The Global Financial Crisis Of 2007-2008 - 2489 Words

The Global Financial Crisis of 2007-2008 has been studied by several economists, and different causes have been identified, both primary and secondary, which intensified the overall impact of the crisis. In my view, the Global Financial Crisis resulted due to a culmination of several policies that interplayed with each other, and significantly influenced all sectors of the economy, from consumers to the government. In this essay, I will be addressing the main underlying causes of the crisis, how they originated, the extent of their impact, and how they compare with other financial crises. I will conclude with an analysis of policies that have been undertaken, and initiatives which should be implemented to prevent future crises. The first†¦show more content†¦This incorrect pricing of risk and overvaluation of the bundled subprime mortgages was the fundamental cause of the crisis which slowly spread from the housing market to the money market. In 2006, when the US housing bubble burst, there was a chain reaction, which exposed the weaknesses of the financial system. The values of the securities tied to the US real estate pricing (MBS and CDOs) slumped, causing the collapse of financial institutions, and bailout of banks by their governments. Going back to the roots of the cause that led to the global damage of these financial institutions - First, most banks and insurance companies had insufficient capital holdings to back the financial commitments that they were making. The whole financial system was built on unstable foundations. Banks had allowed their balance-sheets to expand but set aside too little capital to absorb losses. Second, central bankers and other regulators failed to keep economic imbalances in check and did not exercise proper oversight of financial institutions. There was excessive deregulation of OTC Derivatives especially Credit Default Swaps. Thus, when housing prices collapsed, it undermined the value of the multitrillion-dollar pool of lower-value mortgages that had been created over the period from 2003 to 2006. Finally, both sellers and buyers engaged in questionable trading practices of complex financial products and risky investments,Show MoreRelatedThe Global Financial Crisis Of 2007-20081123 Words   |  5 PagesThe Global Financial Crisis of 2007-2008 is the worst financial crisis since the 1930’s The Great Depression (Reuters, 2009). Even if bailouts of banks by national governments prevented the collapse of major financial institutions, worldwide stock markets continued to drop. Evictions and foreclosures overwhelmed the housing market while severed unemployment embraced the labor market (Baily and Elliot, 2009). This global financial crisis was responsible for the decline in the consumers’ wealth, andRead MoreThe Global Financial Crisis That Occurred Between 2007 And 2008 Forced Consumers1468 Words   |  6 PagesThe global financial crisis that occurred between 2007 and 2008 forced consumers to be more concerned about their financial affairs. In order to survive dur ing this period, consumers had to reduce consumption budgets, particularly on unnecessary expenditures (Gilkey and Clark, 2015, p.363). After the recession, when the economy started to grow again, total consumption budget was increased and allocated to less necessary products (Gilkey and Clark, 2015, p.363). The business sector also suffered fromRead MoreEric Helleiner of Understanding the 2007-2008 Global Financial Crisis: Lessons for Scholars of700 Words   |  3 PagesEric Helleiner of Understanding the 2007-2008 Global Financial Crisis: Lessons for Scholars of International Political Economy argues that the IPE scholars of the years leading into the financial crisis of 2007 failed to identify the negatives of international capital flows which in turn increased the United States financial bubble. Helleiner argues that IPE scholars could not have predicted the event precisely in regards to timing, but failed to observe obvious problems that came with amplifiedRead MoreThe Global Financial Crisis Of The Usa1383 Words   |  6 PagesThe recent global financial turmoil started on July 2007 ,mainly in the USA and spread among developed nations in the later part of 2008 and subsequently shifted to the developing nations .this crisis consisted of some prime drawbacks not only for the developed countries but also for developing countries .the most talked about issue in the recent financial arena in the global financial crisis ,which started to show its effect in the middle of the year 2007.the turmoil ,however ,was rooted in theRead MoreThe Great Recession And The Housing Crisis1600 Words   |  7 Pagesrecession of 2007 -2008 and the Housing bubble and the latter talks about the newspapers articles and other opinions of economists which support the idea of approaching bubble. These reflect the conditions in those specific areas related to them or demonstrate the housing behavior in overall United States. THE GREAT RECESSION The financial crisis that began in August 2007 has been the most severe of the post-World War II era and, possibly--once one takes into account the global scope of the crisis, its broadRead MoreFinancial Crises And Its Effects On Global Economic Crisis1068 Words   |  5 PagesThe 2007-2008 Financial Crisis- Its Causes and the Involvement of the FED The financial crises that occurred in 2007-2008 had such a big impact on the world that it is now considered a global financial crisis (GFC) or global economic crisis. It is commonly believed that it began in July 2007 with the credit crunch; U.S. investors lost trust in the value of subprime mortgages which caused a liquidity crisis. This had the effect that the U.S. Federal Bank injected a large amount of capital into theRead MoreThe Global Financial Crisis Of Broward College920 Words   |  4 PagesResearch Paper: The Global Financial Crisis Michelle Beira Broward College There have been few financial crises in the United States. The Global Financial Crisis of 2008 to 2009 was the most recent and before that was The Great Depression of the 1930s. The Global Financial Crisis actually began in 2007 when prices of homes tanked. It not only affected the U.S. but it also affected economies overseas. The entire investment banking industry, some of the biggest insurance companies, enterprisesRead MoreFinancial Crisis 2008 Essay1160 Words   |  5 PagesJust after ten years of Asian financial crisis, another major financial crisis now concern for all developed and some developing countries is â€Å"Global Financial Crisis 2008.† It is beginning with the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and spread like a flood. At first U.S banking sector fall in a great liquidity crisis and simultaneously around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the w ealthiestRead MoreFactors That Affects The Global Economy And Its Impact On The Nigeria And Egypt Economy1568 Words   |  7 Pagesthe factors that affects the global economy and their impact on the Nigeria and Egypt economy. In 2007, the financial crisis, which later extended to the global financial crisis began in the United States of America. The origin and elements of the 2007/2012 global financial crisis have been widely discussed in the literature throughout the period. The aim of this work is to, however, try to point out the reasons and also the macroeconomic effects of the financial crisis in both countries economy andRead MoreFinancial Crisis Of A Single Country1671 Words   |  7 Pages Table of Contents Summary 2 Financial crisis 3 Impact of financial crisis 4 Effect of financial crisis on different on the economies of different countries 5 Mathematical problems 6 Conclusiom 8 References ..................................................................................................................................................9 Summary Financial crisis has long been a part of global economic recession throughout the history. Here, the purpose of this assignment

A Study Area Is The Region Of The U.s. Lake - 1234 Words

A study area is the region of the U.S. Lake States, including Michigan, Minnesota, and Wisconsin. In the region, about 27% of the estimated 20.8 million people reside in rural areas. Over 96% of the lands are considered as rural areas. Traditionally, the region had economically dependent on natural resource extraction and related low-skill manufacturing industries (Hamilton et al., 2008). However, such industries are recently weakened by globalization and rising policies on protection of natural resources. Consequently, tourism-based industries that depend on managed public lands not only protecting natural resources, but also providing recreational opportunities have been considered as important alternatives for local economic growth. Thus, an investigation of the relative impacts of economic structures on income distribution can broaden our understanding of the role of each economic industry in the distributional aspects of gateway communities. There is no definitive way to define the gateway communities. In this study, I partly follow a method for â€Å"Sphere of Influence† of gateway communities suggested by the M3West study (Hester, 2013). He used a travel distance that is measured by predefined buffer distance for recreational commuting from gateway communities to public lands. Thus, I first collect public land data (see figure 1). Then, I use a sensitivity analysis to select an appropriate travel distance for recreational commuting based on 5, 10, and 15 mile buffer. FromShow MoreRelatedA Study On Spring Discharge At Zuni Salt Lake1403 Words   |  6 PagesThis dissertation is organized into three separate studies (appendices) that I plan to publish in peer-reviewed journals. The first appendix presents a study that establishes a latest Pleistocene age for volcanic eruptions at Zuni Salt Lake. The second appendix evaluates the hypothesis that the late Holocene hydroclimatic history of spring discharge at Cieneg a Amarilla is driven largely by variations in El Nià ±o frequency and intensity and the resultant variations in winter precipitation. The thirdRead MoreEssay on Canada ´s Mixedwood Plains and Pollution725 Words   |  3 Pagesa very large country, with areas of land in various climate regions, and land regions, thus having many ecozones that differentiate from another. The most populated ecozone in Canada is the Mixedwood Plains; the ecozone we are located in, named after the mixedwood forests that are native to the area. The Mixedwood Plains is one of the smallest of the Canadian ecozones, spanning only 175 963 kilometres squared. The Mixedwood Plains is bordered by three of the great lakes on the southern side of theRead MorePleistocene Ecosystem1114 Words   |  5 Pagesexisted in the western United States. The Rocky Mountain Range was formed before the Miocene and the Sierras elevated in the Pliocene, both formidable North-South barriers (Smith 1981). Along with these sign ificant geographic barriers, the western U.S. has historically had much smaller and more climatically unpredictable basins compared to the east. These basins held lower populations of fish which increased the probabilities of extinction and the lack of stability often interrupted speciation (SmithRead MoreEnvironmental Interupstions1308 Words   |  6 PagesChapter 01 Environmental Interrelationships       Multiple Choice Questions    1.  An area of land in which there is little or no human development is referred to as a   A.  tract development. B.  reserve. C.  wilderness. D.  multiple land use.    2.  Environmental science is an interdisciplinary area of study that deals with all of the following except   A.  politics. B.  economics. C.  ethics. D.  All of these are correct.    3.  An ecosystem is   A.  the transition zone betweenRead MoreThe And Periods Of Arroyo Formation1082 Words   |  5 Pageswatershed to climate change throughout the course of the Holocene. This study has implications for the larger southwestern U.S. region and contributes to the broader understanding of desert (arid and semi-arid) climatic geomorphology. New ages for recent volcanics in the Red Hill–Quemado field have implications for recurrence interval calculations and evaluating the risk of future eruptions along the Jemez Lineament. The results of this study are also relevant to archaeological questions regarding how prehistoricRead MoreThe Great Lakes Region By Richard White1366 Words   |  6 PagesRichard White provides a refreshing perspective on the Great Lakes region during the colonial and early national periods in regards to the developing relationships between the intrusive French, British, Americans and the indigenous Native Americans. The Middle Ground: Indians, Empires and Repu blics in the Great Lakes Region effectively links Native American history to broader themes in American history. He presents a convincing argument of how the Middle Ground, a place the French called the paysRead MoreA Brief Note On The State Of Oklahoma1721 Words   |  7 PagesOklahoma is currently in the middle of a drought but many people argue that we actually have a water surplus in the state. Estimates place over 300 million acres of groundwater underneath the state. Oklahoma also has more man-made lakes than any other states in the U.S. The problem here is similar to the one the entire World faces, the water isn’t located where we need it. The majority of the state’s agriculture is in the western, central, and southern portions of the state while South-eastern OklahomaRead MoreCase Study of the Great Lakes1721 Words   |  7 PagesCase 11: Great Lakes: Great Decisions Report Jessita Herriott Mr. Bill Loelius Bus. 499 (Senior Seminar) October 20, 2010 Great Lakes’ Immediate, impending, and Invisible Competitors and How G.L. Measure’s Up Great Lake’s bad public relations image is its only immediate, impending and invisible competitor. The industry environment that Great Lakes is situated in is one that is characterized by global market shifts and pressures. At the moment, Great Lakes does not have any competition fromRead MoreISS 315 studyguide Essay1190 Words   |  5 PagesThird Test Study Guide ISS 315 Spring 2014 1. Why is the environment diverse in Europe? Europe goes from Artic to the Mediterranean, and therefore has a wide varity of climates, vegetation, and human activities. 2. Spineè„Šæ ¢  of Italy mountain range. Apennines Mountains. Location of Mt. Vesuvius and Mt. Etna. 3. Mountain range that forms the border between Spain and France? Pyrenees mountain Ã¥ ºâ€¡Ã©â€¡Å'牛æâ€" ¯Ã¥ ± ±Ã¯ ¼Å'æ ¬ §Ã¦ ´ ²Ã¨ ¥ ¿Ã¥ â€"éÆ' ¨Ã¦Å"ی ¤ §Ã¥ ± ±Ã¨â€žâ€° 4. Part of Europe that is the focus of intensive, large cities, and majorRead MoreEssay on Role of Geography in the Arab-Israeli Conflict1675 Words   |  7 PagesLebanon, and the Occupied Territories) to only have one source of surface water, which is from Lake Kinnaret, or the Sea of Galilee that flows into the Jordan River. The Jordan water eventually leads to the Dead Sea, where its usefulness ends due to its high saline content. The Jordan River supplies water to about 15 million people who live along its shores and use its waters through aquifers and underground lakes. The problem with this is that Israelis and people living in the Gaza Strip are pumping

The Thinker free essay sample

Essay Again I am a problem solver. Persisting through challenges, I possess the freedom to take intellectual risks. My parents call me â€Å"Doomatel†, which in Russian, means, â€Å"the Thinker.† I spend hours unintentionally analyzing data, whether it be a sudden change in weather or one of Walt Whitman’s elaborate poems, for I see my world through the scientific lens of data, research, and discovery. On any given day, I pause, and realize that if it were not for my family’s decision to emigrate to the United States from Russia, then my chances of passionately pursuing the luxury of intellectual curiosity – the ability to delve into why happiness exists or what motivates us- would probably be very slim. My parents escaped persecution, discrimination, fear, and economic hardship in Russia, all while in search of a chance to create a successful future. Forced to adapt to a new form of living, they used their everyday experiences to learn how to evaluate courses of action that would lead them to either success or failure. We will write a custom essay sample on The Thinker or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Their sacrifices of the past exist for me today in order to emphasize the gravity embodied by making a singular decision. My parents’ struggles are the fabric of my personal narrative, and from them, I learned the importance of taking chances and finding the most efficient ways to dissect various obstacles. Appreciating my parents background made me realize that nothing worthwhile in life comes without effort and struggle. Often, people believe that by simply doing what they love all the time, they will reach their goals. If I were to do what I love all the time, I would live with the cast of Grey’s Anatomy, spend my time discovering new places, traveling the world, relaxing under a palm tree somewhere in the tropics, and sampling the world’s finest chocolate. Sometimes though, it takes stepping out of the way of your own trajectory to accept the reality of that which you love. For me, stepping out of my own way by doing something I normally wouldn’t do, was a risk. However, it was a risk that I needed to take. I took this risk of personal discovery while teaching a large group of three-year olds—twenty to be exact—on a tennis court. My job was to physically teach these toddlers the game of tennis. Both impatience and frustration would take over me as rackets flew wildly, knees scraped mercilessly, and equipment broke unforgivingly. The game I love, which was once so relaxing and mentally stimulating, became one of my greatest burdens as I watched screaming toddlers strike one another with bright yellow balls. It wasn’t until the end of a two-hour long lesson that one of my students ran up to me. Expecting to hear a complaint, I was surprised when the curly-haired boy handed me a crumpled note. â€Å"Thank you† and a picture of two smiling stick figures, each with a tennis racket, one labeled â€Å"You† and the other â€Å"Me,† was all it took to make me smile. It took me a minute to understand that all of my strain had managed to bring happiness to this one student. I felt appreciated. I realized that through my work, there now was someone else who may feel as amorous about tennis as I feel. From that moment, coaching younger children was no longer a burden. Instead, coaching had become an opportunity to share my passion for the game and to re-discover my personal drive. I think that I will always be a Doomatel. I open-heartedly embrace the challenge of tough choices as they make me feel alive and motivated. They act as a puzzle, forcing me to spend time searching for the essence of each piece until I can finally reveal a masterpiece.

Past Year Paper for Fnsacc601A Marking Guide Essay Example

Past Year Paper for Fnsacc601A Marking Guide Essay This document provides detailed guidance for assessors or teachers only. It is to be used as a reference document for marking. It is not for use as a recording document. It is not appropriate under any circumstances to issue this document to students. About this guide This document contains advice for assessors and teachers, to allocate marks or results for all the learning activities for FNSACC601A Prepare complex tax returns.Students must be competent in each element to pass this assessment In order to achieve competency in this assessment you must meet the requirements set out in the table below for each question. Question 1 2 3 4 5 6 7 Marks available 15 6 15 15 10 15 24 100 Mark Required to Achieve Competency 8 3 8 8 5 8 12 52 The purpose of the Marking guide is to ensure that adequate information is provided for consistent marking to take place. This will help ensure that Australian Quality Training Framework requirements for assessment reliability are met.Refer to the informa tion in the footer space of this document to identify: ? the correct Assessment guide this document refers to—the footer information in the Assessment guide and corresponding Marking guide must match ? whether you have the latest version of this Marking guide. 2 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 Question 1 (15 marks) a) 7 marks (deduct 1 mark per error) Assessable income Gross income Bank interest received Deductions Salaries -employees Superannuation -employees Interest on loan -Sally -Whitehouse finance Other expenses General asset pool decline in value 30% of $100,000 Partnership net income $ 414,000 2,000 105,000 10,000 3,000 18,000 133,000 30,000 $ 416,000 299,000 117,000 (b) 4 marks (deduct 1 mark per error) $ Partnership net income, as above Less Salary Harry Sally Interest on capital Harry Sally Adjusted net income 60,000 40,000 7,000 5,000 $ 117,000 12,000 5,000 Salaries $ Harry Sally PARTNERSHIP DISTRIBUTION STATEMENT Int. on capital $ Adj net income $ Share of net inc. $ 60,000 7,000 2,500 69,500 40,000 5,000 2,500 47,500 100,000 12,000 5,000 117,000 (c) 4 marks (deduct 1 mark per error) Assessable income Share of partnership net income Interest of loan to partnership Share of net capital gain ? ($500,000 320,000) less 50% discount Allowable deduction: Tax loss carried forward from the 2009/10 year Taxable income $ 47,500 3,000 45,000 95,500 15,000 80,500LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 3 Question 2 (6 marks) Each part is worth 2 marks Part A Answer is (e) None of the above one quarter of ($130,000 + $150,000) = $70,000 Answer is (e) None of the above ($96,000 + $50,000) = $146,000 Answer is (a) $90,000 ($85,000 + $25,000 $20,000) = $90,000 Part B Part C 4 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011Question 3 (15 marks) (a) 9 marks (deduct 1 mark per error) Assessable Income Employer contributions 125,000 + 20,000+ 15,000 Foreign Income – Canadian trust 40,000 + 10,000 Franked dividends – Private Pty Ltd Franking credit – Private Pty Ltd 21,000 x 30/70 Net Capital Gain Franked dividends – Listed companies Franking credits – listed companies 24,500 x 30/70 Allowable Deductions Life Insurance Premiums Administration costs $ 160,000 50,000 21,000 9,000 81,000 24,500 10,500 6,000 4,000 356,000 $ 10,000 346,000Net Capital Gain Gain on shares in Private Pty Ltd Gain on shares in ANZ Bank Ltd Gain on shares in Landfill Mining NL Less discount 1/3 (109,000 – 25,000) 45,000 – 21,000 135,000 – 75,000 30,000 – 5,000 $ 24,000 60,000 25,000 109,000 28,000 81,000 (b) 6 marks (deduct 1 m ark per error) Tax Payable Tax on excessive non-arms length (50% x 30,000) x 45% income Tax on contributions with no TFN 5,000 x 46. 5% Tax on low component (346,000 – 15,000 – 5,000) x 15% Less Franking credit offset Foreign tax credit PAYG Instalments Tax Refundable $ $ 6,750. 00 2,325. 0 48,900. 00 57,975. 00 (9,000 + 10,500) 19,500. 00 7,500. 00 36,500. 00 63,500. 00 5,525. 00 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 5 Question 4 (15 marks) (a) 5 marks (deduct 1 mark per error) Beneficiary Present Legal Entitlement Disability Lindy Y N Rock Y Y Cindy Y N Dot Y Y Balance N n/a Who assessed Lindy Trustee Cindy Trustee Trustee Section(s) applicable 97 98 97/101 98 99 Amount $ 30,000 20,000 36,000 17,500 16,500 120,000 b) 6 marks (2 marks per trustee assessment – deduct 1 mark per error) Tax payable by Trustee Sec 98 Trustee a/c Rock Tax o n $20,000 Medicare Levy Less Low Income Offset 15% x (20,000 -6,000) 10% x (20,000 – 18,488) $ 2,100. 00 151. 20 2,251,20 1,500. 00 751. 20 Sec 98 Trustee a/c Dot Tax on $17,500 Medicare Levy Less Low Income Offset 15% x (17,500 -6,000) below threshold $ 1,725. 00 Nil 1,725,00 1,500. 00 225. 00 Sec 99 Trustee (balance) Tax on $16,500 15% x (16,500 -6,000) 1,575. 00 c) 4 marks (deduct 1 mark per error) Tax payable by Dot Tax on eligible income ($30,000) Tax on excepted income ($17,500) Medicare Levy Less s100 credits (12,450 + 225) Low Income Offset 1500-4% (47,500-30,000) Tax payable 45% x 30,000 15% x (17,500 – 6,000) 1. 5% x 47,500 13,500. 00 1,725. 00 712. 50 15,937. 50 12,675. 00 800. 00 13,475. 00 2,462. 50 6 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 Question 5 (10 marks) a) 3 marks (deduct 1 mark per error) Retainer – Football Club Tr ust Distribution – deceased estate Net business income Interest Excepted assessable income $ 15,000 6,000 9,700 500 31,200 (10,000 – 300) (b) 3 marks (deduct 1 mark per error) $ 31,000 2,800 33,800 Income from discretionary trust Unfranked dividends Eligible assessable income (c) 4 marks (deduct 1 mark per error) Tax on excepted income of $31,200 Tax on eligible income of $33,800 Medicare levy on $65,000 Less s100 credit Low income offset 1500-(65,000-30,000) x 4% Tax Payable 15% (31,200-6,000) 45% x 33,800 1. 5% x 65,000 12,915 100 3,780 15,210 975 19,965 13,015 6,950 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 7 Question 6 (15 marks) (a) 10 marks (deduct 1 mark per error) ASSESSABLE INCOME Gross profit – livestock trading Balancing adjustment -computer DEDUCTIONS Rations Rabbit-proof fence Water facility dam Phone lines Agistment Farm mana gement deposits Other operating Costs Decline in value $ 585,000 300 $ 585,300 (3 x 20) + (5 x 4) landcare operations 1/3 x 12,000 1/10 x 6,000 54,000 – (3 x 2,000) Laptop computer (