The Financial Crises and The Collapse of the Lehman Brothers - ABD Essay

The Financial Crises and The Collapse of the Lehman Brothers - ABD - Essay Example The role of governments and that of economic theories had an equal amount of role to play in the control and monitoring function and the predictive ability and risk measurement respectively. The study of such indicators helps to understand and appreciate the importance of non financial factors as a cause of the recent financial crisis that shook the entire world (Kotz, 2009). The aftermath of the great financial crisis helps us to reflect upon the shocks experienced by the policy landscape and government policies and greed of bankers and the plight of the taxpayers. This has brought to focus, the need for enhancement of the role of the government in regulating and controlling the systems of the market from the inadequacies and the excesses. Also linked with these issues is the problem with moral hazards. The role of moral hazard has been identified to be central to the causes of the recent crisis and the learning from the controversy that can be drawn (Engelen et al., 2008). A moral hazard can be clearly defined as the responsibility of one party towards the interest of the other but where the interests of the former attain priority. For example, a person sells a financial product to the other but chooses only those funds for sale which provide him with the highest bonuses but might not hold any interest of the buyer. The risks associated with it are mutually borne by the seller and the buyer. The subprime was a typical example for the moral hazard theory where gains and social losses were privatized (Godechot, 2008). Financial risk management failures were caused primarily due to the ignorance of the systematic interaction between the different risk elements of the process. There were modeling errors that were based on the assumption of normal markets and ignored abnormal market situations. Such practice made the financial risk management system more prone to crisis rather than being less exposed. Credit default swaps and collateralized debt

California natives Essay Example | Topics and Well Written Essays - 750 words

California natives - Essay Example the degradation of the environment (massive clearing of forests, siltation of river systems, loss of wildlife game and draining of marshlands) that adversely affected the natives. The native population of California just a few centuries ago was so diverse that about 500 independent different tribal groups were identified by anthropologists (ibid. 3) in the area. However, the tragedy was that much of this local culture was lost forever with very few items and artifacts left to record their way of life due to the forced assimilation adopted by settlers. As a result, although the native population had risen after 1900, that population had lost much of its ethnic purity with most of natives half-breed (mixed marriages and broken traditions). Linguistic diversity was also lost with many unable to speak their native tongues. This essay tries to look back at those times and examine the effects of two groups of settlers – the Spaniards and the Russians. Each group had a different purpose of going to the area and therefore had a different impact on the lives of the natives. This paper also looks at a specific aspect of native life during that bygone era and gives brief contrast with the Western way of life and the valuable lessons that could have been learned by everyone. The recorded history of California (as viewed from Western eyes) begun with Spanish religious missions together with settlers and soldiers. The missions and the presidios usually were built near other in case of attacks from the coast or from the native Indians and later on grew into pueblos (small towns). The presidios were actually small forts where soldiers were posted so they can aid the mission in case they were under threat. These structures survived to this day and are among the most visited tourist sites. These relics and monuments of Spanish colonization form a chain of 21 missions built along El Camino Rey (The Royal Highway) and considered as the refuge of religion and serenity while