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Choices about who Is viewed as poor and how they are to be helped are reliant on our monetary turn of events, political perspectives, and are frequently subject to government assets (Stern and Axial, 2012). In research, essential information sources are valuable while helping the student to totally see each feature of a theme as It identifies with the subject of conversation or a group of work. In accordance with social government assistance, it is crucial to construct an establishment which includes past, present and future happenings that will affect the assemblage of work.While doing investigate sites about essential reports as it relates social government assistance strategy, the accompanying site appeared to be helpful http://www. Ass. Gob/history/PDF/heisted. PDF. The Historical Development archive examines the historical backdrop of the U. S. Social Welfare structure. There is additionally an intuitive course of events accommodated the Social Security Acts and the Development of U. S. Government managed savings Programs. One is given a consecutive perspective on the movement of the Development of U. S.Social Security Programs, for example, joblessness, Public Assistance, Temporary Assistance for Needy Families In 1 996 TAN), Public Housing, National School Lunch Program and the Food Stamp Program, among a lot more projects. This device has given this student an understanding to the key authentic, political and get-togethers that have affected our nation. As The US drew closer the sass's, the Great Depression had arrived, which brought about our administration playing a more noteworthy job in helping poor people and the foundation of the Social Security Act of 1935.As one keeps on considering the historical backdrop of social government assistance, we will started to increase a superior comprehension of what drives our projects just as how we can add to their prosperity. Reference: Axial, J. , and Stern, M. (2012). Social government assistance: A past fil led with the American reaction to require (eighth deed. ). Boston, MA: Allan and Bacon. Http://www. Ass. Gob/holster/PDF/Halsted. PDF. Site Search By Krishna changes of today. Make certain to arrange your reference in legitimate PAP position in your The historical backdrop of Human Services is significant for us to see so we can get a handle on the objectives of our present social government assistance programs.

Williams Presents Essay Example for Free

Williams Presents Essay Eddie and Mickey were conceived from a similar mother Mrs. Johnston, yet they have amazingly various lives. They were indistinguishable twins; they appear to be identical. Be that as it may, Mrs. Lyons isolated them and caused them to have an alternate life. From that point on, one of them, Mickey remained with Mrs. Johnston lives in a major, poor family and the other one who was taken by Mrs. Lyons turned out to be rich and got everything. They have been in an alternate world in light of numerous elements encompassing them to rich or poor from the second they have been conceived. I think the most persuasive variables are the family they have and the family classes extraordinary. The diverse kind and level of instruction they have did likewise impact them much. Likewise, the religion of the family is one of the variables that influence the life of the kid too. Distinctive thing has diverse measure of impact to Mickey and Eddies life. I will examine the elements individually. The social setting is untidy at the time between late 70s and mid 80s that the play was set. It is called downturn. Margaret Thatcher is the Prime Minister; she urged individuals to rake in boatloads of cash. Therefore, the rich individuals in center or privileged can win a lot of cash yet the needy individuals in common laborers lost their positions. Life is exceptionally hard for common laborers, as they find more unfortunate without a line of work. Mickeys family is experienced this social atmosphere. His family is poor. Not at all like Eddie, his family is in working class, he is rich. They have an incredible differentiation in their life in light of the fact that the classes are unique. Marilyn Monroe is the social symbol of the day around then. She is charming, rich and she speaks to an existence of imagination. Everybody needs to be her. We realize that from the book on p. 14, Act 1, Scene 1, it said He revealed to me I was hotter than Marilyn Monroe, which is about Mr. Johnston said her significant other was hotter, lovelier than Marilyn Monroe. It shows the estimation of that time. Yet, that is the thing that very surprising from Mickey. Mickey is poor; he dressed scruffy. He lives in gathering house and his family is average workers. He doesn't have cash to purchase all that he needed. Be that as it may, Eddie, he is rich, he has new garments, and he looks savvy. He lives in private house and his family is working class. They are actually the equivalent, yet the method of living is extremely extraordinary with one of them is living in a rich domain and another lives in a poor world. This is the manner by which the classes distinctive impact their life. The size and individuals in their family have likewise affected them. Mickey has a major family with 7 siblings and sisters. The discourse of the mother in p. 14, Act 1, Scene 1, enlightened us regarding that. She stated: Seven hungry mouths to take care of and one all the more about due. Mickey is the most youthful in the family; he needs to battle for food and everything with the senior siblings and sisters. In this way, he needs to grow up quick and look intense to secure himself if there should arise an occurrence of pummeled by others. He additionally needs to his senior sibling Sammy in light of the fact that he needs to get more established so he can do all that he adores. We can perceive the amount he needs to be Sammy in the book on p. 30, Act 2, Scene 1, he has rehashed the sentences I want to be our Sammy. - for multiple times. He does everything Sammy did; in any case, Sammy was not a genuine model for Mickey to learn. So Mickey turns into a joker and streetwise since he has affected by his sibling Sammy. The group of Eddie, we realize that he is the lone kid in his rich family and they are in working class. He lives with his mum just the greater part of his life. We dont think a lot about Eddies father in light of the fact that the book doesn't make reference to about him much. Mrs., Lyons, Eddies mother, cherishes her child without a doubt. She gives him a decent safe house, gives him all that he needed. This makes exceptionally powerless and delicate and he won't know the hardship of the common laborers since life is simple for him. Time went through snappy by sensational gadgets in the book. We can perceive how much contrast among Mickey and Eddie over a significant stretch. From the outset, when they are conceived, they are very little not quite the same as one another in either class or instruction. Be that as it may, when they are at 17 years old, Mickey is dropped out from school and on the opposite side Eddie was going to University. At that point, when the two of them go to work, Mickey loses his activity and Eddie is the supervisor of a processing plant. The training level caused them to have such a major distinction. Mickey is poor taught as he left school when he was 17. He was concentrate in government school. Ordinarily, there is nothing terrible to concentrate in government school. Be that as it may, contrast with Eddie, Eddie was concentrate in tuition based school, he was accomplished. He could utilize a word reference at seven years old while Mickey don't have a clue what a word reference is. We realized that from the discussion among Mickey and Eddie. Eddie stated, I will find it in a word reference. from p. 33, Act 2, Scene 2. From the discourse of the storyteller at p. 56, Act 4, Scene 1, we know Mickey and Eddie are getting more established as they are 18. This is the activity of storyteller to take us through time and speed things up. Whirlpools goes into a University straight after he left his school yet around then Mickey was at that point dropped out from the school and working in a processing plant. At that point, Eddie found a new line of work, which is the manager of the industrial facility, straight after he completed his contemplating. At that point Eddie turns out to be extremely amazing and rich however the other one, Mickey, is only a laborer in an industrial facility! They are indistinguishable twins however we can perceive how training causes them to go into an alternate life. Strange notion is one of the impacts. Mrs. Johnston is offbeat as should be obvious from the few occasions from the book. On p. 18, Act 1, Scene 3, Mrs. Lyons put a couple of new shoes on the table then Mrs. Johnston saw it and advise her never do this. This is a notion imagining that something had will transpire, which you will never take note. This shows Mrs. Johnston is offbeat. I accept that she trusts in religion. What's more, this makes Mickey sort of offbeat too. He accepts what kindred spirit is. On the opposite side, I dont think Mrs. Lyons has any religion whatsoever. She doesn't regard Mrs. Johnston and consistently utilize the shortcoming of Mrs. Johnston, that she is eccentric, to constrain her into accomplishing something. From the start Eddie doesn't accept any notion things however Mickey impacts him. He respects Mickey and everything Mickey does. He loves Mickey and needs Mickey likes him also. On p. 32, Act2 2, Scene 2, we know Eddie offers desserts to Mickey. This reflected he is anxious to please. Eddie used to dont think a lot about informal until Mickey let him know. He thought everything Mickey said was crushing. What's more, he accepts that what Mrs. Johnston advised her on p. 35, Act 2, Scene 2, about bogeyman. This shows he is nai ve and guiltless. All in all, I can partition the effects on the lives of Mickey and Eddie in four principle areas. The contrasts among Mickey and Eddie in the family, the social class they are, the instruction they have and the religion of the family. They are indistinguishable twins yet they have a totally different life, I think it is on the grounds that these things that I have referenced before impacted them.

Happy Birthday!

Happy Birthday! Approximately one three-hundred-sixty-fifth of the people who read this blog post on any given day will be floored that some MIT admissions blogger is honoring them for their birthday, not to mention a little creeped out (ahh! Is Kate stalking me?). The rest of you are probably just confused. Let me clarify: If today does happen to be your birthday, have a good one, but believe me it’s just a lucky guess! (Read: I’m not a stalker, promise!) I’m writing about birthdays because this weekend I experienced my first two college birthdays. Okay, I should clarify that too: *I*’m not two years older than I was last Saturday, I was celebrating with friends. The important word to understand in that sentence is ‘celebrating,’ which means something completely different at MIT. The first birthday belonged to Esther J. ’14, my roommate, who turned 18 last Friday. As her roommate, my floor’s tradition dictated that it was my responsibility to bake her a cake. She was in one of the dorms in West Campus studying for most of Thursday evening, so we had time to make her an awesome chocolate banana cake (Aside: making banana [blank] is a really good thing to do when you’re stressed. Mashing up overripe bananas with a fork is such a good way to vent!) with homemade butter cream frosting. We raided the hall’s baking supplies and found sprinkles and icing, and voila: We finished up right around midnight, which meant that it was Friday morning, which meant that it was Esther’s birthday already, technically, so why wait? We called her home from West Campus and gathered the entire hall into the kitchen to ‘sing’ Happy Birthday. Why the quotes? That will soon become clear. Apparently, 18 candles is too many to just keep around, so we expressed Esther’s age in binary, using 5 candles and only lighting two: The candles were lit, and it was time to sing. All of the upperclassmen on my floor opened their mouths…and proceeded to shout, really loudly, continuously, for several minutes. According to some of them, people are actually singing Happy Birthday during this time, but all at different rates and pitches. So far as I can tell, people weren’t really forming words, just stopping to draw breath. It certainly didn’t sound like anything; I just shouted along for the fun of it. Let me talk a little bit about cutting cakes. Usually, when you have a square or rectangular cake, it gets cut into square or rectangular pieces. If you have a round cake, you cut it into wedges. There’s a body of mathematical work about how to fairly cut a cake so that everyone feels they’ve gotten their fair share. The most imaginative cake-cutting I’ve ever seen comes from my Uncle Dennis, who takes requests from my cousins and will carefully carve out such shapes as “the D, the S, and Pikachu’s left ear.” Esther’s rectangular birthday cake was cut in none of these ways. With instruction from our upperclassmen, she was handed a knife and proceeded to slash the thing into bajillions of tiny, triangular pieces, which disintegrated into crumbs in our fingers as we tried to eat them. It was a unique, hilarious, and no less delicious approach to cake-cutting. The next night, I celebrated with Natalia G. ’14 at the Tech Catholic Community’s Friday night pasta feed. Her birthday was actually last Thursday, but we celebrated with another homemade cake. While we were raiding the religious center kitchen for birthday candles, I told the story of Esther’s binary birthday. It turned out that a few of the people there had never learned binary, and didn’t know what all the fuss was about. And somehow, I found myself with a brown expo marker in front of a whiteboard in the small community room, teaching a mini-lesson on binary! We ended up finding plenty of candles, so the cake didn’t end up being that nerdy, and it was cut in nice, sensible, easy-to-eat rectangles after a much more musical rendition of Happy Birthdayâ€"a nice return to something resembling normalcy. Happy birthday, Natalia! Speaking of teaching, I’ve gotten a job through MIT’s Educational Studies Program, or ESP. I’ll be teaching math for SATprep on Sundays for about 10 weeks. Just when I thought I was done with standardized tests forever, I’m getting myself involved with them. ESP runs many more programs than just SATprep: they have an AP preparation series, intensive summer classes, and a weekend in November called Splash, when thousands of students descend on MIT to take classes in anything a teacher wants to teach. I still don’t know what I want to teach for Splash, but I have some ideas… There’s another birthday on my hall today (Happy Birthday Kamal N. ’14), but I swear after this blog post I will not be updating you on the birthdays of everyone I know. That’s what Facebook is for, anyways! Post Tagged #East Campus

The Perfect American Lifestyleof The 1950S. What Is The

The Perfect American lifestyle of The 1950s What is the perfect American lifestyle, was there ever a perfect American lifestyle. This paper will analyze Stephanie Coontz’s â€Å"What We Really Miss About The 1950s† and the idea of the ideal America Lifestyle. The perfect American lifestyle of the 1950s started with the ability to earn money as Coontz notes â€Å"it’s easy to see why people might look back fondly to a decade when real wages grew more in any single year than in the entire ten years of the 1980s combined† (Coontz). Growing wages allowed for more spending and more spending created for a better economy. However, Coontz says that the feeling for the 1950s was more than just money. As according to Coontz â€Å"it’s more than just a†¦show more content†¦Coontz once again shows skepticism as she says â€Å"Even people who do pick the 1950s as the best decade generally end up saying, once they start discussing their feelings in depth, that it’s not the family arrangements in and of themselves that they want to revive† (Coontz). Coontz finally shows the reason for her skepticism of the 1950s family. As Coontz says that â€Å"They don’t miss the way women used to be treated, they s ure wouldn’t want to live with most of the fathers they knew in their neighborhoods† (Coontz). Coontz starts to paint an ugly picture of the 1950s American family. And Coontz backs up her statement about women with an article from Judith Wallerstein â€Å"The Good Marriage: How and Why Love Lasts† says that â€Å"100 spouses in â€Å"happy† marriages, she found that only five â€Å"wanted a marriage like their parents’.† The husbands â€Å"consciously rejected the role models provided by their fathers. The women said they could never be happy living as their mothers did† (Wallerstein) Coontz goes on to say that really â€Å"What most people really feel nostalgic about has little to do with the internal structure of 1950s families† (Coontz). So maybe it was not all it was cracked up to be maybe it was more a â€Å"belief that the 1950s provided a more family-friendly economic and social environment, an easier climate in which t o keep kids on the straight

Pretend to Burn a Dollar With This Chemistry Trick

Economical Analysis of Asset Prices Free Essays

Economic Analysis of Asset Prices Introduction The most recent economic crisis, from which the global economy is still reeling, started in 2007, approximately one year after the ‘sub-prime’ housing market in America buckled under its own weight, putting pressure on the financial markets across the world. This economic crisis, argued to be the worst financial crisis since the Great Depression in the 1930s (Brunnermeier, 2009), led to a dramatic reduction in the volume of bank lending along with non-price rationing of credit, which is known as a ‘credit crunch’ (Brunnermeier, 2009; Shaffer and Hoover, 2007). The financial crisis was felt all through the economy in many countries and led to the failure of many businesses including major banks and financial houses, a reduction in consumer wealth, considerable financial commitments incurred by governments, and an overall significant reduction in economic activity for approximately two years (Nataste et al. We will write a custom essay sample on Economical Analysis of Asset Prices or any similar topic only for you Order Now , 2009). This paper assesses how and to what extent events of the financial crisis beginning in 2007 reflect asset-pricing inefficiencies in stock markets and housing markets. The discussion begins with an overview of the events that led up to the financial crisis. The second substantive section explicitly discusses the criteria used in assessments of ‘efficiency,’ while the third substantive section assesses how these criteria can be applied in the context of the crisis. The paper concludes with a discussion of some insights from behavioural economics. Background: The Financial Crisis of 2007 In 2007, approximately one year after the ‘sub-prime’ housing market in America crumbled, the most recent global economic crisis began, straining the global financial markets (Nataste et al., 2009). There are three main, interrelated factors that led to the crisis: a preceding period of exceptional macro-stability, the global savings surplus, and innovation within the financial markets (Dimsdale, 2009, Mizen, 2008, Pomfret, 2010). First, one of the precursors of the economic crisis was a period over which there was extraordinary stability in the American and European economies. Second, there was a global savings surplus from emerging economies, which supported extremely low long-term interest rates in these countries, which allowed those in the money market to have access to cheap money. These credit booms led to excessive debt burdens (Claessens, 2009). Third, there were several innovative financial products being introduced on the market, such as mortgage-backed securi ties, but financial innovation also led to more complexity, higher leverage, and weaker underlying assets (as they were dependent on ‘sub-prime’ mortgages, which is explained in more detail below). This point is supported by Pomfret (2010) and others, who argues that the financial system has become more vulnerable to crisis because of innovation and development in the financial sector combined with easy monetary policy stemming from the stable macroeconomy and very low interest rates at the beginning of the millennium. Sub-prime mortgages were offered based on ‘self-certification of income,’ and therefore allowed a lot of people who previously lacked the financial capacity to purchase property under the existing system (which was based on applicants’ income), were able to access these mortgages (Chatterjee and Lefcovitch, 2009). And even at higher interest rates it was an attractive offer at the beginning of the millennium because the macroeconomy was stable, interest rates were very low, and the housing market in the USA was buoyant (Crouhy et al., 2008). Houses prices in America and in other markets, such as the UK and Iceland, rose sharply in the period preceding the crisis, generally fuelled by quickly increasing levels of available credit, which resulted in sharply increased household debt (Brunnermeier, 2009; Claessens, 2009). Given the extended period of macroeconomic stability, a fall in house price across the entire US was not anticipated, indeed such an occurrence had not been accounted for in the models used to assess the risk of the sub-prime mortgages and the other sources of credit that were readily available during this period (Mizen, 2008). When house prices did fall, the number of borrowers defaulting on their payments increased greatly in the sub-prime mortgage sector, and this was the eventual trigger for the economic crisis (Brunnermeier, 2009; Mizen, 2008). So one of the key features of the most recent crisis was the increases in asset price (particularly the price of houses) that turned out to be unsustainable, which caused a housing bubble (Claessens, 2009). When the housing bubble burst, banks and other financial houses had to write down many hundred billion of dollars in bad loans that had been caused by the fact that many mortgage holders were unable to pay their loans and so became del inquent (Brunnermeier, 2009). Additionally, the stock market capitalisation of the major banks was reduced by more than twice as much as the amounts that had to be written down (Brunnermeier, 2009). Asset Pricing and the Efficient Market Hypothesis How are assets, like houses, pricedAccording to Brunnermeier (2001), asset prices are determined by information that is public available and generally dispersed among a lot of market participants who try to deduce the information that other participants have by analysing price processes. Additionally, asset prices are determined by market participants’ expectations about the future profits on the assets. Whenever new information becomes available, market participants may have to re-evaluate these expectations about the future asset prices. It can therefore be expected that the information available in the market is important such that asymmetric information, for example, would affect asset prices and traders’ information inference. The efficient market hypothesis (EMH) is the idea that market, such as the stock market or the housing market, is informationally efficient, meaning that all information about a security or asset is known by the participants in market, and consequently by all potential investors (Ehrhardt and Brigham, 2008). More specifically, informational efficiency refers to how much information is revealed by the price process and prices are deemed to be informationally efficient if they fully and correctly contain all the available information (Brunnermeier, 2001). There are three types of informational efficiency, strong, semi-strong, and weak, and this depends on the amount and type of information reflected in the asset price (Brunnermeier, 2001). According to Ehrhardt and Brigham (2008), EHM holds that (1) stocks are in equilibrium at all times and (2) it is not possible for an investor to constantly get better than average returns on the market than the risk of her investor warrants. EHM essentially suggests that, beyond the normative utility maximising market participants, market participants have rational expectations and on average the market prices are correct, even though any one or all market participants may be incorrect. That is, even if individuals are wrong, the people as a community will be engaged in forecasting the stock prices, which will be done by using all the available information. As soon as some new information is available in the market these people will change their estimates immediately. As a result of this conduct, the prices in the stock market totally reflect the existing information as well as reflect the precise inherent value (Ehrhardt and Brigham, 2008). EMH depends on the fact that stock prices follow a ‘random walk,’ meaning that price changes are not dependent on each other (Ehrhardt and Brigham, 2008). This suggests that all information is equally known and considered by the market as individuals, and as such there is little or no chance for arbitrage in the market. It is not considered to hold in all cases, but in enough to promote the capital market line, a correlation between the market and the equities and securities and assets that make it up (Granger, 1992). In an efficient market, competition ensures that (Ehrhardt and Brigham, 2008): New information is quickly and fully assimilated into prices; All available information is reflected in the stock price; Prices reflect the known and expected, and respond only to new information; and Price changes occur in a random manner. There are three forms of the theory, weak, semi-strong, and strong (Ehrhardt and Brigham, 2008; Granger, 1992). Weak form efficiency posits that current market prices reflect all information from history. This suggests that prices in the market reflect all the information that has been made available in the past. As a result it would not be possible to get surplus returns by use of methodological analysis but could be done through fundamental studies of the market. Hence, the fluctuations in the price of the stock should be unpredictable and unsystematic (Ehrhardt and Brigham, 2008). Semi-strong form efficiency is based on the notion that market prices reflect all publicly available information, and this means that availability of any new public information makes the markets react spontaneously in a particular fashion. Thus, agents react quickly to such information making the discovery of possible missed stock prices through deep analysis useless (Granger, 1992). Finally, strong form efficiency is based on the notion that market prices reflect all information, both public and private (Ehrhardt and Brigham, 2008). In the case of strong-form efficiency hypothesis, it is assumed that not only the public information but also private information has a bearing on the stock prices, this might include information which is available only to a handful of individuals and they would use this information to make enormous profits (Granger, 1992). Even so, such huge returns are not achievable because stock prices tend to immediately adjust by accounting for the most sensitive information. As a result, it would be of no benefit to engage in insider trading as the trader would be in the same position as to that of the person trading without this information (Ehrhardt and Brigham, 2008). The benefit of the EHM over ad hoc formulations of expectations is that it gives market participants a simple, general and credible manner of dealing with expectations (Ehrhardt and Brigham, 2008). However, the soundness of the hypothesis has been questioned by many, some of whom accuse the notion that markets are rational for much of the recent financial crisis. The next section assesses how and to what extent events of the financial crisis beginning in 2007 reflect asset-pricing inefficiencies in stock markets and housing markets, specifically assessing how these criteria can be applied in the context of the most recent financial crisis. How and to What Extent Events of the Financial Crisis Beginning in 2007 Reflect Asset-Pricing Inefficiencies in Stock Markets and Housing Markets? This section discusses the extent of asset-pricing inefficiencies in the stock markets and housing markets based on the four criteria outlined above. First, was new information quickly and fully assimilated into pricesSecond, was all available information reflected in the stock priceThird, did prices reflect the known and expected, and respond only to new informationAnd finally, did market prices changes occur in a random manner? In examining the questions, the role of complexity has to be acknowledged. In neoclassical economics model, agents (investors) make the best (optimal) choices regardless of the difficultly of the problem with which they are dealing (Ehrhardt and Brigham, 2008). However, examining the recent economic crisis, one of the key lesson is not that mortgage takers in the sub-prime sector of the housing market did not understand the complicated terms of the mortgages they had been offered, rather the key lesson is that the lenders (the firms that bought these securitised mortgages) did not seem to fully understand the risks that were intrinsic in these assets (Brunnermeier, 2009; Thaler, 2008). As previously noted, innovative financial products introduced into the market, such as mortgage-backed securities, also introduced greater complexity (Mizen, 2008). Acharya et al. (2009, p. 4) outline innovations in financial products that made it unlikely that stock prices and housing prices (1) refle cted all available information or (2) assimilated new information quickly and fully. These are: (1) New exotic and illiquid ?nancial instruments that were hard to value and price; (2) Increasingly complex derivative instruments; (3) The fact that many of these instruments traded over the counter rather than on an exchange; (4) The revelation that there was little information and disclosure about such instruments and who was holding them; and (5) The fact that many new ?nancial institutions were opaque with little or no regulation. Additionally, even when the crisis had been exposed, the magnitude of the bank’s and other financial institutions’ exposure remained unclear, as well as full information on who was at risk through counterparty failure (Acharya et al., 2009). This supports the idea that the lenders did not fully understand the intrinsic risks that in the securitised assets they held as argued by Thaler (2008). According to Acharya et al. (2009, p. 5): Private ?nancial markets cannot function properly unless there is enough information, reporting, and disclosure both to market participants and to relevant regulators and supervisors. When investors cannot appropriately price complex new securities, they cannot properly assess the overall losses faced by ?nancial institutions, and when they cannot know who is holding the risk for so-called toxic waste, this turns into generalised uncertainty. Based on this it can be argued that new information was not quickly and fully assimilated into prices nor was all available information reflected in the stock price during the 2007 crisis. This leaves two questions to be discussed: did prices reflect the known and expected, and respond only to new information and did market prices changes occur in an unpredictable wayThe evidence seems to suggest that neither of these happened. Discussion and Conclusion The EHM has been disputed based on both empirical and theoretical bases, particularly by behavioural economists who ascribe the imperfections in financial markets (such as asset price inefficiencies discussed above) to a range of cognitive biases that include overconfidence (or ‘irrational exhuberance’), overreaction, representative bias, information bias, as well as a range of other unsurprising human errors in reasoning and information processing (Addleson, 1995). For example, DeBondt and Thaler (1985) argue that investors are likely to be affected and involved with the optimism as well as the pessimism of shown by the overall market. This leads to systematic deviation in the prices from the usual fundamental values. This overreaction owing to the past events falls on the same lines as the theory outlined by Kahneman and Tversky (1979), in which investors tend to be overconfident and overoptimistic about the forecasting of their future corporate earnings and stock pric es. The findings support the ‘contrarian strategy’ in which an investors would buy stocks, or at times a group of stocks which have not been performing for long periods of time, while avoiding the ones that have had a good long run over the last few years (DeBondt and Thaler, 1985). Speculative economic bubbles such as the housing market bubble discussed here, tend to be clear anomalies in the market, that is, the market often seems to be driven by buyers operating on irrational exuberance, who then disregard the underlying value of the asset being traded (Ehrhardt and Brigham, 2008). This seems to be the case in the housing bubble. As outlined above, the boom in credit available to households was connected with the creation of marginal assets whose practicability was dependent on favourable macroeconomic conditions continuing for a long period. In America, to some extent the UK (such as with Northern Rock), a great percentage of the mortgage expansion consisted of loans extended to subprime borrowers with little or no credit and employment histories, as outlined above (Claessens, 2009). Debt servicing and repayment were, thus, susceptible to economic downturns and variances in credit and monetary conditions. (Claessens, 2009, p. 3) therefore argues that â€Å" [t]his maximised default correlation across loans, generating portfolios highly exposed to declines in house prices – confirmed ex-post through the large non-performing loans when house prices declined.† Other explanation of motives could also be presented here. For example, Brunnermeier (2009, p. 82) noted that there was a decline in the quality of credit leading up to the crisis as â€Å"[m]ortgage brokers offered teaser rates, no-documentation mortgages, piggyback mortgages (a combination of two mortgages that eliminates the need for a down payment), and NINJA (‘no income, no job or assets) loans.† While this can be blamed on other motives, such as predatory lending, this also occurred because of irrational exhuberance as outlined by Brunnermeier (2009, p. 82): â€Å"All these mortgages were granted under the premise that background checks are unnecessary because house prices could only rise, and a borrower could thus always refinance a loan using the increased value of the house.† These bubbles are typically followed by an overreaction of frantic selling because, the fall in the value of the asset backed by high leverage eventually leads to the forced ?re sale of the asset (Acharya et al., 2009; Brunnermeier, 2009). This was seen in the most recent financial crisis. For example, Bear Stearns’ the funds had lost over 90 percent of their value before the firm almost went bankrupt (Acharya et al., 2009). Similarly, the run on the assets of three structured investment vehicles (SIVs) of BNP Paribas was so severe that BNP Paribas had to suspend redemptions (Acharya et al., 2009). Overall, the discussion contained in this paper indicates that asset-pricing inefficiencies in stock markets and housing markets had a big impact on the events of the financial crisis beginning in 2007. References Acharya, V., Philippon, T., Richardson, M., and Roubini, N. (2009). Prologue: A bird’s-eye view – The financial crisis of 2007-2009: Causes and remedies. In Acharya, V. and Richardson, M. (eds.), Restoring Financial Stability: How to Repair a Failed System (p. 1-56). Wiley. Addleson, M. (1995). Equilibrium versus Understanding: Towards the Restoration of Economics as a Social Science. New York, NY: Routledge. Brunnermeier, M. (2001). Asset Pricing under Asymmetric Information: Bubbles, Crashes, Technical Analysis, and Herding. Oxford: Oxford University Press. Brunnermeier, M. (2009). Deciphering the liquidity and credit crunch 2007-2008. Journal of Economic Perspectives, 23 (1): 77-100. Claessens, S. (2009). The road ahead to a sustainable global economic system. Presented at the Annual Bank Conference on Development Economics (ABCDE) Seoul, Korea, June 22-24. Available online at http://siteresources.worldbank.org/ INTABCDESK2009/Resources/Stijn-Claessens.pdf [accessed 20 January 2011]. Crouhy, M., Jarrow, R., and Turnbull, S. (2008). The sub-prime credit crisis of 2007. The Journal of Derivatives, 16 (1): 81-110 De Bondt, W. and Thaler, R. (1985). Does the stock market overreactThe Journal of Finance, 40 (3): 793-805. Ehrhardt, M. and Brigham, E. (2008). Corporate Finance: A Focused Approach.Mason,OH: South-Western Cenage Learning. Granger, C. (1992). Forecasting stock market prices: Lessons for forecasters. International Journal of Forecasting, 8 (1): 3-13. Kahneman, D. and Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47 (2): 263-292. Mizen, P. (2008). The Credit Crunch of 2007-2008: A discussion of the background, market reactions, and policy responses. Federal Reserve Bank of St Louis Review, September/October: 531-568. Nastase, M., Cretu, A., and Stanef, R. (2009). Effects of global economic crisis. Review of International Comparative Management, 10 (4): 691-699. Shaffer, S. and Hoover, S. (2007). Endogenous screening, credit crunches, and competition in laxity. Review of Financial Economics, 17 (4): 296-314. Thaler, R. (2008). 3Q2008. Fuller Thaler Asset Management. Available online at http://www.fullerthaler.com/reviews/newsltr2008Q3.pdf [accessed 20 January 2011]. How to cite Economical Analysis of Asset Prices, Essay examples

Accounting Systems Designs and Development

Question: Discuss about theAccounting Systems Designs and Development. Answer: Introduction Valle del Lili foundation a private non-profit firm found in 1982 aims at delivering tertiary medical care. The organization offers clinical care in more than sixty medical specialties. It also serves as a teaching hospital where ICESI University medical students receive training. As of 2006 they embarked on an ambitious plan of expanding their services offering through the construction on new facilities holding new additional beds, emergency room and ambulatory service. As of December 2010, the number of beds after the ambitious action had increased by 60%. Hence, the growth tends to put tremendous pressure on all patient delivery procedure. Looking at integrated information system aspects that VLF has handled well include; the head of the ICU has developed a type of relationship with the full time doctors which tends to act as a cornerstone for medical care being provided around the clock at the health centre. Hence, this tends to be significant because as there is integration in the information system, it gives the doctors the ability to understand nature of patients they serve; there are also other medical specialists scheduled to be either on hand or on call. Hence, this makes every doctor practice good medicine, advance their physician skills and develop high standards in the firm (Bumgarner, 2013). Hiring of Compunet to implement SAP and develop applications and need to carry out application needed for the purpose of carrying out the synapsis project was an ambitious step. It came out to be an important factor because it would include 2,200 end users. Mapping out what they want to achieve was a significant step; this is because it developed an expeditious approach where there is efficiency in supply chain management, accountability, maintain-ace and effectiveness of the human resource; whose business process was totally in-line with SAP functionality. In regards to the controls that VLF put in place so as to mitigate the restraining forces of change, they developed an ambitious objective. More than electronic medical records they integrated the clinical and administrative procedures through unified picture of the entire delivery process. Hence, they rose to the challenge by project governing. Here, component manager joined the synapsis team, as the executives committees were responsible for all decisions (Haggar, 2007). To avoid the challenges and maintain a successful transition, they involved a wide range of stakeholders in the designing team. Gomez states that he remembers appointing his best nurses who were familiar with delivery procedure, both clinical and administrative. The suggestion developed by Compunet of forming a cross-functional design team of VLF subject tends to matter to experts and component to consultants. In this case, every team was too led by a consultant known as integrator who was held responsible for the entire process (Wu Zhu, 2014). During other instances the CEO met regularly with synapsis committee for assessment of the project progress, as well as solving impasses that developed between component consultants and designing teams. Hence, this was a vital step to tackle the challenges emerging as there is efficiency in the project developed (Craig, 2006). References Bumgarner, V. (2013).Implementing Splunk: big data reporting and development for operational intelligence. Birmingham, Packt Pub. Su, D., Zhu, S. (2014).Advanced design and manufacture V Haggar, S. E. (2007).Sustainable industrial design and waste management: cradle-to-cradle for sustainable development. Amsterdam, Elsevier Academic Press. Craig, R. L. (2006).The ASTD training and development handbook: a guide to human resource development. New York, McGraw-Hill.