Report on the Current Financial Crisis Essay Example | Topics and Well Written Essays - 1000 words

Report on the Current Financial Crisis - Essay Example They explain that increasing liquidity and increasing nontraditional mortgages which were deceptive and beyond the ability of borrowers to pay was another trigger of financial crisis. Another trigger of financial crisis was the failure in securitization and credit rating which made poorly performing mortgages into bad financial assets. Security markets and stakeholders brought down credit quality in mortgages they securitized even as credit-rating organizations erroneously rated such securities as viable investments (Bancel and Usha 179). The buyers did not carry out due diligence thereby leading to losses. The financial crisis had various impacts on the global economy and the financial markets. The crisis led to reduction in the gross domestic product in most countries. The decline in GDP in some European countries in 2009 ranged between 5 and 8 percent and the decline was highest in countries that had their financial systems highly leveraged and the credit growth was high before th e onset of the crisis. The financial crisis also led to increased rates of inflation in countries especially in countries where the financial sector has not been adequately regulated (Bancel and Usha 183). The rates of unemployment globally went up following the financial crisis. Unemployment increased due to slowed production and sales in most economic sectors thereby constraining the job opportunities. The financial crisis also led to a decline in global trade with the less developed countries suffering from huge deficits of trade. The other effect of the financial crisis was negative impacts on the exchange rates of most currencies (DLA Nordic 1). Most import dependent countries experienced a sharp decline in the value of their currencies as compared to other countries thereby disadvantaging importers. Systematic risk refers to the possibility of the whole financial system collapsing in contrast to the collapse of a single group or component. Systematic risk has spread throughout the globe due to integration of the globe in trade, markets and finance. Technology has enhanced integration thereby making the world a global village (Tchana Tchana 1). The other factor that led to the spread of systematic risks throughout the globe is regulation. Systematic risks cause increased flow of investment in different countries. This is because as the investors seek to diverse their profits and mitigate the negative impacts, they choose to invest in countries that have low risk levels. Additionally, the systematic risks caused by financial crisis causes reduction in investments as the banks lack adequate resources to loan out for capital investment. Consequently, long term investments become slowed. The financial crisis had two effects on credit such as bonds (Bancel and Usha 183). The first effect was a reduction in the number of creditors given that only those creditors able to issue good quality bonds could get to the market thereby increasing their credit ratings. Ad ditionally, average systematic risks of creditors also increased dramatically (Bancel and Usha 183). The Federal Reserve has implemented several short and long term measures to prevent the domino effects (Reddy and Joellen 1). The main aim for Fed’s involvement was to enhance liquidity given that during the period the liquidity was low. Fed offered improved liquidity via open

How does physical movement benefit brain development in elementary Research Paper

How does physical movement benefit brain development in elementary students - Research Paper Example In the past, such a debate has been concentric upon an understanding of whether childhood play is beneficial or not with regards to overall development of mental capacity and understanding. However, within the scope of this particular analysis, play in and of itself will not be discussed. Rather, due to the fact that the focus of this analysis is concentric upon the means by which activity can impact positively upon the learning process, play is an insufficient definition of such an activity. Within such a manner, the handle of physical activity will be utilized as a means of discussing and analyzing what prior research has documented concerning any and all languages that might exist with regards to development of mental capacity and ability to engage in further educational endeavors. Linking directly back into an understanding of the way in which sociology and psychology have traditionally understood development in terms of heredity, up until almost 15 years ago, sociologists and ps ychologists believed that early childhood development was almost invariably tied to heredity (Leppert et al, 2009). In such a way, scientists believed that the parents of the individual child created something of a genetic blueprint by which further development and mental capacity were constrained. However, if not surprisingly, further research into the subject matter, and a vastly increased level of knowledge with regards to the way in which early development takes place, has denoted that heredity plays only a minimal role with regards to the â€Å"wiring† that the brain engages in (Lum, 2013). Such an understanding has of course been made easier due to the fact that increases in technology have provided scientists and researchers with specialized scans and mapping applications by which key test subjects were analyzed from week to week, month to month, and year to year as a means of providing a roadmap for the way in which brain development was actually affected within diffe rent key groups. As a result of this level of research that has been ongoing for the past few decades, scientists have definitively determined that the patterns and strengthening of bonding synapses is primarily influenced and aided by the existence of physical activity within the regime of the child. This should not be understood to mean that a level of sports or competitive games must be engaged in order for this physicality aspect to be positively correlated to brain activity (Hotz et al, 2009). Rather, almost all of the accident research which is been conducted on this topic has determined that physical activity in the form of play, kinetic learning, and many other forms are equally as beneficial; perhaps more due to the fact that they do not oftentimes behave within rigid norms or regulations. In effect, the inclusion of creativity alongside physical activity seems to be as something of a magic formula with regards to stimulating brain development and maximizing the overall lev els of connections that can be made within the adolescent mind. Perhaps most importantly of all, scientists have determined that there is a â€Å"sweet spot† with regards the timeframe in which this can be affected. As sociologists and