Cause Of The 2008 Financial Crisis - 1754 Words

Causes of the 2008 financial crisis Financial crisis has been prevalent since time immemorial. The world’s economies have been continually hit by the same and the 2008 financial crisis is definitely not the last appearance. The financial sector involves complexity and contains one of the world’s largest players and has continually developed into large conglomerates sometimes too big to control. These financial organizations have developed products that have become hard to regulate and impose control on which has often led to their collapse. Major world governments and financial institutions, mostly the central banks have the responsibility to make sure that these organizations are operating both ethically and legally and within the bounds of the law. This is the institution of supervisory and regulatory roles to monitor them. Supervisory and regulatory structures have in the past failed to control the activities of these enormous companies dealing in financial solutions especially where these organizations have become larger than the country’s individual economies. The financial companies engage in risks too large for them to handle in a bid to generate more profits and when these ventures have gone haywire, these companies have sunk. Foster Magdoff (2009) wrote that the failure of the international financial markets in 2008 led to the World’s worst economic nightmare, with a dip in the market performance that led to the eventual failure of companies operating therein.Show MoreRelatedCauses of the 2008 Financial Crisis2661 Words   |  11 PagesCourse Title Date of Submission Causes of the 2008 Financial Crisis a) Financial crisis definition Financial crisis is defined as the financial meltdown, or in other terms as the credit crunch. A financial crisis is an economic incidence makes it hard to obtain and access the capital for use in investment. The economic crisis is an ongoing economic problem that was more pronounced in 2008 resulting in the liquidity in the global credit markets and its financial systems (Berlatsky 77). This meansRead MoreThe Causes of the 2008 Financial Crisis621 Words   |  2 PagesReason #1. The 2008 economic downturn was affected by the housing market and specifically the defaulted loan percentage. Davis (2008) claimed Most of the sub-prime loans have been made to borrowers with poor credit ratings, no down payment on the home financed, and/or no verification of income or assets (Alt-As). Close to 25% of sub-prime and Alt-As loans are in default. It seemed in the events leading up to the housing market crash were marred with irresponsible investors who took very littleRead MoreCauses for the Financial Crisis of 2008889 Words   |  4 PagesThe financial crisis in 2008 was been considered as the worst financial crisis since the Great Depression. One of the major reasons of the crisis was that banks in the States were given permission by the repeal of the Glass-Steagall legislation, which allowed banks to affiliate with insurance, real estate, security. The goal was to create financial firms â€Å"better equipped to compete in global financial markets†. With the firewall between commercial banks, which make loans and take deposits, and investmentRead MoreThe Causes and Consequences of the Financial Crisis of 20082496 Words   |  10 PagesEnglish Dossier Milà ©na Gandroz 2A Cycle ICM What are the causes and the consequences of the global financial crisis of 2008? SOMMAIRE INTRODUCTION 3 WHY IT HAPPENED? 4 1. Deregulation policy 4 2. Securitization of mortgages 4 HOW IT HAPPENED? 6 1. The subprime crisis 6 2. The financial crisis 6 WHAT ARE THE CONSEQUENCES? 7 1. In the financial sector 7 2. In the United States 8 3. Abroad 8 WHAT IS HAPPENING NOW? 8 1. Some things are changing 8 Read MoreCauses of the Financial Crisis of 2008-20091736 Words   |  7 PagesCauses of The Financial Crisis of 2007-2009 According to our financial textbook â€Å" Financial crises are major disruptions in financial markets characterized by sharp declines in asset prices and firm failures† (Mishkin and Eakins 2012). In August 2007, defaults in mortgage market for subprime borrowers sent a shudder through the financial markets, leading to the worst U.S financial crisis since the Great Depression. Alan Greenspan, chairman of the Fed, described the financial crisis as a â€Å"once-in-a-centuryRead MoreCauses Of 2008 Financial Crisis : Imprudent Mortgage Lending912 Words   |  4 PagesCauses of 2008 financial crisis: Imprudent mortgage lending In this essay, imprudent mortgage lending is considered as a main factor, which caused the 2008 financial crisis. It mainly discusses the cause of imprudent mortgage lending and regular changes. And at last, there are some suggestions proposed for mortgage lending’s future development. A famous global bank called Lehman Brothers nearly knocked down the international financial system in September 2008. It was an unexpected collapse, whichRead MoreThe 2007-2008 Financial Crisis: Causes, Impacts and the Need for New Regulations1563 Words   |  7 PagesTHE 2007-2008 FINANCIAL CRISIS: CAUSES, IMPACTS AND THE NEED FOR NEW REGULATIONS The initial cause of the financial turbulence is attributed to the U.S. sub-prime residential mortgage market. The sustained rise in asset prices, particularly house prices, on the back of excessively accommodative monetary policy and lax lending standards during 2002-2006, increased innovation in the new financial instruments, unusual low interest rates resulted in a large rise in mortgage credit to households; particularlyRead MoreDeregulation Is The Underlying Cause Of The 2007 / 08 Financial Crisis1382 Words   |  6 Pagesderivatives. The Financial crisis in 2007-2008 brought the massive hurt to everyone in the world. The worldwide financial problem affected thirty million people loosing their jobs and cause many countries getting close to go bankrupt (Peah, 2014). This is the global issue that everyone should be consider of. The purpose of this essay is to determine if the deregulation was the underlying cause of the 2007/08 financial crisis. The essay argues the deregulation was the underlying cause of the 2007/08Read MoreThe Financial And Political Systems Have Always Played1226 Words   |  5 PagesThe financial and political systems have always played a major role in stabilizing the society and ensuring a smooth transition between public policies and economic activities. Over the past decades, we’ve witnessed the global crisis of 2008, which costs â€Å"tens of millions of people their savings, their jobs, and their homes†. Interestingly, the root of the problem comes from the corruption of the financial industry and how the political figures respond to the crisis. This response paper correspondsRead MoreThe 2008 Financial Crisis Essay1326 Words   |  6 Pagesintroduction The 2008 financial crisis led to a sharp increase in mortgage foreclosures primarily subprime leading to a collapse in several mortgage lenders. Recurrent foreclosures and the harms of subprime mortgages were caused by loose lending practices, housing bubble, low interest rates and extreme risk taking (Zandi, 2008). Additionally, expert analysis on the 2008 financial crisis assert that the cause was also due to erroneous monetary policy moves and poor housing policies. The federal government

Excel Spreadsheet Assignment Example

Essays on Excel Spreadsheet Assignment Research Paper Finance and Management: Stock portfolio analysis for selected companies Oracle and Sage Group Oracle Corp is a publicly traded company based in Redwood City of California. It is specialized in the production of supply chain management software as well as Oracle ERP and CRM software for developing and managing a computerised protocol for apt customer relations management. Its products are widely used in large supply chains and firms with several branches and large market share. Currently, Oracle is listed as NASDAQ-ORCL with revenue of about US$36 billion as at the beginning of Q1 2012FY (NASDAQ, 2012). Sage on the other hand has perfected the art of developing accounting tools and software such as Sage Accpac, Sage Saleslogix, MicrOpay e-HR and PayPoint ePOS. The company is based in Newcastle and listed as SGE in the London Stock Exchange. It has a market share of about 9.3% of the global software revenue (FINData, 2012) Microsoft Corporation, Intuit Inc SAP In accounting, Microsoft is the leading developer of Microsoft Dynamic CRM and MS-ERP. These are extensively used in enterprise resource development and management in organizations with a workforce of less than 7500 employees. It is listed as NASDAQ-MSFT with an approximated income of about US$69.4 billion (Stock Market Watch, 2012a). Conversely, Intuit deals in taxation software for companies and individual usage. Some of its popular products include QuickBooks, proSeries and the Billing Manger. According to Maggie (2011), Intuit commands a large customer base in the US and beyond especially in the advancing field of credit cards billing and electronic taxations. Lastly, SAP is a German based company commonly known to produce the famous SAP Business Suit. This package incorporates SAP CRM, SRM, PLM and SCM used for managing various components of customer relations, suppliers, and product-life and supply chains respectively. It is listed in the Frankfurt Stock Exchange revenue prospects of about â‚ ¬12.5 billion accounting for 4% of the world software revenue (Stock Market Watch, 2012b) Stock Portfolio and Comparative Analysis Stocks of MSFT performed quite poorly over the three months period leading to a cumulative net loss of $116,732.52. On the other hand, the company staggered between a highest of $31.39 and a lowest price of $23.01 resulting in an average loss of -$6.39 per share as inferred in Appendix 1. It is imperative to note that the value of Oracle stocks remained relatively stable over the investment period as ascertained by WSJ (2012). Similarly, the stocks of Sage Group demonstrated high share value with significant volatility to changes in market forces as opposed to the stock performance of Oracle. See Appendix 2 for graphical presentation. Taking into account the overall investment trends in the third scenario, the investor closed business with a net gain of $37,124.18 over the 120 day tracking period. It should be noted however, that with an investment capital of $750,000, MSFT stocks showed further deterioration to a closing loss of $175,100.47. Apart from the corporate capacity of each company, it evidently emerged that Intuit was the best performing of all stocks. With an investment of $1,000,000 the company closed at an average gain of $9.46 per share with doubled returns on investment amounting to $180,846.82. This consistency in Intuit’s positive performance and the stabile profitability index of Oracle stocks among the large corporation defined the criteria of selective approach implied in Best Scenario 5 as illustrated in Appendix 3. Ideally, Excel was useful in deriving the information instantaneously with minimal chances of human error. Furthermore, it generated the analytical graphs of stock performance with comparative elements of daily trends. Other possible uses of these statistics that could have been generated using excel include NPV and internal rate of return IRR. The data could also be used to project the speculative performance of each stock in the extrapolated future. References FINData, 2012. Sage Group Stock Performance: Charts. Retrieved February 13, 2012 from: Maggie, M. O. (2011). Intuits Profit tops Wall Street view. Retrieved February 13, 2012 from: NASDAQ, (2012). Investment: Intuit Stocks and Performance. Retrieved February 13, 2012 from: http://www.marketwatch.com/investing/stock/intu/charts Stock Market Watch, (2012a). Microsoft Corporation Stocks: NASDAQ:MSFT. Retrieved February 13, 2012 from: Stock Market Watch, (2012b). New York Stock Exchange: SAP AG – NYSE. Retrieved February 13, 2012 from: , WSJ, (2012). Oracle Corp Stocks: NASDAQ:ORCL. Retrieved February 13, 2012 from: Appendix 1: Microsoft Stock Performance Appendix 2: Comparative Stock performance in the two large corporations Appendix 3: Comparative Stock Performance between Intuit and Oracle

Hudson Bay Company Free Essays

The Bay – You are the Buyer†¦ Assignment Erica Hobb Sarah Walkington As a Buyer for the Bay, I would ensure that these new brands that I was bringing in to my department would be productive by researching every brand and making sure there on the same trend line that we are trying to follow. Knowing your target market is also a key element when introducing new brands. The selection factors that I would look at when choosing what brands to bring into my store would be dependent on the season, fit, colour or pattern, durability of garment or product, price, versatility/multi-use, designer label/prestige factor and quality of construction. We will write a custom essay sample on Hudson Bay Company or any similar topic only for you Order Now When deciding what brands to get rid of and which ones to keep, this would be solved by knowing which products are successful and which ones are not. Also which brands are going to match the new reconstruction of our company the Bay and which brands fits in with the new theme and which ones are outdated. In my opinion, the different factors of the two retailers are: The Bay is very Canadian based, not just because it started in Canada but because even their window displays are reflective to a Canadian theme, where as Holt Renfrew is known for being a high end retailer selling brands and products that are available and sold in other retail stores. The Bay has added over 250 new brands and 90% of which are exclusive to the Bay in Canada. Another factor that is different between the two retailers is their pricing. Holt Renfrew is designed for people with lavish lifestyles and an eye for expensive designer clothing where as The Bay ranges from all price points. The Bay has style and affordable merchandise. Also the customer service you find at both retailers are very different. When going into Holt Renfrew, your getting the whole shopping experience. Employees almost tend to smother you making sure everything you need is at there service where the Bay is more low key. How to cite Hudson Bay Company, Essay examples

Managerial Support Global Market

Question: Discuss about the Managerial Supportfor Global Market. Answer: Introduction Application of Business Intelligence in the Company The company chosen for implementation of the business intelligence is SABIC, a global diversified chemicals manufacturing company. The company is focused on innovation while achieving growth and sustainability in the global market. The scientists of the company are focused in accepting the rapid challenges in the market. However, with the use of business intelligence, the company can effectively use their technologies while improving their data mining services and storage (Tierney, 2014). The business intelligence that SABIC must use in the aspect of data visualization, advanced analytics, modern analytics platform is Oracle Business Intelligence 12C. Modern Analytics Platform- SABIC can connect directly to Big data, Oracle sources for richer and broader analysis. The business intelligence tool can help the leaders of SABIC while accessing and securing data in the cloud or in the mobile. It will help in centralizing the metrics and data models for comprehensive representation (Tierney, 2014). Data Visualization- SABIC will be able in creating story in the business by using different visually stunning analytics. The company can improve its productivity with visual workflows and intuitive. SABIC will get unique and new insights while creating various data mash ups. SABIC will enhance the library while uncovering the hidden data patterns (Greenwald, Stackowiak Stern, 2013). Advanced Analytics- It will empower the key decision makers of SABIC while taking quick decisions in finding answers to statistical and predictive questions. It will enable the business analysts of SABIC while creating mash-up data sets by running the R scripts in the batch mode. The business analysts of SABIC can choose different pre-built functions while extending the existing analytics with the R scripts (Greenwald, Stackowiak Stern, 2013). References Greenwald, R., Stackowiak, R., Stern, J. (2013).Oracle essentials: Oracle database 12c. O'Reilly Media, Inc. Tierney, B. (2014).Predictive Analytics Using Oracle Data Miner: Develop Use Data Mining Models in Oracle Data Miner, SQL PL/SQL. McGraw-Hill Education Group.