...The Financial crisis was it necessary or just another way to make money ? Banks have been around for years ,and in the coming foreseeable sure that wont change.Money is what drives our economy in every way possible.We buy food with it and shelter and buy far it is the safest way to keep your money.Since we have inflation which means that your money is always becoming less valuable each year.As you can see from the reports(inflation table refer to table 1).Inflation can happen to every product whether it's a normal item like a cell phone or a house.This is the main reason why we keep our money in banks if we just keep our savings on us all the time we would lose money.Banks are the next best thing along with stocks and bonds...
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...Almost seven years out of the 2008 Financial crisis, the global economy has begun to show signs of modest stability and growth. In fact, the U.S. and other advanced economies have anticipated abandoning quantitative easing and raising interest rates by the end of 2015 or early 2016. However, as many economies show signs of promise, the second biggest economy in the world, China has begun to falter. What had been the shinning spot in the global economic landscape for the past 30 years, 2015 has proven to be a challenging year for the nation. Over the course of the year, China has experienced plummeting stock markets, interest rate cuts and stagnant growth rates compared to years past. As the world has become more financially intertwined the...
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...Assignment Case Study of Iceland FinancIal Collapse MBA in Marketing&Communication “The most spectacular bankruptcy of the 2008 financial crisis was the collapse of Iceland's financial system. This collapse is especially intriguing as Iceland is not an underdeveloped country!” ---EHMAN BROTHERS Introduction Iceland is an independent Nordic European island country situated at the confluence of the North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge. Its traditional industries are fishing, processing of fish, aluminum, and strong energy industry. During several years of economic boom, the Icelandic financial system expanded considerably. A nation with a slight population erected a banking system whose total assets were 10 times the size of the country's GDP. Greedy bankers, inexperienced upstairs, corrupt political elite, the deregulation of the financial system, make the banking sector grew faster than any other sector of the Icelandic economy. Following the global financial crisis in 2008, Iceland became the most dramatic economic meltdown. The key problem with the banks essentially owning all the bankrupt highly leveraged business (that were and are essentially good ocean harvesting fishing business) and the downgrade in sovereign debt rating led to capital flight. With the collapse of exchange rate of Krona, 3 main banks (Landsbanki, Kaupthing and Glitnir) are nationalized because of the serious liquidity problems of banks. By the end of 2008 rate of price inflation...
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...Modern Portfolio Theory in the Modern Economy: MPT During the Credit Crisis 0f 2008 Abstract There are various theories of risk and return as it pertains to measuring and predicting investment return in a portfolio- one of the oldest and most prominent being Modern Portfolio Theory .An example of a hypothetical portfolio utilizing the principles of MPT invested during the credit crisis of late 2008/early 2009 will be utilized in part. In direct application, does Modern Portfolio theory hold strong during a major financial crisis? Past research will be compared to present the mechanics and applications of MPT order to answer the questions poised and to create hypothetical portfolios based on past fund performance during the time period of 2007 -2010. It is expected that a portfolio using MPT would not have performed significantly better than any other less diversified investment. Contents Introduction……………………………………..........................................................................4-7 Credit Crisis Thesis Statement Modern Portfolio Defined Prior Research Prediction Method…………………………………………………….........................................................8-9 Parameters/ Source of Portfolios Results……………………………………………………......................................................10-19 A. Application/ graphs Conclusion…………………………………………...............………………………............19-20 Restatement of Thesis Discussion of Results Limitations Recommendation References……………………………………………………………………...
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...Final Project Part One: Impact of Global Financial Crisis on Air Transport in the U.S Embry-Riddle Aeronautical University MBAA 522 – Business Research Methods For: Dr. Barry Bauer March 15, 2015 Introduction This research paper examines the origins of the 2008/2009 world financial crisis and the impact that the crisis had on air transport in the United States of America. Although the crisis originated in the economies of North America and Europe, its effects were global with particular serious implications for economies of the developing countries including my country, Zambia. The maximum blame of the crisis is pointed at the money lenders who created such problems as it is believed that it was the lenders in the developed nations who lent funds to people with poor credit and a high risk of default. Therefore, in an effort to address the crisis, the American Federal Reserve flooded the markets with increasing capital liquidity in order not only to lower interest rates but to also broadly depress risk premiums as investors sought riskier opportunities to bolster their investment returns (Craig, 2013). As we all know that aviation is one of the most important pillars of the global economy as it provides millions of jobs globally and contributes heavily in the global gross domestic products of a number of countries. To this effect, the aviation sector which is one of the fastest growing industries had to face negative growth rate while some aviation companies were...
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...The impact of the global financial crisis on social services TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................... 1 1. 2. Introduction ...................................................................................................................2 Background: an overview of the financial crisis........................................................ 4 2.1 2.2 2.3 Origins of the global financial crisis .....................................................................................4 Impacts on the real economy...............................................................................................4 Implications for the economic outlook..................................................................................5 Macroeconomic overview ....................................................................................................6 Key impacts on low-income households............................................................................13 The social services sector..................................................................................................17 Services provided to individuals and families ....................................................................21 Capacity of the system to deliver .......................................................................................27 3. Australia’s economic outlook ......................
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...FISV 3040 Money & Capital Market Research Paper On Financial System Reform Presented to Professor Jean Holt October 29, 2015 Prepared by Yi Que Abstract: 1998-2013: An Analysis of the Tangible and Intangible Costs of Financial Regulatory Reform and Deregulation (The Financial Institutions Deregulation and Reform Act 1999* and the Dodd-Frank Act 2010) on United States Capital Markets and Institutions as measured by Debt Loan Types and Bank Profitability. Key words: Glass-Steagall Act, Financial Institutions Deregulation and Reform Act, Dodd-Frank Act, investment bank, financial statements. II. Table of Content I. Cover Page1 II. Table of Content2 Abstract, key works2 III. Introduction3 IV. Statement of Problem5 V. Background12 V. Results from Research & Summary13 VI. Works Cited 14 III. Introduction United Sates financial reform dates from the last century, in 1930s’ Great Depression. To have a brief talk about US financial reform, which is a long and arduous project. Aim to reach the goal that has to include three important acts: Glass-Steagall Act, Gramm-Leach-Bliley Act, and Dodd-Frank Act. Throughout history, the financial system in US has experienced the mixed operation and separated operation processes, as well as various financial institutions and regulatory authorities continue to be perfected. US financial reform and innovation continue to promote the US economy continues to develop and progress. Next, I will briefly introduce each act in the basic...
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...NAME: JOHNNY GROUP: ECONOMICS 3 Essay title critically analyse the causes of the global financial crisis in 2008. Consider how such a crisis can be avoided in future. Bibliographical entry: Krugman, P. (2009). The return of depression economics and the crisis of 2008. New York: W. W. Norton & Company, Inc. Summary Krugman shows how the failure of management made the USA and the world experience the serious economics crisis since the 1930s. He also analyses the reasons why that the world economy moved into a deep recession in recent years. In addition, the irrational fiscal policy of the U.S.A. and Greenspan’s bubbles and the problems of banking are also explained by Krugman. Authority Krugman is the winner of the 2008 Noble Prize in economics. He is a high level author, columnist and blogger, and teaches economics and international affairs at Princeton University. Currency This book was published in 2009. It talks about not only the causes of the financial depression in 2008 but also the history of economic depression in the past. Although this book is not so recent, it can be used for my essay. Accuracy This book does not contain any references, but gives the authority of the author. From my reading of this book, it appears to be a reliable source. But, I analyse everything critically including this book. Audience The contents of this book are very academic, which requires economic background for the reader. So, it is very...
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...The Financial Crisis of 2007-2008; Summary In Financial Crisi of 2007- 2008, a series of bank and insurance company failures triggered a financial crisis that effectively halted global credit markets and required unprecedented government intervention. Fannie Mae (FNM) and Freddie Mac (FRE) were both taken over by the government. Lehman Brothers declared bankruptcy on September 14th after failing to find a buyer. Bank of America agreed to purchase Merrill Lynch (MER), and American International Group (AIG) was saved by an $85 billion capital injection by the federal government. Shortly after, on September 25th, J P Morgan Chase (JPM) agreed to purchase the assets of Washington Mutual (WM) in what was the biggest bank failure in history. In fact, by September 17, 2008, more public corporations had filed for bankruptcy in the U.S. than in all of 2007. These failures caused a crisis of confidence that made banks reluctant to lend money amongst themselves, or for that matter, to anyone. The crisis has its roots in real estate and the subprime lending crisis. Commercial and residential properties saw their values increase precipitously in a real estate boom that began in the 1990s and increased uninterrupted for nearly a decade. Increases in housing prices coincided with the investment and banking industry lowering lending standards to market mortgages to unqualified buyers allowing them to take out mortgages while at the same time government deregulation blended the lines between...
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...org/en/development/desa/policy/wesp/index.shtml World Economic Situation and Prospects Executive Summary 2012 1 Executive Summary Global economic prospects for 2012 and 2013 The world economy is on the brink of another major downturn The world economy is teetering on the brink of another major downturn. Output growth has already slowed considerably during 2011 and anaemic growth is expected during 2012 and 2013. The problems stalking the global economy are multiple and interconnected. The most pressing challenges lie in addressing the continued jobs crisis and declining prospects for economic growth, especially in the developed countries. As unemployment remains high, at nearly 9 per cent, and incomes stagnate, the recovery is stalling in the short run owing to the lack of aggregate demand. But, as more and more workers are out of a job for a long period, especially young workers, medium-term growth prospects will also suffer because of the detrimental effect on workers’ skills and experience. The rapidly cooling economy has been both a cause and an effect of the sovereign debt crisis in the euro area, and of fiscal problems elsewhere. The sovereign debt crises in a number of European countries worsened further in 2011 and aggravated weaknesses in the banking sector. Even bold steps by the Governments of the euro area countries to reach an orderly sovereign debt workout for Greece have been met with continued financial market turbulence and heightened concerns of debt default in some of the...
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...Contents Terms of Reference; 3 Executive Summary; 5 Introduction; 6 Methodology; 7 Findings; 8 KLM-Air France 8 Aer Lingus 9 Conclusion 10 Bibliography 11 Terms of Reference; This report has the objective of informing the reader on the approach of two companies to the ongoing financial crisis from 2009 and on. By the means of a comparative analysis, the reader will get a summarized overview of the measures of the two companies and will be able to reflect on them. There are two persons involved in this project; It will be written and submitted by Julian Koster. The final assessment will be done by the lecturer, Ms. Gina Noonan. Who is also responsible for correcting the drafts as well as grading the report in the end. The timeframe of this project is as follows; Date: | Event: | October 25, 2011 | First Draft of Executive Summary submission. | November 8, 2011 | First Draft of Methodology submission. | November 15, 2011 | First Draft of Comparative Analysis and Conclusion. | December 2, 2011 | Final Submission of Entire Project. | The structure of the report is made up of the following points; * Cover Page * Table of Contents * Terms of Reference * Methodology * Executive Summary * Comparative Analysis 1. KLM-Air France 2. Aer Lingus * Conclusion * Bibliography Executive Summary; This report was written to examine the way in which two companies handled the economic crisis of the late 2000s. The companies are;...
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...A period of economic difficulty that consumers and markets are experiencing world-widely is known as global financial crisis (BusinessDictionary, 2015). It occurs when there is an increase in asymmetric information coming from disruptions in financial system that is interrupting the funds from channelling efficiently between savers and households as well as preventing firms from having productive investment opportunities (Mishkin and Eakins, 2012, pp. 204). The recent global financial crisis began in the year of 2007 and the intensity increased in the subsequent year. Global financial crisis in 2007 happened as result of a number of factors such as government mandated subprime lending, imprudent mortgage lending, housing bubble, securitization and a few other more factors, which will be discussed. Causes The government mandated subprime lending has contributed to the financial crisis by promoting affordable housing under Community Reinvestment Act (CRA) as well as Fannie Mae and Freddie Mac. Through affordable housing, banks were encouraged to participate in imprudent mortgage lending as mandated by the federal in order to help low-income borrowers, which imprudent mortgage lending is another cause that contributed to the global financial crisis (Jickling, 2009). As a result of mortgage lending, low-income families are able to purchase houses that they are not be able to afford to purchase without the policy. The loans require low or no down payments and limited documentation...
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...Executive Summary It is important for companies and investors to have a firm understanding on the forces driving exchange rate changes as these would affect investment and financing opportunities. This report analyzes the movements of three currencies, Australian Dollar (AUD), Icelandic Krona (ISK), and Indian Rupee (INR) against US dollar, and suggests events that may cause the violations of three chosen currencies. Analysis shows that factors including but not limited to inflation rates, interest rate differences, foreign investment as well as demand and supply of domestic currency are highly correlated with exchange rate changes in chosen currencies. Based on the analysis, Purchasing Power Parity is used to forecast spot exchange rates of those chosen currencies in one-year and three-year time. Rationales and limitations of PPP are also given to analyze the forecasts of three currencies. Table of Content 1.0 Introduction 1 2.0 Question 1 1 2.1 AUD/USD 1 3.0 Question 2 4 3.1 ISK/USD 4 3.2 INR/USD 6 3.3 Common Events that May Have Influenced the Exchange Rate Changes 8 4.0 Question 3 9 4.1 Forecast of Currencies 9 4.2 Forecast of AUD 10 4.3 Forecast of ISK 11 4.3 Forecast of INR 11 4.3 Comments on the Forecasts 12 References 13 Figures & Tables Figure 1 Exchange Rate of AUD/USD Over Five Years 1 Figure 2 Percentage Change of AUD/USD Exchange Rate 2 Figure 3 Trends of AUD/USD and Gold Price 2 Figure 4 AUD/USD Exchange Rate and Interest...
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...[pic] Report On Global Financial Crisis: Recovery and Challenges “In the perspective of United States of America” Course Details: Fin603: Financial Institutions & Market Section: 01 Submitted to: Dr. Salehuddin Ahmed Professor BRAC Business School BRAC University Submitted by: Group- 5 |SL. |Name |ID No. |Signature | |1 |Mohammad Ishtiaque Hossain |14164090 | | |2 |Kazi Golam Faisal |14364071 | | |3 |Nurshia Jahan |13264009 | | Submission Date: November 17, 2015 LETTER OF TRANSMITTAL November 17, 2015 Dr. Salehuddin Ahmed Professor BRAC Business School BRAC University Subject: Submission of the report paper on ‘Global Financial Crisis: Recovery and Challenges’ Dear Sir, I hereby submitting the final version of the term paper on behalf of my group on ‘Global Financial Crisis: Recovery and Challenges’ that you asked us to submit on November 17, 2015 as our report paper. The paper is a part of the course Fin 603: Financial Institutions & Market under MBA program. The main purpose of this paper was to determine the theoretical aspects of global financial crisis and recovery and challenges...
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...2009 (on-line only) * “Argentina threatens inflation analysts with fine” Financial Times, Feb 4, 2010 *“What’s the Point of Macro?” by Dylan Grice *“An Inflation Debate Brews Over Intangibles at the Mall” Wall Street Journal, May 9, 2005 *“Measuring What Matters” The Economist, September 17, 2009 Weeks 2 and 3: International economic growth and development Capital accumulation Robert E. Hall and Charles I. Jones, "Why Do Some Countries Produce So Much More Output per Worker than Others?" Quarterly Journal of Economics, February 1999, Vol. 114, pp. 83-116. *John Fernald and Brent Neiman, “Growth Accounting with Misallocation: Or, Doing Less with More in Singapore” AEJ Macroeconomics, 3(2) April 2011 (Better than the optional article on the reading list, that you can still google.) Institutions “The Road to Hell is Unpaved” Economist, December 19, 2002 (on-line only) The Panda has Two Faces, The Economist, March 31, 3010 (on-line only) “Mad, Bad and Dangerous to Know” The Economist, Jan 14, 2010 (on-line only) Openness *“The Free Trade Fix” New York Times Magazine, August 18, 2002 *Blinder, Alan, “Offshoring: The Next Industrial Revolution?” Foreign Affairs, March/April 2006, pp. 113-128. Financial Markets “The Start of a Crisis, Through the Lens of Avis” New York Times, March 24, 2009 (on-line only) “Link by Link” The Economist, Oct 16, 2008 (on-line only) Technological progress Week 4: Money, inflation, banking...
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