Research Report on Nokia Essay Example

Research Report on Nokia Essay Nokia Research Paper Nokia is a Finnish transnational company which produces telecommunication devices for mobile and other IP networks and the former manufacturer of mobile and smart phones. According to the information of the year 2013, the staff of the company is no more than 100 thousand employees in comparison with the end of 2010s when the number of employees was 132 thousand people. The company’s production is sold in more than 150 countries of the world. From 2000 to 2011 Nokia was the most successful manufacturer of mobile phones and occupied the most profitable position on the market. In 2011 Nokia started to cooperate with the US giant Microsoft rejecting from its own operation system for the mobile devices Symbian and substituting it with Windows Phone. In 2013 Nokia announced the sale of its mobile business to Microsoft for 5,44 billion euro. The history of Nokia is very long and it has its beginning in 1865. At first it was a paper factory and in the first part of the 20th century the company produced cables. In 1980s began the rapid development of Nokia’s electronics. The company invested money into technologies and manufactures home appliances, being the third biggest manufacturer of TV-sets in Europe. In the end of 1990s Nokia started manufacturing mobile phones which got their popularity all over the world for their price and quality. In the middle of 2000s Nokia was the most successful and profitable telecommunications company. Because of the reduction of the demand for the production of Nokia the company decided to sell its mobile department with all patents to Microsoft for quite a low and â€Å"shocking† price. We will write a custom essay sample on Research Report on Nokia specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Research Report on Nokia specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Research Report on Nokia specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Nokia is a well-known company which produced quality mobile phones which could compete with other companies for the leading positions. The student who has decided to prepare a research report is expected to observe the long history of Nokia, think about the importing strategic decisions and solutions taken by the owners and decide what factors helped Nokia to become one of the most influential manufacturers of mobile phones on the market. The student is supposed to observe the production, its strong and weak sides and observe the strategy of the company and the effectiveness of its economic decisions. The difficulty of the right organization of a research report lies in the appropriate formatting and analysis of the topic form the most objective side. A free example research report on Nokia vs Samsung can become a great piece of help for every student who requires advice on writing and analysis of the problem. It is reasonable to look through a free sample research report on Nokia mobile completed in the Internet and learn about the correct structure and style of writing of the assignment.

6 Factors in Choosing a Public vs. Private Education

6 Factors in Choosing a Public vs. Private Education What does your child need in order to succeed in attaining the best education for a promising future? This is a personal question that many parents ask themselves when choosing between a public or private education. Whats right for one child or family may not be ideal for another. To help you hone in on the best possible answer, there are generally six factors to consider.   1. What Does the Facility Offer? Many public school facilities are impressive; others are mediocre. The same is true of private schools. Private school facilities reflect the success of the schools development team and that of the school to continue to generate financial support from parents and alumni. Some private K-12 schools have facilities and amenities that surpass those found at many colleges and universities. Hotchkiss and Andover, for example, have libraries and athletic facilities on par with those at Brown and Cornell. They also offer academic and sports programs that make full use of all those resources. It is hard to find comparable facilities in the public sector- they are few and far between. Public schools also reflect the economic realities of their location. Wealthy suburban schools will often have more amenities than inner-city schools, as a rule. If your son is an aspiring football player, then a school with great athletic facilities and coaching staff should be a top priority.   2. How Many Students per Class? According to the National Center for Education Statistics report, Private Schools: A Brief Portrait,  private schools win out on this issue. Why? Most private schools have smaller class sizes, which may be ideal for a student who is easily distracted. One of the key points of private education is individual attention. You need student-to-teacher ratios of 15:1 or better to achieve that goal of individual attention. Many private schools boast class sizes of 10-15 students with 7:1 student-to-teacher ratios. Unlike private schools, a public school system must enroll almost anyone who lives within its boundaries, so generally, there are much larger class sizes- sometimes exceeding 35-40 students at some inner-city schools. However, even a large class can be a suitable learning environment if the students are well-behaved and led by a strong teacher. 3. Can the School Attract the Best Teachers? A schools ability to attract quality teachers is often tied to the salaries the school can afford to pay. Overall, public school teachers are generally better paid and have superior pension programs. Compensation varies widely, however, depending on the local economic situation and school location. For instance, teachers may earn less in Duluth, Minnesota, because its cheaper to live there than in San Francisco. Unfortunately, at some public schools, low starting salaries and small annual salary increases result in low teacher retention. Public sector benefits have historically been excellent; however, health and pension costs have risen so dramatically since the year 2000 that full-time public educators are often being forced to pay a larger share of the cost, while part-time educators may have to pay for it all. While private school compensation tends to be somewhat lower than public- again, much depends on the school and its financial resources- the often free amenities can make up for it. One private school benefit found especially in boarding schools is complimentary housing and meals, which accounts for the lower salary. Private school pension plans vary widely. Many schools use major pension providers such as TIAA. Both public and private schools require their teachers to be credentialed. This usually means a degree and/or  a teaching certificate. Private schools tend to hire teachers with advanced degrees in their subject over teachers who have an education degree. Put another way, a private school hiring a Spanish teacher will want that teacher to have a degree in Spanish language and literature as opposed to an education degree with a minor in Spanish. 4. How Much Will the School Cost You? Since local property taxes support the bulk of public education, the annual school budget exercise is a serious fiscal and political business. In poor communities or communities which have many voters living on fixed incomes, there is precious little room to respond to budget requests within the framework of projected tax revenue. Grants from foundations and the business community are essential to creative funding. Private schools, on the other hand, can raise tuition, and they also can raise significant amounts of money from a variety of development activities, including annual appeals, cultivation of alumni and alumnae, and solicitation of grants from foundations and corporations. The strong allegiance to private schools by their alumni makes the chances of fundraising success a real possibility in most cases. 5. Are There Administrative Issues? The bigger the bureaucracy, the harder it is to get decisions made at all, much less get them made quickly. The public education system is notorious for having antiquated work rules and bloated bureaucracies. This is as a result of union contracts and a host of political considerations. Private schools generally have a lean management structure. Every dollar spent has to come from operating income and endowment income. Those resources are finite. The other difference is that private schools rarely have teachers unions to deal with. 6. What Are the Expectations of Parents? Financial considerations are a major factor in determining if a public or private school is right for your family. However, you need to consider what will be expected in terms of time and commitment from you as well. Most private schools require students to be driven to and from school, and there are significant obligations for students to participate in activities outside of normal school hours. This means a lot of hours and miles for families every week to make it happen. A family needs to weigh the financial costs, time investment, and other factors. Public and private schools have their advantages and disadvantages, but with a little weighing of the pros and cons, you can easily figure out what is best for your child and for your family. Article edited by  Stacy Jagodowski

Finance project 2 Essay Example | Topics and Well Written Essays - 1000 words

Finance project 2 - Essay Example This means that the products produced within Hungary are sold to other countries in fewer quantities and monetary amounts than the products purchased from those nations. Since all the transactions are carried out in US Dollar, this trade deficit would increase pressure over country’s foreign reserves thus demand from importers (for dollar) will surge and would possibly result in lowering the monetary value of Hungary currency. Perhaps, the most important factor that could result in increasing trade deficit is reversal of international oil and commodity prices because today international economies are coming out of recession and are demanding more oil, food and other commodities to fulfill their domestic needs and oil requirements. Oil prices have already recovered to a level of 75-80$ per barrel and are expected to increase further in near future in the wake of better economic outlook and forecasts. This would put great pressure over Hungarian government because it would incre ase the trade deficit and further deteriorate HUF-Dollar parity. The dollar-HUF disparity (at present the exchange rate is 170 HUF per dollar) is perhaps a major reason of inflation (higher prices) which currently stands at 3% and could increase in near future amid higher international prices of various products. The rule is simple and clear: the higher the exchange rate, the more expensive the imports and prices will observe an upward trend in domestics for these imported products thereby causing inflation. Moreover, the rise in prices will also lower down the purchasing power of people in Hungary; therefore, would result in greater unrest and lower economic growth. People are bound to cut down their expenses to improve their savings. On the flip side, the weakening of US Dollar against international currencies such as Euro, Pound, Japanese Yen etc because of USA’s surging trade deficit and various internal factors might not aggravate the exchange rate in Hungary and could therefore

Essay on American Revolution in Popular Culture - 1

On American Revolution in Popular Culture - Essay Example It was a bitter experience for those who lived then. This made the fight for freedom and the eventual freedom even sweeter. There is a lot of material in popular culture that seeks to re-create the events back then. One of these novels is Saratoga: A Novel of the American Revolution. The writer is David Garland. This novel was published in the year 2006. At the very beginning, the novel starts in May 19771. The colonies, which today make the United States, unilaterally declare their independence from the Crown. This is obviously not a situation to be treated lightly on the part of the British. They organize a military response that is less than effective. Their initial assumption was that they could easily crush the uprising by isolated groups of revolutionaries. However, they are met by more resistance than they anticipated. The main character in the novel is Captain Jamie Skoyles, a soldier attached to the 24th Foot of the British army. He is a seasoned fighter. One of the interferences of popular culture in as far as the factual depiction of this war in the novel is concerned is a love affair that Skoyles is embroiled in with Elizabeth Rainham who is already engaged. This is a constant feature in popular culture. The need to romanticize war is very prevalent in popular culture. It stems from the fact that romance attracts audiences that naturally would not be drawn to war. These might include women. The rigours of war when soothed by a strong love affair seem bearable. Skoyles is also depicted attending and even meting out floggings to errant soldiers and even enemy combatants. This is an image that has been invented by popular culture. There is the belief that the most effective soldier is the one who does not shy away from violence. This popular culture construct is alive and well today. There are soldiers to day who are rewarded with the nation’s highest honors’ for performing extraordinary and fearless acts. One that comes to mind is that of a

History of philosophy Essay Example for Free

History of philosophy Essay The study of philosophy may deal with every dimension of human life and can raise questions in any field of study or endeavor. Philosophy pursues questions rather than answers. Philosophy is not bound by any particular â€Å"truths† that set limits to the desire to continue asking questions. Philosophy changes historically both in respect to its content and its character. Definitions Etymologically, philosophy is derived from the Greek word philein or philia meaning â€Å"love† or â€Å"friendship† and sophia meaning â€Å"wisdom. † Hence, â€Å"love of wisdom. † The Chinese define philosophy as Zhe-Xue or Che Shueh (originally coined by Dr.Nishi Amane). Zhe means â€Å"wisdom† while Xue means â€Å"study. † Significantly, the Chinese character Zhe bears the emblem of mouth and hand which suggests the inseparability of words and action. This philosophy is the translation of words into action or the application of theory into praxis. Hence, for the Chinese, philosophy singles out a person to live on what he says. For the Hindus, philosophy is Darsana. Darsana means seeing, not only through the eyes but through the whole being of the one that sees. In other words, philosophy for the Hindus means seeing the whole reality through a total advertence and involvement of the looker. Philosophy refers to the field of study of the process which includes standards and guidelines for thought and for logic by which people develop concepts and principles which describe people, things and events, and techniques for using the concept and principles for the purpose of observing, analyzing, understanding, evaluating, organizing, and dealing with themselves and other people, things, and events who/which comprise reality (Kroepel, 2011) Philosophy refers to a human drive in the search of knowledge and wisdom to facilitate the evolution of man. Philosophy studies the fundamental nature of existence, of man, and of man’s relationship to existence. CONCEPT OF PHILOSOPHY In order to live, a man must act; in order to act, he must make choices; in order to make choices, he must define a code of values; in order to define a code of values, he must know what he is and where he is, he must know his own nature (including his means of knowledge) and the nature of the universe in which he acts. All of this things put together, is the very concept of PHILOSOPHY. Origin of Philosophy Western Philosophy began in Miletus ( accdg.to Reginald Ellen). The radix of the claim lies on Thales: the acclaimed first philosopher. Historically, western philosophy began in Greece. The word philosophy is even derived from the Greek language and means a love of wisdom. Ancient western philosophy had three main branches: ethics, logic, and physics. These three branches have now broken into even smaller sub-sections, covering everything from epistemology to aesthetics. Socrates was a large influence on western philosophy, but there was a pre-Socratic era that covered philosophical topics. Eastern philosophy has its roots in religion, specifically the Abrahamic religions (Islam, Judaism Christianism). It is more concerned with asking questions about God and how the world relates to God. Abrahamic religions (also Abrahamism) are the monotheistic faiths of Middle Eastern origin, emphasizing and tracing their common origin to Abraham or recognizing a spiritual tradition identified with him. They are one of the major divisions in comparative religion, along with Indian religions (Dharmic) and East Asian religions (Taoist). Abraham was said to have lived during the Iron Age sometime after 2000 B. C. E. , in the city of Ur in Mesopotamia. The way eastern philosophers created theories on knowledge and religion has led people to practice the philosophies of certain philosophers without adopting all aspects of that branch. For example, some people may consider themselves believers in the Buddhist philosophy, but they never actually go and worship Buddha. The eastern philosophers historically believed that religion was a large part of the study of philosophy. Contemporary practices of eastern philosophy often remove the religious part. Islam impacted much of what we now consider eastern philosophy, meaning that most branches have a religious aspect. The most common branches of eastern philosophy include: Taoism, Buddhism, Hinduism, Maoism, Shinto, Confucius, and Legalism. Both regions can attribute a large amount of current philosophical thought to some form of religion. The eastern world chose to embrace religion as their main pursuit of knowledge, while the western world broke philosophy into a bunch of different branches. Branches of Philosophy Epistemology This refers to the branch of philosophy that is broadly defined as the study of knowledge. It answers the question, â€Å"how do we know? † It encompasses the nature of concepts, the construction of concepts, the validity of the senses, logical reasoning, as well as thoughts, ideas, memories, emotions and all things mental. It is concerned with how our minds are related to reality, and whether these relationships are valid or invalid. Aesthetics refers to the branch of philosophy that is broadly defined as the study of art. It answers the question, â€Å"what life can be like? † In philosophy, aesthetics is important because it delves into the reason why art has always existed to reflect and express the desire and need of mankind through the ages to see the world in a different and clear way. It further evaluates art by using the standards of human life, and if whether it accomplishes the job of satisfying man’s intellectual needs, or whether it tends to hurt or make worse of those needs. Metaphysics Literally means beyond physics, this refers to the branch of philosophy that is broadly defined as the study of existence. It answers the questions, â€Å"What is out there? † or â€Å"What is real? † As the foundation of philosophy, metaphysics is also regarded as the fundamental view of the world. It encompasses everything that exists, as well as the nature of existence itself. It determines whether the world is real, or merely an illusion. Ethics This refers to the branch of philosophy that is broadly defined as the study of action. It answers the question, â€Å"what should I do? † Ethics deals with the proper course of action for man. Specifically, it answers whether or not a human act is good or bad. At a more fundamental level, Ethics can also be defined as the method by which people categorize values and pursue them. Logic It is the branch of philosophy that is broadly defined as the study of reason. It answers the question, â€Å"what is correct reasoning? † Furthermore, logic attempts to distinguish a fact from fallacy. Politics It refers to the branch of philosophy that is broadly defined as the study of force. It answers the question, â€Å"what acts are permissible? † Under its philosophical perspective, politics is ethics applied to a group of people. Brief History of Philosophy. Pre-Socratic Philosophy Characterized by the rejection of the mythological explanation on the nature and phenomena in the universe. The thinkers under this time period were mainly concerned with the search for the â€Å"true essence of things† and made use of systematic and scientific approach in uncovering the realities in the universe. Pre-Socratic Philosophers Thales (c. 624 – 546 B. C. ) Greek philosopher who was regarded as the first philosopher in western tradition. He became known for positing that water is the single element that comprised all things in the universe. He also made famous the aphorism, â€Å"know thy self. † Anaximenes (c. 610 – 546 B. C. ) A student of Thales who postulated that air is the source of all things in the universe. His major contribution, however, was stating that nothing can be created from nothing. Matter, force, and energy are indestructible. These ideas later reappeared in physics in the laws of the conservation of matter and energy. Anaximander He explained the world as originating in conflicts between contraries, such as hot and cold and wet and dry. The cold partly dried up, leaving the Earth and its water. The hot turned some water into mist and air, while the remainder ascended to form fiery rings in the heavens. Holes in the rings are the sun, moon, and stars. CLASSICAL PHILOSOPHY Classical Philosophy was primarily characterized by the rise of the â€Å"Great Greek Triumvirate† – Socrates, Plato Aristotle. Classical Philosophers Socrates (c. 469 – 399 B. C. ) A Greek philosopher who became known as one of the most prominent philosopher in Ethics. Unlike his contemporaries, Socrates was more concerned with how people should behave rather than how the world works. Plato (c. 428 – 348 B. C. ) A student of Socrates who become known for through his dialogues which contained the presentation of his ideologies and theories in a conversational form. Aristotle (c. 384 – 322 B. C. ) He was the student of Plato and became known as the first thinker to create a comprehensive system of philosophy, encompassing Ethics, Aesthetics, Politics, Metaphysics, Logic and Science. MEDIEVAL PHILOSOPHY Medieval Philosophy was the period predominantly composed of philosophers who were concerned with proving the existence of God and with reconciling Christianity/Islam with the classical philosophy of Greece particularly that of Aristotle . This period also saw the establishment of the first universities, which became an important factor in the subsequent development of philosophy. Medieval Philosophers Avicenna (980 – 1037) A Persian philosopher, physician and polymath during the Golden Age of Islam. As a philosopher and a devout Muslim, he tried to reconcile the rational Greek philosophy with Islamic theology. St. Thomas Aquinas (1225 – 1274) An Italian philosopher and theologian who became a great influence on subsequent Christian philosophies, particularly that of the Roman Catholic Church. EARLY MODERN PHILOSOPHY Early Modern Philosophy. The rise of Modern Philosophy can be attributed to certain historical and cultural changes that happened between the Age of Reason during the 17th century and the Age of Enlightenment during the 18th century. Among the changes during the said period were the advancement in science, the growth of religious tolerance and the rise of liberalism (promotion of liberty and equality). Early Modern Philosophers Rene Descartes (1596 1650) A French philosopher, mathematician, scientist and writer of the Age of Reason. He has been called the â€Å"Father of Modern Philosophy†, and much of a subsequent Western philosophy can be seen as a response for his writings. He is responsible for one of the best-known quotations in philosophy: â€Å"Cogito, ergo sum† or â€Å"I think, therefore I am† (Mastin 2008). Baruch Spinoza (1623 1677) a Dutch philosopher who was a contemporary of Descartes. Spinoza became famous for his belief that absolutely everything including human behaviour occurs through the operation of necessity, leaving absolutely no room for free will and spontaneity. Gottfried Wilhelm Leibniz (1646 1716) A German philosopher, mathematician, scientist and polymath who postulated the concept of â€Å"monads† which refers to the ultimate element of the universe from which all things, including human beings and God himself are made of. Immanuel Kant (1724 1804) A German philosopher during the Age of Enlightenment. He is regarded as one of the most famous thinkers in modern philosophy. His contributions in all branches of philosophy are often described as being, â€Å"immeasurable†. Kant’s Copernican Revolution. One of the most popular Kantian theories which states that the â€Å"representation† of an object greatly helps the perceiver to perceive a certain object and not the object per se. To put it more accurately, tangible materials (such as the actual glass) are less important in perceiving the glass. What is important is how we experience the â€Å"glassness† of the glass through experience. Kant believed that the human mind can be compared to a tabula rasa (blank tablet). Examples: It is like a computer with no operating system. A computer with no â€Å"O. S. † should be installed with various programs to function properly. A new born baby should be exposed with positive experiences which may affect his lifestyle and manner on how he/she perceive things. MODERN PHILOSOPHY Modern Philosophy. The modern period of philosophy generally refers to the 19th and 20th centuries. The late 20th Century which is sometimes referred to as the contemporary period, became the venue of major development in philosophy characterized by the rise of new philosophical movements. Modern Philosophers Jeremy Bentham (1748 1832) An English philosopher, political radical and legal and social reformer of the early modern period. He became the founder of the Utilitarianism which refers to the principle that holds that the right action is that which would cause â€Å"the greatest happiness of the greatest number†. John Stuart Mill (1806 1873) An English philosopher and political scientist who was the protege of Bentham and conducted major improvements on the principles of Utilitarianism. Friedrich Wilhelm Nietzsche (pronounced NEE-cha) (1844 – 1900) A 19th Century German philosopher who was known for challenging the foundations of Christianity and traditional morality, famously uttering, â€Å"God is Dead†. EASTERN WESTERN PHILOSOPHIES: AN OVERVIEW Western Philosophy Refers to the philosophical thinking in the Western or Occidental world, particularly in Europe. Historically, it refers to the philosophical thinking of Western civilization, beginning in ancient Greece. Western thought puts more emphasis on individualism, science, math, and politics – hence, rational and materialistic. It can be seen as the triumph of reason and empiricism over faith/religion – a search involving many questions. Eastern Philosophy. Refers broadly to the various philosophies in the Eastern or Oriental world, particularly Asia and some Arab countries. Historically, it is heavily influenced by Hinduism the world’s oldest religion, beginning in India. Eastern thought puts more emphasis on interdependence (of human beings and nature), harmony, unity, and faith – hence, meditative and spiritual. It can be seen as the triumph of faith/religion over science and reason – an answer following realization. KEY CHARACTERISTICS OF EASTERN WESTERN PHILOSOPHIES Western Philosophy. Is rational because most western thought focused on refining epistemology and logic. It emphasized that it is the individual using his/her rational ability to deduce the truth about the things around him/her, and this separates the individual as a subjective mind different from objective reality: Nature, God, the Universe. Eastern Philosophy In the East, philosophers have been more concerned with ordaining society in a harmonious manner, finding humanity’s proper place in society and nature, acting and thinking in a way that would promote unity and order in the universe. It does not have to rely on rationality and often tries to transcend individuality itself to reveal a person’s inherent sameness with the universe/nature. Reason is in fact seen as a stumbling block to truly understand reality. It focuses on how to live and tends to accept the way things are. Eastern thought is focused more on the mind and the spirit/soul, tending to offer a different level of internal experience (meditative) from which to draw conclusions. Thus, it would be hard to separate philosophy and religion.

Child Development Essay -- Child Rearing, Natural Growth

Lareau (2003) reports that social class plays a very important role in a child’s upbringing because it helps determine the way a child will be raised. In Lareau’s (2003) study she came to the conclusion that there were two different patterns of child rearing: concerted cultivation and natural growth. Concerted cultivation is the child rearing method that middle class parents use focusing on not only caring for their child, but developing a personality by enrolling their children in many structured activities and developing language skills (Lareau, 2003). Natural growth is the child-rearing method that working class and poor parents use to raise their children because there is not a lot of time and money for structured activities and long verbal discussions with the children (Lareau, 2003). Families who practice natural growth child rearing practices need to focus on providing the simpler needs of the child like providing shelter, clothing, food, and water therefore unab le to have the structured activities and worry about establishing communication skills. This is important to consider because the way children are raised because this has a social impact. The children that are being raised today will eventually grow up to be a part of their own society; there are social impacts on the current society because of the methods of child-rearing and the consequences that these child-rearing practices are having on children with the way they interact in society, There are benefits and disadvantages to both childrearing methods reported by Lareau (2010) however there are definitive differences in the child’s outcome due to the child’s social class and thus the method the child was raised with. In concerted cultivation children spend a ... ...nd sometimes talk to my extended family I seldom see them or would by any means categorize our relationships as strong kinship ties (Lareau, 2003). This I feel has been an unfortunate result of concerted cultivation because I see how some of my other cousins behave towards each other as they are so close talking everyday and meet several times a week for lunch or dinner. I feel this is sad because while I would love to have stronger ties with my extended family I realize it is not a part of the way I was brought up because of my middleclass child-rearing. The concept of my social connections often being mostly in homogenous age groups as a child is very accurate (Lareau, 2003). Because of the activities I participated in and the area in which I lived and went to school I predominately have friendships through activities with children much like I was at the time.

Bank Bailout 2008

Bank Bailout Outline I. Introduction II. Background III. Opposition’s point 1, refute, 1st support for thesis. a. Credit Card Act of 2009 b. No Change at all, Banks still operating the same way IV. Opposition’s point 2, refute, 2nd support for thesis. a. Creation of TARP b. $12. 2 trillion dollars of tax dollars were spent wrong c. TARP allowed many banks to allow credit again d. A majority of banks have paid back TARP money e. After TARP, Economy boosted V. Opposition’s point 3, refute, 3rd support for thesis a. Toxic assets cannot be removed easily b. Government takes more cost, then expects c.Economy will decline with removal of assets VI. 4th support for thesis a. Increased national debt b. Politicians were forced to sign this bill c. No solving of problems â€Å"Let’s hope we are all wealthy and retired by this house of cards falters† (Bloomberg, 2007). The credit crisis is known as the â€Å"House of Cards†, for years the banking indust ry has transformed many American lives, which has resulted in a troublesome economy. Many factors led to the credit crisis, such as the rise and fall of the housing market, and inaccurate credit ratings helped to create the sub-prime mortgage crisis (Issues & Controversies, 2010).Low interest rates developed easy credit, in which people could get a mortgage and credit cards based on inaccurate credit ratings with the creation of sub-prime mortgages. People have the ability to own a home, with no down payment or fixed income. In August of 2007, the United States began a loss of confidence in securitized mortgages, which resulted in the Federal Reserve injecting $20 trillion dollars into the financial markets to ease the situation (â€Å"Obama Sends Warning to Big Banks, 2010).The most important question to be answered in the decade is â€Å"How a loss of $500 billion dollars from the sub-prime mortgage resulted in a $20 trillion dollar loss in equity values and an entire shock to t he world’s financial system† (Woellert & Kopecki, 2007). The United States government should not have given the financial institutions bailout money, because financial institutions using loop holes in the system to take advantage of their clients, financial institutions operations have stayed the same, and the government’s belief of a tree market economy goes against the bailout.The credit crisis is a â€Å"worldwide financial fiasco, which resulting from sub-prime mortgages, Collateralized Debit Obligations, Frozen credit markets, and credit default swaps† (Jarvis, 2009). The credit crisis brings two people together, people on Main Street and investors. The people on Main Street represent their mortgages or houses, while investors represent their money, which also represents big institutions such as pension funds, insurance companies, mutual funds; sovereign funds (Jarvis, 2009). These groups brought through the financial system, composed of banks and bro kers on Wall Street.As a result of the September 11th attack, Chairman Allen Greenspan lowered interest rates only to 1%, to allow credit to flow; however, investors have a very low return on investment (Snow, 2008). By lowering interest rates, it allows for banks to only borrow money from the Federal Government for 1% plus the surpluses from the Asian and Middle East market, which makes borrowing money easy for banks and to allow leverage (Adding up the Government’s Total Bailout Tab, 2009). The definition of leverage is, â€Å"borrowing money to amplify the outcome of a deal† and is a major way banks make their money (Princeton University, 2010).Wall Street takes out a majority of loans and uses leverage to their advantage, and a heavy flow of capital comes in. In which return, they pay back their original investment. The investors notice that Wall Street is making money very fast, and they want to create a new product to sell to Wall Street. The mortgage connects th e home buyer with a mortgage lender on Wall Street who gives them a mortgage, which is great because housing prices throughout America have been rising (â€Å"Bailed out banks†, 2010).The mortgage lender gets a call from an investment banker who wants to buy the mortgage; and the lender sells it to him, and the investment brokers buys thousands of mortgages. Every month the investment banker gets the payments from all the mortgages that he purchased from the box and cuts the box into three slices â€Å"Safe, Ok and Risky†, and then he packs the slices into the box and calls it a Collateralized debt obligation or â€Å"CDO† (Woellert & Kopecki, 2007).However, greed has risen to the investment banker and wants’ more mortgages; however, the lender does not have any more mortgages to sell, because everyone who has qualified for a mortgage already has one; and the birth of the sub-prime mortgage is born. With a standard loan, the homeowner had to prove his wor th of a home, such as a job, good standing citizen, and assets. However, with a subprime mortgage, it was basically like free money. The person did not have to state their income, nor prove that you had a job.The investment banker and the lender are taking a risk, because if a home owner defaults on their mortgage, the lender gets the house and sells the house for a profit because home values have been increasing (Issues & Controversies, 2010). While home values have been increasing, American incomes have been plummeting for years; and because of sub-prime mortgages, the person did not have to prove income, a person with a $30 thousand dollar income; could own a $300 thousand dollar home. Many people defaulted on their mortgages, and foreclosures have been on the rise. In the United States, foreclosures were up 81% in 2008 and up 225% from 206†, which equals out to 19 per 1,000 households (CBS News, 2008). Due to there was a huge increase in foreclosures, instead of housing pr ices increasing; the houses values decreased in value very quickly and resulted in more foreclosures. A $300 thousand dollar mortgages was now only worth $75 thousand dollars. So all the mortgages that was in the investment banker CDO, now are worthless, and no one wants’ to take the CDO, and now the CDO is acting like a bomb (Roney, 2007).The investment banker is now panicking because he borrowed millions of dollars to buy the mortgage, and now he cannot get rid of it; however he is not the only one. Thousands of investment bankers throughout the world have CDO’s on their hand (Bailed out banks, 2010). In result the world’s financial system has become frozen, and everyone starts going bankrupt. As a result of the failure, the United States government rolls out a new program called Troubled Asset Relief Program (TARP) to prevent another bank failure.Under the bank bailout, creation of new legislation to protect the consumer has rapidly increased, and supporters of the bank bailout point to the Credit Card Act of 209. Not only were subprime mortgages affected, but due to the freeze in the credit market in the United States government needed a way to regulate the credit card industry, but also to stimulate spending. Under the Credit Card Act of 2009, they require the financial institutions to give the cardholders 45 day’s notice of any interest rate change and financial institutions are prohibited from using misleading terms such as â€Å"prime or fixed rate† (The White House, 2009).With this legislation in place, it protects the consumer from many of the scams that the mortgage industry used as bait to get clients into buying houses they could not afford, using the subprime mortgages (Roney, 2007). But also it allows for Congress to embrace new regulations placed on the financial institutions. The Credit Card Act of 2009 that has become part of the famous bank bailout, however, it has been shown to protect the consumer, and Co ngress will regulate the new rules placed on financial institutions.For example, â€Å"there is no cap on the interest rate the credit card companies can charge†, and while credit card companies cannot increase you interest rate but only if you are late on a payment, â€Å"However future purchases interest rates can be raised with no reason† (White, 2010). The credit card companies have the ability to raise the interest rate on any purchases, while they must still notify you of the higher interest rate, the ballooning of the interest rate can take place at any time.This is exactly the same measures the financial institutions have used to misinform their consumers and â€Å"kick them when they are down† and â€Å"corrupt the middle class of America† (White, 2010). How the subprime mortgage boomed, had to come from the terms that many of the average consumers cannot understand, and a major aftermath of the subprime/credit crisis, occurred when many people d efaulted on their homes and credit cards (Roney, 2007).Then the mortgage and home will not exist for the family any more, and the credit card companies will balloon their interest rate enough so that the card holders will not be able to pay their credit card/mortgage. In which then the financial institution hounds them and attacks them at their core roots and even calls other family members to alert them of the card holder financial problems because they cannot pay their bills. The banking and financial institution have not taken any actions to prevent another credit crisis from happening again.Supporters of the bank bailout, commonly referred to as TARP, argue that the bailout wiped all the bad toxic assets (CDO’s) which were collected as result of the credit crisis and prevented the assets from hurting the financial institutions. The major recipients were Freddie Mac; and Fannie Mae. Both were government owned enterprises which bought a majority of the sub-prime mortgages ( Roney, 2007). Removing the bad assets from the financial institutions will have a positive effect on the economy because it allows banks to start lending again and unfreeze the markets.Under TARP, some mortgages would require the government to rewrite some of the effected loans, effectively putting more Americans into homes that they will be able to afford and by rewriting the loans also increase the standard of living. John Douglas, general counsel at the FDIC, said, â€Å"It doesn’t make sense to give the authority to anybody else but the FDIC†; he goes on to say â€Å"That’s what the FDIC does, it takes the bad assets out of the banks and manages them and sells them† (Vekshin & Schmidt, 2009). However, the supporters of the bank bailout do not represent correct/valid points/facts.In a study by the IMF of the 124 banking crisis, they have concluded: Existing empirical research has shown that providing assistance to banks and their borrowers can be count erproductive, resulting in increased losses to banks, which often abuse forbearance to take unproductive risks at government expense. The typical result of forbearance is a deeper hole in the net worth of banks, crippling tax burdens to finance bank bailouts, and even more severe credit supply contraction and economic decline than would have occurred in the absence of forbearance. Valencia & Laeven, 2008) As a result of the IMF study, it has concluded that removing the bad toxic assets from the banks could actually hurt the financial institutions and a system as a whole could freeze the credit markets again with a result of an economic decline, instead of an economic incline. Also there is no definition of a troubled market or loan. If the government wants to rewrite troubled mortgages or loans, there are no set criteria to say whether a mortgage or loan should be taken by the government and given to the troubled family.Another point, as Steward said, â€Å"The only way for this pr ogram to work is for enough of the bad mortgages/loans to be purchased to connivance lenders that the problem mortgages cannot hurt the system, or to put in simple terms, the government has to purchase enough mortgages/loans to inspire intra- institution (Stewart, 2008) Furthermore, the institutions will sell the assets that will remain depressed in value; and â€Å"no one is going to sell a asset that has a higher chance of making the institution money (Obama Sends Warning to Big Banks, 2010). In result, under TARP the government has a high probability of taking a majority of the loss.With the bank bailout, the economy will decline, and the government will take a great loss of the bank bailout. Supporters of the bank bailout will say that if the government did not step in and inject $20 trillion dollars into the market, an economic collapse could have happened and set America into another Great Depression. A heavy incline of unemployment; foreclosures were through the roof, a majo r decline in incomes (Solomon, Enrich, & Hilsenrath, 2009). America was becoming a very sick nation, and the bank bailout would help the economy and stimulate the financial institutions to help start lending and unfreeze the credit market.As one writer wrote, â€Å"there was at no time better to inject the financial institutions at this time, if they collapse it may be the sign of the apocalypse† (Bailed out banks, 2010)/ If there was no bank bailout, there is a major chance that this will be a sign of the apocalypse because the United States drives the world and if the major financial institutions such as Bank of America or Merrill Lynch fails then the world economy could ultimately send the world in to another Great Depression.The major reason that the American government should not have passed the bank bailout was the cost to the government. Under the Bush administration, the national debit doubled to a record high $10 trillion dollars (Solomon, Enrich, & Hilsenrath, 2009) . There are more programs that the government has to pay for such as Social Security. Many economists call this the â€Å"polluter pays† which is defined as â€Å"polluters must pay for the cost of cleaning it up† (Princeton University, 2010).When the financial industry is bailed out of disasters, which a majority of the time throughout history, they have created those disasters. If the banking industry feels like they can be bailed out every time they make a major mistake, then the American people will pay because the bank bailout is directly connected to the taxpayer’s funds (Obama sends warning to Big Banks, 2010).A price tag of $700 billion dollar bailout has hidden costs which can go high as $3 trillion dollars, which can â€Å"be the shortfall between the economies potential output and its actual output from the crisis† (Issues & Controversies, 2010). Another factor in the bank bailout is the morality, because the banks do not pay the costs that are imposed on a world society, which the tax payers pay directly into the banks and then the banks pay back into the government. Also, the political had a major role in deciding to pass the bank bailout.A senator said, â€Å"We had no choice. We had a gun pointed at our heads. Without the bailout, things would have been even worse† (Woellert & Kopecki, 2007). While politicians did not have an actual gun to their head, figuratively speaking because they had a oversight on â€Å"saving the banks and shareholders† or â€Å"have saved the banks but let the bankers and shareholders go† because of the final tap that American tax payer will have to pay to the bailout the banks that created this mess (Solomon, Enrich, & Hilsenrath, 2009).The bank bailout was a major mistake in the evolution of the financial world because it did not solve any problems; people can still be charged higher interest rates on their credit cards/mortgages. With TARP, there is no true removal of the bad assets that caused the credit crisis to form the bank bailouts; it only hurts the government because it has to take on the debt. Truly, we have stroke the core of the American people with the credit crisis, but at the same time the financial world has been given more powers and in a free market enterprise, the credit crisis can happen again at any moment.