Countrywide - 1127 Words

Countrywide was founded in 1969 and was one of the nation’s largest mortgage lenders. It used to hold about 17% of all United State’s mortgage and was listed as #91 among Fortune 500 companies. I chose the case study of Countrywide because it reminds me of the powerful era of the mortgage industry and how it collapsed leading to the chain reaction of economic and financial crisis; creating almost depression symptoms in the housing market, and pushing the economy to the edge of recession. Countrywide was not the only mortgage company that seeked for continuous profits. There were other giants like Fannie Mae and Freddie Mac that were successful in creating â€Å"liar loan† while overlooking the corporate social responsibility. It seems like the†¦show more content†¦Once upon a time, Countrywide was the nation’s largest mortgage lender; and today it is an embarrassment that even the remains of the name of the company has died out. After all the gov ernment bail- out plans to help the mortgage industry, financial services and the overall economy, the U.S. economy is experiencing recession with no significant improvement in real estate business. So what are the significant issues that remain unresolved? I believe that we have witnessed the collapse of the housing market which has lead to disastrous outcomes. But, who is to be blamed? While accusing and pointing a finger to the giant mortgage industries, we often forget that the other four fingers are pointing back to ourselves. Are we so naive to keep blaming only to the financial and mortgage industries (sellers)? My understanding is that the sellers deal is only as good as the buyer is willing to pay the price for it. Getting carried away to live the American dreams with limited earnings is a weakness that every human being is living with. We cannot just blame the corporations for strategizing to make profits, we as consumers have to make smart choices by knowing our limitatio ns on expenditures as well. If we are busy accusing companies for making unethical decisions, let us not make the same mistake by choosing to buy their services and products, let us question theirShow MoreRelatedCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer-based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset ReliefRead MoreCountrywide Financial Case7873 Words   |  32 PagesQuest for Competitive Advantage, Second Edition II. Cases in Crafting and Executing Strategy 15. Countrywide Financial Corporation and the Subprime Mortgage Debacle  © The McGraw−Hill Companies, 2011 Case 15 Countrywide Financial Corporation and the Subprime Mortgage Debacle Ronald W. Eastburn Case Western Reserve University Angelo Mozilo, founder and Chairman of Countrywide Financial Corporation, was the driving force behind the company’s efforts to become the largest real estateRead MoreCountrywide Subprime Lending Crisis4911 Words   |  20 PagesExecutive Summary Even though Countrywide stopped offering subprime loans 4 months ago, the company is still in the forefront of the subprime mortgage lending and foreclosure crisis. Lawsuits seem to be coming from all directions, federal and state investigative probes are launched against them, stock price tumbled to 1/5 of its value, even desperate lenders demonstrated outside their offices. 2007 has definitely not been Countrywide s year. The company has lost its place as America s Home LenderRead MoreFinancial Analysis : Countrywide Financial Corporation1162 Words   |  5 PagesThompson A. (2011), Countrywide Financial Corporation was formed in 1969 under the leadership of Angelo Mozilo. The goal of the company was to be the largest lender for real estate loans in the United States. The strategy was successful for a few years, but was ultimately doomed for failure due to very poor business practices. The detailed strategy was for Countrywide to be involved in five different segments of the banking business. The first and most important component of Countrywide was mortgage bankingRead MoreEssay on Countrywide Financial Home Loans Failure1300 Words   |  6 Pages Countrywide Financial was cofounded by Angelo Mazilo and by the early 2000s it became the largest provider of home loans in U.S. It was also considered the main provider of home loans to minorities in U.S. because of its lower barriers regarding homeowner ship for low-income individuals. The company was well known for their services offered to their clients such as: loan closing, capital market, insurance and banking services. In 2000s the main factor that contributed to the company’s reputationRead MoreCountrywide Financial Corporation Case Study2112 Words   |  9 PagesCredit Risk: Countrywide Financial Corporation All in all, it is very true that risk are an inherent part of business. Thereby looking at the various types of risk, many entities are impacted by all types of risk. A company representative of credit risk are that I find to exhibit credit risk is Countrywide Financial Corporation. Essentially, this company displayed much credit risk especially disbursing loans at the expense of the borrowers. In general, Countrywide was known for their slick advertisingRead MoreCountrywide Financial Corporation And The Subprime Mortgage Crisis1183 Words   |  5 PagesCountrywide Financial Corporation and the Subprime Mortgage Debacle In order to discuss the financial crisis of 2008, a person must understand the history of the mortgage industry. This case study shed light on one of the leading companies in the mortgage industry, Countrywide Financial, helping people recognize the events that led up to the crisis of 2008 by providing a breakdown of the company and showing the range of their operations (Eastburn, 2010, p. 247-262). To help people understand theRead MoreFinancial Analysis And Assessment Of Countrywide Financial Corporation870 Words   |  4 Pagesprovide a financial analysis and assessment of Countrywide Financial Corporation. The financial evaluations are based on the numbers calculated from the data on Countrywide Financial Corporation’s Financial Performance Worksheets. This paper covers three areas. The first part of the paper contains a brief history of Countrywide and the position of the corporation in the market of real estate mortgage. The second part is a SWOT analysis of Countrywide s performance and the reasons for their success’sRead MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pages Countrywide Financial was a large diversified financial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor to the subprimeRead MoreCountrywide Financial Corporation : The American Dream For Various Individuals1709 Words   |  7 Pagesindividuals. Countrywide Financial Corporation selected strategies that would allow numerous Americans to make this dream a reality. Company analysis will reveal areas of improvement as well as issues that can th reaten the vitality of the corporation. Recommendations will provide insight into areas that could improve financial and general corporate health. Innumerable Americans have connected with Countrywide Financial Corporation at one time or another during the last forty years. Countrywide Financial

Overview Of The Malaysian Institutional Situation Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1736 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? CHAPTER 2 2.1 Introductions This chapter presents an overview of the Malaysian institutional situation. Section 2.2 briefs on the background of the political economy which formed the Malaysian capital market. Informations on the development of the Malaysian Code of Corporate Governance (MCCG) are given in section 2.3. Finally, Section 2.3 concludes this chapter. 2.2 The Malaysian Political Economy Malaysian capital market is shaped from the close identification between the racial and economic function in Malaysia (Gomez Jomo, 1999). Malaysian society consist of multi-racial which shaped the country and business are run externally, thorough political (Mohammad, Hassan, Chen, 2006), and internally through cultural values (Haniffa Cooke, 2002). The three main groups in Malaysia are Bumiputeras which refers to Malays and the Malaysian indigenous ethnic groups (Haniffa Cooke, 2000). The Malays and indigenous literally means sons of soil are consisting of little half the Malaysian population. Second main population is Chinese (almost one third the total populations) and third main population Indian (slightly less than one tenth of the total population) of Malaysian population. Chinese and Indian population considered as non-bumiputeras which do not share some privileges of Bumiputeras group benefits. Since the independence day of Malaysia on 31 August 1957, Malaysian political landscape in Malaysian has been lead by the coalition front (Barisan Nasional) representing by the three dominant ethnic groups: United Malay National Organization (UMNO), Malaysia Chinese Association (MCA) and Malaysian Indian Congress (MIC). Although, political power is shared amongst ethnic groups but the economic wealth is dominated by Chinese. Only 1.5 percent of the corporate equity in Peninsular Malaysia is dominated by Malay Bumiputeras in 1960s. The imbalance of the economic wealth among the ethnicity has cause the 1969 riot between the Malays and the Chinese. The riots have force the government to initiate the New Economic Policy (NEP) in 1970 in order to reduce the imbalance wealthy among the races and overcome the inter-ethnic crisis. The NEP formulated to restructure the controversial socio-economic problem during the year of 1971 under the second Malaysian Prime Minister Tun Abdul Razak. The main focus of NEP is to achieve national unity by reducing the ga p of poverty among the races, create a unity among the races by restructuring the society to achieve inter-ethnic economic parity between the Malay Bumiputeras and Chinese non-Bumiputeras (Gomez Jomo, 1999). However, the NEP has impact positive institutionalised discrimination in favour of Bumiputeras by offering them concession such as grants, education, trade and employment (Haniffa Cooke, 2002). The government play an important role in order to achieve the NEP objective (Gomez Jomo, 1999). Among the important role taken by the government is increasing the corporate ownership of Bumiputeras in three government bodies. The first body are comprises of public sector such as water supply, telecommunication, civil aviation, and refuse collection. While second body consists of statutory bodies established by law at federal and state level and third body comprises of government-owned private or public firms established under the 1965 Companies Act. The main objectives of these t hree government bodies are to promote Bumiputeras involvement in education, employment and mainly to corporate stock ownership. The restructuring of foreign equity participation has raise the equity from zero to 30 percent and Chinese and Indian equity maintained at 40 percent (M.Norhashim Aziz, 2005). After 20 years of the NEP policy, the Chinese equity ownership rose from 27.2 percent 1970 to 45.5 percent in 1990. Furthermore, NEP has successfully reduced the dominance power of foreign ownership control of economy from 63.3 percent in 1970 to 25.4 percent in 1990. However, the 30 percent of Bumiputeras ownership targeted still yet to be met, then the fourth Malaysian Prime Minister Tun Dr Mahathir replacing the NEP with the National Development Policy (NDP) 1991. Don’t waste time! Our writers will create an original "Overview Of The Malaysian Institutional Situation Finance Essay" essay for you Create order 2.3 The Malaysian Code on Corporate Governance (MCCG). The 1997 financial crisis has revealed the important of corporate governance practise which cause many organizations in Asian region collapse because of the poor corporate governance practise (Fraser, D.R, C.Derasid, 2006). The pressure of globalization, external funding needs and effective investor protection increased the demand of information transparency. Corporate Governance practise in organization become a main concern issue for the shareholder, investors and etc. A joint survey done by KLSE (now known as Bursa)/Price Waterhouse commissioned by the Ministry of Finance in 1998 find that 94 percent of firm surveyed desired the needs for investors confidence, need of transparency in directors, protection of minority shareholder and focus on directors fiduciary duties. The main purpose of the survey is to improve the corporate governance framework and ensure companies conduct their business operation with the best possible standard of practise. To monitor the best practis e of corporate governance in Malaysia, the Finance Committee on Corporate Governance (FCCG) was created on 24 March 1998. FCCG responsible to look into establish the corporate governance framework and setting the best practise for Malaysian public listed companies. FCCG is chaired by the Secretary-General of Treasury of the Minister of Finance and its members consists of Governor of Central Bank, the Chairman of Securities Commission, the Chairman of the Bursa, the Chairman of the Financial Reporting Foundation and representative from various industry organisations. Result from the FCCG members discussion into deep consultative process where feedback was required by the respected practitioners and academics, a report by the FCCG was handed to the Ministry of Finance. The report from the FCCG led to the birth of the Malaysian Code on Corporate Governance (MCCG) in March 2000. The consideration of FCCG toward the corporate governance practise is not only to the shareholder but to o ther stakeholders. As define .the process and structure used to direct and manage the business and affairs of the firm toward enhancing business prosperity and corporate accountability with the ultimate objective of realising long term shareholder value, whilst taking into account the interest of other stakeholders.. (FCCG, 2000). In 2001, the MCCG became the important part of the change on the Bursa Listing Rules which requiring all firms to disclose extent of compliance with MCCG. Although compliance with best practices is voluntary, firms are required to reveal in their annual report the extent of their compliance with an explanation for any departure. Furthermore, the MCCG also follows the United Kingdom (UK) code. Internal governance structure enclosed in the Code of Best Practise of the Cadbury report was adopted and suit in the Malaysian context. These include the recommendation that same person should not appointed into two most powerful posts which are chief executive o fficer (CEO) and chairperson of the board. Besides that, the non-executive director should be adequate in order the independence of the boards decision making. Furthermore to mitigate the regulatory burden on firms, MCCG used a similar approach to corporate governance as recommended by Hampel (1998) where focus on the broad principle of good governance which should be applied flexibly based on individual firms operation rather than on explicit rules which is also need to be followed. Two primary objectives that concerned by the MCCG. The first objective is to enhance the corporate disclosure which benefits the investors in term of timely relevant information that contribute toward investment decision making. Second objective is MCCG provide the guide to the board of director such as clarify the board of director responsibilities and also provide prescription to strengthen the control which they exercise (MCCG, Part 1, paragraph 1.8). MCCG has identified and single out the followi ng principles in establishing good corporate governance: (i) every listed firm should be headed by an effective board which should lead and control the firm; (ii) the board should include a balance of executive director and non executive director (including independent non-executive) such that no individual can dominate the boards decision making. Best practise recommend that independent director should be at least one-third of the board; (iii) the board should be supplied with timely information of relevant form and quality for decision making and (iv) there should be a formal and transparent process for the appointed of new director to the board such as creating a nomination committee comprise of non-executives. 2.4 Intuitional Investor Investors in Malaysia are dominated (99%) by local institutional. Employees Provident Fund (EPF), Permodalan Nasional Berhad (PNB), Lembaga Tabung Angkatan Tentera(LTAT), the Pilgrim Funds Board or Lembaga Tabung Haji (LTH) and Social Security Organization (SOSCO) are the main big institutional in Malaysia. EPF was established in 1951 and considered as Malaysias largest contractual saving institution. The employees from private sector is mandatory to contribute as a key source of long term investment capital and public sector has optional whether to contribute to EPF or continue with the national pension scheme. As at 2009, EPF assets worth RM 98.8 billion and the investment portfolio are mandated by the Malaysia government. EPF has to invest 70 percent of it fund in Malaysia Government Securities (MGS) while domestic equity investment is limited to 25 percent of it funds (Thillainathan, 2003). Permodalan Nasional Berhad (PNB) is Malaysias first unit trust which created to en courage saving by Bumiputeras. PNB introduced with single unit trust named as Amanah Saham Nasional (ASN) and now PNB has provided more unit trust provide for all group of people such as youths (Amanah Saham Didik) and for non-Bumiputeras ( Amanah Saham Malaysia). These unit trust saving schemes pay competitive dividends that average of 7 percent since 2007 to 2010(www.pnb.com.my). Lembaga Tabung Angkatan Tentera, also known as LTAT, was established on August 1972 by an act of Parliament. LTAT is a superannuation fund, mean the serving members of the other rank in Armed Force are required to contribute 10% , while the employer contribute about 15% (www.ltat.org.my). The objectives are to ensure the members of Armed Forces have retirement fund and other benefit that able to support after their retirement age. Next, Lembaga Tabung Haji (LTH) was established in 1962 which target to encourage Malaysia Moslems to save money to perform Hajj in Mecca. LTHs role evolved from mere savi ng depository to provide some return from their investment. LTHs investment must exclude saving investment from non-halal company (e.g. ambling company, alcohol company and etc). Thus the investment advisory board includes Islamic scholars who monitored and ensure all investments are accordance to syariah.  [i] Finally, Social Security Organization (SOCSO) was established in January 1971 under act of Parliament through the Social Act 1969. SOCSO serves as an insurance scheme for all Malaysian employees working either in public or the private sector. The main objective of SOCSO is to ensure and guarantee the timely and adequate provision of benefit in a social and to promote occupational safety and health. Like the other institutional investors, SOCSO has an investment advisory board which consist from various representatives from the government, employers and employees.

The Causes And Consequences Of The Subprime Crisis Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2448 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? On 7th December 2006, Own It Mortgage Solution Inc., the 100 percent institution that give loan to customer and owned by Merrill Lynch Co., had decided to close down and told 800 workers not to come to work by next day (Keoun, 2006). At the end of February 2007, HSBC Finance, one of the HSBC bank in England whom specialized in subprime, had recognized the loss around $1.4 billion (Livesey, 2007). On 20 March 2007, People Choice Financial Corporation declared bankruptcy due to the Chapter 11 filing today in U.S. Don’t waste time! Our writers will create an original "The Causes And Consequences Of The Subprime Crisis Finance Essay" essay for you Create order Bankruptcy Court in Santa Ana, California (Kary, 2007). On 24 March 2007, New Century Financial Company, one of the biggest company that give loan to people who have below standard for the credit declare to stop every transaction in loan (Affordable Housing Institute: US, 2007). Following by Goldman Sachs, one of the big financial institutions was aware of their worse financial condition was laid off 3,200 employees (The New York Times, 2008). On July 2007, Chairman of Federal Reserve of U.S.A. declared that Housing Bubble Burst will make the U.S. economy in downturn because of losses from subprime mortgage crisis around $100 billion (Times online, 2007). From all of the consequences, all of these company acknowledged of serious financial situation, hence, they lay off their employees to reduce their cost of capital or even declared for bankruptcy, there are all because of Subprime crisis. What is Subprime Crisis? Subprime refers to a classification of borrowers who are less likely to pay back a loan or, in other word, not creditworthy are therefore considered to be high risk for the lenders. These borrowers are classified in subprime due to a variety reasons, for example, low income, tarnished credit history, and poor dept to income ratio (Gwinner, 2009). According to the high risk of lenders on the repayment, as such, the borrowers will have to carry higher interest rate for the subprime loan (Neale, 2008). Structure of subprime mortgage securitization market Source: Gwinner, BW. and Sanders, A. (2009), The Subprime Crisis: Implications for Emerging Markets, Housing Finance International, vol. 23, no. 4, pp. 8. Hence, the subprime crisis was a financial crisis which was stimulated by based on the failure in mechanism of subprime mortgage loan. The subprime crisis was the result of a combination of several factors which mainly were regulatory policies, the increasing of subprime lending, the cracked in financial risk models and credit rating, and the housing bubble and its burst. The Causes of Subprime Crisis Regulatory Policies One of the American dreams is to owning the house (Pritchard, n.d.). Thus, many regulatory policies have been stated in order to assist the Americans to obtain the house ownership. Back to 1977, the increment in house ownerships has been stimulated by the Community Reinvestment Act which inspired the commercial banks and any other saving associations to extend loans in order to support the home possession (Mazumder, 2010). Similarly, the American Dream Down Payment Act of 2003 has been announced with an aim to allow about $200 million per year to support the low income Americans and minorities with tarnished credit as well as to expand the limitation of loan for the first time home buyers (Langbert, 2008). These regulatory policies were created with an objective to support and expand the home ownership to low income households. However, they also had drawback consequences which were potentially overlooked, these regulatory policies encouraged the financial institutions to extend thei r risky by lending to the people who not creditworthy. Furthermore, after dot com crisis and 9/11 tragedy, the policy to boost the troubled economic by reduction of interest rate was continually announced by Federal Reserve Board. Declining in interest rate was reduced from 6.5 percent to eventually to 1 percent in late of 2004 (Bianco, 2008). Despite of the reduction of interest rate played an important role in stimulation of investment and employment, it also encouraged and extended the risk taking behavior of banks and financial institutions (Gwinner, 2009). The Increasing of Subprime lending The American house ownership rate increased dramatically from 63 percent in the early of 1990s to an all time high peak of 69 percent in 2005 (Whalen, 2008). The sharp change in house ownership rate of American was influenced by the bunch of regulatory policies which encouraged and supported Americans to owning the house including the speculators who used this loophole for making the profit. Consequently, the higher in demand for housing caused the upswing of housing prices by 124 percent increment between 1997 and 2006 (Bianco, 2008). Simultaneously, subprime lending was boosted up as well in order to expand the American house ownership. However, some homeowners took advantage from the increasing in housing price values by refinancing their homes and taking out the difference between first and second mortgages to use in consumer spending. Alternately, the U.S. household debt increased 30 percent higher than historical average amount (Bianco, 2008). The rising of number of subprime l oans as rising of property values induced the lenders to take higher risks as the subprime loans work well when property prices are on the upswing trend and low interest rate (Smith, n.d.). Under this environment, borrowers are assumed to resell the property at higher price rather than default the payment (Amadeo, n.d.). Conversely, once the interest rates rapidly increase and real estate values decline, high default rate would be existed and ripple effect would expand entirely across the industry. The Cracked in Financial Risk Models and Credit Rating The financial risk models were driven by the complex mathematics based on enormous of intensive data (Mazumder, 2010). The intensive data was the statistical data in history. Notably, these risk models were run by assumed the regular economic conditions, as such, these models omitted the future write-downs, collateral damages or crisis (Mazumder, 2010). Therefore, the risk models were claimed to be not appropriate to use (Danielsson, 2008). In 2008, according to the Market Data Group Staff Reports of Wall Street Journal, the stock prices of Lehman Brothers and AIG lost more than 90 percent and 80 percent, respectively, mostly due to collateral damages (Mazumder, 2010). These evidences revealed the flawed in financial risk model that it could not predict the future write-downs and provide an inaccurate assessment on the future collateral damages. The credit rating was significance to the investors, insurance companies and brokers-dealers. They traded the debt securities based on the credit ratings that provided by the credit rating agencies (Mazumder, 2010). However, obviously, the credit rating agencies provided inaccurate credit ratings. Mazumder (2010) argues that credit rating that provided by the agencies used flawed models with inappropriate assumptions under an inadequate data. Many mortgage-backed securities were rated as AAA even it had high risk of default (Bianco, 2008). The inaccurate rating was claimed to be involved with the conflict of interest as rating agencies were paid by the companies who selling the mortgage-backed securities to the investors (Gwinner, 2009). Generally, it is clear that investors were misled by the inaccurate credit ratings provided by the credit rating agencies. The Housing Bubble and Its Burst Housing bubble is defined by a swift run-up in valuation, fueled by the demand, of real estate and property, such as housing, until it reached the unsustainable levels with relative to income and other economic indicators of affordability (Bianco, 2008). The housing bubble in U.S. was mainly engendered by the regulatory policies that encourage the house ownership of the Americans as well as the lowering of interest rate by the Fed to encourage the economic boom. The rapidly increasing in house price was appeared. Also, the magnitude of subprime mortgages increased from $35 billion in 1994 to $700 billion in 2006 (Mazumder, 2010). In 2006, after market correction, the increasing in house prices was claimed to be overvalued or, in other word, the house price inflation (Bianco, 2008). House prices began declining since then Housing bubble burst. Fed started to increase the interest rate continuously from 1 percent to more than 5 percent in mid of 2007 in order to combat with the inflat ion (Gwinner, 2009). According to the declining in house prices, the collateral value of mortgages began decreasing, thus, borrowers were forced to put more collaterals or down payments. The borrowers started to confront the problem to pay back the mortgages loan. The housing bubble burst caused significant high default rate and foreclosures, consequently, made subprime market to be illiquid. These in conjunction with the huge investments which were misled by the agencies including the flawed in financial risk models caused the terribly financial problem spread wider and resulted in the ripple effects that impacted the whole subprime financial chain e.g. borrowers, financial institutions and investors so called Subprime crisis. Effect of Subprime crisis There are lots of effects that cause from subprime crisis in U.S. that can impact to all of the domestic companies and Americans and also subprime crisis created domino effect to other countries which involved in US economy (Shapiro, 2007). Began from subprime crisis in U.S., it caused domino effect that impacted to world economic crisis. There are two points of views to divide the effect of subprime crisis in U.S. and also lead to world economic crisis. First is effect to American people and institution in U.S. Second, impact to other countries that involved directly to U.S. economy and also countries that got impact indirectly from U.S. economy crisis. For the effect to U.S. economy and American People, There are four effects which impact to domestic economy. First, the effect to banking industry in U.S., after Fed increased interest rate as afraid of the acceleration in housing downturn, many borrowers defaulted to pay their loan back to their bank. From these defaults, banks need to foreclosure their house. As the result of numbers of default to pay back the loan, bank got higher rate in foreclosures which lead to higher rate in liquidity risk for bank. Also the price of house crashed down to 4.5 percent (BBC News, 2007). U.S. House Price Trends Source: BBC news https://news.bbc.co.uk/2/hi/business/7073131.stm From this result, bank could not sell their foreclosure house easily which led to liquidity risk to many banks in U.S. Second effect to domestic in US is impact on stock market of U.S. On 19 July 2007 Dow Jones Industry, one of the most important indicator of U.S. market, increased to hit the highest 14,000 for the first time. By the end of 15 August 2007, Dow Jones dropped below 13,000 (Bianco, 2008). From Dow Jones, it caused dropping in all the stock market around the world. For example, Hong Kongs Hang Seng dropped to 7.639 percent, Nikkei index of Japan dropped to 16.158 percent and Shanghai index of China dropped to 19.515 percent (Scribd, 2009). Third effect to U.S. was the decline in value of U.S. Dollar. As the result of subprime crisis, it made U.S. dollar decline in value against other currency. For example, U.S. dollar declined in value against Indian Rupees from year 2007-2008 (World Bank, 2008). Declining Value of US Dollar (Jan 07-08) Source: World Bank From these dropped in US dollar value, it could affect directly to U.S. exporter that they need to hold their activities because of they need to spend more for their cost because of depreciation of U.S. dollar. Final effect that went to American people, Fed increased interest higher which mean credit got tighter for American people. When interest higher, American people who wanted to borrow the money for purchasing house or borrow from another bank got more expensive to pay back which some of them may consider that it was very hard to buy house at that time. Also American people needed more money for down payment and also very good credit to buy a house because bank needed to make sure that it would not lead to increase in default risk of their transactions (Silicon Valley Blogger, 2007). On the other hand, people, who wanted to sell the house at subprime crisis situation, got harder to sell their house. As the result, at that time, the value of house was declined to very low level which could be very hard to sell because they could not get higher profit from it. Moreover, people who want to refinance their mortgage could not refinance it because at that time bank stricter refinancing term (Blogger, 2007). For the effect from subprime crisis to global economy, it effected in two ways. First, it could affect stock market. As seen from the above paragraph that after Subprime crisis, it could make Dow Jones industry average fall. From this result, after global investor fear about the bad signal in U.S. economy, they tended to sell their shares out to hold their cash. As this reason, it would make other stock market around the world turn to fell down. Lastly for the impacted on world economy, due to investor sold their shares to hold their money for serious situation and since U.S. has been being the largest financial market in the world (WordPress, 2007). From these result, it showed that when US economy turndown, it would affect global economy due to the largest market capitalization of financial market of U.S. How does securitization worsen the problem? The meaning of securitization is the structures of financial process which include asset, receivable and financial instrument are acquired and offer as a collateral and sell it to the third party investor (Bianco, 2008). Another idea about securitization is converting mortgage loan to financial security for helping in mismatch between duration of asset and liability (Mazumder, 2010). Due to the securitization, most of investors desired for mortgage securities and also Credit Rating Agencies such as Standard Poors Corp., Moodys Investor Service Inc., Fitch Rating gave triple-A rating to subprime mortgage which made investors felt more confident to invest in these mortgages (Bianco, 2008) However, when housing bubble was going to burst which created subprime crisis, investors tried to sell these securitization to market with difficulty and also Credit Rating Agencies downgraded over $50 billion in highly rate collateral (Bianco, 2008) Moreover, Alan Greenspan, former chairman of Fed, also gave a speech in October 2007 that securitization of home loan to the people who got lower in financial standard which is subprime mortgage were to blamed for the housing bubble which lead to subprime crisis in U.S. (Bianco, 2008). Conclusion The research identifies the combination of four main factors, which are regulatory policies, the increasing of subprime lending, the cracked in financial risk models and credit rating, and the housing bubble and its burst, to be the cause of subprime crisis. In addition, the consequences of subprime crisis are exhibited in two main areas, effect on U.S. economy and on global economy. Lastly, explanation of how securitization worsens the problem is presented. Hopefully, this research can help the readers to get more understanding about the subprime crisis and encourage the way to prevent this loophole in financial system in the future.

Book Report On Fenn Valley Vineyards Essay - 1325 Words

Fenn Valley Vineyards On September 9th, a group of friends (Charlotte Fung, Renee Swartz, and Anthony Dilernia), and I travelled to Fennville, MI to tour Fenn Valley Vineyards. For the tour, our guide was Todd, who is a graduate from Michigan State University with a degree in horticulture. Besides being a tour guide at Fenn Valley, Todd is also the Vineyard Manager, his job responsibilities are trying to get the highest quality grape, obtain the highest grape yield given the limitation during the growing season and try to improve the leaf to grape ratio. About Fenn Valley Fenn Valley is a 43-year-old vineyard that operates on a 240-acre farm. Even though it has 240 acres only 83 acres are currently cultivated. The manager mention that the vineyard could possibly expand another 5 acres if needed, but after that, all the land has been used. Because Fenn valley has reached capacity on their farm, they are receiving grapes from three other farms in South West Michigan through contracts. Contract are agreements between wineries and grape growers. Everything in these contracts are laid out: the number of years they will be doing business together, the price quantity of fruit produced each year, the manner in which the grapes are grown, and who will be doing actual work. (the farmer, the winery, a vineyard management firm) An interesting fact given on the tour about these contacts is that each party involved is require either to give a three-year notice before ending the

Summary . The Public Health Workforce Consists Of A Large

Summary The public health workforce consists of a large number of professionals who provide significant contributions to the public health sector. The majority of public health workers consists of nurses, whereas the other percentage of workers are made up of various professions such as social workers, allied health professionals, physicians, and pharmacists. Structures such as the Triple Aim help to improve the quality of services and patient care. Additionally, the ACA has made health care accessible and affordable to a vast majority of people. Those structures have a crucial role in providing quality health care to the public. Public health workers have the responsibility of protecting people from diseases and promoting a healthy†¦show more content†¦Recommendations As it relates to the aging workforce which affects an experienced and skilled workforce, a policy should be implemented to incorporate a selected group of senior or retired workers who can continuously train employees in leadership positions. This training will provide the right skills that younger employees lack and develop positive working relations with senior staff in the organization. As a result, older workers will not feel compelled to retire early or leave their jobs because of poor working relationships or unsatisfactory working conditions. Those who have already retired will still remain active while using their expertise to maintain the status quo. Additionally, younger employees will be prepared to handle management positions as they become available and the public health sector will be strengthened and fully trained to perform efficiently. This research mentioned that financial incentives such as higher salaries were used to motivate employees, but this strategy alone will not be effective. Therefore, administrators must use other methods and financial incentives to prevent the public health workforce shortage. Public health organizations should be creative when using financial incentives because it serves a purpose in the workplace and should be implemented in other areas to encourage employees. 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Significant Person free essay sample

This girl who I met when I was in eighth grade, I forgot her name but I know she use to always call me her mother. When I was 10- years-old I experienced a lot of stuff I shouldn’t have experienced. I was bullied all my life because of my weight, how I talk, how I dress, where I came from, etc. When I was 11-years-old I held on so much pain that I just took that pain out on myself. I started Self-Harm and Suicide so I knew what it was like for no one to listen to you, understand you, care about you and also losing guidance, etc. People came to me for advice and just wanted someone to listen to them.But this girl that I saw was different it was something about her. When I saw her it was like I was looking at myself. I stayed after school as usual for Boys and Girls Club, everyone was playing kickball and I was the captain, I picked my best friend and he said me My,( my is my nickname its a family thing) pick the emo girl. We will write a custom essay sample on Significant Person or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I looked at her and my heart was about to stop because when I was 11-years-old I consider myself as an emo kid. I said okay she’s on my team. I just couldn’t stop looking at her. I walked up to her and said, you emo? She said yeah. I told her no she’s not. I told her, do you even know what emo is? She said yeah. I said what is it then? She didn’t answer me instead she looked away. I said, do you want to end up like me? Her eyes got big and curious. I rolled up my sleeve and showed her my left wrist, she was shocked and she look up at me like you can relate to me? I told her do you want to end up on medicine? Do you want to be in and out of mental hospitals? I told her, you too young to just throw your life away. You might think you emo but you not. I know why you say you’re emo its because no one understands you. People has to go what you went through and feel what you felt or still feeling in order for them to understand. You can’t cut your self because nobody understand you. No one didn’t tell me the world is cruel I had to learn it on my own. I lost guidance a long time ago, I learned as I go. You only 12-years-old you don’t want your arm all scared up because when you want children and you still have those scars what are you going to tell them? You can’t lie to your children. You going to have to wait till they get old enough to understand. You need to get a journal and just write in it. It felt like I was talking to a brick wall but little did I know she was listening. She was so stubborn but two weeks later she got on the bus and went into her backpack and gave me her journal. I was so shocked I said, you want me to read it? She nodded. I read it and I was so emotional and I just hugged her, she would talk to me and I would listen, I didn’t interrupt her when she talk because I knew she had a lot to get off her chest. By two months she stopped wearing black eyeliner, wearing her hair in her face, and on top of that she stop cutting and her scars healed. The girl came to me and said thank you you changed my life and helped me alot. At that moment I knew what I wanted to do in life, I knew what my purpose was. She had a huge impact on me because my dream was to always make a difference in someones life and to help them grow and know that there is something more than just holding grudges, blaming yourself for things, having anger in your heart, and keep holding on to the past. If you keep holding on to the past and still re-reading those same chapters then no doors will open for you unless you close the doors that you already have open. I always thought that I wanted to be a writer or be an artist but the whole time I just wanted to help people in ways no one couldn’t help me because I didn’t have nobody to talk to or have a place to call home because my home didn’t feel like home and when I met that girl I felt like if I had made an impact on he r life I can impact other peoples lives and help them move forward and help them let go of the people or things that hurt them.

Comparison essay on poems Example For Students

Comparison essay on poems The poems Presents from my Aunts in Pakistan written by Moniza Alvi and Half-Caste written by John Agard are both about people who feel socially excluded because of their faith or cultural background. Presents from my Aunts is a very personal poem written by a girl who is having social problems, whereas Half-Caste is written by a man who has been called a Half-Caste or Half a person as it is described and is very offended and hurt by the fact that just because of his appearance people think hes different. Presents from my Aunts starts with the line They sent me a salvwar kameez, in my opinion this line would not draw me towards the poem it would just make me think a Salwar Kameez is not an ordinary present. The poet uses a variety of colours to try and paint a picture for the readers; Half-Caste also uses this technique. Peacock-blue, orange, gold and black, apple green and silver are all interesting colours which describe the clothes that this girl receives from her Aunts in Pakistan. As we can see these colours are not ordinary colours for an average outfit, these clearly must have some kind of different background or an explanation behind them. The last line in the first stanza is for my teens this clearly states that as she is a teenager she doesnt think that she should be wearing these cultural clothes. The second stanza is where she starts to show her real emotion, she feels uncomfortable and has mixed feeling about wearing these clothes as the second line is was an alien in the sitting room telling us that she felt like some exotic creature in the sitting-room. She does like these clothes because she thinks their lovely but she doesnt think shell ever be as lovely as them. She is desperate to be a normal teenager wearing normal clothes, as she says I longed for denim and corduroy which was the fashion and a lot of the time if people are not in with the fashion or are not fashionable then they feel as if they stand out like a sore thumb. By wearing these fashionable clothes she would be pretending to be someone that she isnt. This part of the poem shows that she is torn between two groups, two cultures. Half-English, unlike Aunt Jamilia here she compares herself with her Aunt who sent her these wonderful clothes, Aunt Jamilia is all Indian whereas this girl is half-English and half-Indian. She is torn between two worlds.  The net stanza is a little bit unexpectedly, it is camel-skin lamp in her parents room, and this lamp has been distorted from a camel to a lamp. She likes the lamp and its colours a lot but she feels confused about it and thinks its cruel to transform a beautiful natural creature into a manmade invention. The forth stanza gets back to the girls life a bit more and is about the clothes and jewellery that her mother loved. The Indian jewellery has a lot more detail on it than the kind of jewellery that is made England Indian gold, dangling, filigree.  Is how she describes her mothers cherished jewellery, this sentence ends with a bang when all of a sudden she says but it was stolen from our car which might suggest that she lives in an unpleasant nabourhood. In her wardrobe were her radiant clothes meaning they were bright, war and glowing. Its not only that she is curious about what culture she is in but also her Aunts are curious about English clothes as they requested a cardigan from Marks Spencers, which to us is utterly ordinary. .ude8f97f71f3199255960fc669e507a13 , .ude8f97f71f3199255960fc669e507a13 .postImageUrl , .ude8f97f71f3199255960fc669e507a13 .centered-text-area { min-height: 80px; position: relative; } .ude8f97f71f3199255960fc669e507a13 , .ude8f97f71f3199255960fc669e507a13:hover , .ude8f97f71f3199255960fc669e507a13:visited , .ude8f97f71f3199255960fc669e507a13:active { border:0!important; } .ude8f97f71f3199255960fc669e507a13 .clearfix:after { content: ""; display: table; clear: both; } .ude8f97f71f3199255960fc669e507a13 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ude8f97f71f3199255960fc669e507a13:active , .ude8f97f71f3199255960fc669e507a13:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ude8f97f71f3199255960fc669e507a13 .centered-text-area { width: 100%; position: relative ; } .ude8f97f71f3199255960fc669e507a13 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ude8f97f71f3199255960fc669e507a13 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ude8f97f71f3199255960fc669e507a13 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ude8f97f71f3199255960fc669e507a13:hover .ctaButton { background-color: #34495E!important; } .ude8f97f71f3199255960fc669e507a13 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ude8f97f71f3199255960fc669e507a13 .ude8f97f71f3199255960fc669e507a13-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ude8f97f71f3199255960fc669e507a13:after { content: ""; display: block; clear: both; } READ: A Comparison of Two Love Poems, 'First Love' by John Clare and 'Shall I compare thee' by William Shakespeare EssayHere she looks at objects to show the difference, others use language. Her school friend didnt like the clothes her Aunt gave her and asked to see her week-end clothes, it made her feel completely out of place. Her clothes had small mirrors on them, which she likes looking at herself in, But often I admired the mirror-work, tried to glimpse myself in the miniature glass circles. She ended up feeling alone with only a tin boat to play with. Looking at photographs she imagined herself being in the pictures where she was born. Fractured a strong word meaning broken, her land was broken. She sometimes imagined seeing Lahore a city in Pakistan I saw Lahore my Aunts in shaded rooms screened from male visitors in Pakistan women were allowed no attention from men. I was there of no fixed nationality she was in India but still with no real nationality meaning where ever she goes she will never be a normal person, as she stares through the fence in to the Shalimar Gardens, beautiful gardens in Lahore, as she longs to go in.  Half Caste is my favourite of the two; it is more suited for me and is what I love to read.