Economy And Its Impact On The Economy Essay

Economy And Its Impact On The Economy Essay
Sometime in late 1950's Minsky started warning about the gradual shift of the economy from a very
robust financial system that was stable and with no financial crisis in the early postwar period. He
had called with his analysis that gradually over time debts in the private sector would tend to build
up and increasingly risky financial innovations would increase over time. He is very famous for the
statement that stability itself is destabilizing. Although things seem very stable today, gradually over
time that stability would build confidence in individuals to take increasingly risky positions in
assets. The model that he had built explains financial crisis in the economic system. He brings up
that supply of credit increases during boom and abruptly decreased during economic slowdown. It
seems almost intuitive that from a standpoint of an investor the great time to invest is when
economy is booming to increase his or her profitability. Lenders as the investors become
increasingly optimistic about their return and they both become less sensitive to risk. But when the
economy starts slowing down investors sell out their holding to not to lose more of their assets
making the economy even more worse off. All of the New Deal structure that have been put in place
in the economy during the great depression, drove tremendous buildup of government debt in World
War II and gave a very safe asset for the private sector. This would be in a sense leverage, safe
government debt
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The Crisis On The Real Estate Market
House bubble situation on the real estate market is presented by condition when there are low supply
and high demand at the same time, which causes shortage on the market. (Yoshino, Nakamura and
Sakai, 2013). Moreover, house price bubble is always associated with speculators who are buying
houses with the goal to resell it in the short term. These conditions appeared on London real estate
market and caused «Bubble Trouble». This essay will discuss main causes of the bubble, matters of
its bursting and danger, connected with bursting.
Very high indexes of demand in London are mostly caused by several components, such as:
desirability of London, job opportunities and real estate market seen as investment.
London is considered to be one of the most desirable cities to work and live in (Kollewe, 2014). One
of the reasons of this indicator is connected with «best jobs and economic opportunities".
(Chakrabortty, 2014). Moreover, people want to move to London, considering «high salary
prospects, public healthcare and cultural diversity". Vast majority of foreigners (65 percent) consider
buying property in London as investment (Statista, 2013), without goal to let for rent or live there
(BNP Paribas real estate guide to investing in London, 2013). This is the most popular «alternative»
investment. (Gardina, 2010), which allows diversification of portfolio and spreads risk in the long
term. (Mattson–Teig, 2014). This increasing percent of not–to–rent type of property causes lack of

Marinette's Narrative
Marinette and Tikki are asleep in Marinette's room when Marinette's cellphone alarm begins ringing.
Cheerfully, Marinette remembers that it's Adrien's birthday, practicing saying "Happy Birthday" and
even accidentally saying it to her mom as she leaves the house.
At the Agreste mansion, Plagg gives Adrien cheese as a birthday present, but, since it's a "filthy
piece of Camembert," Adrien doesn't like it. Happily, Plagg eats it instead. While eating breakfast,
Nathalie gives Adrien his schedule for the day. When Adrien asks if his father agreed to let him have
a birthday party, Nathalie responds that Adrien's father decided against it and wishes a saddened
Adrien a happy birthday before leaving.
At the beginning of lunch break at school, ... Show more content on Helpwriting.net ...
Above the Eiffel Tower, Ladybug suggests that Cat Noir uses his Cataclysm. He summons it and
breaks the bubble. Ladybug grabs his arm as he throws his staff into the Eiffel Tower. Ladybug
hooks her yo–yo around it, the two swinging to the ground safely. Ladybug tosses Cat Noir's staff to
him, and they race back to the Agreste mansion.
Ladybug and Cat Noir return posthaste, the children cheering on Ladybug. Before anything can be
done, Bubbler captures all of the children, sending them off to their parents. He then flies off, the
battle going to the Eiffel Tower. With only one toe bean left, Cat Noir reminds Ladybug to hurry,
and she summons her second Lucky Charm. She receives a large wrench. Bubbler hurls bubbles at
Cat Noir, exploding on impact with the Tower.
Using her lucky vision, Ladybug spots an HVAC and takes it apart. She sends a pipe with air
spewing out of it to Cat Noir, who uses it to deflect the bubbles. Bubbler raises his bubble wand,
about to take another swing, when Ladybug catches it with her yo–yo and wrenches it out of his
grasp. Breaking it in two, she captures the akuma and cleanses the city, returning the parents,
children, and Nino back to normal.
Defeated, Hawk Moth vows to capture and crush

America in the 1920's
America in the 1920s, also known as the Roaring 20s or New Era, was a time of great changes and
huge growth. America was being a more modern nation, and a return to normalcy was being seen
after the Progressive Movement and First World War. Politically, the American government was
seemingly conservative, but experimented with different approaches to public policy and foreign
diplomatic policy. Economically, it was a time of tremendous growth and new forms of
organization. Socially, the American popular culture reshaped itself to reflect the increasingly
industrial, urban, and consumer oriented society. The 20s were a time of a distinguishably new
culture and profound change and excitement, but it wasn't great for everybody. After 1922, there was
a long period of prosperity and economic expansion. People had more money to spend, and prices
weren't rising very much. The key to the economic boom was new technology. The automobile
industry was one of the most important industries in the nation, and led to stimulated growth in other
industries, such as steel, rubber, glass, and especially oil companies. Road construction booms in
response to automobiles, providing more jobs for workers and helping the economy even more. The
radio comes about in the early 20s and becomes a popular form of entertainment and leads the
creation the National Broadcasting Company, or NBC. As a result, the nation becomes more
connected. Commercial aviation develops and planes are used to deliver mail

The Great Depression
Great Depression is one of the most important periods in modern US history. It began with the
global economic crisis in 1929, which affected most of all the United States. The acute phase of the
crisis dragged on for three years from 1929 till the beginning of 1933. From 1930 until 1939 the
economy of the country could not overcome the crisis and recover. Therefore, this period was called
the Great Depression, because of its duration and serious consequences for society.
The war gave rise to prosperity, both real and illusory. It was real, because the warring European
powers demanded during that period, that the cost of wheat, cotton, corn, livestock products should
rise, and they wanted US to be the only country, that can be a manufacturer. Deficiency of sea
transport made inaccessible markets of Australia and Argentina. The US government encouraged
farmers to increase production, to expand the acreage that eventually allowed them to get rich. There
was a slogan, "The war will be won with food." And this is true, the Allied victory was built on
food. And suddenly, by the end of 1920 the agriculture crisis hit. The crisis dragged on and took a
dramatic turn. In 1921, Dakota and Nebraska farmers burned their corn, the only thing that they
could use was fuel. Those who raise sheep, wool traded on the shirts and socks. Exports of wheat
decreased. Experts believe that stagnated, no doubt, temporary: it is necessary to be patient and
everything will be restored. Farmers spent,

The Realm Of Options Trading
How to Be Brave and Smart in the Realm of Options Trading
By Steve Sarnoff
Jul 27, 2011
A lot of people get nervous once you start talking about options. After all, they 're not your standard
investment. You really have to read between the lines and have a keen eye for short–term trends...
Sometimes, those trends only last for a few hours.
But, with all that said, with keen investing sense and the right preparation you could make some
very nice gains on the open options market.Through my own experience, both as a trader and from
learning from my father, I 've discovered some powerful secrets that could help you in becoming the
best options investor you can be...
Maximize Your Options Gains with These Six Trading Secrets
At first glance, it may seem like speculating with options is a risky business. After all, price swings
of 30% in an hour are far from comfortable for most investors. But with risk comes reward –– and
when you can manage that risk successfully, the rewards far outweigh the risks over time. That 's
where these six trading secrets come in...
They 're the tools I 've turned to for decades to maximize my gains as an options investor while
keeping my risks tolerable. My Options Hotline readers have used these rules to maximize their
options gains over the years too, and now, I 'm passing them on to you...
Speculators get a bad rap. The very word conjures up pictures of some carefree playboy throwing
money into any crazy investment –– not really caring if they

The Great Depression And Dust Bowl
In the decades leading up to the 1920s, industry in America boomed. Not only were monopolies
created but mass production of many goods was the source of an economic boom. During the 1920s
the economic boom led to some of the best times in history. However, later in the decade,
devastation came in the form of the Great Depression and Dust Bowl. These two factors left a sour
taste in the mouthes of Americans as they moved into the thirties. The drastic difference between the
economic high and low of the 1920s are due to a combination of the economic boom at the
beginning of the decade and the Great Depression at the end, with numerous factors in between
these two bookend events. During the best of the decade there was economic boom, ... Show more
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Vertical Integration is the controlling of all parts of the manufacturing process, from obtaining raw
materials to sale of the final product. This allowed for many corporations to completely run this
industry and control the market. Hence, by 1890, things were out of hand and thus the Sherman
Anti–Trust Act was implemented. This act "outlawed trusts and any other monopolies" in order for
their to be more competition and less fixed price enterprises (Boyer). The most important long term
effect that the period of Robber Barons vs Captains of Industry had was its creation of an economic
boom and a bull market that lasted a long time. Not only were there economic improvements but
also social. The impact of war on the home front left room for women to establish themselves in the
work place and for other social reforms to take place. The 1920s were just a time of great economic
success, there were also very positive social movements too. The main social movement that took
place was the Harlem Renaissance. The Harlem Renaissance was a time of increased African
American literature and art that formed a movement. This movement, the Harlem Renaissance,
came from the Harlem areas of New York City and was the first cultural specific movement in this
era. Due to the mass migration to the urban cities of the northeast from 1914–1918, many blacks
began to establish themselves in certain areas, such as Harlem. Those

Who Can You Spare A Dime?
All of these headlines portray the tragedy that had left millions of Americans in shambles: Black
Tuesday. Within two months after Black Tuesday, the crash of the stock market had thrown several
million people out of work. As author of Brother, Can You Spare A Dime? author Milton Meltzer
wrote of these American Troubles: The trouble spread quickly. Many businesses came to a dead halt.
Salespeople were fired from stores, factories cut down on production, executives decided not to
expand. Recently completed office buildings, apartment houses, and hotels could find few tenants.
Construction ground to a standstill. Banks tightened up on credit, and business and industry ran dry
of funds. And as the wheels of American production slowed down, and soon stopped, pink slips
began to appear in pay envelopes––the deadly notice that your company no longer needed you. But
Americans weren't subject to undeserved consequences: no, they caused this crisis themselves. By
looking at how banks, how employers, and how the American people carried out their lives and
functions throughout the twenties, it is possible to put together the puzzle pieces as to why Black
Tuesday came to be. First, by examining how banks operated in the 1920s, one can see how the
banks 'spurred' the crash. During the 1920s, people were content and the future seemed promising.
The horrors of World War 1 were in the past and sons came marching home from the war.
Consequently, life began to return to normal, and

Rhetorical Analysis Of President Obama's Farewell Address
In "President Obama's Farewell Address," Obama actively tries to persuade his audience to step up
and make a change; He wants more people to step out of their comfort zone and make something
happen. He persuades his audience by using interesting word choice, connecting with them, and
talking about the future of American democracy. In the beginning of his address, he says, "you can
tell I'm a lame duck ..." By beginning with a lighthearted joke, he puts himself in an amiable light
and makes the audience more comfortable with him and more inclined to listen to what he has to
say. He then connects with the audience by saying, "Whether we've seen eye–to–eye or rarely
agreed at all, my conversations with you, the American people– in living rooms and schools; at
farms and in factory floors..." Obama says this to show that he took his time to go to those places to
talk to people, which lets the audience knows that he cares and is willing to go out of his way to sit
on "factory floors" to listen to what people have to say. By starting off his address this way, he lets
the audience know how much he cares, which, in turn, makes the audience care about what he is
about to tell them. Obama soon introduces his claim by saying, "This is where I learned that change
only happens when ordinary people get involved, get engaged, and come together to demand it."
Here, he is claiming that it is ordinary people–people like the audience–who are the ones who are to
bring about change. To get the audience more involved, he chooses to use words such as: we, our,
and you. He uses these words to addresses each and every person in the audience personally and by
doing this, he makes them agree with him because they feel that they are being spoken to directly. In
one paragraph of his speech, he says, "But that's what we did. That's what you did. You were the
change. You answered people's hopes, and because of you, by almost every measure, America is a
better, stronger place than it was when we started." Here, he repeats the word "you" to emphasize
the fact that he is addressing each person directly and that they are the ones who make changes, that
they are the ones who make America a better place. Obama's choice of words is seen not

Excessive Growth Of Credit And Asset Prices
Excessive growth of credit and asset prices can pose serious risks to an economy which has a high
degree of financial integration and openness. There can be various reasons for an excessive credit
growth such as excessively loose monetary policy, rapidly growing shadow banking system etc. The
following essay will describe some key risks associated with an excessive increase in credit growth
and asset price and some policy tools which the central bank should adopt to keep these imbalances
in check. Finally, the essay will conclude with some policy advice on adoption of these tools and
keeping the credit growth in check
The major risk associated with excessive growth of credit and asset prices is the buildup of
economic bubbles in which any asset trades at much higher value as compared to its intrinsic values
leading to a rapid boom–bust cycles. Because of excessive credit in the financial system, many
commercial banks and financial institutions have an incentive to invest in risky asset to obtain
higher yields. This leads to an increase in asset prices such as housing prices or financial assets,
which are inconsistent or implausible with the view of the future causing buildup of systemic risks.
The increase in asset prices can also have an effect on spending as the market participants holding
overpriced asset tends to spend more than they can afford. The excessive credit growth can have a
negative spillover impact on other economies if the excessive credit is leading to

The Big Short : Inside The Doomsday Machine
Vincent Abbaticola
December 7, 2014
Professor Jeffrey Stark
Finance Book Report
The Big Short: Inside the Doomsday Machine
The Big Short: Inside the Doomsday Machine by Michael Lewis is a non–fiction New York Times
#1 bestseller. This text is published by W.W. Norton & Company and contains 320 pages. This is a
book that focuses in on the 2008 financial crisis and the build up of the housing and credit bubble
during the 2000's. The author channels in on the persons who saw the crisis coming that wanted to
protect their investments or did not want to speak of the issue. The book starts by talking about the
"bond" and how it is used to make interested payments on borrowed money and then gets paid back
in the long–term. In the late 1980's Wall Street had released that is could create products like credit
cared, and home mortgages which were very similar in comparison to bonds themselves. The
introduction of mortgage bonds allowed the beginning of home mortgages that is a huge part of the
financial crisis of 2008. Within the 1990's mortgage bonds were created that were a much higher
risk; these mortgages are called "subprime." Due to this addition to the market the risks people were
taking on became something that they would not realize. Their actions would soon create the
housing bubble that occurred and created this financial crisis years and years later. Throughout
chapter four the author focuses in on AIG FD and what they had done. What they had done was

The Economic Effects Of The Housing Bubble Collapse
Between 2004 and 2006, the Federal Reserve decided to increase the interest rate at which it would
lend money to banks. The effects of this led to higher interest rates passed on to consumers by the
banks. Though this is only part of the issue, it contributed to the housing bubble collapse. The
economic effects of what occurred were not fully realized until August of 2008.When the housing
market crashed; it had tremendously adverse effects on the US as well as the World economy
(Bajaj).Why did raising interest so slightly affect so many people? The simple answer is that a lot of
people were living beyond their means. Banks and subprime lenders were lending money to people
who realistically could not pay the loans back. President Calvin Coolidge said, "There is no dignity
quite so impressive, and no one independence quite so important, as living within your means".
First, we must address what it looks like to live within our means. A study conducted by CNN
reported that 76 percent of Americans live paycheck–to–paycheck (Johnson). On top of that, many
do not have sufficient savings to cover six months of expenses. According to Johnson's survey,
people do not have enough to save after all of their expenses. Here in lies the problem. If you do not
have enough money to meet pay for your expenses and save, you are spending too much. Catherine
New compares how the wealthy also live paycheck–to–paycheck. In her article she writes, "My
friend and her husband are doing an excellent

What Role Did The Setting Of Monetary Policy Play On...
What role did the setting of monetary policy play in housing market developments?
Monetary policies play can or not play a major role in the housing developments. This all depends
on the supporting evidences provided that aligns with the goals of the policy makers. In this scenario
monetary policy was not the initial reason for the extraordinary strength in the housing markets.
According this case study, a relationship between interest rates and housing activities is not adequate
enough to explain the rise in residential investments or house prices. However some increase in
housing markets can attest to lower interest rates and favourable monetary policies that followed
after the 2011 recession, which was actually a small factor, As ... Show more content on
Helpwriting.net ...
Similar to the United States and as noted by Taylor (2008) and Ahrend and others (2008), In light of
these considerations, the evaluation of policy settings is perhaps best done through a comparison of
projected outcomes for the policy objectives given policy expectations; such a comparison involves
examining whether the forecasts of policymakers, the private sector, or other forecasters were
consistent with a balancing of the price stability objective and the full employment objective (for
example, the unemployment rate in the neighborhood of its estimated natural rate). This guidance
was designed to influence asset prices, economic activity, and inflation in a manner consistent with
the goals of price stability and full employment. As has been emphasized by many researchers, the
guidance of expectations is the primary channel through which policy affects economic outcomes–
the overnight interest rate in the interbank market is in itself in consequential for economic activity,
except to the extent that it affects expectations of the future path of this rate, which in turn influence
a broad array of asset prices important to aggregate spending and price setting.
The central role of communication regarding the future path of the policy

Explaining the Decline of Business in 2007
At the onset of this project we came up with the claim that I could use the logarithmic and/or natural
log to explain the decline in business. The way in which this is to be accomplished is by taking all
the sales figures from a 31 day period in 2007. We would then take another month with the same 31
day period and take those figures. After graphing and comparing the two we postulate that the
graphs would show the direct decline graphically of what we will explain in this paper. After
graphing the figures we saw that the mathematical model that we had previously used would not be
adequate with the explanation. So we then did another 31 day comparative between a 31 day period
in 2007. Then again in 2013. These figures were then compared to the national average for hotels for
the same period. The interesting fact that came about was the direct correlation between the falls in
sales figures both nationally and here in south Florida and the corresponding securitization and real
estate bubble burst. What we will do in the following pages is explain what led up to the bubble
burst as well as some of the mathematical approaches in explaining the bursts. Every economic
bubble in history started with reckless expansion of money supply and credit, reckless manipulation
of interest rates, or government promotions of "low–risk" something for nothing schemes. We saw
this happen during the Reagan administration with the low interest rates given. Hence the new
popular movie Wolf on Wall

Bubbles: The Cause Of The Financial Crisis
1. What are bubbles & why do they always occur? Why can't we seem to learn the lessons of past
bubbles? The film directed by Terry Jones, Benjamin Timlett, and Bill Jones called "Boom Bust
Boom," frequently brought up the term bubbles. In economics, bubbles are referred to as a type of
financial episode in which the price of an asset becomes completely attached of any actual value.
These assets could be anything from equities to tulips. The driving force behind the bubble was the
belief that people put into the bubble. Humans always find some type of reason for getting into the
bubble. Often times, people decide to buy into this idea of a bubble because everybody else is doing
it. It is human nature to follow what everybody else is doing. ... Show more content on
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This hypothesis said that financial crises occur in a capitalist economy. It also said that stability
leads to optimism and thus more borrowing in stocks and houses. This causes the financial system to
go from a stable structure to a fragile one. Overconfidence and a sense of financial euphoria lead to
increased borrowing. This same overconfidence is translated over to politicians who decide to relax
financial regulations. Excessive borrowing occurs and causes the financial system to be extremely
unstable. Minsky emphasized the fact that our financial system is inherently unstable. People
contribute to this by forgetting the dangers with debt. Through his hypothesis, he was able to predict
that another financial crisis like 1929 was going to occur

The Effect Of Bubbles And How They Affect Investment
2. The definition of bubbles and how they affect investment This section will focus on the analysis
about how bubbles affect investors' behaviors. Since bubbles are closely connected with crises,
doing research on investors' behaviors about overvalued assets can help economists to understand
crises' fundamental. Therefore it is good for governments to take actions to prevent these crises. The
first part of this section will describe the definition of "bubbles" in detail, and the second part will
illustrate relevant empirical evidences to further explain how bubbles affect investing behaviors. 2.1
Theoretical research C. Kindleberger (1978) first defined "bubbles" as a continuously increasing
process of assets' price. This phenomenon ... Show more content on Helpwriting.net ...
Finally he found investors' behaviors in terms of the overvalued assets played an important role in
this process. Joesph E. Stiglitz (1990) agreed with the theory above, and suggested that if investors
thought assets could be sold over their expectation, they would do more investment, and then assets'
actual price would increase, which also means the bubbles would appearance. He thought it is
important to prove the existence of bubbles, since they can implicate the future decrease of assets'
price. Therefore governments could take actions to control investors' behaviors and avoid crises. But
by taking the 1960s crisis as an example, he found bubbles' existence was difficult to test. It is
because bubbles would not exist only if the assets' discount rate increased equal to the assets' price,
which means the assets' value would be equal to the discount value. But this equilibrium is not
expectable. Then Stiglitz proposed that the markets might have multiple equilibriums, so he
collected many economists' thoughts about this opinion. But he found models of different
economists were developed in terms of different methods, so they cannot reach an agreement. But
he suggested that it is still important for economists to analyze this problem in further studies.
Basing on the research of other economists, Robert S. Chirinko and Huntley Schaller finally built a
widely accepted model, Q equation, to test bubbles' existence. The

By 1929 The Economic Bubble Had Popped And The Great...
By 1929 the economic bubble had popped and the Great Depression had caused extreme poverty
and unemployment rates across the modern world. In Germany, this meant that by 1929 1/3 of the
german population was unemployed. This caused a surge of support for the Nazi party and by 1933
Hitler had taken control of Germany. Over the coming years, Hitler's regime pulled the country out
of the Great Depression, while also addressing the problem of "degeneracy" in the country. To fix
the problems Hitler saw with Germany he used ideas and techniques of modernity toward a goal of
creating a country and regime that was antithetical to modernity. Once Hitler was in power he had 3
main intentions. Reduce unemployment, create jobs through the ... Show more content on
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Another large economic policy was the creation of the German Labour Front. The Government
abolished all trade unions and created a single government–run trade union and made membership
mandatory. The german labor front was able to set high wages and also set up a Strength through
Joy program that gave benefits to workers. The government also some machinery and incentivized
companies to higher workers. The largest action Hitler made towards the reduction in the
unemployment rate was with the rearmament and industrialization of Germany. The nazis
nationalized and established state–owned–and–operated companies. The government also worked
with IG Farben, the aviation industry and other large industrial companies to rearm the country and
employ mass amounts of people. Hitler announced that Germany would not longer adhere to the
Treaty of Versailles and Germany then remilitarized the Saarland and Rhineland. This gave
Germany access to a large area of production. Another aspect of the rearmament of Germany was
from June 1935 and onward men between 18 and 25 were forced to join the RAD and receive six
months of military training. Between 1932 and 1938 the GNP rose by about 81.42%, the national
income rose by about 81.64%, the industrial production rose by about 110.34% and the
unemployment fell by about 92.86%. The rearmament really started to increase when Hitler and the
other Nazi leaders introduced

Housing Bubble
According to Wikipedia a housing bubble is a type of economic bubble that occurs periodically in
local or global real estate markets. It is characterized by rapid increases in valuations of real
property such as housing until they reach unsustainable levels and then decline. Four years into the
housing bubble downturn, much of the country remains hopelessly confused about what happened,
why it happened and who is to blame. In my research paper I will try and demonstrate what a
housing bubble is, some of the reasons for the bubble, was it preventable, how it kept growing, how
it burst and how it has affected our economy. By definition a housing bubble is a temporary
condition caused by unjustified speculation in the housing ... Show more content on Helpwriting.net
...
Other scholars have emphasized the sharp deterioration in lending standards as contributing to the
rise in housing prices as well as the importance of changes to the mortgage market institutional
structure. Other explanations of the bubble have been demand side explanations, meaning that the
bubble was caused by excessive consumer demand for housing. One leading explanation argues that
the bubble was the result of irrational demand encouraged by a belief that housing prices could only
move upwards. Other research points to the fundamentals of housing markets, particularly
population growth, placing upward pressures on housing prices in markets with inelastic housing
supply, thereby explaining some of the geographic variation in the housing bubble. None of these
explanations, however, is capable of fully explaining the housing bubble. From 1997 to 2006
nominal U.S. housing prices rose 188%. By mid–2009, however, housing prices had fallen by 33%
from peak. As the United States attempts to rebuild its housing ﬁnance system, it is of paramount
importance to understand what caused the housing bubble. Until we understand how and why the
housing bubble occurred, we cannot be certain that a reconstructed housing ﬁnance system will not
again produce such a devastating bubble. As you can see there are numerous theories and
explanations for the bubble. Without getting too deep

The Importance Of Cultural Literacy
Cultural literacy is not a well–known word in today's society but being culturally literate is essential
to be an active participant in one's nation. Cultural literacy is the ability to understand a culture
enough to be able to participate in it actively. In modern society, a large portion of Americans,
especially in the younger generations, are not culturally literate and this poses a problem for the
future of our community and our economy.
Often fads are the defining points of recent cultural changes for example in the 70's the "hippie"
movement was a defining portion of American culture and even global culture. If someone did not
understand that reference in that time, they would be unable to follow media, news, and possibly
even everyday interaction. By examining the economic trends of manias, one seeks to gain a deeper
understanding of how they affect our culture on a deeper level. As the very nature of fads is to have
an unexplained and short–lived popularity predicting economic trends of crazes is very nearly
impossible to do accurately although there have been attempts to model fads (Plott and Smith). This
can have a devastating effect on the economy and at the very least severely hurt individual investors.
When the demand for certain fads becomes uncontrollable, they may cause an economic bubble to
form. A financial bubble is when the price of an object dramatically outweighs its actual value
(Singh) an example of this is the demand for twinkies during the Hostess

Kenyan Real Estate Bubble
Is there a real estate bubble in Kenya?
Recently in the Standard Edition, a report by the Central Bank and World Bank said that only eight
per cent of Kenyans – 320, 000 households – can afford a mortgage and that nine out of ten Kenyans
cannot afford to buy the houses they live in, even with a mortgage loan in tow. The report also
indicated that for one to buy a house worth Sh2 million, for example, one must have a net salary of
Sh100,000 and service the loan at Sh42,000 a month for a period of 15 years at an interest rate of
14.5 per cent. This came as shock since, although the total mortgage loan book in the country is
approx. 16,000 accounts, the value of mortgage loans (as at the end of last year) totaled
Sh.133.6billion. This can be ... Show more content on Helpwriting.net ...
The increasing real estate growth has mainly been driven by a strong economy, urbanization and
growing middle–class. The stabilizing legal environment, considerable credit expansion and
increased spending on infrastructure by government have also contributed to the growth.
Nevertheless, the market faced difficulties in 2011 due to high cost of land, high inflation, a weak
shilling, ,and cases of fraud which led to loss of purchased land to various individuals. The high
inflation last year caused precipitous import prices. Consequently, the shilling weakened, falling to a
historic low of 107 to the dollar in October. Therefore, the cost of construction materials rose by
about 40% and forced property developers to spend more on projects. This hurt the property market
and has prompted commercial banks to cut lending, fearing a slowdown in the uptake of properties
especially in the up–market segment. Below are a few charts and graphs on prices for property for
sale and average rent, courtesy of HassConsult . The Hass Composite sales Index is representative of
all property for sale in Kenya. Property values have increased by 3.31

Asian Economics Comment Bubble House
SCHOOL OF GRADUATE STUDIES CENTRAL PHILIPPINE UNIVERSITY LOPEZ JAENA
STREET JARO, ILOILO CITY
____________________________________________________________________________
REACTION PAPER
Asian Economics Comment
Presented to:
Prof, Jima G.DeLeon, MBA
Professor, School of Graduate Studies
Central Philippine University
In Partial Fulfilment of the Course Requirement in
MBA 612
Financial Systems Presented by:
Mehrdad Alavi
MBA Thesis Option
September 13, 2013
I. PRELINMINARY
1– The title of paper is Asian Economics Comment, The anatomy of bubbles, part 1. It is written at
August 27 2009 by Dr, Feredric Neumman, whom is senior Asian Economist. The issuer of report is
The Hongkong and ... Show more content on Helpwriting.net ...
3– The subject matter portion is the main body of that paper which is started with the explanation of
uncertainty. In the uncertainty situation economic prospect is very difficult and the judge the risks.
The policy makers reaction to a uncertainty situation has a critical important. If the Central Bank is
not alert to what is happening, it will discouraging picture of possible economic. Referring back to
the US housing bubble which it as started from 2001 up to 2006 and remind that at that time low
interest rate extended plus inflow of foreign saving and new financial instruments, all together made
a worth less situation for end users.
Let us take a brief look to the financial history in the asset market and specially buying house from
2001 to 2008. * The background of USA Housing Bubble The housing bubble in the United States
grew up alongside the stock bubble in the mid–90s. The logic of the growth of the bubble is very
simple. People who had increased their wealth substantially with the extraordinary run–up of stock
prices were spending based on this increased wealth. This led to the consumption boom of the late
90s, with the savings rate out of disposable income falling from close to 5.0 percent in the middle of

the decade to just over 2 percent by 2000. * Increase in Demand The stock wealth induced
consumption boom also led people to buy bigger and/or better homes, since they sought to spend
some of their new stock wealth on

Causes And Policies Of Financial Crises
Causes and Policies in Financial Crises
Financial Crises are well–known phenomena in economics history; however, after the Great
Financial Crisis of 2007–2009 the role that Central Banks play in order to prevent Financial Crises
has been questioned. To begin with, it is important to understand that crises consist of highly
complex macro–financial linkages that reflect the interactions between the financial sector and the
real economy (Claessens 2012). Additionally, it is important to highlight two different financial
crises groups: Currency and sudden stop crisis, which have strictly quantitative definitions; and debt
and banking crises that depend on qualitative and judgmental analysis (Claessens 2012).
Nevertheless, the interconnectivity of the financial sector demonstrates that major crises are a blend
of the different types; thus, the effects on real economy are larger (Laevene 2008). In consequence,
governments and central banks have the responsibility to develop monetary and macro–prudential
policies to appropriately supervise and regulate the financial industry (Norgren 2010). However,
central banks have failed to appropriately understand the main symptoms that precede financial
crises: credit booms and asset booms (Bijapur 2015). In fact, it is essential to comprehend these
symptoms in order to develop policies that strengthen the fragility of the financial industry; hence,
upholding stable growth and inflation.
The last major financial crises demonstrate that the

The Irish Financial Crisis Was Both Predictable and...
DISCUSSION PAPER SERIES No. 7811 WHATEVER HAPPENED TO IRELAND? Morgan
Kelly INTERNATIONAL MACROECONOMICS ABCD www.cepr.org Available online at:
www.cepr.org/pubs/dps/DP7811.asp www.ssrn.com/xxx/xxx/xxx ISSN 0265–8003 WHATEVER
HAPPENED TO IRELAND? Morgan Kelly, University College Dublin and CEPR Discussion
Paper No. 7811 May 2010 Centre for Economic Policy Research 53–56 Gt Sutton St, London EC1V
0DG, UK Tel: (44 20) 7183 8801, Fax: (44 20) 7183 8820 Email: cepr@cepr.org, Website:
www.cepr.org This Discussion Paper is issued under the auspices of the Centre's research
programme in INTERNATIONAL MACROECONOMICS. Any opinions expressed here are those
of the author(s) and not those of the Centre for Economic Policy ... Show more content on
Helpwriting.net ...
An earlier version of this paper circulated under the title "The Irish Credit Bubble." I would like to
thank Colm McCarthy for useful discussions. All errors and interpretations are mine. 1 Ireland is
one case where the classroom distinction between GNP and GDP really matters: largely because of
transfer pricing by foreign corporations taking advantage of its 12 per cent rate of corporation tax,
GDP is 25 per cent higher than GNP, and has fallen only 12.5 per cent. In what follows we shall
present most Irish numbers as a percentage of GNP, because this is the relevant ﬁgure for
employment and discretionary taxation, and present numbers for other countries in the usual
percentage of GDP form. ∗ 1 The key to understanding what happened to Ireland is to realise that,
although GNP grew by 5 to 15 per cent every year from 1991 to 2006, this Celtic Tiger growth
stemmed from two very diﬀerent booms. First, during the 1990s, there was rising employment
associated with increased competitiveness and a quadrupling of real exports. As Ireland converged
to average levels of Western European income around 2000 it might have been expected that growth
would fall to normal European levels. Instead growth continued at high rates until 2007 despite
falling competitiveness, driven by a second boom in construction. Ireland went from getting 4–6 per
cent

Analysis Of The Current Financial Crisis
Analysis Of The Current Financial Crisis
YourFirstName YourLastName
University title
Student's name
Professor
Subject
Date
Financial crisis is a situation where the financial value of assets or an economy drops by a
significant margin that can cripple the normal functioning of an economy of the affected country.
Different economists came forward to explain theories that lead to the different financial crisis
especially in the history. These economists include Krugman, Taylor and Blinder. Causes of the
crisis include recessions, banking shocks, currency crisis, stock shock, and financial bubbles
amongst others. There is evidence of financial crisis I the past. Most of the time, the crisis was
brought ... Show more content on Helpwriting.net ...
The model has three parts; the aggregate demand equation. The equation relates the domestic
spending to real income alongside the interest rate, with the net export. y = D(y, i) + NX (eP*/P, y).
The second part is the money–demand equation: M/P = L(y, i) and the third part of the model is the
interest arbitrage equation. This part explains that investors should shield themselves against risks
and expect the exchange rates to be stable; i = i*
The model has its limitations as no exchange rate is expected not to change with time (Bernanke and
Gertler, 1989). The third part is therefore unrealistic.
The figure shows output y and exchange rate e. The line AA shows points at which the domestic
rates equals the foreign rates. The line GG outlines the amount of output given a particular exchange
rate. When a strong open economy effect is added to the model, a crisis occurs. For example, if
foreign currency controls most debts of many firms in a country, the balance sheets will constrain
their investment. This will lead to domestic demand having a direct dependence on the real
exchange rate; y = D(y, i, eP*/P) + NX(eP*/P, y) . Under these circumstances, when the real
exchange rates becomes unfavorable, the firms holding foreign current will not be able to invest.
This will lead to triviality at the margin of the direct exchange rate effect. The corporate sector runs
bankrupt but the small businesses benefit from weak currency. The effects can be so significant

Filter Bubble Research Paper
Rebecca Pascual
Gen 103 week5 discussion 1
http://www.easybib.com/v2/mla8/website–citation/www.businessinsider.com/have–you–been–
trapped–in–the–filter–bubble...
. What were my initial thoughts on the filter bubble after watching Ted Talk.?
After listening to Ted talk on the filter bubble. It's not surprising to me, But in a peculiar way, it was
kind of shocking.
That it is opened my eyes to what's really going on in our technical world. But it also touches me on
Another level on how I can be so unaware of what is really going on a matter of fact I don't even
know what I was thinking in the first place after all of this I thought I was in control when I brought
up Google and I search for a particular thing but I guess not my search goes ... Show more content
on Helpwriting.net ...
What are the positive and negative effects of the filter bubble, particularly in relation to ethical
issues that may arise https://blogs.commons.georgetown.edu/idst–325–spring2015/ The positive
effects of a filter bubble
The filter bubble was designed to navigate our personal and recreational on how are using the web.
It's a passport on how you see the world. But it also controls the user on what needs to be seen and
their search Pool. So maybe it increases the amount of time that you spend on the Internet since it
literally does your thinking for you I'm not sure but now I'm aware of so I will wait out this matter.
If I was to be asked this question may be a few months down the road I could probably give more
thought on all of this because now my eyes have been opened so we'll see.
.Can the filter bubble and pack online for my final paper and Annotated biography.?
Well when it comes time to writing this paper this week I may or may not get the accurate
information that I need to get I don't know we'll see. It may just give me what the algorithmic would
suggest that I might want to see. So I will have to Decipher what is liable and I'm liable information.
. Three suggestions for popping your Internet filter bubble did you select explain why you chose
these

Economics And Complex Systems Of The United States
Throughout the better part of previous decade, housing prices in the United States, especially in and
around metropolitan areas and high population growth areas (such as the Southwest) saw an
unprecedented rise in housing prices . In 2007, many of the financial instruments which were used
to back the purchase of these properties, such as subprime and Alt–A mortgages, as well as
Collateralized Debt Obligations (CDOs), suffered a sudden and massive downturn . In hindsight, it
is accepted by a wide range of economists and analysts that the huge upswing in prices and the
ensuing downturn comprised a housing market bubble . Bubbles are often studied from the
perspective of behavioral economics and complex systems . Many diverse economic agents, all
facing the same information regarding rapid housing prices growth, can generate "irrational
exuberance" within markets, leading to huge upswings in prices. Similarly, when the same economic
agents begin to hear new information about the unsustainability of such a bubble, an opposing
feedback loop is created. When the effect of one feedback loop begins to dominate another, we stand
at the precipice of a crash . This highlights the role played by uncertainty– agents are imperfectly
informed, as the only information many of these investors see is a rise in prices, driving investment.
There is no information available, however, regarding the size, depth or even the possibility of an
ensuing downturn. When such a downturn happens (and

Canad A Case Of Good Governance And Good Luck
2008 Canada: a Case of Good Governance and Good Luck The global financial crisis of 2008 shook
the pillars of economic institutes of nations all over the world including Canada. The crisis caused
the financial meltdown of various global financial organizations such as the Lehman Brothers
brought the US economy to its knees with matters being exacerbated by the burst of the sub–prime
mortgage bubble. Financial markets including various banks went into bankruptcy with
governments having to chalk out large bailout packages and the reserve parachute of financial
reforms and regulations to stop the free fall of financial institutions. Asian Markets had huge
amounts of savings that they were itching to spend buying up US government bonds which resulted
in a fall in interest rates, as a result of lowered interest rates bankers began to lend to creditors with
poor banking histories, this lending was backed by credit rating agencies who were far too generous
in their triple A rating of credits that were in actuality far more highly exposed. Banks as a result
began betting on themselves with borrowed money, there was an underlying assumption that the
property bubble would remain steady or rise and thus banks did not keep enough margins on their
balance sheets to cover for losses and this was exactly what happened. As the property bubble
exploded there was an acute fall in prices and a proportional rise in foreclosures. At this point banks
had to revalue their assets and sell at fire

The Lecture, Capitalism Hits The Fan By Richard Wolff
In the lecture, "Capitalism Hits the Fan" by Richard Wolff, he explains how a combination of factors
led to a severe economic crisis of his lifetime. For example: wages stopped rising, coping with
traumas, irrational exuberance and how things don't work. The purpose of this lecture is Wolff to
prove his point about what caused the crisis of 2008.
Breaking it down point to point, there are three things the economic crisis is not. Financial crisis
being one of them, Wolff explains how it comes from the entire economic system and didn't start
with banking or nothing to do with banks. Another false economic crisis he explains is how
temporary isn't one of them. Wishful thinking was an example he mentioned relating two historical
parallels. In the 1930's, there was a great crisis that is being compared to what is happening now.
Since 1929 to 1939 Wolff explains how presidents Hoover and Roosevelt tried may policies that we
currently see today in Washington. Over those years it didn't work, which meant we couldn't get out
of the depression. Getting out of the depression, a change happened which was called World War ll.
Lastly, people thinking it will be a quick and easy fix. For example, the United States government
tried one policy after another, meaning them dropping interest rates and getting more money in the
economy. With things being promised and said, something bigger and better is going to have to
happen.
Wolff than moves onto talking about how we got here and how serious

Capitalism And The Great Depression
In 2008, following the housing bubble crash, mortgages foreclosed across the country and the New
York Stock Exchange saw catastrophic losses; several economists began to question the strength of
an unregulated capitalist system. The debate sparked the question: Is crisis an inevitable aspect of
capitalism? With nearly 80 years past since the beginning of the Great Depression, memories of high
unemployment rates and sluggish economic growth during the Depression–era had mostly been
erased by a long period of relative prosperity. The recession of the late 2000s served as a reminder
of the danger that capitalism can pose to society. The Marxian critique of capitalism provides a
framework for analyzing the pitfalls and conditions of existence of capitalism that led to the Great
Depression of the 20th century and the recession of the 21st century. Additionally, discussion of
Marx's crisis theories has been reinvigorated by the increasing amount of income inequality in the
USA, which many people blame on the greed inherent in a profit–driven capitalist society.
When evaluating the dilemmas surrounding capitalism, it is essential to draw comparisons between
the Great Depression and the recession of 2008. The similarities between these economic crises
demonstrate the tendency of the capitalist system to send us down a similar path towards economic
turmoil and declines in overall living standards.
The relevance of Marxian theory is amplified by the similarities between the economic

The Return Of Depression Economics
2008 Economics Noble Prize winner and Princeton University professor, Paul Krugman, translates
the roots of modern and prior financial crisis economics. In his book, The Return of Depression
Economics and The Crisis of 2008, Krugman first educates the reader of historical and foreign
financial crises which allows for a deeper understanding of the modern financial system. The
context provided from the historical analysis proves to be a crucial prospective in such a way that
the rest of Krugman's narrative about modern finance continually relates back to the historical
analysis. From there, Krugman analyzes and updates his prior studies done on the Asian financial
crisis. He then applies his knowledge from historical events to the modern day financial struggles
and argues his opinion about how and why our financial world operates the way it does. Krugman
explains his perspective that the world believed that depression economics was no longer a problem,
however the Asian crisis, Japan 's liquidity trap and the Latin American crisis having acted as
warning signals to modern market struggles. Thus he says that this subject needs further
examination and more resources should be poured into it. For Krugman, Depression Economics is
still a relevant problem and should be further studied.
On top of simply translating past and present financial systems, Krugman dissects the
interconnection between economics and politics. Starting with the rise of socialism, many
governments took on

The Growth Of The Economy Essay
Showtime in late 1950's Minsky started warning about the gradual shift of the economy from a very
robust financial system that was stable and with no financial crisis in the early postwar period. He
had called with his analysis that gradually over time debts in the private sector would tend to build
up and increasingly risky financial innovations would increase over time. He is very famous for the
statement that stability itself is destabilizing. Although things seem very stable today, gradually over
time that stability would build confidence to take increasingly risky positions in assets. The model
that he had built explains financial crisis in the economic system. He brings up that supply of credit
increases during boom and abruptly decreased during economic slowdown. It seems almost intuitive
that from a standpoint of an investor the great time to invest is when the economy is booming to
increase his or her profitability. Lenders as the investors become increasingly optimistic about their
return and they both become less sensitive to risk. But when the economy starts slowing down
investors sell out their holding to not to lose more of their assets making the economy even worse
off. All of the New Deal structure that have been put in place in the economy during the great
depression, tremendous buildup of government debt during World War II gave a very safe asset for
the private sector. This would be in a sense leveraged, the safe government debt would serve a base

The Cause of the Great Depression Essay
The Cause of the Great Depression The economic expansion of the 1920's, with its increased
production of goods and high profits, culminated in immense consumer speculation that collapsed
with disastrous results in 1929 causing America's Great Depression. There were a number or
contributing factors to the depression, with the largest and most important one being a general loss
of confidence in the American economy. The reason it escalated was a general misunderstanding of
recessions by American policymakers of the time.
The U.S. economy was booming in the 1920's. Stocks prices soared, as they were bought on margin
for as little as 10% down. Market speculation is cyclical–that is, if one stock appears profitable, you
buy it, ... Show more content on Helpwriting.net ...
Many people lost as much as ten times their initial investment, which shook consumer confidence.
In an effort to cover their margins, people rushed the banks in masses, demanding their money.
Soon, banks began to run out of cash and went bust.
With the economy falling in shambles and companies defaulting on loans, nearly all private and
corporate investment ceased. Companies couldn't afford to expand, and in fact, many had to
consolidate in order to cover the margins on their loans. This meant postponing hiring and laying
workers off, which caused unemployment to skyrocket. With people now willing to work for less
money, wages lessened too. At the same time prices rose in an attempt by companies to make some
amount of profit off the goods.
Because the governments' prevailing economic theory was based on laissez–faire economics, the
government believed that recessions were self–correcting. Eventually unemployment and inflation
stopped declining, but not before the U.S. lost 1/3 of it's output and 25% of the workforce was
unemployed.
In the end, it was World War II that brought us out of the Great Depression. With war at hand, the
government began pumping massive amounts of money into the economy. Production and inflation
increased. More jobs were available and wages rose. At the

Financial Crisis: Social, Political and Economic Upheavals
As we know history has a habit of repeating itself. Throughout history we can see that financial
crises have come and gone and come again. In order to answer this question we must first take a
look in understanding what a financial bubble is, how it might form and the consequences we face
due to the after math of the effects. Through the history of the United Stated our most recent Real
Estate bubble is the largest economic crises to date. The bursting of asset bubbles has always been
traumatic. Social, political and economic upheavals have a bad habit of following financial crises
but wealth destructions can arguably be a guaranteed feature. While taking a look at our history we
can see that bubbles would usually happen once every generation or so. Today we are recovering
from a second major asset bubble. Housing spaced less than ten years from the dot–com bubble.
This is astounding and unprecedented. So how do we know we are in an assets bubble, what do they
look like and how can we expect one to occur in the future. The federal government notably likes to
claim that you cannot predict when a bubble is going to occur until it actually happens but others
would like to argue that this is not the case. This can be simply answered by looking at the definition
of a financial bubble or otherwise known as an economic bubble or market bubble, which exists
when asset price inflation rises beyond what incomes can sustain. This is a very important part to
understanding

Housing Data Point Towards A Housing Market Bubble
Does Recent Housing Data Point Towards Another Housing Market Bubble?
The last housing crash was devastating to the global financial community. Considering the current
trends in the housing market, are we becoming more at risk for another housing bubble? The experts
continue to debate this contentious question.
As home prices continue to skyrocket, speculation in the market persists and reinforces the upward
trend in the housing market. Data from the National Association of Realtors, or NAR, reveals that
some of the conditions that led to the 2007–2009 housing bubble and crash began reappearing in
2015. According to NAR, home price increases have been incredible in the previous years; in May
2015, 39 successive months of increases in housing prices was recorded; since the last housing
bubble and crash, from May 2014 to May 2015, home prices have gone up a staggering 7.9%. In
addition, the NAR noted that 5.1% of the existing housing market inventory sold, which when
seasonally adjusted, equated to a rate of 5.35 million homes.
Recent financial data indicates median home prices have shot up more than a whopping 35% in the
past 4 years, and the amount of residential real estate sold increased up to or past 30%. Is the current
housing market in correction territory? Although some would say it's only natural the housing
market push such new heights after reaching the lows of the last bubble explosion, others would
argue that the market has ultimately grown too fast and for too

America´s Neoliberal Capitalism and the Economic Expansion...
America's neoliberal capitalism and the economic expansion
After the crisis of government regulation capitalism about six years from 1973 to1979, a new layout
liberal capitalism started to appear; firstly it was in Britain and the United States. In America, the
new liberal capitalism was of main features in following:
(1) Cancel the regulation of finance and business not only in domestic but also internationally,
allowing the "free market" rule, and realizing capital to flow freely.
(2) Privatize government' services directly provide the government agencies and government
workers in the past.
(3) The government is no longer actively control of macro economy, and to a certain extent, reduce
the macroscopic intervention with the purpose ... Show more content on Helpwriting.net ...
Profits rise relative to the wages, as well as the family income goes to households with the highest
incomes, produced a large and growing number of money to invest, these funds want to transcend
the existing investment opportunities. All of this provides good conditions for emergence of the
asset bubbles, because these funds are used to buy assets like real estate and securities. If an asset
bubble began to appear, then its growing need a economic system, which can easily encourage the
growth of the bubble by borrowing and it was turned out that the financial system deregulated,
short–term capital department is preparing to do so in the new era of laissez–faire capitalism. After
2000, deregulated, short–term capital department created a new mortgage business, which occupies
a lot in house purchase loans and is still in increasing, making potential for the last asset bubble.
The third change in the new era of liberal capitalism is huge asset bubbles. During the long–time
economic expansion firstly appeared in the 1980s, the commercial real estate asset bubble in the
southwest in the USA caused the collapse of the majority of the savings and obtained rescue in
1990. Huge asset bubbles began to appear from 1994 during the expansion in the 1990s. From
1994–1999, standard &poor's index rose 23.6% a year, while corporate profits rose 7.6% a year. In
the second year, asset bubble burst. During the long–time third

Theoretical Perspectives On Asset Price Bubbles
Asset prices are a key determinant of economic activity, impacting both consumption and private
investment. Consequently, fluctuations in asset prices, especially the bursting of bubbles, can have
significant adverse effects on the aggregate economy. This was most recently demonstrated by the
bursting of the US sub–prime mortgage bubble and the ensuing financial crisis. Furthermore, asset
prices in Australia have recently been in the spotlight, as there are concerns about a potential real–
estate bubble developing in some metropolitan centres. This paper will outline the theoretical
perspectives on asset price bubbles and explain historic examples. The insights from this analysis
can be applied to analyse whether a bubble is developing in ... Show more content on
Helpwriting.net ...
However, these theories only apply to assets with infinite lives (land and shares), as investors know
that assets with finite terms will be redeemed for a specified value at maturity and this limits their
secondary market price. According to Froot and Obstfeld, bubbles result from investors incorrectly
estimating fundamentals. For example, shareholders may be unable to forecast industry changes that
affect future profitability and are forced to condition expectations of future cash–flows on current
payments. This 'intrinsic rational bubble' theory explains several empirical observations, including
why share prices over–react to dividend changes.
New Rational Models and Misaligned Incentives
These models emphasise the role of incentives in promoting bubbles. Key insights from these
studies are that bubbles may be propagated by herding behaviour among financial intermediaries,
distortions in the data distributed by information agencies and limited liability.
According to Lamont and Frazzoni, investors tend to allocate funds towards intermediaries investing
in high sentiment markets, thereby forcing managers to perpetuate bubbles. This behaviour was a
significant contributor to the dotcom bubble observed between 1997 and 2000. It has also been
highlighted that the reputation of a financial intermediary is correlated with the performance of

The Boom And Bust Of The Housing Market Bubble
As a member of the Millennial's and as a student of economics, The Great Recession, the greatest
economic downturn we've seen in 70 years is truly an intriguing topic. It is the first economic crisis
that many of my generation can truly say we lived through. With the burst of the housing bubble and
the failure of various financial institutions, the United States was dragged kicking and screaming
from the prosperous age of nearly uninterrupted economic growth since the early eighties, into an
unemployment rate of over 9% and a decline in Real GDP in the first time in decades. Years after
the end of the recession we still reel from its effects. How did the fiscal crisis begin in the first
place? What institutions helped exasperate the ... Show more content on Helpwriting.net ...
This led to the recession of 81–82 but managed to get inflation under 5% from the high double digits
it was under Nixon at the cost of a rather high unemployment rate of 10%. Many argue that this and
other policies under the Reagan administration known as Reagonomics, were what led to the
economic prosperity that we enjoyed in the 90's and 2000's. Rather than discuss what caused the
economic growth of the era, we examine a few of the effects it had on markets, especially housing.
The family home has always been a major part of the American dream, but it had an even bigger
role in the Great Recession. Under legislative pressure banks eased up on a lot of the loans that they
gave out. According to Peicuti (2014), "In the 2000s, the deregulation of the financial system and
development of the originate–to–distribute banking model led commercial banks to finance
subprime mortgages" (p.7). It then goes on to lists several characteristics that these borrowers may
have including, "relatively high default probability as evidenced by, for example, a credit bureau
risk... bankruptcy in the last five years... debt–service–to–income ratio of 50 percent or greater"
(p.7). All of this tells us the same story, these were risky loans to make. We've learned from class
that the interest rate is an indicator of the amount of risk on an asset. These loans however were not
properly assessed for the amount of risk on them. In short, the banks had taken on more risk than
they

2008 Recession Research Paper
Wall Street is the great and powerful financial district of the world. With that statement being true
Wall Street isn't perfect. Wall Street has faced many problems throughout its existence as recessions
and depressions came into play and single handedly pushed America into a financial crisis. As early
as 1929 till as recent as 2008 recessions still occur and throughout the existence of Wall Street they
will never stop existing. The argument of whether or not a recession could be predicted is a topic
that many have different views on, some say yes and some no, this argument will never simply go
away as recession will still occur in the future. It is just a matter of opinion. Although Wall Street
has been known as something great and something this country relies on and takes great pride in,
Wall Street isn't actually an unstoppable force. When a recession occurs many people fail to realize
that there are causes of a recession and as much as they would like to admit that they aren't part of
that cause, they actually are. There are many causes of a recession or depression ranging from
horrible investments from big corporations to uncontrollable spending from each individual. While
corporations and banks play essential roles in causing recessions and depressions, individual's
economic behaviors also cause recessions and depressions to deepen and lengthen. When discussing
the difference about a recession and a depression many people tend to think that both terms mean
the same

Swot Analysis Of Chatime
Success and Failure CEO of Chatime Malaysia, Bryan Loo who are successfully brought this
franchise over from Taiwan. He also won an award which is 'Ernst and Young Emerging
Entrepreneur of The Year 2013 Malaysia Awards'. The major strength of Chatime is it has a strong
brand name that most of Malaysian ice blended fans have perfectly knowledge about Chatime
products. Chatime franchises will based on the operational and economic perspective to select the
most appropriate site for its businesses by using several ways and steps. For instance, an area which
is car parking available or close to public transportation and has a lot of passing foot traffic is an
ideal location. There are several key issues which encompasses recruiting and hiring of skilled
labours to attend well–developed training programmes such as exceptional retail audit system,
cutting edge product ... Show more content on Helpwriting.net ...
They are facing difficulty in logistics and procurement restricted to imports from Taiwan.
Sometimes, they are also have marketing budget of their products during their promotion.
Furthermore, one of the weaknesses is the prize of a drink. Some customers think that the prize is
quite high and it does not worth the money for a cup of tea even if Chatime is the best tea house in
the world. There are many others competitors and stores that are selling the similar products and this
will causes them to be hard to compete and to compare and determine the pricing and promotion
strategies.
Chatime has some issues about the problem of poor quality of product packaging. The plastic cups
and containers is a low grade quality packaging that is not environmental friendly as it is not
biodegradable. It causes health risk where the plastics may release harmful chemical and it is
unsuitable for carrying if it is hot

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