Free Essay

A Crisis of Values

In:

Submitted By aryan22
Words 961
Pages 4
A crisis of values
With the recent financial crisis, many private economies in the Western world have been affected. Families have had to face the fact that they can’t keep up the life style they have grown accustomed to. But could the recession be a wake-up call, an opportunity to see things in a different light and change disadvantageous behaviors? In his short story, “The Decline of the West”, Hanif Kureishi puts this theme on the agenda. After losing his income, a family father realizes that his family is highly dysfunctional and that his family members value his money more than anything else.
The main character is a 45-year old man named Mike who works in corporate finance. Together with
Imogen, his reproachful and discontent wife, he has two sons of 15 and 11 years. Mike sees himself as a hard-working man and works at least 12 hours a day. He has provided his family with a nice house in a good neighborhood, an au pair and all sorts of material goods, but still no one is happy. The story is told from
Mike’s point of view which gives us an insight into his feelings and thoughts about himself as a provider for the family, “I paid for this with my time, intelligence, and the education the state provided me with” (ll. 18-19). We get the impression that Mike sees himself as a good man who gives and gives while his family is never satisfied, “As the boys liked to point out, other children at their school lived in bigger places; their fathers were bosses of record companies or financial advisers to famous footballers…” (ll.24-26). Mike’s view of himself is in sharp contrast to the negative image of him we get from the dialogue in the short story and especially from his son Tom, “What have you ever done for me?” (l. 62). Even his wife seems to be on their side and doesn’t support her husband in any way, “You’ve spoiled and neglected him, you ridiculous, foolish man. And now you expect him to obey you!” (ll. 134 -135). Because of the short story’s point of view we get the impression that the boys and wife are completely unreasonable and ungrateful.
The main character has certain expectations of what his family life should be like. He admits that his au pair sees more of his family than he does, but still he looks forward to coming home after a long day. However, the reality that faces him when he walks in the door is far from his picture perfect dream: The others have already eaten, the boys are playing a violent video game and his wife trudges around in sloppy clothes. The family seems not only unhappy but extremely greedy. No matter what they have, they always want more.
Even Imogen acts as a spoiled child, even though she is privileged enough not to have to work and only does charity work to “appear generous” (l. 139). She doesn’t take her husband seriously and seems very unrealistic when it comes to money. Mike tries to remind her of the financial crisis, but she mocks him,
“Ha! Any excuse to let people down” (l. 149).
Studienet.dk-278461-8739542

murwared, molwolly7@hotmail.com

Dette dokument er en personlig udgave hentet fra Studienet.dk, og det er ikke tilladt at dele dokumentet med andre.
The short story paints a looming picture of today’s family values in the Western world. The title, “The
Decline of the West” can be interpreted in this context. Sure enough the most obvious meaning of the title is a reference to the financial crisis, but there is another way of looking at it which might be more interesting. The grotesque overconsumption and extreme focus on material goods in the Western world might have done serious damage to fundamental values in our societies. We forget what is really important in our everyday lives and only focus on having the latest gadget and keeping up appearances. Mike’s family is an example of this tendency and the title might therefore refer to a decline in traditional values like solidarity, intimacy and emotional rather than financial security.
Mike seems to have lost control of his life and feels that everything is hopeless now that he has lost his job.
An example of this is when he links the security issues of 9/11 to financial security (l. 45). He is not afraid of terror, but of losing his current income. Even though he has a healthy family and lives in a nice neighbourhood, he is very quick to think of leaving this world altogether in order to escape financial troubles, “How easy it was to fall, and how tempting it was- suddenly would be best – to die” (ll. 100-101).
He has no idea what else there is for him to do now and he even looks down on those of his colleagues who are thinking of changing to a completely different profession just to make ends meet, “Mike, at forty-five, had no idea what he would do. First he had to lose everything” (ll. 72-73).
The short story, “The Decline of the West”, sheds a critical light on the values of the Western world, its materialism and possibly wrong priorities. It depicts a family which truly has a crisis of values, but doesn’t even realize it yet. Although the reader is left with the feeling that Mike must have a revelation, the main character himself doesn’t seem to reach this conclusion. Instead, he seems despairing and depressed.
Having to exchange a luxurious life style for a middle class existence then seems a chaotic task rather than a welcome opportunity to change track.

Similar Documents

Premium Essay

Fair Value Accounting in Crisis

...Fair value accounting and financial stability The recent financial crisis gave boost for intense policy discussion over fair value accounting among US Congress, the European Commission, and banking and accounting regulators all over the world. Critics state that fair value accounting had significant impact on the financial crisis and over exaggerated its force for financial institutions around the world. On the other hand, there those who oppose that fair value accounting was just a measurement tool of measuring assets. Currently both Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB) escalated their efforts towards establishment of a single source of guidance for all fair value measurements and clarification of the definition of fair value and related guidance. The IASB is aiming to complete all phases of replacement of IAS 39 Financial Instruments: Recognition and Measurement by IFRS 9 Financial Instruments by 30 June 2011, which would apply to financial statements for annual periods beginning on or after 1 January 2013. In this essay I will provide different opinions for fair value accounting and whether those arguments give potential for further research. First, the essay will provide genesis of fair value accounting and reviews researches dedicated to this issue. Second, the paper will comment on FVA role in the financial crisis and its contribution to it. Third, the essay will analyze historical cost accounting and show that...

Words: 275 - Pages: 2

Premium Essay

Fair Value Accounting Under Financial Crisis

...June 2010, Vol.6, No.6 (Serial No.61) Journal of Modern Accounting and Auditing, ISSN 1548-6583, USA Fair value accounting under financial crisis HE Cai-xia1, ZHANG Chi2 (1. School of Accounting, Zhongnan University of Economics and Law, Wuhan 430073, China; 2. School of Management, Huazhong University of Science and Technology, Wuhan 430073, China) Abstract: The recent financial crisis has led to a vigorous debate about the pros and cons of fair-value accounting (FVA). This debate presents a major challenge for FVA going forward and standard setters’ push to extend FVA into other areas. In this article, we highlight three important issues as an attempt to make sense of the debate. First, much of the controversy results from confusion about what is new and different about FVA. Second, while there are legitimate concerns about marking to market (or pure FVA) in times of financial crisis, it is less clear that these problems apply to FVA as stipulated by the accounting standards, be it IFRS or U.S. GAAP. Third, historical cost accounting (HCA) is unlikely to be the remedy. There are a number of concerns about HCA as well and these problems could be larger than those with FVA. Key words: fair value accounting; historical cost accounting; financial crisis 1. Introduction The recent financial crisis has turned the spotlight on fair-value accounting (FVA) and led to a major policy debate involving among others the U.S. Congress, the European Commission as well banking...

Words: 2462 - Pages: 10

Premium Essay

Did Fair-Value Accounting Contribute to the Financial Crisis?

...24, Number 1—Winter 2010—Pages 93–118 Did Fair-Value Accounting Contribute to the Financial Crisis? Christian Laux and Christian Leuz I n its pure form, fair-value accounting involves reporting assets and liabilities on the balance sheet at fair value and recognizing changes in fair value as gains and losses in the income statement. When market prices are used to determine fair value, fair-value accounting is also called mark-to-market accounting. Some critics argue that fair-value accounting exacerbated the severity of the 2008 financial crisis. The main allegations are that fair-value accounting contributes to excessive leverage in boom periods and leads to excessive write-downs in busts. The write-downs due to falling market prices deplete bank capital and set off a downward spiral, as banks are forced to sell assets at “fire sale” prices, which in turn can lead to contagion as prices from asset fire sales of one bank become relevant for other banks. These arguments are often taken at face value, but evidence on problems created by fair-value accounting is rarely provided. We discuss these arguments and examine descriptive and empirical evidence that sheds light on the role of fair-value accounting for U.S. banks in the crisis. While large losses can clearly cause problems for banks and other financial institutions, the relevant question for our article is whether reporting these losses under fair-value accounting created additional problems. Similarly...

Words: 15964 - Pages: 64

Premium Essay

Counteracting the Global Economic Crisis: Values, Institutions, Policies.

...Counteracting the global economic crisis: values, institutions, policies. When talking about the broad and complicated subject of economic crisis, it is important to mention ideas concerning neutralization of its consequences and prevention of future calamities. The current disturbance in the global economy requires not only to understand how it was initiated, but also how to counteract and draw conclusions from it. The Chinese proverb says: “may you live in interesting times.” These times are now- financial markets are in turmoil, China is rising as economic power, young people from Europe and America are protesting against, what they see as ineffective government and regulations. In next years the world will change even more- also thanks to changes, that will be made as an answer to the global economic crisis- in terms of values, necessary institutions and policies. The first step toward ending the crisis is to introduce new regulations, that would stabilize the market. Since 1980’s the American financial market has been experiencing a long period of deregulation. Although the obvious results of this move- the example can be the deregulation of savings and loans companies, that led to crisis in 1989, the process continued. Decade later, in 1990’s the new market instruments- derivatives, became increasingly popular. Although, their allies argued that they would stabilize the market, the opposite happened. Any attempt to regulate hedge funds was cut out by Commodity...

Words: 902 - Pages: 4

Premium Essay

Fair Value Accounting and the Gfc

...With the Global Financial Crisis came the search for answers as to what led to the meltdown in the United States mortgage market and ultimately the rest of the world economy. Speculation was rife that accounting standards, in particular, fair value accounting was the prime reason for this significant meltdown. “This sparked a fierce debate with some experts believing that fair value accounting was primary cause of the crisis whilst others considered that it exacerbated it. On the other side of the debate were those commentators that believed that fair value accounting was successful in acting as an early warning system and effectively prevented more calamitous consequences.” (Pabuccu, 2011) In response to this speculation, the International Accounting Standards Board (IASB) and the Australian Accounting Standards Board (AASB) immediately took action to review this matter and implement the necessary changes to address the uncertainty surrounding Fair Value accounting. Body Due to the economic significance of the crisis, financial commentators around the world analysed the situation, made comment, pointed the finger; and laid blame for this event. Due to the speculation, a ferocious debate commenced, with many of them believing that fair-value accounting was the primary cause of this event. Bubbles and Busts have occurred throughout history and are closely linked to the periods preceding a financial crisis. According to McMahon (2011), “fair-value accounting amplifies business...

Words: 1804 - Pages: 8

Premium Essay

Ifrs Impact on French Banks

...measures impact on French bank securities volatility during the financial crisis In Group with Mr Duchemin and Mr Melloul Benjamin CNUDDE Introduction: The world of finance is from now global and has huge repercussions all over the planet as we could see during those last years of the recent recession. The subprime crisis triggered in the United States during the second half of 2006 has quickly turned into an international financial crisis with huge repercussions on the European financial markets. Banks and financial intermediaries were particularly affected by it because of the fair value accounting for financial instruments. As we all know, the real estate crisis in the United States has been the triggering element of the financial crisis which has initiated the international financial crisis we are facing now. Credit rarefaction and an obvious rise of market volatility were the fundamental consequences of the crisis. And to stop the proliferation of the crisis worldwide (especially provoked by the “toxic” assets owned by banks) comes the International Accounting Standards Board (IASB) intervention. We will discuss if such an intervention has managed to prevent a rise of the French banks securities volatility. In the financial crisis we are passing through, many personalities criticized the installation of IFRS (International Financial Reporting Standards), and notably concerning the impact on fair value. According to Christine Lagarde (French Minister of Economy, Industry...

Words: 2351 - Pages: 10

Premium Essay

How Did Financial Reporting Contribute to Financial Crisis

...How did Financial Reporting Contribute to the Financial Crisis? Mary E. Barth & Wayne R. Landsman a a b Graduate School of Business , Stanford University , Stanford, CA, USA b Kenan–Flagler Business School , University of North Carolina at Chapel Hill , Chapel Hill, NC, USA Published online: 07 Jul 2010. To cite this article: Mary E. Barth & Wayne R. Landsman (2010) How did Financial Reporting Contribute to the Financial Crisis?, European Accounting Review, 19:3, 399-423, DOI: 10.1080/09638180.2010.498619 To link to this article: http://dx.doi.org/10.1080/09638180.2010.498619 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the...

Words: 13452 - Pages: 54

Premium Essay

Strategic Plan

...Strategic Plan, Part I Joanelle Jones BUS/475 March 22,2012 Robert Smith Strategic Plan, Part One A Way out Women’s Crisis & Family Outreach Center is a non-profit business organization. The author would like to develop and start this organization in the near future. This paper serves as a preliminary business plan. The organization’s services and customers are defined within the mission statement. The vision clearly states the direction the organization hopes to achieve in the future. The principals and values are defines as they relate to social responsibility, ethics and the organization’s culture. The conclusion analyzes how our mission, vision, and values that guide our strategic direction and how the organization addresses the needs of whom we aim to serve. Mission A Way Out Women's Shelter and Crisis Center is as support based family shelter that thrives to help our communities STOP domestic violence and sexual assault. In the process, it is our desire to help clients within our communities that wish to create better lives for themselves and their children. Our Crisis center provides quality residential and non- residential services to woman and children who are victims of domestic and sexual violence. The Way out Woman Shelter and Crisis Center is a non-profit, 501(c) (3) organization comprised of members throughout the state of Arkansas and services Pulaski, Faulkner, Saline Counties and rural communities as well who share the conviction that violence...

Words: 1132 - Pages: 5

Premium Essay

Fair Value Accounting

...Did Fair-Value Accounting Contribute to the Financial Crisis? Christian Laux and Christian Leuz I n its pure form, fair-value accounting involves reporting assets and liabilities on the balance sheet at fair value and recognizing changes in fair value as gains and losses in the income statement. When market prices are used to determine fair value, fair-value accounting is also called mark-to-market accounting. Some critics argue that fair-value accounting exacerbated the severity of the 2008 financial crisis. The main allegations are that fair-value accounting contributes to excessive leverage in boom periods and leads to excessive write-downs in busts. The write-downs due to falling market prices deplete bank capital and set off a downward spiral, as banks are forced to sell assets at “fire sale” prices, which in turn can lead to contagion as prices from asset fire sales of one bank become relevant for other banks. These arguments are often taken at face value, but evidence on problems created by fair-value accounting is rarely provided. We discuss these arguments and examine descriptive and empirical evidence that sheds light on the role of fair-value accounting for U.S. banks in the crisis. While large losses can clearly cause problems for banks and other financial institutions, the relevant question for our article is whether reporting these losses under fair-value accounting created additional problems. Similarly, it is clear that determining fair values for illiquid...

Words: 14541 - Pages: 59

Free Essay

Crisis in Greece

...CRISIS IN GREECE: STUDY OF THE FACTORS THAT LED TO THE CRISIS. A Research Paper: Under The Guidance of:Dr Somesh Kumar Mathur Indian Institute of Technology Kanpur Pankaj Kumar Y8333 Sanchit Singhal Y8442 Sulabh Boudh Y8513 INTRODUCTION Greece is currently facing a very severe crisis, with expectations of a sovereign default as Greece confronts with the second highest budget deficit, as well as the second highest debt to GDP ratio in the EU. The paper uses insights from the literature to offer an analytical treatment of the crisis in Greece. The crisis itself is very likely to be a result of:    The gradual worsening of Greek macroeconomic Fundamentals over 2000-2009 to levels discrepant with other EU members. A shift in market expectations, from a scenario of credible commitment to future EU participation to a scenario of non-credible EU commitment without fiscal guarantees, respectively occurring in November 2009 and February/March 2010. The pricing by markets of a (previously nonexistent) default risk that follows the withdrawal of an implicit guarantee on Greek debt by other EMU countries (mainly Germany). Interestingly, our account of the 3 factors sparking and escalating the crisis also helps explain why prices on Greek government bonds have not recovered but continued to plummet following the announcement of the EU/IMF rescue plan. Our analysis suggests that the involvement of an external institution like the...

Words: 890 - Pages: 4

Free Essay

Family Firm

...2006). And as a factor that influences the performance of family firm, family business governance can be seen as one of the most important determinant of family firm success. It is more easily to test the performance of the firm during the hard time which provides an extreme environment to clearly show the differences between the performance of family firms and non-family firms. And the latest global financial crisis in 2008 provides such an ideal setting investigating such a topic due to its magnitude and global scale (Haoyong Zhou, 2012). In this paper, whether family firms performs better during hard time especially in a financial crisis will be critically discussed based on Haoyong Zhou’s recent work. He provided that to be specific, family firms do not perform better in the crisis while it is the companies with founder presence do outperform non-family firm due to different agency cost, investment strategy and access to credit market. Generally, in order to give a critical review to the assertion that family firms are better performers in a financial crisis, zhou’s evidence will be reviewed in the second part followed by some more discussion about...

Words: 1924 - Pages: 8

Premium Essay

The Impact of Asia Crisis on Us Industry

...Harrigan The Impact of the Asia Crisis on U.S. Industry: An Almost-Free Lunch? • The large devaluations experienced by Korea, Malaysia, Thailand, and Indonesia beginning in the summer of 1997 raised concerns that imports from these countries would soar while demand for U.S. exports weakened, causing U.S. industries to suffer. W • As it turned out, manufactured imports from the four countries rose only slightly, and the decline in U.S. exports was not large enough to have a significant effect on trend output for most industries. • The one exception to this pattern was the steel industry: there, sharply rising imports and falling exports led to a drop in output and prices. • Overall, the United States enjoyed an “almost-free lunch” in the wake of the Asia crisis. Cheaper imports benefited consumers, and domestic production and employment were largely unhurt. hen the Asia crisis erupted in the summer of 1997, many forecasters predicted that one effect would be an end to the economic boom in the United States. Surely, it was argued, the drop in demand for U.S. exports combined with surging import volumes would finally be enough to slow the U.S. economy. It did not happen. Indeed, the Asia crisis’ overall effects on the United States were small.1 In terms of trade flows, total manufactured imports from the Asian countries affected by a currency collapse—Indonesia, Korea, Malaysia, and Thailand, which I will refer to as the “Crisis 4” countries—grew only slightly...

Words: 4681 - Pages: 19

Free Essay

Finance 190 Acc Paper

...Dzhalil Atakeev Finance 190 Professor Shlyakhov 10/21/2013 Asian Currency Crisis The Asian Currency Crisis started in Thailand. The crisis just reflected structural and policy misinterpretation of the Asian region. Fundamental imbalances triggered the currency and financial crisis in 1997, due to crisis markets overreaction and herding caused the plunge of exchange rates, asset prices and economic conditions. Everything started from Thailand, before 1997 the economy grew was very high in Thailand, it was averaging 9% per year. The rate between USD and Baht was $25 per 1 baht. The 1997 was crucial for Thailand because massive speculators attacked Thai baht. The spark on Asian crisis was when prime minister of Thailand announced that he would not devalue the baht, and government just couldn’t defend baht, which was fixed to several currencies, one of the dominant components was USD. The decrease in economy of Thailand cause massive layoffs in finance, real estate, and construction that resulted many people to return their villages and countries. The Thailand baht was devaluating and by 1998 it reached lowest value of 58 baht over 1 USD. Without any support from foreign reserves Thai government had to float the baht, so that way baht was set on currency market. Since baht was pegged to other currencies crisis spread to another Asian countries. By 2001, Thailand's economy had recovered. The increasing tax revenues allowed the country to balance its budget and repay its debts...

Words: 1178 - Pages: 5

Premium Essay

Mngt 5000 Final Paper, Bp Company

...deepwater oil drilling incident of April 20, 2010, and done a better job of crisis management after the fact? This environmental emergency was the result of the Deepwater Horizon drilling rig explosion which killed 11 workers, injured 17 others, and resulted in a sea-floor oil gusher leaking 185 million gallons of crude oil into the Gulf of Mexico. The media is filled with stories criticizing BP for not taking proper precautions to prevent the accident, and for their public response immediately following it. The following are representative of the headlines covering media outlets across the country and internationally: “BP touts itself as ‘green’, but faces PR disaster with BP oil spill” (Farhi, 2010), “Another Torrent BP Works to Stem: Its C.E.O.” (Krauss, 2010) “BP contingency plans for dealing with oil spill was riddled with errors” (Clark, 2010), “BP’s failures made worse by PR mistakes” (Weber, 2010), “BP oil spill: Leadership and IT failure (Krigsman, 2010). Statement of major relevant principles to be applied The major relevant principles to be applied to this analysis are strategic planning and leadership as they relate to crisis management. Strategic Planning Strategic planning is the process by which organizations define their strategy and make decisions on allocating resources to pursue that strategy. This includes decisions about the organization’s goals as they relate to long term survival, value, and growth. Strategic plans are heavily influenced by external forces...

Words: 2199 - Pages: 9

Premium Essay

Bad Bank Podcast Analysis

...BFIN 2123 Assignment The banking industry crisis addressed in the “Bad Bank” podcast was primarily a “balance sheet” problem. In its most basic form, the dilemma that was faced and that served as a catalyst of the crisis was the inability of banks to cover their liabilities with their troubled assets. This led to an imbalance in the balance sheet where liabilities (initial capital and deposits) significantly exceeded assets (loans or foreclosed assets at a diminished market value) resulting, in many cases, in insolvency. The problem arose from unjustified lending practices which led to unqualified consumer mortgages that were defaulted upon, leading to the inability of deposits and capital to match the foreclosed assets which had a diminished value compared with that of when the loan was commissioned. Furthermore, the perception of the banks and federal government that the market was nearing a turnaround led to a cyclical worsening of the crisis since balance sheets sustained an inflated market value of the toxic assets as the government was slow to intervene while allowing the banks to continue this inaccurate accounting practice. Federal initiatives such as TARP would only serve to defer the burden from the banks to the taxpayers, thus contributing to the severe financial crisis faced in 2008. The Citibank and hypothetical “dollhouse” examples both demonstrate the aforementioned erroneous balance sheet issues. The former displays how a major player in the banking industry...

Words: 848 - Pages: 4