The Financial Crisis Essay Example | Topics and Well Written Essays - 1250 words

The Financial Crisis - Essay Example The valuable lessons learned from the crisis will also be discussed herein. Bear Stearns, AIG, Lehmann Brothers, Northern Rock, and Goldman Sachs are some elite names that suffered most because of the economic crisis also known as recession. Lehmann Brothers filed for bankruptcy while AIG and a few other elites just hung in there with the skin of their teeth. This economic crisis is still having repercussions on countries such as Greece and Spain; the whole of Euro Zone is facing a financial turmoil. There are a few other countries that have been not so severely affected by the same. The crisis was triggered off because of unchecked debt; banks kept issuing loans to people who invested heavily in buying assets; several things were taken for granted but when proved otherwise, there was hardly a place in the world to hide. Overvaluation in real estate is perhaps the biggest cause of the current economic crisis. It is better known as the subprime crisis in the US. The likes of Lehmann B rothers and other financial services went bust because they kept issuing credit to the people who thought the property price would increase and they would be easily able to pay off the debt that they are borrowing. It did not turn out that way and there was a short of equity. This is exactly why the financial institutions went bankrupt. The overvaluation is the biggest factor that caused the current economic crisis. Factors such as bad income tax practices have added insult to injury, bad mortgage lending also contributed heavily to this current economic crisis. â€Å"The way to address the root cause is to let house prices drop to where an average house is within the means of an average household.   (Or, alternatively, boost the income of the average household to the point that they can afford an average house.   But that's very hard.   Letting houses prices go on falling, although painful for everyone who owns a house or who has lent money to someone who owns a house, is ve ry easy)† (â€Å"Root Cause of the Financial Crisis†). Role of Monetary Policy Some of the main plausible reasons that caused the recent financial crisis have been identified in the above sections. According to Brunnermeie, cheap mortgage financing to sub-standard borrowers fuelled the boom in the U.S. housing market. Three factors were primarily responsible for the fall of the housing market in the U.S. (which, in essence, constituted a very small segment of the financial market in the country) transforming into a global contagion. First, the â€Å"originate and distribute† banking model, together with the high rate of securitization, led to declining lending standards and made it impossible to re-price the complex structured products. This significantly eroded the confidence level of banks, thereby disrupting the inter-bank markets and credit flow. Second, banks relied heavily on short-term funding sources, hence raising the risk of funding. Finally, the ever-g rowing integration of global financial systems and the increasing interest towards structured financial instruments quickly transmitted the crisis to all the major regions of the world. Gourinchas focused on the role of monetary policy in the recent financial contagion as well as the role played by exogenous influences, particularly the rising external deficits referred to as â€Å"Global Imbalances.† According to Gourinchas, both explanations are not satisfactory as the sole reason behind the crisis. This opinion has

One Water, Sanjeev Chatterjee Water Project Essay

One Water, Sanjeev Chatterjee Water Project - Essay Example One Water A concern demanding worldwide attention regarding the worldwide deficiency prompted Professor Sanjeev Chatterjee to initiate an international campaign aimed at providing a solution to the emasculating endangerment of freshwater. Professor Sanjeev went ahead to propose an initiative in the university of Miami, later writing the movie One Water that highlights the endeavors communities make in trying to sustain their water needs. The theme of the movie is based on the effects that lead to the detriment of water bodies that provide clean ample water, which comes from the effects of industrialization and globalization such as pollution, heightening drought levels among others. The heart of the movie lies not only on water necessity as a physical need but also on the spiritual and physical significance of water. Professor Sanjeev elaborates on certain number key aspects that portray the need set theme of the movie. The initiative creation was geared by the Miami university campa ign through a documentation that heeds to employ the art of film to create awareness on the face of the world. The success of the documentary was immense bearing recognition from certain water deficiency stricken nations including South Africa, Columbia, India and Bahrain. This demonstration aids in the awareness for a number of remedial steps that should be emulated to secure and protect the water resources now present, while avoiding their demise. At the screening of the movie One Water, professor Sanjeev expressed the basic message of the movie â€Å"One Water was conceived as a wake-up call to the global crisis of provisioning of safe potable water in a visually compelling way.† What are the Physical and Spiritual Aspects of Water? Water in different communities holds different importance and views. The physical aspects of water are quite elaborate and are wide all over the world. Besides quenching thirst, it is used in all aspects of life. In reference to the movie, ther e are quite number of scenes that show the desperation in many as they struggle getting ample potable water for consumption. The sense in portraying the physical aspect of water is that it holds the sustainability of life. Water is life (UNESCO). In the Buddhist religion, water is a vital aspect of their religion. Buddhists use water as a purifier of objects. Aside from providing spiritual cleanliness, it also provides the physical cleanliness. Different religions have different significance of water. The Buddhists hold significance in water during the burial ceremony of an individual, symbolizing the spiritual endowment willed to the departed in the life after. The Christian aspect of water likens believing of the living water to the promise of a life in heaven. The core of Christian faith is Jesus, who was baptized in the river Jordan by john the Baptist. This attribute has built the foundation for the baptismal ground of the Christian faith. In the catholic and other Christian fa ith, the baptism rite is only valid if there is the use of water as a sign of the union with the Almighty. Additionally, jesus regards Himself as the living water, pointing out the importance of water in life. Hinduism rewards water with the power to cleanse all things. In the Hindu religion, there are seven rivers that are considered the backbone water importance