowed to become too powerful, breaking treaty after treaty and getting away with it. They thought Germany would not stop at just Czechoslovakia, and she would eventually become a power strong enough to threaten the British Empire. Winston Churchill was one of the critics of the Munich agreement and appeasement in general. 6) Study all the sources. The writer of source K believed that war was only avoided in 1938 because of the courage of Chamberlain. Use the sources and your own knowledge to explain whether you agree with this view. (10) I agree with this view to the point that I would say the fact that war was avoided in 1938 was mostly because of Chamberlain. It was Chamberlain’s insistency on trying to appease the dictators at all costs that brought the Munich agreement about. It was Chamberlain who convinced France to support him in encouraging Czechoslovakia to agree to Hitler’s demands (as in source C), and eventually almost forcing them into it by refusing to support Czechoslovakia at all should it come to fighting. Although Chamberlain says in source D to his sister that he thinks Hitler is to be trusted, and I think he means what he says because it is a personal, private letter, by the time of the Munich agreement he must have had some idea of what Hitler was like as he had broken his word and gone back on their agreement of the 15th of September only days before, which as source G shows was very damaging and humiliating to the Czechs. Yet still he went ahead and in effect signed Czechoslovakia over to the Germans without even inviting the Czechs to join the conference. Either this is the move of a very stupid and naive man in still believing that Hitler would not make further attempts to get territory for Germany, or Chamberlain was taking a calculated risk to give Britain more time to protect herself from Germany, not caring about Czechoslovakia. As source B shows, Chamberlain was not willing to take the risk of going to war in 1938 just to protect one small country. Source A shows us that as early as January 1938 Chamberlain was thinking about building up British armaments. I think that the lack of war in1938 was due to Chamberlain although I would not call it courage. He made the agreement because he was convinced that the British public wanted peace more than anything (source J shows that at least some of them did). He was afraid of what another war would do to Britain if she were not ready, especially since the Spanish civil war in which the German Condor Legion decimated the Basque town of Guernica. Chamberlain was excessively afraid of German air strength as he was unfamiliar with the effects of bombing and feared that London could become another Guernica, with hundreds of thousands of casualties. It was thought that the entire German Luftwaffe would head for Britain as soon as war broke out and people greatly overestimated its size and strength. However optimistic Chamberlain chose to be, he must have known that if Britain continued to get involved in Europe’s affairs then sooner or later she would have to fight Germany. Although war was avoided in 1938 it was not avoided altogether and if anything it convinced Hitler that Britain was soft and irresolute and would do nothing by force to stop his further conquest of Europe. This meant that he persevered in his plans to expand Germany without worrying about Britain. How to cite What can you learn from source A about Chamberlain’s policy towards Germany?, Papers

Romanticism Literature Review Essay Example

Romanticism Literature Review Paper The Sublime is one of the significant notions in the aesthetics of eighteenth century Romantic literature. Critics examine the sublime as elevated thought inspired by awe of the majesty of nature. It is important to realise that the idea of the sublime was not created by the Romantics and although the Romantics did not always agree in the particulars of philosophies and theories, the Sublime was generally agreed to be an attractive aesthetic. It is using hindsight that critics analyse what can be described as the Sublime and so I will assess sources and examine the overall trends. Tintern Abbey (Wordsworth, 1798) is the poets reflection on the sublimity of nature whilst on a visit to the abbey. The poem represents the peak of Wordsworths first era of artistic output and heralds much of the poetry that follows. Like The Prelude themes of pantheism appear as he acknowledges the sublime and nature as dominating mankind fashioning himself as a worshipper of Nature. Wordsworth directly references a sense sublime almost portraying it as an awareness of some spiritual consciousness. He is not able to find harmony in mankind and so approaches nature almost with religious awe. Wordsworth wants Dorothy to remember how much he loved his visit to Tintern Abbey, and so Nature acts as a mechanism for two people to reminisce. This supports Wordsworths ideals that appreciating nature can raise mankind to a height of sublime in a way that society cannot. The poem is written in structured blank verse, and comprises of paragraphs rather than stanzas and it is here we see the development of the conversation poem thought to be invented by Coleridge and Wordsworth. We will write a custom essay sample on Romanticism Literature Review specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Romanticism Literature Review specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Romanticism Literature Review specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The imagery and language remain consistent through Wordsworths poetry when considering the sublime, adhering to rules he set out in the 1802 preface to the Lyrical Ballads. In this he argued that poetry should be written in the native language of common dialogue rather than the traditional lyrical or poetic dictions of the era. By removing egotistical elements he can offer access to the emotions contained in this particular memory therefore offering a gateway to the sublime. Wordsworths (1805) The Prelude contains further develops theories on the growth of the poetic intellect, whilst also exploring the ideas of the power of nature coexisting with the sublime. Its focus presents a fundamental step into the Romantic Sublime as he examines in his poetry that From Nature doth emotion come, that is why nature can convey moments of serenity or exhilaration. Wordsworth is interested in something that is transcendental and surpasses the senses, this is his understanding of the Sublime. Themes of humanism and pantheism crop up in The Prelude as he acknowledges the natural realm for teaching him to recognise the primacy of mankind. Although it could be argued that a humanist emphasis would make the sublime secondary, it helps to explain his idea that Nature does not possess false or vain conceits but is something to admire for its pureness and meekness. Wordsworth finds everything above a level of mist illuminated by the moon during his climb of Snowdon. He views the mist as a vast expanse of sea and how this replaces the real sea which shows the ability of the mind to dominate over the actual reality. The reformation of the reality into an image shows the creative capacity which puts Wordsworth in touch with the Sublime. Like Wordsworth, Coleridge uses blank verse in The Lime-Tree Bower my Prison (1798) to emphasise the conversational characteristics of the poem which allow for fluctuations in tone. Coleridge is separated from his friends yet is able to relax and accept his lonely situation as it is of a physical not mental condition. The solitary humble bee represents Coleridge working in serene synchronisation with Nature as he appreciates the sublime at work. According to Coleridge, in order for an object to be sublime, it must be considered in its greater context not just as an independent item. It is useful to consider Coleridges opinions on the sublime, as he believed that Nature was only occasionally sublime as there are few entities in nature that are illimitable for instance the sky or the sea. However objects such as mountains, viewed by many romantic scholars as subliminal, are not endless. So it is more of a case in the poem that he focuses on the metaphysical aspect of the sublime found between sky and earth and the aspect of eternity. Alongside Coleridge and Wordsworth, Nature was an important aspect for Shelley in his prose and poetry. As we can see, Romanticist writers believed that nature inspired a terrifying feeling that nature was more significant than mankind could comprehend. The terror came from the realisation that nature was supremely powerful. Mont Blanc (1817:1999) gradually illustrates this and ultimately in the fourth stanza reveals how these emotions work to teach mankind to respect the majesty of nature thus a two sided connotation evoking both awe and terror. Shelley identifies some of the features of nature that combine to reflect the sublime for instance the fields, the lakes, the forests, and the streams. To support the idea that the sublime is elevated over human comprehension, Shelley specifically does not openly mention mankind in his list. As far as Shelley is concerned, humans are irrelevant compared to the power of the sublime. It is interesting to note that Shelley uses enjambment to guarantee that living beings only get a split second thought as the reader must instantaneously continue onto the next line. Living things are placed between Ocean and daedal earth as if to reiterate that mankind is insignificant compared to the majesty of nature. Mont Blanc is a supreme example of the Sublime because Shelley shows that the man could be expunged from the earth in comparison to the everlasting universe. Aidan Days Romanticism (1996) contains a chapter entitled Gender and the Sublime which is a good introduction to the topic of the Su blime. Day reviews shifting opinions of Romanticism whilst placing writers such as Wordsworths work in to the context of philosophical thinkers such as Edmund Burke. Initially this chapter it presents us with a definition of the sublime as an experience of a power that exceeds the quantifiable and usable (Burke, 1757). The chapter contains excerpts from Burkes theories accompanied by Day summarising each of these points. He then goes on to find similarities among Burkes ideas with Wordsworths The Prelude which enables us to see Burkes philosophies put into practice. He quotes extensively from all of his sources meaning it is easy to reference to the primary sources included. The chapter is not a description of the sublime rather a study into the differing opinions surrounding this topic. This makes it a useful start in researching the social and historical context surrounding this aspect of Romanticism. A key element in the romantic sublime is gender portrayal. Anne K Mellors Romanticism and Gender (1993) is a good source to consider the gender conflicts within Romanticism. Mellor discusses the sublime in terms of gender with regards to the masculine and feminine aspects. She notes that traditional feminine qualities are taken over by masculine Romanticism. For instance, typically feminine qualities such as love, mercy and compassion are appropriated by the masculine poets. By Nature being female, the female is erased, she does not have a voice thus does not exist. The tradition of the feminine sublime is found in those women writers who grew up enclosed by immense mountainous backdrops that were openly observed as sublime by Romantic writers. Mellor comments that whilst male protagonists respond to the sublime with a loss of self, women represent it as a blissful experience of shared experience in a nature they gender as female. For the female author, nature is a companion with whom they can share their experiences, as opposed to the male version being distinctly elevated above mankind. Modianas Coleridges Conception of the Sublime (1985) provides a broad study of how Coleridge regarded nature and how he criticised the theoretical and aesthetic vocabularies accessible to him. She also shows how Coleridge strove to bring his idea of the metaphysics of nature in line with his Christian theology. Whilst other writers may have the opinion that Coleridge viewed nature as of little importance compared to Wordsworth, Modiana tries to correct this view. For instance, the German Sublime openly describes the authority of the mind over nature. However even though Coleridge preferred Kants sublime to Burkes sublime, he was not as eager to abandon nature as Kant or to use a confrontation with nature as an egotistical means to affirm the minds power. Thus is a useful chapter to gain a beneficial understanding of Coleridges subtle adjustments of Kants aesthetic theory in relation to the sublime in Romantic poetry. Whilst not mentioning the sublime directly, Wimsatt examines the imagery in Nature presented by eighteenth century Romantic Poets in his essay The Structure of Romantic Nature Imagery (1960). He questions whether romantic nature poetry exhibits any imaginative structure that is a specific counterpart of the subject and by trying to answer this helps us view the sublime in an eighteenth century context rather than modern day. Wimsatt picks up on the theme of Pantheistic Naturalism in Wordsworths Tintern Abbey then considers that God is not mentioned within the poem yet is the text is profound and concerns the spiritual. According to Wimsatt it was a common feat of nature poets to read meanings into the landscapes and beckon profound spiritual experiences without explicit religious statements. It is curious to note that he states Romantic Poetry had fallen out of favour among advanced critics at the time of writing however does not expand on this statement. This is unfortunate as it would be a useful viewpoint on the opinions across the years of the romantic sublime and its contexts.

Management Lessons from Vince Lombardi Essay Example

Management Lessons from Vince Lombardi Essay Example Management Lessons from Vince Lombardi Paper Management Lessons from Vince Lombardi Paper Vince Lombardi is believed to be the greatest coach in the history of the sports. He was born on June 11, 1913, in Brooklyn, New York. He was successful both in the football and off the field. In 1937 he graduated from Fordham University with a business major. After serving as assistant and head football coach to many teams, In 1958, he accepted the head football coach position with the Green Bay Packers, Wisconsin. He was able to get the fullest dedication and effort from each one on the am and he was able to make the Green Bay Packers champions in National Football League Tournament. This paper explore the his winning rules in the book ? ¦The Lombardi Rules: 26 lessons Vince Lombard?D written by his son Vince Lombardi Jar. The first part of the paper examines his winning rules and, the second part of the paper discusses the management techniques that derive from Lombardi rules. Effective Management Techniques in Business: Lessons from Vince Lombardi A great leader is rare to find yet a great asset to any organization. Great leaders exhibit a mixture of arrogance and humility. A great leader should be arrogant enough to believe that he is worth following. At the same time, he should be humble enough to know that others may have a better sense of the direction he should take. Sun a person Is Valence Lombardi Vince Lombardi once Salsa, salesperson rests not only upon ability, not only upon capacity; having the capacity to lead is not enough. The leader must be willing to use it. His leadership is then based on truth and character. There must be truth in the purpose and will power in the character. (Vince Lombardi) The book, The Lombardi Rules, written by his son Vince Lombardi Jar. , provides an insider?was look at Lombardi?was extraordinary methods and shows how anybody can adapt and adopt those methods for leadership success in his or her own career. Vince Lombardi Jar. Wrote, ?chem. FAA,there was not only a great football coach; he was also a great leader,?o He continued ?Celt was his leadership, his ability to motivate his players, to inspire them to surpass their own perceived physical and mental capability, and his incredible will to win that brought national renown to the man, his methods and his players. ?o (Lombardi Jar. , 2005) According to the Lombardi model, ?Connelly by knowing yourself can you become an effective leader?o. (Lombardi Jar. , 2005) He divided the leadership development process into three components: self knowledge, character and integrity, and leadership. The first step of gaining self-knowledge is to ask ourselves the tough question?o Is there an overriding purpose in my life? ?0 Lombardi mentioned that ?Joyce can only become a leader after developing your character-that is after building integrity, honesty and commitment. You would not be able to improve yourself until you gained self- knowledge. To gain self knowledge a leader need to follow these three steps. 1. Get to know yourself, because you cannot improve upon something that you don?wet know. 2. Learn from failure: failure brings more tough questions for you to answer. The better you answer the question, the better you know about you. 3. Don?wet run for the sake of running: Make sure where your final destination is. If you are not sure about your final destination, slow down and ask more questions. The second step to gaining self knowledge is to look the truth straight on. As a leader, you cannot build a team or an organization which is a whole to different from yourself, because you neither want your team nor yourself to have a shaky foundation. Once a leader honestly answers the tough questions about his life?was purpose, he or she will have same private and public life. To be a successful leader one must be honest with others as well as yourself. ?Cohen you are guided by the truth, you are the same person in private as you are in public. Looked at from the other end of the telescope, you know that what you do in private matters. ?o (Lombardi Jar. 2005)Lombardi noted that you must ?- play to your strength?w. When you start to answer the tough questions, strengths and weaknesses of your own character become evident. Once you understand your weaknesses, they don?wet have to work to your disadvantage. ?Osgood leaders will work to combat their weaknesses and use their strengths to the greatest advantage. ?o (Lombardi Jar. , 2005) According to the Lombardi model, the next stage is character building. Lombardi believed character creates the building blocks for leadership with good habits and competence. His prior education and pre-seminary training helped him build his character. The author noted in the book that the term character derived from the words that mean ?generated?o and ?considered?o , which implies that ? ¦contracted Is written, Inscribed, Ana engraved all over you -u Landmasses famous theme was that ?CE You cannot simply copy someone?was character. Character must fit our own personality and characteristics if it is to withstand a trial by fire. ?0 (Lombardi Jar. , 2005) To write your character, a leader may follow these steps: ?conclude the habits of seeking truth, finding and keeping faith, practicing nullity and showing respect and compassion for others. ?o (Lombardi Jar. , 2005) Although these qualities are not easily adopted, all are important for leadership. The other behaviors that are important for leaders are to ?kitchen the big picture, be completely commit ted to your task, work harder than everybody and be mentally tough. When you follow the rule ?-think the big picture?w, you know what the end will look like and you always keep that vision before you. Once the leader knows and sees the big picture, he knows how to handle the smaller obstacles that may stand in is way. A leader has to be completely committed to the task in which he is involved in. To Lombardi, commitment meant ?accepting sacrifice and suffering hard work- in other words whatever it takes to reach your goal. ?0 (Lombardi Jar. , 2005)Lombardi did not believe in overnight success. For him overnight success is a myth. He believed in hard work, practice and discipline. Lombardi Jar. Noted that his father and his assistants would run the same play over and over, barking out ?cert. it again! ?0 to correct even the tiniest mistakes. With hard work, practice, and spelling, the players were gaining complete confidence in their ability to execute each play. ?0(Lombardi Jar. , 2005) Management Lessons from Coach Lombardi ?occurring a football team is no different than running any other kind of organization ? an army, a political party or a business. The principles are the same. The object is to win ? to beat the other guy. To know the rules and objectives when they get in the game. The object is it win fairly, squarely, by the rules ? but to win ?CE(Vince Lombardi, Vince Lombardi is considered to be the greatest football coach of all times. Of all the qualities that he exhibited in his immense success, the dominant was his ability to concentrate on his sole purpose: winning the game. Coach Lombardi saw ? -winning?w both as a goal and as a reality. Vince Lombardi knew the game before he became a coach and understood it better than someone who had not played the game. In sport, it is ludicrous to think of hiring a coach who has not played the game simply because he would find it hard to impress the players and gain their respect. In the same manner, in business terms, a manager would lack credibility. In search of excellence, it is important to notice that, in most excellent companies, the person at the top has an intimate knowledge of the product or service being delivered. The advantage of having such a person is that, by the time that person reached the top, most of those in the company knew they had a leader that understood the business and what would be needed to improve the business. Vince Lombardi was an excellent leader and was willing to take chances. Even in defeat, he knew how to get something positive out of failure. Lombardi had the respect and confidence of his players. In short, the risks of gambling were reduced for Lombardi because everyone around him knew that his actions were based on tongue Knowledge, Ana teen enumerators Tanat eve retying was cone Tort ten good the team. This is an excellent point in management. Once the managers show confidence and trust towards their employees, they are confident to take the risks for the general good of the company. There are many companies that encouraged their employees to take risks because they know that success comes from large number of tries. However these companies still expect their employees to do the basic things erectly. Vince Lombardi did not believe in overnight success. The author noted that ?Kiewit hard work, practice, and discipline, (his players) were gaining complete confidence in their abilities?o (Lombardi Jar. 2005) The obvious and extremely critical point in the game is that, none of the players can do his or her Job successfully without the support of the others. Even though you are a successful player on your team, you may not be able win the game if the team is not good enough. The point is that even with one excellent player, success is still determined by the overall strength of your te am. This is clearly no less true in business. Nobody can work in a vacuum. Managers must draw a big picture for everyone so that they can see where they fit in the overall scheme of things. Vince Lombardi said, ?cell never tell a player, ?-This is my way, now do it?w. Instead, I say, ?-This is the way we do it?w and this is why we do it?w?0. Confidence in him and in the team he was coaching distinguished Vince Lombardi as a great coach. He put a lot of pressure on himself, but did not collapse because he was so sure about what he was doing. He had confidence in himself and also was able to convey t to the team. Managers, who do not have self confidence, are not in a position to instill it or expect the same from their team members. Before the team can experience any success, a manager must be confident in his own abilities so that he can concentrate on the problems, issues, and the strength of the group. Also, subordinates are not likely to respect a manager in whom they have no confidence. Conclusion I think out of all the traits Vince Lombardi exhibited in his life as a leader, the most important one is team-building. Once while giving his pep talk to the team Vince Lombardi asked this question from the players. ?cheat is the meaning of love? ?0 This is clearly an unusual question to ask a team. But Lombardi was serious. And he explained ?cannonade can love something that is beautiful or smart or agile. But you will never know love until you can love something that sin?wet beautiful, sin?wet bright, or sin?wet glamorous. Can you accept someone for his inabilities? ?o and he explained that any of them may not regard any particular teammate as equally talented or equally capable. But a loving commitment to the team and to all the mattes would enable a better player to help a lesser player. The offensive-line tackle Bob Corrosions recalls this pep talk and mentioned that ?ache din?wet want us to be picking on each other, but instead thinking: What can I do to make it easier for my teammate to help us win the game. ?0(Maharanis, 1999 ) Sadly, many of us persist in playing for personal advancement. Especially in management, business is a game of who comes out on top. If we would concern ourselves more with helping our own teammates, I think our working lives would be a lot more satisfying, and our customers would be a lot happier.

The Life of Alexandre Dumas, Classic Adventure Writer

The Life of Alexandre Dumas, Classic Adventure Writer French author  Alexandre Dumas (born Dumas Davy de la Pailleterie; July 24, 1802 – December 5, 1870) wrote novels that came to epitomize the adventure genre. In works such as  The Three Musketeers and The Count of Monte Cristo, Dumas eschewed historical accuracy and literary elegance to craft stories that  delivered non-stop action.   Fast Facts: Alexandre Dumas Born: July 24, 1802 in Soissons, FranceDied: December 5, 1870 in Dieppe, FranceOccupation: WriterNotable Works:  The Count of Monte Cristo,  The Three Musketeers,  The Corsican BrothersLiterary Movements: Historical fiction, Romanticism  Famous Quote: All human wisdom is summed up  in these  two words,- Wait and hope. (The Count of Monte Cristo) Early Years Born in France in 1802, Dumas was the son of famed general Thomas-Alexandre Davy de La Pailleterie and the grandson of Marie Cà ©sette Dumas, an enslaved woman of African descent. His last name, Dumas, was adopted from his grandmother.  Although the family enjoyed some rank and connection due to General Dumas’ lineage and fame, they were not at all wealthy, and their situation worsened in 1806, when General Dumas died of cancer.   Without much money for an education, Dumas managed to educate himself and take advantage of family connections. When the French monarchy was restored after Napoleon’s final defeat, Dumas made his way to Paris in 1822 to make a living, intending initially to work as a lawyer. He found work in the household of the Duke of Orleans, a future king of France. A Revolutionary Playwright   Dumas was not satisfied with his new position in the household of the Duke of Orleans. He  almost immediately began writing plays, collaborating with the actor Franà §ois-Joseph Talma. His plays were instant hits, written in a raucous, energetic style filled with violence and dramatic plot twists. Dumas made enough money from the plays and articles he published in magazines that he was able to become a full-time writer by 1830. When a second revolution seized France, Dumas took up arms. He fought in the streets to dethrone Charles X in favor of his former employer, the Duke of Orleans, who became King Louis-Phillippe. Novelist and Collaborator Dumas began working in the novel format in the late 1830s. Noting that newspapers were publishing serial novels, he reworked one of his existing plays into a novel, Le Capitaine Paul. He soon founded a studio and hired writers to work on ideas and outlines that he generated, thus inventing  a business model still followed by some writers today.   Historians disagree about the  extent of his collaborators contributions, but there is no doubt that Dumas energetically increased his output by relying on other writers to flesh out ideas and sometimes write large portions of his books. This process allowed him to maximize his income and become incredibly prolific as a writer. (The fact that Dumas was frequently paid by the word or line is reflected in the surfeit of dialog in his books.) During the 1840s, Dumas’ major novels were written and published. Those works, which include  The Fencing Master, The Count of Monte Cristo, and The Three Musketeers,  exemplify Dumas’ style: explosive opening action, endless excitement, no-frills writing, and a serial format.  The plots are not strictly formed; instead, they meander, resisting typical  narrative structures. The characters  are defined by their actions, rather than an internal monologue or other psychological factors. In all, Dumas published a remarkable amount of material:  more than 100,000 pages of novels, plays, articles, travelogues, and other writings. Personal Life Dumas married  Ida Ferrier in 1840, but historians believe that he had  nearly 40 mistresses and fathered anywhere from four to seven children in his lifetime.  Dumas only acknowledged one son, also named Alexandre Dumas, who became a celebrated author in his own right. Dumas  spent exorbitantly during his lifetime, at one point building a chateau that cost 500,000 gold francs. (At the time, the average laborer earned about 2-3 francs per day.)  As a result of his lifestyle, Dumas ran out of money in later life, despite his many successes. He wrote several poorly-received novels in an effort to drum up more income.   Death and Legacy Dumas died after suffering from a stroke in 1870. It is believed that he may have contracted syphilis at some point in his life, and that the disease may have contributed to his death. Prolific and energetic, Dumas produced historical adventure stories that have endured long after loftier works have faded into obscurity. His focus on action, his disdain for psychological exploration, and his sheer fluidity with language have made several of his novels all-time classics that are still read, taught, and adapted today.   Sources â€Å"David Coward on Alexandre Dumas.† The Guardian, Guardian News and Media, 16 Apr. 2003, www.theguardian.com/books/2003/apr/16/alexandredumaspere.Tonkin, Boyd. â€Å"The Role of Race in the Life and Literature of Alexandre Dumas: The Episode That Inspired the Man behind the Musketeers.†Ã‚  The Independent, Independent Digital News and Media, 16 Jan. 2014,  www.independent.co.uk/arts-entertainment/tv/features/the-role-of-race-in-the-life-and-literature-of-alexandre-dumas-the-episode-that-inspired-the-man-9065506.html.Università © De Montrà ©al - IForum - Forum Express - Vol 4 No 1 - French Studies - Quebecer Discovers an Unpublished Manuscript by Alexandre Dumas,  www.iforum.umontreal.ca/ForumExpress/Archives/vol4no1en/article02_ang.html.Wallace, Irving. The Intimate Sex Lives of Famous People. Feral House, 2008.

General Biology I - Human Perspectives Essay Example | Topics and Well Written Essays - 750 words

General Biology I - Human Perspectives - Essay Example The heart rate was minimum (51) at rest under normal conditions but found maximum (71) after drinking caffeine in the shape of coffee. Exercise for a minute did not significantly change heart rate as compare to working in the office as hypothesised. This indicated that working in the office also needed extra energy comparable with short exercise. Heart rate after eating and digesting food was similar to exercise for one minute. This is why cardiologists advise heart patients to avoid exercise or walk for at least two hours after taking meals. Drinking coffee increases heart rate but the recent research indicated that it is beneficial for heart diseases in moderate quantity in elderly people ( James et el, 2007). Coffee has oxidative properties which keep the LDL cholesterol level under low levels and chances of getting cardiovascular disease are minimal. Heart beats per minute were expected to be equal to or lower than resting time but in my case it was higher. The probable cause for this change may be dreams immediately before wake up which resulted in elevated heart rate. 3. Trained athletes have resting pulse rate at 40-60 as their metabolism has adjusted to exercise. Therefore exercise is recommended for proper body functioning and keeping healthy heart. My resting pulse rate is also low because I exercise regularly. It means my heart need to work less as compare to persons whose heart rate at resting is 70-72 beats per minute. 4. I calculated my BMI using standard BMI calculator given by National Institute of Health. My height is 5’ 5† and weight 152 pounds. The BMI come to 25.3 which are on the higher side of the normal range (18.5 – 24.9) of NIH standards. My BMI does surprise me because I have kept my body weight within limit. I take care of my food and exercise regularly. Therefore, my heart rate is lower and it is expected that I have low risk of mortality due to heart problems. 5. People who have criticized BMI have

On the debates pertaining to inference of an effect from its cause Essay

On the debates pertaining to inference of an effect from its cause - Essay Example 172). Taking off from Hume, John Stuart Mill â€Å"held that causal inference depends on three factors: first, the cause has to precede the effects; second, the cause and effect have to be related ; and third, other explanations of the cause-effect relationship have to be eliminated† (Cook and Campbell 1979, p. 182). In other words, the notion of causation and effect that can be found in the ideas of John Stuart Mill is that causation requires precedence of the cause from the effect, correlation, and that rival hypotheses are ruled out. For Cook and Campbell (1979), however, the most significant contribution of John Stuart Mill to the theory of causality pertains to his notions of the criteria, principles, or â€Å"methods† of agreement, differences, and concomitant variation. The principle of agreement â€Å"states that an effect will be present when the cause is present† (Cook and Campbell 1979, p. 182). The principle of difference â€Å"states that the effect will be absent when the cause is absent† (Cook and Campbell 1979, p. 182). Finally, the principle of concomitant variation â€Å"implies that when both of the above relationships are observed, causal inferences will be all stronger since certain other interpretations of the co-variation between the cause effects can be ruled out† (Cook and Campbell 1979, p. 182). According to Cook and Campbell (1979, p. ... 183) pointed out that â€Å"the concept of a control group is implicit here and is clearly central in Mill’s thinking about cause.† In 1913, Bertrand Russell â€Å"looked to physics and astronomy of his day as the most mature sciences, and he noted their lack of concern with unobservables and explicitness and parsimony of the functional relationships that physicists sought to test† (Cook and Campbell 1979, p. 172-173).1 However, Russell had asked that asked whether the concept of cause continues to be relevant given that cause â€Å"is not implied by functional relationships of mathematical form† (Cook and Campbell 1979, p. 173). The Russell viewpoint is positivist â€Å"rejecting unobservables (like cause), and seeking to establish explicit functional laws between continuously measured variables in a closed system† (Cook and Campbell 1979, p. 173). Positivists like Russell believe that â€Å"causation is unnecessary because it is unobservable† (Cook and Campbell 1979, p. 175). The essentialist viewpoint â€Å"argue that the term cause should only be used to refer to variables that explain a phenomenon in the sense that these variables, when taken together, are both necessary and sufficient for the effect to occur† (Cook and Campbell 1979, p. 177). The essentialists â€Å"equates cause with a constellation of variables that necessarily, inevitably and infallibly results in the effect† (Cook and Campbell 1979, p. 177). In contrast, those â€Å"who restrict cause to observable necessary and sufficient conditions (or sufficient conditions that operate when all the necessary conditions are met) reject as causes those factors which are known to bring about effects sometimes, but not always† (Cook and Campbell 1979, p. 177).

Analysis of Momentum in Indian Stock Markets

Analysis of Momentum in Indian Stock Markets LITERATURE REVIEW The first study on momentum based investment strategy was documented way back in 1967. Levi (1967) claims the success of trading strategy based on buying stock with current price significantly higher than the average of last 27 weeks generate significant positive abnormal returns. However Jensen Bennington (1970) argues that the trading rule based on relative strength proposed by Levi was the one out of sixty eight trading strategies he tested and while tested for out of the sample test period it did not outperformed the buy hold strategy and hence was attributable to selection bias. Test of contrarian investment strategies was stealing the show fund managers were found busy picking stocks based on relative strength in US market. Majority of mutual funds examined by Grinblatt Titman (1989) note the tendency of fund managers to buy the stocks that have seen price increase in last quarter. Apart from that Value Line rankings of mutual funds that were largely based on relative strength also enjoyed high predictive power. The success of mutual funds investing on the basis of relative strength and high predictive power of value line rankings (Copeland Myres (1982)) provide some evidence of success of investment strategies based on relative strength. The academic literature suggests contrarian returns generate abnormal returns whereas value line rankings and mutual funds generating abnormal returns based on relative strength strategy are in stark contrast of each other. A seminal study by Jegadeesh Titman (1993) solves the puzzle by providing an explanation based on different of investment horizons considered by mutual funds using momentum strategies and contrarian strategies advocated by academic literature in late eighties and early nineties. Jegadeesh and Titman (1993) using US market data from 1965-1989 found not only the evidence of long term success of contrarian investment strategy but also found that momentum strategies generate significant positive returns in medium run over 3-12-month holding periods. They documented the reversal of momentum after about nine months. Their study suggests that in short run for about 3-12 months holding period momentum strategy generate significantly positive returns while in long run for the holding period of 1-3 years contrarian strategy generates significantly positive returns. Conrad and Kaul (1993) also find evidence from US market that the contrarian strategy is profitable for short-term (weekly, monthly) and long-term (2-5 years, or longer) intervals, while the momentum strategy is profitable for medium-term (3-12-month). As mentioned earlier the results of Jegadeesh and Titman (1993) had thrown a new light on seminal study of De Bondt Thaler (1985, 1987) and found evidence of short term momentum precedes long term reversal. Although all the results provided strong evidence of market inefficiency, different studies documented different explanations for such returns. Fama French (1996) presents result based on multifactor CAPM using size and MV/BV ratio to explain various anomalies in asset prices including momentum as well as contrarian returns and claim that market efficiency is intact. However the study failed to explain the presence of short term momentum using the multifactor model and hence short term momentum anomaly remains unexplained. Several behavioural explanations were found and presented to jointly explain the short-run cross-sectional momentum in stock returns documented by Jegadeesh and Titman (1993) and the long-run cross-sectional reversal in stock returns documented by DeBondt and Thaler (1985). Daniel, Hirshleifer, and Subrahmanyam (1998) (DHS hereafter) assume that investors are overconfident about their private information and overreact to it. If these investors also have a self-attribution bias, then investors attribute success to their own skills more than they should and attribute failures to external noise more than they should. The consequence of this behaviour is that investors overconfidence increases following the arrival of confirming news. The increase in overconfidence furthers the initial overreaction and generates return momentum. The overreaction in prices will eventually be corrected in the long-run as investors observe future news and realize their errors. Hence, increased overconfidenc e results in short-run momentum and long-run reversal. As against the above cited behavioral explanation to short term momentum and long term reversal, some scholars argue that the returns from these strategies are just compensation for taking additional risk or may be the product of the data mining. Most noteworthy of all Conard and Kaul (1998) argue that the profitability of momentum strategies may be the result of data-mining and momentum portfolio shows positive returns in any post ranking period is true irrespective of the length of test period. Thus Conard and Kaul (1998) suggest that there is no case of long term reversal. This is diagonally opposite to what the behavioral models suggests where after short term momentum prices will reverse to more fundamental levels. In fact, the criticism of Conard and Kaul (1998) led to another study by Jegadeesh and Titman (2001) where they used out of the sample test by using data from 1991 to 1998 an overlapping test period compared to their 1993 study where they used data form 1965-89. Their study also eliminated small firms from the study to check whether the earlier momentum returns were actually dominated by small, high-risk and illiquid stock or otherwise. Though they focus on short term momentum in their study choosing two year holding period post formation but they also tested post holding period returns from the period of two to five years after formation. They present some very interesting results. The momentum profits of Jegadeesh and Titman (1993) continued in 2001 also with almost same magnitude for same holding period that actually has proved that the earlier momentum profits were not the result of data-mining. It also suggests that unlike small firm effect where after the published research on superior returns on small firms compared to their large counterparts, superior returns on small firms disappeared in subsequent studies using data from the periods after the small firm effect from earlier studies got published, that means market has learnt quickly and hence such superior returns disappeared however momentum returns were still present with the same magnitude in 2001 as they were in 1993 study suggest that momentum returns are not just the temporary anomaly but it may have to do with some systemic cognitive bias which sustains for a long time. It also proves that momentum profit is just not the result of some small, illiquid and risky stocks and most noteworthy the reversal found in their post holding period cumulative returns, which render support to the explanations of behavioral theorists and provides evidence against the Conard and Kaul hypothesis. As far as studies in Asian markets are concerned Chang (1995) found abnormal profits of contrarian strategies in the Japanese markets. Chui (2000) found significant positive abnormal returns with contrarian investment strategy in Japanese and Korean markets. Hameed Ting (2000) found evidence of market overreaction hypothesis (contrarian strategy) in Malaysia. Kang (2002) found significant short term positive returns with contrarian strategy in Chinese markets. On the other end, Hameed Kusandi (2002) found no evidence of contrarian profits in six Pacific Basin markets. While Rouwenhorst (1998) and Griffin Martin (2005) found existence of momentum in many non-US countries, the quantum of momentum returns in non-US countries was small, and in the case of Asia, insignificant. For example, Griffin (2005) estimates average monthly returns of 0.78%, 0.77% and 0.40% for the Americas (excluding the US), Europe and Asia respectively. End of the Beginning or Beginning of the End†¦ The big bull has fallen down, investors have lost their vision, and experts knowledge went futile with the downturn of the global economies. When the markets were on peak, the funds across the world have flooded in the global economies. Policy makers had lot of confidence on the market, that it will help the economy to grow at faster pace. The market excelled 21000 points which was more ahead then the growth of the economy of India. But that does not seem true for the world economies, as the crisis had hit badly in USA and other parts of world which insisted FIIs and other investors to withdraw their money and markets crashed, went to 7000 points, where investor lost everything and policies could not work to take them up to the level. What was the reason of the crash? What will be the result of the market? Is this the end of the beginning or beginning of the end? Indian market is the strong base of determining the financial system of the country. Majority of the financial decisions are dependent on the stock market other financial market. Indian stock market serves a link to banking and other financial policies which provides impetus to the industry. Indian stock markets heavily based on the sentiments of the clients (market players) also of the market makers. The crash or boom (in a period/ year) determines the structure of the Indian capital system. The boom in the market (year till 2008) has brought many changes in the performance of mutual funds, insurance (ULIPS), investment products which led the country into the inflow of the money supply in the market. Till 2007-08 the market was running at its best, touched the heights, but the global crash in the market became a typhoon took away major players organizations into the quick sand of the recession. The insights from the market were not showing positive sign in anyways, so whether this was a new platform or just a time (economic) cycle. Prologue to decline†¦ Earth provides enough to satisfy mans need, but not greed. -M.K.Gandhi The market crash started with the fall of big financial organizations in the USA in the world like Lehman Brothers, AIG, Freddie and Fannie and many more. The failures were primarily due to exposure into Subprime loans Credit default swaps issued to insure these loans the issuers devolved resulted into bank failures steep reduction in the price of equities worldwide. The economic crisis led many world markets to suspend the trade due to fall in price. On October 8, 2008 Indonesian stock market halted trading, after a 10 % drop in one day. The crash of 2008 was around 21% which was little less than 1987 (Times of London). Beginning of October month was Black in the world market. The Dow Jones volumes were low and the industrial average fell over 1874 points which was worst weekly decline. The Icelandic stock market was into pitiable situation where the markets had been suspended for 3 days i.e. 9, 10 13 October. On October 24 many of the worlds stock market experienced the worst decline, with around 10% drop in the indices. Source: http://en.wikipedia.org/wiki/File:OMX_Iceland_15_SEP-OCT_2008.png The above graph shows the steep and the worst decline a market could ever witness. The Iceland stock market crashed up to unpredictable level. The trading had been suspended for 3 days because of the crash in the market. This situation was visible in all global stock markets, because of financial crisis in USA. Hence, the worst was yet to be experienced by the global markets market players. The Indian stock markets were also badly hit the confidence of people was shattered. The markets were not showing the positive sign in any of the context people had no clue about the next jump or next level of the market. Market experts were expecting the markets will be into recuperation at the earliest, but things were not going the way it had been desired. Source: Hindubusinessline.com Indian market which has shown strong performance till 2007, but from January it plummeted more than 3000 points on all the stock prices by October 2008, it had touched the 7000 (BSE) line. The continuous unpredictable scenarios in the stock market led many investors and institutional investors to withdraw their money because of negative performance of the markets. The above shown graph is depicting the dream turned into nightmare for global domestic investors. The Beehive capitalism†¦ Everything that goes up without base falls steeply with great force. The same situation has happened with the world economies. The supreme economy of the world has become the devil for the small economies, leading major big companies to file for the bankruptcy. The global meltdown is the result of Financial Hybrids Innovations, which has been actively traded all across the world markets. The investment bankers, banks, financial institutions were actively relied on these new and innovative models, which has yet to gain the acceptance across the world. The main accused element for collapse is â€Å"Credit crisis†, in which the US banks got the regulations to lend money to the people having no sufficient background to get the loans. These kind of loans were termed as NINJA loans (NO INCOME, NO JOBS, NO ASSETS), given in abundance by the US banks. Emerging economies like India, China and other big economies were initially considered to be the places which will remain unaffected from the distortion of crisis. But despite of the strong fundamentals Indian economy dipped into the crisis. The stock market had lost more than 50% of its value (source: economic times), which shattered the hopes of the Indians. There was continuous monitoring by the Central Bank (Reserve Bank of India) on the market trend. The tornado of crisis had destroyed most of the stock markets, banks and financial institutions after soaring to the new heights of investment. The below mentioned graph depicts the movement of BSE Sensex SP CNX Nifty Source: SEBI Bulletin November 2008. BSE Sensex closed at 9788 on October 31, 2008 as against 12680 on September 30, 2008, a fall of 3072 points (almost 24%).The month of October 2008 had been the most volatile month, where Sensex recorded a high of 13055.67 on October 1, 2008 low of 8509.56 on October 27. Nifty closed 2886 on October 31 against 3921 against 30 September 2008. By the end of a month Nifty registered the fall of 1035 points (almost 27%). The market had shown unpredictability of the base stability level, dissuading more and more investors to take exit from the market. The Financial crisis: A Sub-prime loan is a type of mortgage loan made to borrowers who have at least one of the following characteristics: (1) Low credit scores; (2) The inability to post the traditional 20 percent down-payment for a home; and/or (3) The inability to fully document their income. The subprime crisis is not the result of recent financial innovations and developments, but it is the outcome of lax capitalism policies which had been developed by the US government. In the fifties American government passed a legislation to delink the commercial banking investment banking. The legislation stated implied that a commercial bank cannot open an investment bank. In 70s European American economies faced slowdown, due to which these banks were finding difficult to invest their investible surplus. This time the East Asian economies were liberalizing their economies, due to which the capital from western economies started moving to these economies. After the huge influx of capital into these economies, Asian bubble gets burst, forcing the western economies to introduce new financial measures to invest into the markets. These circumstances and the need of new financial avenues led the US European economies to trade into the new financial products, by liberalizing the norms for Commercial Investment Banks. The liberalization in the regulations led to the introduction of the Mortgaged products (a prime cause of crisis). In the late 90s US mortgage lender began offering the mortgage products to would be â€Å"home buyers† who could not qualify for a mortgage loans. Millions of Americans Europeans, who previously could not afford to buy home, were obtaining these mortgages, due to which great Demand of home (boom) took place leading to shoot of real estate prices. The above diagram shows how the base of subprime crisis took place in the global markets. The downfall in the economies is considered to be as the Dominoes Effect. The lax screening of borrowers, large capital accumulation capitalized market structure created a bubble which could not be ceased from getting expand. The whole cycle got mitigated with the introduction of new instruments in the financial markets. The sub prime crisis is about the collapse of the unregulated, $3 trillion over-the-counter market for complex structured assets, some of which happen to contain sub prime residential mortgages. The semiannual global financial stability report by IMF said that declining US housing prices and rising delinquencies on the residential mortgage market could lead to losses of $565 billion. When combining these factors with other market factors, it puts potential losses at about $945 billion which is almost 25% of the $24trillion global credit market. Financial innovations were brought into the market to make the products work in the market. The Mortgage products started to conflagrate the US European markets, where such loans started becoming the pool of assets (Risky) and been traded in the market. Hence, due to this many other factors got the impetus ultimately resulted into the uncontrollable bubble of mortgage, which gets burst and deepened the world economies into the recession. The subprime crisis has affected the global economies resulting into the fall of big financial corporation like Lehman Brothers, Bear sterns, AIG, Freddie Fannie, and many more big organizations of whom one cannot think to get fail. The sizes of the organization (exposure) were in plethora that it was not possible for the US European government to revive these financial institutions. AIG, one of the largest insurance companies (Private) became government undertaking due to the impacts of financial crisis. SUB PRIME OVERVIEW: Source: The India Economic Review 2008. (Dec 08) The whole system works in three stages, Stage First consist of Borrowers lenders; Second stage consists of the creation of SpecialPurpose Vehicle (SPV) with the inclusion of legal intermediaries. The last (third) stage consists of investors those who had invested their money into the riskier assets including the investment banks. In stage first agent enters between borrowers and lenders, accepting the collateral and also factoring the future price rise. The agents accept the loans, who previously could not even qualify for the approval, now getting loans from the banks other lenders. The housing price bubble allowed many borrowers to get loans easily because of the high house prices. The loans were mortgaged on a larger scale by creating the pool of similar group of mortgage assets through Special Purpose Vehicle (SPV) given the risk involved on the pool of assets. In second stage, SPVs were created all the liabilities were transferred into bankruptcy remote securitization trust or SPV. Underwriters were used to issue market the MBS (mortgage backed securities). These securities were divided into different tranches, which were of similar securities. The rating agencies were to give rating to these tranches of securities. The ratings were given to the tranches based on the risk, priority of payment of the funds. Higher ratings were given to those tranches benefiting from the credit enhancements the MBS generates or credit insurance purchased from third party bond insurer. In third stage, Institutional or individual investors such as hedge funds or managers of Collateralized Debt Obligations (CDOs), purchase the securities and then re-securitize the MBS, along with other assets, into a CDO. The Commercial Papers (CP) generated in the initial years was all sold and there was demand for more. Consequently the SPVs started producing more CPs or MBS. The sale of the same only meant that the SPVs were flush with funds. These funds were to be invested somewhere so, the agents were pressed to bring in more borrowers. The lending norms were further diluted to accommodate lesser and lesser deserving borrowers in order to deploy the huge funds available. The consequent spiral that got generated only led to the continued dilution of the Capital Adequacy and Prudence norms. The system went burst once the housing prices turned negative turning the very foundation of subprime lending upside down. The turmoil of subprime has been expected of more than $ 3 trillion, which is too big for any country to even imagine of recuperating. The impact on Indian market was slow but had been proved acute on the stock market due to the constant humongous withdrawal of FIIs loss of confidence in the consumers (investors). Mortgage: Huge pack of cards†¦ The magnanimous crisis which all started with lax policies of US government, provided impetus for the Fed Reserve to implement new structures in the economy. The capitalist policy was looking very attractive to the market players, but the policy was hollow from the fundamentals. It all started with the Alan Greenspans reformative structures models in the financial markets, led to turmoil in the global economies. The US Fed Bank Clinton government in 1999 passed Gramm-Leach-Bliley Act (GLBA) which had abjured the old Glass-Steagall Act which had regulated the Investment Banks, Banks Insurance industries. The new legislation has unregulated the Wall Street Investment Banks and commercial banks. This deregulation has enlarged the gamut of activities in the financial activities of the commercial banks other financial institutions. The deregulation had been further reintroduced by legalizing gambling activities into financial sector, a prohibition that had been in place after 1907 financial crisis. The steps towards deregulation of the US markets had converted the US markets into a big casino. Securities Exchange Commission (SEC) in 2004 took a step towards the deregulation on the financial activities by removing the ceiling on risk that the largest American investment banks could take on Securitized loans. By this time, no one would have thought that the deregulation will result into large speculation create a bubble in the market. Lastly, the Securities and Exchange Commission took the last step toward deregulating financial markets when in the month of July 2007, weeks before the onset of the subprime crisis; it removed the â€Å"uptick† rule for short selling any security. The housing bubble was fed by extraordinarily low interest rates low lending standards (norms) for mortgages. The excessive monetary liquidity short term interest rates fell to 1%, which led to high borrowing of loans from the banks, resulted into the big bubble of mismanagement of financial activities. After the tech bubble burst in 2001 the recession, the Fed (Greenspan) aggressively lowered the Federal funds rate from 6.5 percent to 1 percent in 2004, the lowest since 1958. The lowered interest rates reduced lending standards made the banks to lend the money known as ‘ Predatory Lending to the borrowers who did not have capabilities to qualify for the loans, but with the mortgage lending, excessive loans were provided to these lenders as they (banks) were getting big bonuses for bearing risk on these loans. Non-traditional home loans were advanced to borrowers who had no documented incomes. Some loans were interest only loans with down payments of 5% or less . Some were Adjustable Rate loans (ARMs), with low interest rates for one or two years to be reset later at much higher rates. In 2006 around 25% of American mortgages were subprime and close to 20% were ARMs. Mortgage lenders and Home buyers presumed that home prices were not going to fall on a national basis. THE NEW ALCHEMY OF FINANCE The subprime crisis is the result of new financial products in the market the deregulation of the financial activities for the FIs. The main reason of such lending was the facility with which subprime lenders could sell their risky mortgages upstream to bigger players, investments banks for example, which undertook to buy them, pool them into mortgage bonds and re-channel them into new financial instruments through a process of aggressive securitization. The Structured Investment Vehicles (SIVs) which fall into the large class of derivative products came under various names such as Collateral Debt Obligations (CDOs). They had the characteristics of short term asset based commercial paper that were backed by the underlying income producing mortgage assets downstream and were graded according to a certain risk of default. More than 1 trillion half dollars of these asset backed financial products were sold in all over the world. Another new financial instrument that made matters much worse and led directly to the crisis: the Credit Default Swaps. Due to lack of government regulation, this product has become a weapon of mass destruction. In order to protect against the risk of default on the new asset-backed securities (ABS), some insurance companies but also some investment banks themselves began to issue bilateral â€Å"insurance† contracts against the newly created ABS. These were called Credit Default Swaps (CDS), which were supposed to protect the investment instruments against the default on asset based securities. The issuer of ABS could buy the protection against the default by paying a premium. This was a financial innovation, the so-called â€Å"insurance against default†, that opened the floodgates of money to be invested in the new financial instruments. Indeed, it allowed investors such as pension funds and other institutions which have a fiduciary obligation to buy only high-qualit y securities, to legally buy artificially highly rated (but risky) ABS securities, or to invest in hedge funds which specialized in leverage trading in derivative products. But the problem was that the issuance and use of such financial â€Å"insurance† contracts were not regulated by any government agency, because the word â€Å"insurance† was not used; instead, they were considered as simply a protection against the â€Å"default† of payment on a financial security. And thats where the gambling part enters the picture: only ten percent of CDS are genuine insurance contracts held by investors who really own asset-backed securities (these are covered CDS); 90 percent of them are rather held by speculators who trade CDS, while not owning any asset-backed securities to be protected (these are naked CDS). Economy as Casino: The gamut of gambling that US government Fed has created was even unimaginable, allowed big participation into these new investment instruments. Credit Default Swaps (CDS) can be bought and sold by speculators who are not directly involved in the mortgage business. Because of the 2000 Commodity Futures Modernization Act passed by Congress, no state has the power to regulate this new form of sophisticated gambling. The result is astounding: it is estimated that the notional value of credit default swaps outstanding today is about $ 62 trillion (four times the size of the US economy). This is an indication of popularity of the â€Å"naked† CDS innovation was as a way to bet on the collapse of the entire asset-backed securities construction. This was also a clear sign that, in a crisis, it would be all but financially impossible for the issuers of CDS to meet their obligations. In other words, disaster was just around the corner. This is an event that any regulatory agency should have seen coming. When housing prices hit the expected top of their cycle, in the 2005, and began falling, especially in 2006, the price for CDS s was still relatively low. So, some astute speculators undertook to buy CDSs and simultaneously began selling short the ABS that had been issued by investment banks, such as Lehman Brothers, in the correct expectation that mortgage-backed securities were bound to lose value with the expected rise in home foreclosures and mortgage defaults. This is how unimaginable spiral got created by the steps undertaken by Fed Reserve US government which ultimately result into the great burst ever faced in the history globally. GRAMM-LEACH- BILLEY ACT 1999 The Gramm Leach Billey Act 1999 (GLBA) passed by US government in the year 1999 with a view of security data integrity in the market. The GLBA repealed the part Glass Steagall act of 1933, which had opened the market among the banking companies, securities companies insurance companies. The GSA had prohibited any one institution from acting as any combination of an investment bank, a commercial bank and or an insurance company. But the GLBA allowed commercial banks, investment banks, securities firms, insurance companies to consolidate. The act was announced in the 1993 finalized in 1994, allowing many big corporations to merge to enhance their range of activities take the benefit of the deregulation. The law was passed to legalize these mergers on a permanent basis. The law has not fully deregulated the previous act, but they had relaxed the norms and allowed the FIs to have non financial assets. GLBA was amended with some part of the Bank Holding Company act of 1956. The crucial aspect of the GLBA stated that no merger can go ahead until the financial holding institutions, or affiliates receives a â€Å"less than satisfactory (SIC) rating at its most recent CRA exam†. GLBA compliance was mandatory; whether a financial institution discloses non public information or not, there must be a policy in place to protect the information from prospective threats in security data integrity. The law was segregated into three main aspects: FINANCIAL PRIVACY RULE: This rule requires FIs to provide each consumer with a privacy notice at the time the consumer relationship is established and annually afterwards. The notice must explain the information collected about the consumer, where that information is shared, how that information is used and how that information about the consumer is protected. The consumer must be notified give consent about any change at any point of time. Each time the privacy notice is reestablished the consumer has the right to opt it again. SAFEGUARDS RULE: The safeguards rule requires FIs to develop a written information security plan that describes how the company is prepared for, and plans to continue to protect clients non public personal information. This plan must include the following; Denoting at least one employee to manage the safeguards. Constructing a thorough on each department handling the non public information. Develop, monitor test a program to secure the information. Change the safeguards as needed. The Safeguards Rule forces financial institutions to take a closer look at how they manage private data and to do a risk analysis on their current processes. PRETEXTING PROTECTION: The GLBA encourages the organizations covered by GLBA to implement safeguards against pre texting. Pre texting means when someone tries to access the personal nonpublic information without proper authority approval. Thus the institutions having covered under the GLBA, needs to have control safeguard the information of their client, to prevent the details from any misuse. CRITICISM AND DEFENSE: There Analysis of Momentum in Indian Stock Markets Analysis of Momentum in Indian Stock Markets LITERATURE REVIEW The first study on momentum based investment strategy was documented way back in 1967. Levi (1967) claims the success of trading strategy based on buying stock with current price significantly higher than the average of last 27 weeks generate significant positive abnormal returns. However Jensen Bennington (1970) argues that the trading rule based on relative strength proposed by Levi was the one out of sixty eight trading strategies he tested and while tested for out of the sample test period it did not outperformed the buy hold strategy and hence was attributable to selection bias. Test of contrarian investment strategies was stealing the show fund managers were found busy picking stocks based on relative strength in US market. Majority of mutual funds examined by Grinblatt Titman (1989) note the tendency of fund managers to buy the stocks that have seen price increase in last quarter. Apart from that Value Line rankings of mutual funds that were largely based on relative strength also enjoyed high predictive power. The success of mutual funds investing on the basis of relative strength and high predictive power of value line rankings (Copeland Myres (1982)) provide some evidence of success of investment strategies based on relative strength. The academic literature suggests contrarian returns generate abnormal returns whereas value line rankings and mutual funds generating abnormal returns based on relative strength strategy are in stark contrast of each other. A seminal study by Jegadeesh Titman (1993) solves the puzzle by providing an explanation based on different of investment horizons considered by mutual funds using momentum strategies and contrarian strategies advocated by academic literature in late eighties and early nineties. Jegadeesh and Titman (1993) using US market data from 1965-1989 found not only the evidence of long term success of contrarian investment strategy but also found that momentum strategies generate significant positive returns in medium run over 3-12-month holding periods. They documented the reversal of momentum after about nine months. Their study suggests that in short run for about 3-12 months holding period momentum strategy generate significantly positive returns while in long run for the holding period of 1-3 years contrarian strategy generates significantly positive returns. Conrad and Kaul (1993) also find evidence from US market that the contrarian strategy is profitable for short-term (weekly, monthly) and long-term (2-5 years, or longer) intervals, while the momentum strategy is profitable for medium-term (3-12-month). As mentioned earlier the results of Jegadeesh and Titman (1993) had thrown a new light on seminal study of De Bondt Thaler (1985, 1987) and found evidence of short term momentum precedes long term reversal. Although all the results provided strong evidence of market inefficiency, different studies documented different explanations for such returns. Fama French (1996) presents result based on multifactor CAPM using size and MV/BV ratio to explain various anomalies in asset prices including momentum as well as contrarian returns and claim that market efficiency is intact. However the study failed to explain the presence of short term momentum using the multifactor model and hence short term momentum anomaly remains unexplained. Several behavioural explanations were found and presented to jointly explain the short-run cross-sectional momentum in stock returns documented by Jegadeesh and Titman (1993) and the long-run cross-sectional reversal in stock returns documented by DeBondt and Thaler (1985). Daniel, Hirshleifer, and Subrahmanyam (1998) (DHS hereafter) assume that investors are overconfident about their private information and overreact to it. If these investors also have a self-attribution bias, then investors attribute success to their own skills more than they should and attribute failures to external noise more than they should. The consequence of this behaviour is that investors overconfidence increases following the arrival of confirming news. The increase in overconfidence furthers the initial overreaction and generates return momentum. The overreaction in prices will eventually be corrected in the long-run as investors observe future news and realize their errors. Hence, increased overconfidenc e results in short-run momentum and long-run reversal. As against the above cited behavioral explanation to short term momentum and long term reversal, some scholars argue that the returns from these strategies are just compensation for taking additional risk or may be the product of the data mining. Most noteworthy of all Conard and Kaul (1998) argue that the profitability of momentum strategies may be the result of data-mining and momentum portfolio shows positive returns in any post ranking period is true irrespective of the length of test period. Thus Conard and Kaul (1998) suggest that there is no case of long term reversal. This is diagonally opposite to what the behavioral models suggests where after short term momentum prices will reverse to more fundamental levels. In fact, the criticism of Conard and Kaul (1998) led to another study by Jegadeesh and Titman (2001) where they used out of the sample test by using data from 1991 to 1998 an overlapping test period compared to their 1993 study where they used data form 1965-89. Their study also eliminated small firms from the study to check whether the earlier momentum returns were actually dominated by small, high-risk and illiquid stock or otherwise. Though they focus on short term momentum in their study choosing two year holding period post formation but they also tested post holding period returns from the period of two to five years after formation. They present some very interesting results. The momentum profits of Jegadeesh and Titman (1993) continued in 2001 also with almost same magnitude for same holding period that actually has proved that the earlier momentum profits were not the result of data-mining. It also suggests that unlike small firm effect where after the published research on superior returns on small firms compared to their large counterparts, superior returns on small firms disappeared in subsequent studies using data from the periods after the small firm effect from earlier studies got published, that means market has learnt quickly and hence such superior returns disappeared however momentum returns were still present with the same magnitude in 2001 as they were in 1993 study suggest that momentum returns are not just the temporary anomaly but it may have to do with some systemic cognitive bias which sustains for a long time. It also proves that momentum profit is just not the result of some small, illiquid and risky stocks and most noteworthy the reversal found in their post holding period cumulative returns, which render support to the explanations of behavioral theorists and provides evidence against the Conard and Kaul hypothesis. As far as studies in Asian markets are concerned Chang (1995) found abnormal profits of contrarian strategies in the Japanese markets. Chui (2000) found significant positive abnormal returns with contrarian investment strategy in Japanese and Korean markets. Hameed Ting (2000) found evidence of market overreaction hypothesis (contrarian strategy) in Malaysia. Kang (2002) found significant short term positive returns with contrarian strategy in Chinese markets. On the other end, Hameed Kusandi (2002) found no evidence of contrarian profits in six Pacific Basin markets. While Rouwenhorst (1998) and Griffin Martin (2005) found existence of momentum in many non-US countries, the quantum of momentum returns in non-US countries was small, and in the case of Asia, insignificant. For example, Griffin (2005) estimates average monthly returns of 0.78%, 0.77% and 0.40% for the Americas (excluding the US), Europe and Asia respectively. End of the Beginning or Beginning of the End†¦ The big bull has fallen down, investors have lost their vision, and experts knowledge went futile with the downturn of the global economies. When the markets were on peak, the funds across the world have flooded in the global economies. Policy makers had lot of confidence on the market, that it will help the economy to grow at faster pace. The market excelled 21000 points which was more ahead then the growth of the economy of India. But that does not seem true for the world economies, as the crisis had hit badly in USA and other parts of world which insisted FIIs and other investors to withdraw their money and markets crashed, went to 7000 points, where investor lost everything and policies could not work to take them up to the level. What was the reason of the crash? What will be the result of the market? Is this the end of the beginning or beginning of the end? Indian market is the strong base of determining the financial system of the country. Majority of the financial decisions are dependent on the stock market other financial market. Indian stock market serves a link to banking and other financial policies which provides impetus to the industry. Indian stock markets heavily based on the sentiments of the clients (market players) also of the market makers. The crash or boom (in a period/ year) determines the structure of the Indian capital system. The boom in the market (year till 2008) has brought many changes in the performance of mutual funds, insurance (ULIPS), investment products which led the country into the inflow of the money supply in the market. Till 2007-08 the market was running at its best, touched the heights, but the global crash in the market became a typhoon took away major players organizations into the quick sand of the recession. The insights from the market were not showing positive sign in anyways, so whether this was a new platform or just a time (economic) cycle. Prologue to decline†¦ Earth provides enough to satisfy mans need, but not greed. -M.K.Gandhi The market crash started with the fall of big financial organizations in the USA in the world like Lehman Brothers, AIG, Freddie and Fannie and many more. The failures were primarily due to exposure into Subprime loans Credit default swaps issued to insure these loans the issuers devolved resulted into bank failures steep reduction in the price of equities worldwide. The economic crisis led many world markets to suspend the trade due to fall in price. On October 8, 2008 Indonesian stock market halted trading, after a 10 % drop in one day. The crash of 2008 was around 21% which was little less than 1987 (Times of London). Beginning of October month was Black in the world market. The Dow Jones volumes were low and the industrial average fell over 1874 points which was worst weekly decline. The Icelandic stock market was into pitiable situation where the markets had been suspended for 3 days i.e. 9, 10 13 October. On October 24 many of the worlds stock market experienced the worst decline, with around 10% drop in the indices. Source: http://en.wikipedia.org/wiki/File:OMX_Iceland_15_SEP-OCT_2008.png The above graph shows the steep and the worst decline a market could ever witness. The Iceland stock market crashed up to unpredictable level. The trading had been suspended for 3 days because of the crash in the market. This situation was visible in all global stock markets, because of financial crisis in USA. Hence, the worst was yet to be experienced by the global markets market players. The Indian stock markets were also badly hit the confidence of people was shattered. The markets were not showing the positive sign in any of the context people had no clue about the next jump or next level of the market. Market experts were expecting the markets will be into recuperation at the earliest, but things were not going the way it had been desired. Source: Hindubusinessline.com Indian market which has shown strong performance till 2007, but from January it plummeted more than 3000 points on all the stock prices by October 2008, it had touched the 7000 (BSE) line. The continuous unpredictable scenarios in the stock market led many investors and institutional investors to withdraw their money because of negative performance of the markets. The above shown graph is depicting the dream turned into nightmare for global domestic investors. The Beehive capitalism†¦ Everything that goes up without base falls steeply with great force. The same situation has happened with the world economies. The supreme economy of the world has become the devil for the small economies, leading major big companies to file for the bankruptcy. The global meltdown is the result of Financial Hybrids Innovations, which has been actively traded all across the world markets. The investment bankers, banks, financial institutions were actively relied on these new and innovative models, which has yet to gain the acceptance across the world. The main accused element for collapse is â€Å"Credit crisis†, in which the US banks got the regulations to lend money to the people having no sufficient background to get the loans. These kind of loans were termed as NINJA loans (NO INCOME, NO JOBS, NO ASSETS), given in abundance by the US banks. Emerging economies like India, China and other big economies were initially considered to be the places which will remain unaffected from the distortion of crisis. But despite of the strong fundamentals Indian economy dipped into the crisis. The stock market had lost more than 50% of its value (source: economic times), which shattered the hopes of the Indians. There was continuous monitoring by the Central Bank (Reserve Bank of India) on the market trend. The tornado of crisis had destroyed most of the stock markets, banks and financial institutions after soaring to the new heights of investment. The below mentioned graph depicts the movement of BSE Sensex SP CNX Nifty Source: SEBI Bulletin November 2008. BSE Sensex closed at 9788 on October 31, 2008 as against 12680 on September 30, 2008, a fall of 3072 points (almost 24%).The month of October 2008 had been the most volatile month, where Sensex recorded a high of 13055.67 on October 1, 2008 low of 8509.56 on October 27. Nifty closed 2886 on October 31 against 3921 against 30 September 2008. By the end of a month Nifty registered the fall of 1035 points (almost 27%). The market had shown unpredictability of the base stability level, dissuading more and more investors to take exit from the market. The Financial crisis: A Sub-prime loan is a type of mortgage loan made to borrowers who have at least one of the following characteristics: (1) Low credit scores; (2) The inability to post the traditional 20 percent down-payment for a home; and/or (3) The inability to fully document their income. The subprime crisis is not the result of recent financial innovations and developments, but it is the outcome of lax capitalism policies which had been developed by the US government. In the fifties American government passed a legislation to delink the commercial banking investment banking. The legislation stated implied that a commercial bank cannot open an investment bank. In 70s European American economies faced slowdown, due to which these banks were finding difficult to invest their investible surplus. This time the East Asian economies were liberalizing their economies, due to which the capital from western economies started moving to these economies. After the huge influx of capital into these economies, Asian bubble gets burst, forcing the western economies to introduce new financial measures to invest into the markets. These circumstances and the need of new financial avenues led the US European economies to trade into the new financial products, by liberalizing the norms for Commercial Investment Banks. The liberalization in the regulations led to the introduction of the Mortgaged products (a prime cause of crisis). In the late 90s US mortgage lender began offering the mortgage products to would be â€Å"home buyers† who could not qualify for a mortgage loans. Millions of Americans Europeans, who previously could not afford to buy home, were obtaining these mortgages, due to which great Demand of home (boom) took place leading to shoot of real estate prices. The above diagram shows how the base of subprime crisis took place in the global markets. The downfall in the economies is considered to be as the Dominoes Effect. The lax screening of borrowers, large capital accumulation capitalized market structure created a bubble which could not be ceased from getting expand. The whole cycle got mitigated with the introduction of new instruments in the financial markets. The sub prime crisis is about the collapse of the unregulated, $3 trillion over-the-counter market for complex structured assets, some of which happen to contain sub prime residential mortgages. The semiannual global financial stability report by IMF said that declining US housing prices and rising delinquencies on the residential mortgage market could lead to losses of $565 billion. When combining these factors with other market factors, it puts potential losses at about $945 billion which is almost 25% of the $24trillion global credit market. Financial innovations were brought into the market to make the products work in the market. The Mortgage products started to conflagrate the US European markets, where such loans started becoming the pool of assets (Risky) and been traded in the market. Hence, due to this many other factors got the impetus ultimately resulted into the uncontrollable bubble of mortgage, which gets burst and deepened the world economies into the recession. The subprime crisis has affected the global economies resulting into the fall of big financial corporation like Lehman Brothers, Bear sterns, AIG, Freddie Fannie, and many more big organizations of whom one cannot think to get fail. The sizes of the organization (exposure) were in plethora that it was not possible for the US European government to revive these financial institutions. AIG, one of the largest insurance companies (Private) became government undertaking due to the impacts of financial crisis. SUB PRIME OVERVIEW: Source: The India Economic Review 2008. (Dec 08) The whole system works in three stages, Stage First consist of Borrowers lenders; Second stage consists of the creation of SpecialPurpose Vehicle (SPV) with the inclusion of legal intermediaries. The last (third) stage consists of investors those who had invested their money into the riskier assets including the investment banks. In stage first agent enters between borrowers and lenders, accepting the collateral and also factoring the future price rise. The agents accept the loans, who previously could not even qualify for the approval, now getting loans from the banks other lenders. The housing price bubble allowed many borrowers to get loans easily because of the high house prices. The loans were mortgaged on a larger scale by creating the pool of similar group of mortgage assets through Special Purpose Vehicle (SPV) given the risk involved on the pool of assets. In second stage, SPVs were created all the liabilities were transferred into bankruptcy remote securitization trust or SPV. Underwriters were used to issue market the MBS (mortgage backed securities). These securities were divided into different tranches, which were of similar securities. The rating agencies were to give rating to these tranches of securities. The ratings were given to the tranches based on the risk, priority of payment of the funds. Higher ratings were given to those tranches benefiting from the credit enhancements the MBS generates or credit insurance purchased from third party bond insurer. In third stage, Institutional or individual investors such as hedge funds or managers of Collateralized Debt Obligations (CDOs), purchase the securities and then re-securitize the MBS, along with other assets, into a CDO. The Commercial Papers (CP) generated in the initial years was all sold and there was demand for more. Consequently the SPVs started producing more CPs or MBS. The sale of the same only meant that the SPVs were flush with funds. These funds were to be invested somewhere so, the agents were pressed to bring in more borrowers. The lending norms were further diluted to accommodate lesser and lesser deserving borrowers in order to deploy the huge funds available. The consequent spiral that got generated only led to the continued dilution of the Capital Adequacy and Prudence norms. The system went burst once the housing prices turned negative turning the very foundation of subprime lending upside down. The turmoil of subprime has been expected of more than $ 3 trillion, which is too big for any country to even imagine of recuperating. The impact on Indian market was slow but had been proved acute on the stock market due to the constant humongous withdrawal of FIIs loss of confidence in the consumers (investors). Mortgage: Huge pack of cards†¦ The magnanimous crisis which all started with lax policies of US government, provided impetus for the Fed Reserve to implement new structures in the economy. The capitalist policy was looking very attractive to the market players, but the policy was hollow from the fundamentals. It all started with the Alan Greenspans reformative structures models in the financial markets, led to turmoil in the global economies. The US Fed Bank Clinton government in 1999 passed Gramm-Leach-Bliley Act (GLBA) which had abjured the old Glass-Steagall Act which had regulated the Investment Banks, Banks Insurance industries. The new legislation has unregulated the Wall Street Investment Banks and commercial banks. This deregulation has enlarged the gamut of activities in the financial activities of the commercial banks other financial institutions. The deregulation had been further reintroduced by legalizing gambling activities into financial sector, a prohibition that had been in place after 1907 financial crisis. The steps towards deregulation of the US markets had converted the US markets into a big casino. Securities Exchange Commission (SEC) in 2004 took a step towards the deregulation on the financial activities by removing the ceiling on risk that the largest American investment banks could take on Securitized loans. By this time, no one would have thought that the deregulation will result into large speculation create a bubble in the market. Lastly, the Securities and Exchange Commission took the last step toward deregulating financial markets when in the month of July 2007, weeks before the onset of the subprime crisis; it removed the â€Å"uptick† rule for short selling any security. The housing bubble was fed by extraordinarily low interest rates low lending standards (norms) for mortgages. The excessive monetary liquidity short term interest rates fell to 1%, which led to high borrowing of loans from the banks, resulted into the big bubble of mismanagement of financial activities. After the tech bubble burst in 2001 the recession, the Fed (Greenspan) aggressively lowered the Federal funds rate from 6.5 percent to 1 percent in 2004, the lowest since 1958. The lowered interest rates reduced lending standards made the banks to lend the money known as ‘ Predatory Lending to the borrowers who did not have capabilities to qualify for the loans, but with the mortgage lending, excessive loans were provided to these lenders as they (banks) were getting big bonuses for bearing risk on these loans. Non-traditional home loans were advanced to borrowers who had no documented incomes. Some loans were interest only loans with down payments of 5% or less . Some were Adjustable Rate loans (ARMs), with low interest rates for one or two years to be reset later at much higher rates. In 2006 around 25% of American mortgages were subprime and close to 20% were ARMs. Mortgage lenders and Home buyers presumed that home prices were not going to fall on a national basis. THE NEW ALCHEMY OF FINANCE The subprime crisis is the result of new financial products in the market the deregulation of the financial activities for the FIs. The main reason of such lending was the facility with which subprime lenders could sell their risky mortgages upstream to bigger players, investments banks for example, which undertook to buy them, pool them into mortgage bonds and re-channel them into new financial instruments through a process of aggressive securitization. The Structured Investment Vehicles (SIVs) which fall into the large class of derivative products came under various names such as Collateral Debt Obligations (CDOs). They had the characteristics of short term asset based commercial paper that were backed by the underlying income producing mortgage assets downstream and were graded according to a certain risk of default. More than 1 trillion half dollars of these asset backed financial products were sold in all over the world. Another new financial instrument that made matters much worse and led directly to the crisis: the Credit Default Swaps. Due to lack of government regulation, this product has become a weapon of mass destruction. In order to protect against the risk of default on the new asset-backed securities (ABS), some insurance companies but also some investment banks themselves began to issue bilateral â€Å"insurance† contracts against the newly created ABS. These were called Credit Default Swaps (CDS), which were supposed to protect the investment instruments against the default on asset based securities. The issuer of ABS could buy the protection against the default by paying a premium. This was a financial innovation, the so-called â€Å"insurance against default†, that opened the floodgates of money to be invested in the new financial instruments. Indeed, it allowed investors such as pension funds and other institutions which have a fiduciary obligation to buy only high-qualit y securities, to legally buy artificially highly rated (but risky) ABS securities, or to invest in hedge funds which specialized in leverage trading in derivative products. But the problem was that the issuance and use of such financial â€Å"insurance† contracts were not regulated by any government agency, because the word â€Å"insurance† was not used; instead, they were considered as simply a protection against the â€Å"default† of payment on a financial security. And thats where the gambling part enters the picture: only ten percent of CDS are genuine insurance contracts held by investors who really own asset-backed securities (these are covered CDS); 90 percent of them are rather held by speculators who trade CDS, while not owning any asset-backed securities to be protected (these are naked CDS). Economy as Casino: The gamut of gambling that US government Fed has created was even unimaginable, allowed big participation into these new investment instruments. Credit Default Swaps (CDS) can be bought and sold by speculators who are not directly involved in the mortgage business. Because of the 2000 Commodity Futures Modernization Act passed by Congress, no state has the power to regulate this new form of sophisticated gambling. The result is astounding: it is estimated that the notional value of credit default swaps outstanding today is about $ 62 trillion (four times the size of the US economy). This is an indication of popularity of the â€Å"naked† CDS innovation was as a way to bet on the collapse of the entire asset-backed securities construction. This was also a clear sign that, in a crisis, it would be all but financially impossible for the issuers of CDS to meet their obligations. In other words, disaster was just around the corner. This is an event that any regulatory agency should have seen coming. When housing prices hit the expected top of their cycle, in the 2005, and began falling, especially in 2006, the price for CDS s was still relatively low. So, some astute speculators undertook to buy CDSs and simultaneously began selling short the ABS that had been issued by investment banks, such as Lehman Brothers, in the correct expectation that mortgage-backed securities were bound to lose value with the expected rise in home foreclosures and mortgage defaults. This is how unimaginable spiral got created by the steps undertaken by Fed Reserve US government which ultimately result into the great burst ever faced in the history globally. GRAMM-LEACH- BILLEY ACT 1999 The Gramm Leach Billey Act 1999 (GLBA) passed by US government in the year 1999 with a view of security data integrity in the market. The GLBA repealed the part Glass Steagall act of 1933, which had opened the market among the banking companies, securities companies insurance companies. The GSA had prohibited any one institution from acting as any combination of an investment bank, a commercial bank and or an insurance company. But the GLBA allowed commercial banks, investment banks, securities firms, insurance companies to consolidate. The act was announced in the 1993 finalized in 1994, allowing many big corporations to merge to enhance their range of activities take the benefit of the deregulation. The law was passed to legalize these mergers on a permanent basis. The law has not fully deregulated the previous act, but they had relaxed the norms and allowed the FIs to have non financial assets. GLBA was amended with some part of the Bank Holding Company act of 1956. The crucial aspect of the GLBA stated that no merger can go ahead until the financial holding institutions, or affiliates receives a â€Å"less than satisfactory (SIC) rating at its most recent CRA exam†. GLBA compliance was mandatory; whether a financial institution discloses non public information or not, there must be a policy in place to protect the information from prospective threats in security data integrity. The law was segregated into three main aspects: FINANCIAL PRIVACY RULE: This rule requires FIs to provide each consumer with a privacy notice at the time the consumer relationship is established and annually afterwards. The notice must explain the information collected about the consumer, where that information is shared, how that information is used and how that information about the consumer is protected. The consumer must be notified give consent about any change at any point of time. Each time the privacy notice is reestablished the consumer has the right to opt it again. SAFEGUARDS RULE: The safeguards rule requires FIs to develop a written information security plan that describes how the company is prepared for, and plans to continue to protect clients non public personal information. This plan must include the following; Denoting at least one employee to manage the safeguards. Constructing a thorough on each department handling the non public information. Develop, monitor test a program to secure the information. Change the safeguards as needed. The Safeguards Rule forces financial institutions to take a closer look at how they manage private data and to do a risk analysis on their current processes. PRETEXTING PROTECTION: The GLBA encourages the organizations covered by GLBA to implement safeguards against pre texting. Pre texting means when someone tries to access the personal nonpublic information without proper authority approval. Thus the institutions having covered under the GLBA, needs to have control safeguard the information of their client, to prevent the details from any misuse. CRITICISM AND DEFENSE: There