Business Analysis of Comestibles Aldor S.A.

Business Analysis of Comestibles Aldor S.A.Executive SummaryIt is not common when a attach to like Comestibles Aldor S.A. opens itself to investors. Aldor is an super liquid company that is extremely successful and ambitious, notwithstanding when wants something to a grander extent. It is the type of company that looks for something else, someone that is provideing to put much than money into a company, an individual that feels they ar carve up of the organization. This type investor provide not only invest money, but themselves. They will immerse themselves in a harvest-tide they believe in and keep the companys vision of bringing rejoicing to the manhood.At Aldor we believe that if an individual has a stake in something, they will work as if it was theirs, but if they like the product, it will be weaken of their life. The company has managed to go into oer 60 countries but it is going to get word a raw(a) approach, something that is innovative like the rest of the c ompany something unprecedented. We want to present to the world the joy of life and we ar looking for someone to encourage us do so in an some another(prenominal) country, Canada.As in all(prenominal) new marketplace, Canada poses new challenges, challenges for which we need an investor from the country itself to launch the product. At Aldor we believe that having someone from within the country that knows the market, how it operates and more importantly, how people think, is only a recipe for success. It is the shopping center of what we believe in and it is the essence of what you will too.We atomic number 18 presenting to you Videns Joy, a product that keeps the companys vision of bringing joy to the world and a profit that few companies are able to offer. It is in a recession like the one we are in that we are able too see a hole in the market, a infract that has yet to be filled.Fortunately we constitute an answer, the product we are about to present will not only sat isfy this gap but will give you the opportunity to be part of it. Videns Joy will consist of a new chewing glue that will not only enhance the representation people live, but it will become part of their life.Videns will present the languishr a less expensive, more alimentary and more convenient way of organism sound while giving them a inhering boost. It is this chewing gum that will set the benchmark of health products and the way they are ingested.One hand female genital organnot clap by itself, it needs another one, we want this other hand to be you.To launch a one-year drift in Canada and produce Videns Joy, we will need to expand the factory and buy new machinery. At a foldepression of 1.4 million, will be able to do so with some of the best machinery in the confectionary industry.To advertise the product for one year we will likewise invest 1.4 million on advertisements ranging from TV ads to billboards and pamphlets.The cost of raw materials for one year with a pr oduction of 30 lots per month will be 4.5 million for the entire year. For a total of 7.3 million we will be able to bring this product to the country with an aggressive marketing campaign.This cost will be divided in twain we will pay 3.65 million as well as the investing party. A return on investment of 10.5 million is expected by the end of the year. To be divided equally among Aldor and the investor. 25% royalties of the net profit from the subsequent age will be given to you, the investing party.INTRODUCTIONThe CompanyComestibles Aldor S.A. was founded in 1991 by Raif Aljure the company produces candy which it sells in over sixty countries around the world. Aldor manufactures candy for other companies and has a competitive advantage that is virtually impossible to beat. Manufacturing over cc billion pieces of candy, it is the biggest candy company by quantity and volume in the world. Specializing in products that range in cost from $.01 cent to $.25 , it appeals mostly to th e bigger part of the population in the world, those that control limited resources. The company has expanded at a such rapid rate that it has outpaced its current market. The plant currently runnings at full capacity and produces over 300 tons of candy per day. At this point, the market for its products is saturated, and with the development of the new chewing gum Videns Joy, the company is now expanding its market segment. Currently the most expensive product the company manufactures, Videns has a cost to the consumer of approximately one quarter of a dollar. It is a phenomenon similar to the case of Walmart at a lesser degree. The market for low-cost candy is saturated and the biggest consumer, children between the ages of 8 to 17 years old is already familiar and consuming the product in the countries the company sells. With a monopoly in the majority of Africa, Aldor has reached its peak with the current products it sells.Our peopleWith More than 2000 s bug outed and experienc ed employees committed to working as a team . trance keeping an open discernment towards a changing world.Through its research and development, Aldor is constantly searching for new ideas and products, which keep it one stair ahead of the competitors.Aldor has a professional team devoted to standard control, thereby assuring high quality products.Agility and flexibilityAldor is agile and flexible, it adapts to the consumers and clients needs, taking into grudge different cultures, beliefs, demands and international commerce dynamics resulting tune globalizationMissionOur main promise and commitment Research, create, and develop innovative and fun products for our guests.We are a dynamic, innovative and flexible company with an international vision. We will continue to grow, open up new markets and bring fun and joy to life.VisionSince the very beginning, Aldor has heart-to-heart up markets in different countries, offering innovative products to people of different cultures. I ts marketing division is constantly looking for new opportunities, studying the worldwide consumer, needs and preferences.Aldors international vision enables it to position itself with its products in more than 60 countries throughout the five continentsThe PlantColombia is recognized as the second most productive soil for saccharify cane plantation in addition, it is recognized for the purity of its sugar.With one of the most modern plants of America, inaugurated in June of 2004, and under a 280,000 sm. We produce 300 tons per day of sugar confectionery lollypops with different fillings, hard and soft caramels.Today we produce more than 2 hundred billions of lollypops a year, demonstrating growth in a global market that changes constantly. We have extended our products through the development of international brands maintaining a global thought with local performance.Our quality management transcription is award by SGS. de Colombia S.A. in fulfillment of the requirements of ISO 9001 2.000 since February 20 of 2,004 and initially certified since January 21 of 2002 with ISO 9001 1.994.Why we will be successful?After commenting our idea with numerous individuals that have influence over many people and have established companies that are now in the billions of dollars, we have received an unanimous opinion, one that has success scripted all over it. Now, opinions have in reality no real monetary value, no matter if the individual is the wealthiest in the world or a worker at a fast food restaurant, but they are important. On a recent trip to Colombia, one of our team fellow members Jos F. Del Corral conducted numerous survey and studies on the idea we are offering. The results were exorbitant and expected.PRODUCTSSince its very beginning in 1991, Aldor has been characterized as having a dynamic production infrastructure that is pivotal to both(prenominal) a productive and efficient confectionery manufacturing transit. Today, our company is viewed as one o f the best candy production plants in the world. Our products range from filled and chewy candies to a manikin of lollipops that have been distinguished because of the addition of different fillings and extracts, all manufactured in plants and facilities that are internally owned and managed.Aldors major products are lollipops with several varieties including chewy centered, gum centered and solids. The gums filled lollipops are made with different increase flavors including watermelon, cherry, black cull, mango and wild production with both juicy and sour features.Lollipops that were number one launched by Aldor include the Yoguetas. This is a variation of lollipops that are very unique to the industry. Not only do these lollipops have gum-filled centers, they in like manner include fruit flavored and chewy centers on with assorted yogurt-filled center of attentions.Products that include gum contain forty percent of gum base and composed of PVAC to sometime include synthetic or derivative wax. In addition, gum also contains polyols that results from the hydrogenation of sugar with the major one being Xylitol. Xylitol is a sugar alcohol that aids in preventing cavities and suspensor to whiten teeth by neutralizing the PH level in the mouth. In rare cases when Xylitol is unavailable, other sugars or derivatives of sugar namely sorbitol and manithol are sometimes used in bubble gum manufacturing primarily because of its very long molecular strength.PRODUCT INTRODUCTIONIn keeping with the companys history of innovation, Aldor intends to introduce a line of candy products that aims to satisfy the healthy trends of our current lifestyles by promoting the inclusion of not only cavity-fighting but health-conscious selections to the regular candy offerings.According to investigations made by different agencies the percentage of people pervert from health troubles due to eating disorders and bad consumption of food keeps growing every day. As a result, many people have chosen to consume products with very little or no preservatives compare to what they previously consumed. This has revolutionized the food market and has lead to the evolution of new restaurants serving only organic food. separate existing ones have managed to change their menu to include more natural choices. Today, the choice of natural products is a trend that continues to increase and consumers are open to try foods that are consistent with their every day diet.In keeping with this revelation, we have chosen to produce candies with botanical extracts and selections that have the potential to become an integral part of the daily diet of our consumers.Such approach to market will not only have a significant impact on the kids market but also the adult market as well. With this innovative idea, we plan on giving customers the pleasure of enjoying a hundred percent natural candy alternative that will at the same time will give them a sensation that will be consistent wi th that of maintaining a healthy lifestyle on with the ultimate comfort and relaxation at the same time.We have focused our research and developments around finding botanical extracts that will fit into the lifestyles of potential customers within our target market. We have decided to include the following extracts into our product offerings.Green Tea ExtractDental techniques have improved greatly in the old few years, but once teeth have been damaged by cavities they can never be restored to their original condition. It is of the highest priority, therefore, to prevent cavities from developing in the first place. By the end of the 19th century, it had been determined that cartes are caused by cariogenic bacteria. Cavity production begins when the cariogenic bacteria first produce non-watersoluble glucan from sugar or other foods, and this glucan adheres to the tooth embellish as hard plaque. They hence feed on sugar to generate acids such as lactic acid in the plaque then these acids push aside the tooth enamel. In order to prevent cavities it is necessary to keep plaque off the teeth by brushing. However, experiments have shown that jet-propelled plane tea catechin can suppress the process by which cariogenic bacteria create glucan. Experiments have also shown that that green tea catechin can destroy cariogenic bacteria, making it antibacterial. Green tea catechin then not only suppresses the formation of plaque by the cariogenic bacteria but also kills the bacteria themselves. It has also been known for some time now that small amounts of fluorine can strengthen teeth and help prevent cavities. As a result, many cities across the world have added fluorine to their drinking water. Green tea extract, however, contains natural fluorine that is thought to help prevent cavities. Various reports have shown a reduction in cavities among grade school children who drank green tea after lunch. We potently feel that kids will have a natural gravitation toward candy with green tea extract while parents will have the peace of mind while giving candy to their kids.Halitosis or bad trace is caused by a number of bacteria that flourish in the mouth. Green tea is also known to kill other oral bacteria besides those causing cartes and therefore as a result, possess the index to prevent bad breath by destroying the cause of bad breath. It is also report that the consumption of green tea is often recommended as a good treatment for diarrhea. Research has also shown that catechin is a powerful sterilizing agent for many types of bacteria that cause food poisoning. Green tea extract contains caffeine which, when taken in the proper quantity, simulates every organ in the body. It has a particularly strong effect on the central nervous system, the heart, and liver. This reaction is even more pronounced when one is sleepyheaded or tired. The consumption of green tea will help clear a dull mind after rising in the morning or after a prolonged period without sleep. The power to stimulate and awaken the mind comes from caffeine. It is also said that the amount of caffeine contained in normal servings of green tea can stimulate the skeletal muscles and facilitate muscular contraction. As a result, it is quite helpful and recommended to consume green tea in the middle of the work day in order to refresh the mind and restore the body. The caffeine in green tea is mostly extracted in the first infusion of the leaves, but the quantities in subsequent infusions will still be greater than coffee. And since green tea caffeine combines with catechin in the brewing water, its action is said to be rather milder than other caffeine-containing beverages. Green tea is known for its rich source of anti oxidants and having a high extract is also said to help fixity the effects of aging from environmental factors kava KavaKava is sedating and is primarily consumed to relax without disrupting mental clarity. The kava extract has been known to be a herbal tea medicine against stress, insomnia, and anxiety. Research has shown that kava whitethorn be effective in treating ovarian cancer and leukemia. Study shows that kava compounds inhibited the activation of a nuclear factor that led to the growth of cancer cells. The Aberdeen University researchers published in the journal The South Pacific Journal of Natural Science that kava methanol extracts had been shown to kill leukemia and ovarian cancer cells in test tubes. Kava has been known to relax aching muscles, calm nerves, create a general sprightliness of well-being, induces a feeling of peace, relaxation and contentment, enhances mental alertness and concentration, reduces inhibitions, and has historical use as an herbal aphrodisiac.Kava has an effect on the nerve centres, at first stimulating and then depressing, ending with paralysis of the respiratory centre. The irritant action and insolubility of the resin has lessened its use as a local anesthetic, but for over cxxv years kava root has been found valuable in the treatment of gonorrhea both acute and chronic, vaginitis, leucorrhoea, nocturnal incontinence and other ailments of the genitourinary tract. beingness a local anesthetic it relieves pain and has an aphrodisiac effect. As kava is a strong diuretic it is useful for gout, rheumatism, bronchial and other ailments, resulting from heart troubles. Kava is an essential and integral part of life in the Pacific Islands often thought of as one of the most precious gifts from the Earth. Not only is it a pleasant drink that can be a safe alternative for alcohol. Kava Root was actually becoming more public than Prozac in Europe. some scientist and herb researchers feel as though kavasinfringement on pharmaceutical sales deeply concerned the drugcompanies. In turn, they became determined to do their best to tarnish the spotless reputation of kava. It once an ancient, safe and effective herbal supplement. Kava has not been shown to be physically a ddictive. It has been used safely for over 3,000 years, without any reported withdrawal symptoms whatsoever. Kava gum will be marketing to the age group ranging from 40 years and up. It will be targeting Canadian citizens that may get from arthritis of the joints and may be hesitant to use costly and addictive pharmaceutical pain relievers that must be prescribed from a physician. Individuals that may have suffered from a minor sprain or bruise, who do not have the time for an appointment with their primary physician and are looking for quick and effective abatement with a delightful taste. Kava gum will also induce a feeling of peace, relaxation and contentment. excessively enhancing mental alertness and concentration, Kava gum tree would seem to be extremely useful to consumers with anxiety and social barriers. Kava could be given to patients of therapist and physiologist to help cope with social problems and cut dispirited the supply of addictive and dangerous psychiatric an d anxiety drugs. We wont go over the details here, but a study was conducted in Germany that did a great job of making the world think that Kava caused liver damage, when in reality, this highly-publicized study seemed to be aimed at only doing whatever it could to damage the 3,000 year-old reputation of Kava. This entirely shows the fear that pharmaceutical companies have over kava . They refused to let a cheap yet highly effective herb surpass the production of the variety of additive and costly drugs. Aldor is certain that if kava is given a chance to prove itself on a wide based scale, that the gum will help people out with multiple ailments and will not tarnish the Canadian population with another drug for younger generations to tarnish themselves with.Acai BerryThe health eudaimonias of the Acai berry is widely known and is now backed by scientific research into the fruits properties. Acai is a rich source of anthocyanins and other phenolics and phyto-nutrients and are among st the most nutritious foods of the Amazon. Acai berries are rich in B vitamins, minerals, fiber, protein and omega-3 fatty acids. Acai also contains oleic acid (omega-9), a beneficial fatty acid. Potassium is the mineral most abundant in the Acai berry that is also rich in copper and unusually high in manganese. Only a small portion of berries supply far more than the body needs of this ultra-trace mineral. Anthocyanins are compounds that have potent antioxidant activity, allowing for the neutralization of potentially harmful free radicals. The famous research regarding the French Paradox attributes anthocyanins as being the antioxidant that protects the French from heart disease. The French are known to consume large amounts of coffee, nicotine, sugar, white flour, cheese and saturated fats, yet they have a very low rate of heart disease compared to neighboring countries like the UK and Denmark. The red wine grape, due to its anthocyanins is what is believed to be responsible for the very low incidence of heart disease. While red wine has good quantities of anthocyanins, the Acai berry has been shown to contain many times more than the anthocyanins levels of red wine. By neutralizing these free radicals, anthocyanins from the Acai berry may actually behave to maintain the healthy function of numerous systems and organs. Some of the anthocyanins that have been found in Acai include cyanidin-3-glucoside and cyanidin-3-glucoside-coumarate. Other phenolics include catechin and epi-catechin (the same compounds in green tea), quercetin derivatives and other flavonoids. It is likely that the synergistic effects of these compounds, as present in Acai fruit are responsible for its potent antioxidant activities.In Brazilian herbal medicine, the oil of the Acai fruit is used to treat diarrhea an infusion of the grated fruit rind is used as a topical wash for skin ulcers and, the fruit seeds are crushed and vigilant in an infusion for fevers. In the Peruvian Amazon, a n infusion of the toasted crushed seeds is used for fever. In Colombia, where the trees grow along the Pacific coast line, it is called naid and the fruit is glum into a common and popular drink.The Oxygen Radical Absorption Capacity (ORAC) assay, a test developed for the USDA by scientists at Tufts University to measure the antioxidant amphetamine and power of foods and supplements measures the total antioxidant activity of a biological sample. The ORAC scale is used in human, agricultural, food and pharmaceutical products, as well as food ingredients and is quick becoming the accepted standard for comparing antioxidant potential in foods and supplements. For the average person to cope with all the reactive oxygen and free radicals they will break on a daily basis, foods and beverages totaling an ORAC value of at least 2000 units per day are needed. Its been estimated that eighty to ninety percent of the worlds population fails to consume even half(prenominal) of this level. A cai is reputed to be extremely high on the ORAC scale and provides levels multiple times that of many anthocyanin-rich fruits and vegetables, such as cherries, cranberries and mulberries.Easily the most common use of the Acai fruit by Amazonians is the dark purple juice. This juice is extracted from the small round fruit by soaking the seeds in water to soften the thin outer flummox and then squeezing and straining them to produce a very tasty, dense purple liquid. Acai liquid is typically served fresh and ice cold with (or sometimes without) sugar and tapioca flour. It is a nourishing and refreshing drink that is also used to produce ice cream, liquor, mousses and sweets in general. Consumption of up to two liters per day of this highly nutritious juice has been recorded amongst indigenous populations. The Acai juice has been and remains an extremely important part of northern native South American diets and has become very popular throughout all socio- economic levels.Acai gum is designed to act as an antioxidant and remover of toxic substances left over in the human system from smoking, alcohol, drugs, and foods with many preservatives. With the help of the acai palm, which is a species of palm tree in the genus Euterpe cultivated for their fruit and superior hearts of palms. Global demand for the fruit has increased dramatically over the past several years. Acai is now cultivated as an antioxidant primarily. Eight species are native to Central and South America, from Belize southward to Brazil and Peru, growing mainly in swamps and floodplains. Acai palms are tall, slender palms growing to 15-30 meters. The overall marketing goal of the antioxidant remover is to eventually offer the gum in Canadian health and fitness centers and spas. This goal may only be achieved after success has been demonstrated in the all-natural supermarket aisles. Health conscious individuals understand the importance of having a cleansed system, which in return greatly raises the ability to produce muscle and cut fat. Many people enjoy chewing gum while they work out because they are able to keep their mouths moist. Also if the gum can cleanse the body and encourage muscle growth then most gym goers would be interested in spending a dollar per pack. Another option is to offer the product to supplement stores such as GNC, Vitamin world, and any other health stores looking to offer there customer a relief from awful tasting body cleansing drinks that cost over $50 for every bottle. Our gum cost only cost 15 cents to have in Canada and is being sold for 50 cents to the retail stores. One could buy fifty packages of our product to compare cost, then having over a years supply to help assist the customer to live a healthier life.Rhodiola roseaRhodiola rosea is a popular plant in traditional medical systems in east Europe and Asia with a reputation for stimulating the nervous system, decreasing depression, enhancing work performance, eliminating fatigue, and pre venting high altitude sickness. Rhodiola rosea has been categorized as an adaptogen by Russian researchers due to its detect ability to increase resistance to a variety of chemical, biological, and physical stressors. Its claimed expediencys include antidepressant, anticancer, cardioprotective, and central nervous system enhancement. Research also indicates great utility in asthenic conditions (decline in work performance, sleep difficulties, poor appetite, irritability, hypertension, headaches, and fatigue) developing subsequent to intense physical or intellectual strain. The adaptogenic, cardiopulmonary protective, and central nervous system activities of Rhodiola rosea have been attributed primarily to its ability to influence levels and activity of monoamines and opioid peptides such as beta-endorphins. Rhodiola rosea, also known as golden root, is a member of the Crassulaceae family and grows across the Arctic, the mountains of Central Asia, the Rockies, the Alps, the Pyrenee s, the Carpathian Mountains, Scandinavia, Iceland, Great Britain and Ireland. It is believed that it could also be a natural elixir. Rhodiola rosea may also be effective for improving mood and alleviating depression and early salute studies on people have shown some efficacy in improving physical and mental performance, alleviating fatigue, and reducing high-altitude sickness. A possible mode of action involves what could be described as optimizing serotonin and dopamine levels. It is said that this apparently happens by inhibition of the enzyme monoamine oxidase, which supposedly ties in with an effect on endorphins, the bodys natural opiates.The chemical paternity and physiological properties of Rhodiola species are to a degree species-dependent, although some overlap in constituents and physiological properties does exist in many Rhodiola species. Twenty-eight compounds have been uncaring from the grow and above-ground parts of Rhodiola rosea, including twelve novel compounds . The roots contain a range of biologically active substances including organic acids, flavonoids, tannins, and phenolic glycosides. The stimulating and adaptogenic properties of Rhodiola rosea were originally attributed to two compounds isolated from its roots, identified as p-tyrosol and the phenolic glycoside rhodioloside. Rhodioloside was later determined to be structurally similar to the known glycoside salidroside found in several other plant species. Salidroside, rhodioloside, and once in a while rhodosin are used to describe this compound and are considered to be synonyms. Additional glycoside compounds isolated from the root include rhodioniside, rhodiolin, rosin, rosavin, rosarin, and rosiridin. These glycoside compounds are also thought to be overcritical for the plants observed adaptogenic properties.The adaptogenic properties, cardio-pulmonary protective effects, and central nervous system activities of Rhodiola rosea have been attributed primarily to its ability to i nfluence levels and activity of monoamines and opioid peptides such as beta-endorphins.Rhodiola rosea has also been shown to moderate against stress-induced damage and dysfunction in cardiovascular tissue. Treatment with Rhodiola rosea extract prevents the decrease in cardiac contractile force secondary to environmental stress in the form of acute cooling and contributes to stable contractility.The new product is named Energize and is primarily made of the herb Rhodiola rosea. Rhodiola rosea is a plant known as the golden root, member of the Crassulaceae family that grows in cold regions of the world, the perennial plants grows in areas up to 2280 meters elevation. Rhodiola may help induce weight vent by activating the bodys store of adipose lipase, a key enzyme that helps burn its fat stores. A Russian study found that participants who consumed Rhodiola rosea lost 20 pounds in three months, compared to just 7 pounds in those who took placebos. Rhodiola rosea also strengthens the immune system by reducing the effect of stress, which is known to weaken the bodys ability to defend against illness. Studies have shown that Rhodiola may be of special benefit to athletes it appears to help normalize heart rate after intense exercise, and increases protein synthesis and blood flow throughout the body. It may also lower blood impel and decrease stress-induced arrhythmia. There have been no toxic side effects associated with this substance to date, and no tolerable upper limit has been established. Energize gum has the benefit of being a credited weight loss tool it contains none of the sometimes deadly drugs that are the main ingredient of the major weight loss scam programs. All they contain is harmful drugs like Ephedra, Chitosan, and hoodia. Many deaths have been reported in past five to ten years ever since the bony craze started as a result of these weights loss drugs. If there is a perfect weight loss/stress-relieving herb this could be it. In Energize weve managed to vocalize the two essential elements needed by most people to lose weight and truly feel great. Not only does it have the ability to come near the stress that causes your body to crave foods of comfort and store more fat. It also has the power in of itself to make you cut weight in fewer than three to six months. All one must do is chew this gum before and after a workout routine or a run around the neighborhood with your dog, then you will be on your way to losing some serious weight while enjoying the refreshing taste and teeth whiting effect of our newest product. We plan to offer this product to Canada in the main supermarkets and herb + vitamin stores. We hope to carry the product along side all the powerful and ulcerous weight loss pills that are sold throughout the country. Aldor is confident the Energize gum will make its consumers feel significantly better daily and have the same result if not superior to its competitors.St Johns wortSt. Johns wort is a long-l iving plant with yellow flowers whose medicinal uses were first recorded in ancient Greece. It contains many chemical compounds. Some are believed to be the active ingredients that produce the herbs effects, including the compounds hypericin and hyperforin.Preliminary studies suggest that St. Johns wort might work by preventing nerve cells in the brain from reabsorbing the chemical messenger serotonin, or by reducing levels of a protein involved in the bodys immune system functioning. St. Johns wort has been used over the centuries for mental conditions, nerve pain, and a wide variety of other health conditions.Today, St. Johns wort is used for anxiety, mild to moderate depression, and sleep disorders. In Europe, St. Johns wort is widely prescribed for depression. In the United States and Canada, there is public interest in St. Johns wort as a treatment for depression, but it is not a prescription medicine.In the United States and Canada, St. Johns wort products are sold mainly as c apsules, tablets, teas, and liquid extracts where specific types of chemicals are removed from the herb, leaving the desired chemicals in a concentrated form.Scientific evidence co-funded by the National Center for Complementary and Alternative Medicine (NCCAM) and two other components of the National Institutes of Health (NIH), the National Institute of Mental Health and the Office of Dietary Supplements regarding the effectiveness of St. Johns wort for depression

Impact of the US Credit Crunch on Australian Economy

Impact of the US Credit resound on Australian sparingIntroductionHowever, receiv adequate to(p) to the US lodging computer traverse scranch and turbulence in pecuniary markets all over the reality immediately took into effect and global economic growing s number 1ed towards the end of the year (OBrien et al., 2007). Given this basic premise of the up-to-the-minute m geniustary crisis, this literary works palingenesis give be guided by exploring studies made on how the US-induced point of reference crunch affected the Australian sparing, in starticular the lodgment market.The first stage of this literature review is attributed to describing the on-line(prenominal) monetary crisis, specifically the events that led to its maturement such as the collapse of the US lodgement and blasphemeing vault of heavens in 2007. Part of discussing the events that took place after the barrage of the monetary crisis would be to dig into the various mechanisms employ by fiscal institutions and national presidential terms in companionship to mitigate the station and in speak consequences of the pecuniary crisis. The twinkling part of this literature review seeks to determine the personal effectuate of the monetary crisis to the Australian miserliness, as closely as the various indemnity responses made by some(prenominal)(prenominal) the Re armed service Bank of Australia (herein referred to as RBA) and the Australian government. Finally, this literature review allow for determine whether studies on the current financial crisis were adequate to(p) to provide sufficient count onion to the manner by which it affected the accommodate market, curiously in the illustration of Australia.The rationale behind these assertions resides on the need to broaden the scope of examining the consequences brought about by the credence crunch in 2007 and the financial crisis in 2008, from being centered in the US to involve distinguishable nat ions as hearty. It should doggingly be still that the effect of the subprime meltdown was non limited to US firms exposed to the subprime mortgage market for the crusade that globalization made regional financial markets so complect that crisis spread across countries at tremendous facilitate (Moosa, 2008). Hence, it is skillful apropos to exhaust scholarly works that seduce managed to realize that at this point in time, economic activities of nations ar intertwined and the development of insurance solutions should in addition undergo the resembling process.Anformer(a) reason for this literature review would be to identify interrogation go once againsts that pull up stakes in turn serve as a motivation for future studies on the effect of the current financial crisis towards nations economies such as the case of Australia. Since the key context for this review of related literature is the 2007 reliance crunch and the 2008-present global financial crisis, the perio d covered for the literature surveyed in this paper exit be from 2007 to the present. With these things interpreted into consideration, the focus of this literature review forget be the effect of the 2008 financial crisis to the lodgment market in Australia.From the broad circumstance of the credit crunch and the financial crisis that happened in the US and inevitably transgressed to the embossment of the world, this literature review seeks to identify the relationship from a macroeconomic environment of the global financial crisis to a specific case of the hold market in Australia. The justification for this lies on the need to determine whether policy responses roled in the US are legal or otherwise in mitigating the direct consequences of the crisis, and guilt versa.The credit crunch and the global financial crisisAs it had been previously mentioned, this portion of the literature review is lot to discuss the credit crunch as well as the circumstance of the global fi nancial crisis. Both the credit crunch and the financial crisis are critical concepts in this review for the reason that it will be impossible to present and examine the cause of the financial crisis to the Australian economy, specifically the trapping orbit if these concepts are non understood properly. gibe to the guinea pig fetch Economic Review (2008), the 2008 financial crisis is rooted in the US subprime mortgage defaults. Moosa (2009) defines subprime mortgages to encompass all activities involving the granting of bestow to borrowers with inferior credit worthiness creating complex financial products. Meanwhile, Honohan (2008) in his area defines a credit crunch as credit related crises suffered by banks and other intermediaries which is often the cause of contr challenge in add market especially if these are triggered by exogenous economic shocks. The controlling attribute of the definitions provided by these authors lie on the fact that these are lifted from unq uestionable events and circumstances, more than specifically the 2007 credit crunch and the current financial crisis.Another rice beering point with estimate to the financial crisis was given by brake druml and Hurst (2008) who stressed that financial crises are episodic and frequent and are difficult to address without major impacts in the prospect for financial harvest-festival. Based on this thoughtfulness by Barrel and Hurst (2008), it becomes evident that it is inevitable under conditions of financial crises that economic process will not be affected, especially with globalization as the underlying condition.With regard to the direct cause that led to the development of the financial crisis, Ben Bernanke (2008), believe that the period of financial turbulence on the part of the US began in 2006 when there were uncontrollable contractions in the US admit market that were caused by the softness of certain individuals to feed for subprime mortgages. Moreover, this was r einforced by extend constraints on credit availability, which has dramatically slowed down the economy and has made it less responsive to market changes.Honohan (2008) curbs this that in his discussion on the evolution of the 2008 financial crisis by asserting that the origin of the crisis was especially sound out in the housing market wherein credit losses are so massive that it cannot be replenished anymore. The worsening of field prices in the US and other major economies such as the UK directly affected economic growth in other countries. In his reckon, Honohan (2008) also believes that although the current global financial crisis was triggered by the 2007 credit crunch in the US banking sector brought about by the bursting of the housing bubble, definitions such as those presented by Moosa (2009) and Barrell and Hurst (2008) should not be confined to the US experience. The business relationship behind this is that other nations king have responded differently upon the advent of financial crisis.In this case the positive views of the conduct by Honohan (2008) lies on the fact that it was able to present a persistent discussion of the origin of the 2008 financial crisis as something that did not happen overnight. Instead, Honohan (2008) attributes the occurrence of the financial crisis to in good risk management and unaffixed monetary and fiscal policies in the US and eventually the rest of the world. Although Honohans (2008) name was focused on the banking aspect of the financial crisis and how mortgage problems in the US, his discussion of the injurious personal effects of the crisis such as the closure and bankruptcy of banks and modify institutions were effective in stressing the importance of luculent monetary policies.On the other hand, the interrogation bed cover identified in the article presented by Honohan (2008) is that it was highly concentrated on the banking sector in the US, thus, ignoring the direct consequences of the credit crunch and the financial crisis to the housing sector. It should al managements be taken into account that the financial crisis originated in the housing sector. Hence, effectiveness solutions should first be geared towards addressing the ban consequences brought about by the crisis in the housing sector. Another gap in the subject field made by Honohan (2008) was that it was not able to present recommendations that will serve as a guide to policy makers as to how to mitigate the direct and indirect consequences of the current financial crisis.In a similar take up, Barrell and Davis (2008) discover that the evolution of the 2007-2008 financial crises was brought about by low global affair place arising in turn from high levels of global liquidity. This can be explained further by the case of the US wherein bank modify to households grew at unprecedented rates leading to the point that people can no long-lived pay their monthly dues. In addition to this, Barrell and Davis (2008) also manoeuverd that banks are expected to hold increasingly low levels of eternal sleep sheet liquid pluss, given low worry rates, and they undertook aggressive wholesale liability management to guard funding levels. Without these initial actions taken to address the earliest manifestation of a credit crunch specially the collapse of the housing market, countries would not have survived the crisis and will be forced to close down major financial institutions.Again, in value to understand the financial crisis and its effects towards nations and economies, it should be taken into consideration that the asset price bubble in the US in 2007 was perhaps the near noticeable occurrence in the housing sector and this has led to irreversible consequences in the financial sector. Given this event, Barrell and Hurst (2008) gets this by stating that it is the short-term fluctuations in house prices that affected consumption in countries equivalent the US and the UK, the refore fostering slow growth in the rest of the developed worldand eventually, the rest of the world.In their discussion of the present financial crises, as well as the prospects for recession, Barrell and Hurst (2008) stated that the best way to address the electronegative consequences of the crisis would be through effective monetary policy through interest rates reduction which should be set by the commutation bank in order to prevent bubbles like the housing bubble in the US from bursting and modify economies at larger scales. The low global interest rates contributed to rapid credit expansion and rise in asset prices which greatly contributed to the US financial crisis (Barrell Davis, 2008).The benefits provided by the study made by Barrell and Hurst (2008) and the article written by Barrell and Davis (2008) would be that in two instances, the authors were able to recognize the collapse of the housing sector as the root cause of the financial crisis. Hence, in two articles, the authors believe that solutions for the current financial crisis should not neglect making changes in the structure of the housing sector.As for the gaps in the studies presented by Barrell and Davies (2008) and Barrell and Hurst (2008), the authors in two articles failed to establish a strong relationship between the policy recommendations that they have made to counteract the negative effects of the financial crisis from worsening and the need to direct solutions at improving the housing sector to prevent another collapse in the future. Also, like most of the scholarly works reviewed in this paper, the articles presented by Barrell and Davies (2008) and Barrell and Hurst (2008) were both centered on the case of the US and the UK, without taking into account that these cases cannot be used to generalize the responses of other nations to the financial crisis.Perceived solutions to the credit crunch and the financial crisisAfter presenting the various definitions and understandi ng of the ongoing financial crisis, it is just apropos to also present the perceive solutions to the credit crunch as well as the financial crisis based on the literature reviewed for this study. According to Harris and Davidson (2009) governments have a huge role in addressing the credit crunches and financial crises through the enforcement of effective fiscal policy. The government holds responsibility to help manage the nations resources in order to foster growth and present more job-creating opportunities.In the same article, Harris and Davidson (2009) also raise that the initial response to the credit crunch was reliant on the role of the government to intervene and take action to prevent the consequences from worsening into a financial crisis and a global recession. The example given in the article was the case of the US, whose immediate response would be Paulsons initial $700 billion bail-out package that was envisioned to foster government spending through state and local governments spending.The inquiry gaps identified in the studies presented above, namely the lack of coherent recommendations to address the financial crisis at the practical level were addressed by Harris and Davidson (2009). The reason for this is that Harris and Davidson (2009) stressed on the need for fiscal policies to counteract the immediate effects of the credit crunch. Although the focus on government treatment can be considered both as a positive and negative aspect of the study for the reason that in order to fully control both the financial and the social effects of a credit crunch, it is not sufficient to simply rely on fiscal policy but have a combination of both monetary and fiscal policy. With these things taken into account, the only identifiable gap in the study by Harris and Davidson (2009) is that it was not able to discuss alive and potential monetary policies that may go hand in hand with fiscal policies in managing the negative consequences of the financial crisis.The research gaps identified in the study by Harris and Davidson (2009) were effectively addressed in the study by Belke (2009) for the reason that it may have proposed the use of fiscal stimulus to counteract the direct effects of the credit crunch and that of the crisis as well but Belke (2009) also explored the option of having a combination of both monetary and fiscal policy in order prevent the credit crunch and the financial crisis from initiating a move towards a global economic meltdown. According to Belke (2009) the generic answer to prevent the generic economy from collapsing is that use of fiscal policy to sustain demand, since monetary policy with its main concentration on interest rates approaching zero is no longer effective.The strength of the study made by Belke (2009) is that it was able to cite concrete situations that will lucubrate the dominance of using both fiscal and monetary policy. For instance, the case of the European Union (EU) specifically the U K wherein tax cuts are utilise in order to effectively increase demand and to foster higher levels and consumption were cited by Belke (2009) as an example of fiscal policy to boost the economy.With these examples and conditions taken into account, the research gap in the study presented by Belke (2009) lies on the fact that it was not able to fully exhaust the potential options that will aid nations, especially those that are not dependent on credit consumption, to handle the immediate impact of the financial crisis that has been triggered by the credit crunch in the US in 2007. Moreover, even if the most suitable cases to illustrate the proposed solutions would be that of the US and other developed EU countries, it would have been better if Belke (2009) used a comparative method between countries that relied on both fiscal and monetary policy and those that did not. It is only through coincidence that Belke (2009) could further justify the assertions and recommendations that she had made in her study. As it had been previously raised in this literature review, Belke (2009) was not able to establish a relationship between fiscal policy, monetary policy and the housing sector. The reason for this would be that the housing sector was the triggered the financial crisis. Thus, it is just apt that immediate solutions be directed toward the housing sector as well. Furthermore, the fact the Belke (2009) also focused on the case of the US and the developed countries in the EU is also considered as a gap in the research for the reason that the effectiveness of both fiscal and monetary policy cannot be reason out in the case of only the US or the UK.The financial crisis and the housing sectorThis portion of the literature review briefly presents the effect of the financial crisis on the housing sector, where it is believed to have originated. It is already given that the credit crunch and eventually the financial crisis emanated from the housing industry in the US, but this does not mean that research should be confined in the case of the US and other economic superpowers such as the UK. The academic literature available regarding the effect of the financial crisis on the housing market and vice versa was once again confined to the case and experiences of the US.For example, in a speech delivered by Ben Bernanke (2008) he stated that housing markets wait weak, with low demand and the increased number of brainsick properties on the market contributing to further reductions in house prices and ongoing reductions in new-sprung(prenominal) construction. The observation made by Bernanke was reinforced by the arguments raised by Barrell (2008) wherein he pointed out that one of the significant factors that affected the worsening of the credit crunch into a full blown financial crisis would be the inability of the US government to respond to the need to intervene to economic activities.Based on these statements, it can be verbalize that homeowne rs are affected by the radioactive decay in demand for houses because they cannot sell at a loss given that the current market prices for the house are low. In addition to this, homeowners cannot make further investments because their money has been trapped in the real estate property that they hold and their inability to shoulder the dept payments. In another scenario, homeowners who are facing debt for their mortgage are facing high risks of losing their property since they may not have the proper mechanism to generate excess income in order to finance for the payment. This was supported by Miron (2009) when he stated that if government redistributes income by intervening in the mortgage market it will however, it creates the potential for large distortions of private behavior.The financial crisis and the Australian EconomyPrior to examining available literature on the effect of the present global financial crisis to the Australian housing sector, it is necessary to present the b roader picture by determine the effect of the financial crisis to the overall Australian economy as well as immediate policy responses employed to control its negative consequences. The need to examine the effect of the financial crisis on the economy lies on the fact that the contagious effect of the subprime crisis has hit financial institutions in Europe and Australia, therefore, damaging health of s significant number of financial institutions and reducing the ability of others to run their business properly (Moosa, 2008). Under these conditions, Moosa (2008) presented a study that was driven by the need to clear identify the effect of a US induced credit crunch and financial crisis towards the Australian economy, particularly in terms of the underlying policy decisions implemented by both the RBA and the government.The bursting of the US housing market bubble in 2007 led to the rapid decline in the house prices and the downgrades of related asset-backed securities as well as t he collapse of the banking and lending institutions in the US and most of the EU (Moosa, 2008). The same cannot be said in the case of Australia, where the housing market was not particularly overvalued as in the case of the US, but was nonetheless vulnerable to the harsh effects of the credit crunch. The explanation behind this is that there are still large portions of subprime loans granted to borrowers in Australia, hence there is still the risk that they may not have reliable credit records.The only remainder between the case of the most countries like the US and Australia in terms of the extent to which the financial crisis affected the economy are in terms of policy initiatives and effective regulation. Given this basic premise, Moosa (2008) asserted that one of the reasons why Australia was not subjected to massive losses after the financial crisis in 2008 was due to the fact that the housing sector did not experience massive shocks as in the case of the US, the UK and most countries in the EU.Typically, mortgages in banks and lending institutions was hit hard by the collapse in the subprime housing market in the US, in the case of Australia, the effect was not severe by the bursting of the housing bubble. In his study, Moosa (2008) began by discussing the reason why the subprime crisis in the US took effect in June of 2007. Moosa (2008) identified two critical areas in order to explain this. commencement ceremony would be the lax monetary policy as indicated by the low interest rates second, reckless lending of banks to dodgy borrowers and excessive securitization. Although Moosa (2008) indicated in his study that the Australian economy is still susceptible to the effects of the subprime crisis brought about by liquidity situations that push investors to stay away from private sector securities, the only difference is that the Australian financial sector had the necessary policies to balance this out.The positive aspect of the study presented by Moo sa (2008) is that it was able to showcase the difference between the effect of the current financial crisis in the US and other nations and Australia. through with(predicate) Moosas (2008) study, it becomes clear that even though financial crises have a common shape, its consequences are not always the same for every nation. The explanation behind this is that separately nation has its own set of fiscal and monetary policy. Consequently, nations, such as Australia respond differently to the same conditions set by the global financial crisis.Regarding the research gap in Moosas (2008) study, it had failed to establish the elements that were present in the Australian economy that enabled it to respond differently and optimally to the shock that was brought about by the financial crisis, as well as the credit crunch which preceded it. What could have been done by Moosa (2008) in order to address this gap would be to cite concrete instances in the Australian economy wherein the imple mentation of effective policies was able to overcome the negative consequences of the financial crisis.Malcolm Edey (2008), Assistant regulator of the RBA, was able to articulate reasons on why the Australian economy was able to withstand the destructive consequences of the 2008 financial crisis. The arguments raised by Edey (2008) directly address the research gap identified in the article by Moosa (2008). According to Edey (2008), the reason why the Australian economy was able to minimize the losses despite the financial crisis and the looming threat of recession was due to the following reasons.First, subprime loans are essentially loans that do not meet standard criteria for good credit quality. In Australia, a different policy was employed to address non conforming loans. Ellis (2009) supports this by stating that in Australia, citizens pay the interest in their homes mortgage against their tax, so they are hike upd to keep their mortgage balances low. Second, unlike in other countries such as the US, the Australian government was able to develop coherent fiscal and monetary policy that will encourage households and business sectors to be more risk loath by having higher levels of savings and investment. An example of this would be the AUD 42 billion stimulus package that was called the National Building and Job Plan (Edey, 2008).To further support the points raised by Edey (2008) and Ellis (2009), Steven Kennedy (2009) from the Australian Treasury presented three reasons on why the Australian economy was one of the few who managed to overcome the negative consequences brought about by the 2007 credit crunch and the existing global financial crisis. The primary reason identified by Kennedy (2009) was that the Australian government and the RBA had timely policy responses to the occurrence of the financial crisis. Second, being at close proximity with Asian countries, such as China, Australia was able to benefit from the continuous growth rates of these Asian economies. Finally, the Australian banking arrangement has remained in good shape throughout the crisis which meant that it has effectively operated with sound rules and regulations.The benefits offered by the studies made by Ellis (2009) and Kennedy (2009) is that both were able to acknowledge the unique characteristic of the Australian economy, which are deeply rooted in effective policy making and regulatory ability on the part of both the RBA and the government. In addition to this, income growth in Australia was already strong prior to the crisis which means that policy makers have to option to concentrate on weaker sectors of the economy that will experience the consequences of the crisis in a different scale.Again, the research gap in the observations given by Ellis (2009) and Kennedy (2009) is that the practical examples and illustrations on how these policies were translated into actual course session are once again insufficient. Another subtle aspect of these arti cles is that the authors only presented the positive aspect of effective monetary and fiscal policies, thus, disregarding the fact that these might also manifest flaws that might jeopardize the conquest of the regulation. Ellis (2009) and Kennedy (2009) in their separate articles mentioned that Australia had an edge over other nations in terms of counteracting the direct effects of the financial crises, but both scholars failed to provide stronger basis to support such assertion.The financial crisis and the housing market in AustraliaThe final section of this literature review is dole out in examining the available studies made with regard to the current state of the housing market in Australia and how it responded towards the occurrence of the financial crisis. With regard to the overall condition of the housing market, Edgerton (2008) presented a detailed discussion of the through the pricing, get and selling trends in major Australian cities namely, Sydney, Melbourne, Brisbane , Adelaide, Perth, Darwin, and Canbera. The method used by Edgerton (2008) was to analyze trends in housing price increase and/or decrease as well as trends for sales and purchases of houses in these major Australian cities.The findings from the study made by Edgerton (2008) indicate that it is not only the international factors such as the 2007 credit crunch and the existing financial crisis that may affect the overall surgical process and condition of the housing market. Instead, national factors may also affect the governance and eventually the bursting of housing bubbles. In order to support his claims Edgerton (2008) cited that Australia employ better lending standards compared to other countries, specifically the US.To illustrate this further, in Australia, there are no recourse loans unlike in the US where many mortgages are non-recourse. Non-recourse loans mean that the borrower in financial obstruction to pay their debts has the option of handing their house back to the bank without incurring any liability for any shortfall when the house is sold. It is a different scenario in Australia because borrowers, disregarding of whether they give back the house or not (Edgerton, 2008). Hence, unlike in the US and other markets, the borrowers in Australia remain liable for any shortfall. With this, the housing markets as well as banking and lending institutions in Australia are not tasked to shoulder the losses from subprime mortgages.The strength of the study by Edgerton (2008) is that he was able to stress that Australia employs quite different regulatory practices compared to the US, particularly in use mortgage. From a description of the quick acting policies in the housing, banking and lending sector, the Australian economy, most specifically the housing sector was able to survive and overcome the detrimental elements of the financial crisis.It is also important to point out that Edgerton (2008) is one of the few scholars who gave attention to the i mportance of the housing market in determining the overall performance of the economy, specifically in the case of Australia. Besides, the housing market can serve as an avenue for added investments and new business opportunities hence it should not be taken for granted, particularly during times of crises. It was also helpful that the paper presented had visual illustrations such as graphs in order to illustrate further the performance of the economy sexual congress to the financial crisis and its effect on the housing sector.On the other hand, the research gap in the study by Edgerton (2008) is that it was not able to establish the reasons that serve as motivation for the government to implement stricter mechanisms.Impact of the US Credit Crunch on Australian EconomyImpact of the US Credit Crunch on Australian EconomyIntroductionHowever, due to the US housing credit crunch and turbulence in financial markets all over the world immediately took into effect and global economic grow th slowed towards the end of the year (OBrien et al., 2007). Given this basic premise of the current financial crisis, this literature review will be guided by exploring studies made on how the US-induced credit crunch affected the Australian economy, particularly the housing market.The first stage of this literature review is attributed to describing the current financial crisis, specifically the events that led to its development such as the collapse of the US housing and banking sectors in 2007. Part of discussing the events that took place after the onset of the financial crisis would be to examine the various mechanisms employed by financial institutions and national governments in order to mitigate the direct and indirect consequences of the financial crisis. The second part of this literature review seeks to determine the effects of the financial crisis to the Australian economy, as well as the various policy responses made by both the Reserve Bank of Australia (herein referr ed to as RBA) and the Australian government. Finally, this literature review will determine whether studies on the current financial crisis were able to provide sufficient attention to the manner by which it affected the housing market, particularly in the case of Australia.The rationale behind these assertions lies on the need to broaden the scope of examining the consequences brought about by the credit crunch in 2007 and the financial crisis in 2008, from being centered in the US to involve other nations as well. It should always be understood that the effect of the subprime meltdown was not limited to US firms exposed to the subprime mortgage market for the reason that globalization made regional financial markets so interconnected that crisis spread across countries at tremendous speed (Moosa, 2008). Hence, it is just apropos to exhaust scholarly works that have managed to realize that at this point in time, economic activities of nations are intertwined and the development of policy solutions should also undergo the same process.Another reason for this literature review would be to identify research gaps that will in turn serve as a motivation for future studies on the effect of the current financial crisis towards nations economies such as the case of Australia. Since the underlying context for this review of related literature is the 2007 credit crunch and the 2008-present global financial crisis, the period covered for the literature surveyed in this paper will be from 2007 to the present. With these things taken into consideration, the focus of this literature review will be the effect of the 2008 financial crisis to the housing market in Australia.From the broad circumstance of the credit crunch and the financial crisis that happened in the US and inevitably transgressed to the rest of the world, this literature review seeks to identify the relationship from a macroeconomic environment of the global financial crisis to a specific case of the housing market in Australia. The justification for this lies on the need to determine whether policy responses used in the US are effective or otherwise in mitigating the direct consequences of the crisis, and vice versa.The credit crunch and the global financial crisisAs it had been previously mentioned, this portion of the literature review is allotted to discuss the credit crunch as well as the occurrence of the global financial crisis. Both the credit crunch and the financial crisis are crucial concepts in this review for the reason that it will be impossible to present and examine the effects of the financial crisis to the Australian economy, specifically the housing sector if these concepts are not understood properly.According to the National Institute Economic Review (2008), the 2008 financial crisis is rooted in the US subprime mortgage defaults. Moosa (2009) defines subprime mortgages to encompass all activities involving the granting of loan to borrowers with inferior credit wor thiness creating complex financial products. Meanwhile, Honohan (2008) in his study defines a credit crunch as credit related crises suffered by banks and other intermediaries which is often the cause of contraction in lending market especially if these are triggered by exogenous economic shocks. The positive attribute of the definitions provided by these authors lie on the fact that these are lifted from actual events and circumstances, more specifically the 2007 credit crunch and the current financial crisis.Another interesting point with regard to the financial crisis was given by Barrell and Hurst (2008) who stressed that financial crises are episodic and frequent and are difficult to address without major impacts in the prospect for financial growth. Based on this observation by Barrel and Hurst (2008), it becomes evident that it is inevitable under conditions of financial crises that economic growth will not be affected, especially with globalization as the underlying conditio n.With regard to the direct cause that led to the development of the financial crisis, Ben Bernanke (2008), believe that the period of financial turbulence on the part of the US began in 2006 when there were uncontrollable contractions in the US housing market that were caused by the inability of certain individuals to pay for subprime mortgages. Moreover, this was reinforced by increasing constraints on credit availability, which has dramatically slowed down the economy and has made it less responsive to market changes.Honohan (2008) supports this further in his discussion on the evolution of the 2008 financial crisis by asserting that the origin of the crisis was especially pronounced in the housing market wherein credit losses are so massive that it cannot be replenished anymore. The fall of house prices in the US and other major economies such as the UK directly affected economic growth in other countries. In his study, Honohan (2008) also believes that although the current glob al financial crisis was triggered by the 2007 credit crunch in the US banking sector brought about by the bursting of the housing bubble, definitions such as those presented by Moosa (2009) and Barrell and Hurst (2008) should not be confined to the US experience. The explanation behind this is that other nations might have responded differently upon the advent of financial crisis.In this case the positive aspects of the study by Honohan (2008) lies on the fact that it was able to present a coherent discussion of the origin of the 2008 financial crisis as something that did not happen overnight. Instead, Honohan (2008) attributes the occurrence of the financial crisis to ineffective risk management and lax monetary and fiscal policies in the US and eventually the rest of the world. Although Honohans (2008) article was focused on the banking aspect of the financial crisis and how mortgage problems in the US, his discussion of the detrimental effects of the crisis such as the closure a nd bankruptcy of banks and lending institutions were effective in stressing the importance of coherent monetary policies.On the other hand, the research gap identified in the article presented by Honohan (2008) is that it was highly concentrated on the banking sector in the US, thus, ignoring the direct consequences of the credit crunch and the financial crisis to the housing sector. It should always be taken into account that the financial crisis originated in the housing sector. Hence, potential solutions should first be geared towards addressing the negative consequences brought about by the crisis in the housing sector. Another gap in the study made by Honohan (2008) was that it was not able to present recommendations that will serve as a guide to policy makers as to how to mitigate the direct and indirect consequences of the current financial crisis.In a similar study, Barrell and Davis (2008) observed that the evolution of the 2007-2008 financial crises was brought about by lo w global interest rates arising in turn from high levels of global liquidity. This can be explained further by the case of the US wherein bank lending to households grew at unprecedented rates leading to the point that people can no longer pay their monthly dues. In addition to this, Barrell and Davis (2008) also indicated that banks are expected to hold increasingly low levels of balance sheet liquid assets, given low interest rates, and they undertook aggressive wholesale liability management to maintain funding levels. Without these initial actions taken to address the earliest manifestation of a credit crunch particularly the collapse of the housing market, countries would not have survived the crisis and will be forced to close down major financial institutions.Again, in order to understand the financial crisis and its effects towards nations and economies, it should be taken into consideration that the asset price bubble in the US in 2007 was perhaps the most noticeable occurr ence in the housing sector and this has led to irreversible consequences in the financial sector. Given this event, Barrell and Hurst (2008) supports this by stating that it is the short-term fluctuations in house prices that affected consumption in countries like the US and the UK, therefore fostering slow growth in the rest of the developed worldand eventually, the rest of the world.In their discussion of the present financial crises, as well as the prospects for recession, Barrell and Hurst (2008) stated that the best way to address the negative consequences of the crisis would be through effective monetary policy through interest rates reduction which should be set by the central bank in order to prevent bubbles like the housing bubble in the US from bursting and damaging economies at larger scales. The low global interest rates contributed to rapid credit expansion and rise in asset prices which greatly contributed to the US financial crisis (Barrell Davis, 2008).The benefits provided by the study made by Barrell and Hurst (2008) and the article written by Barrell and Davis (2008) would be that in both instances, the authors were able to recognize the collapse of the housing sector as the root cause of the financial crisis. Hence, in both articles, the authors believe that solutions for the current financial crisis should not neglect making changes in the structure of the housing sector.As for the gaps in the studies presented by Barrell and Davies (2008) and Barrell and Hurst (2008), the authors in both articles failed to establish a strong relationship between the policy recommendations that they have made to counteract the negative effects of the financial crisis from worsening and the need to direct solutions at improving the housing sector to prevent another collapse in the future. Also, like most of the scholarly works reviewed in this paper, the articles presented by Barrell and Davies (2008) and Barrell and Hurst (2008) were both centered on the case of the US and the UK, without taking into account that these cases cannot be used to generalize the responses of other nations to the financial crisis.Perceived solutions to the credit crunch and the financial crisisAfter presenting the various definitions and understanding of the ongoing financial crisis, it is just apropos to also present the perceived solutions to the credit crunch as well as the financial crisis based on the literature reviewed for this study. According to Harris and Davidson (2009) governments have a huge role in addressing the credit crunches and financial crises through the enforcement of effective fiscal policy. The government holds responsibility to help manage the nations resources in order to foster growth and present more job-creating opportunities.In the same article, Harris and Davidson (2009) also raised that the initial response to the credit crunch was reliant on the role of the government to intervene and take action to prevent the consequence s from worsening into a financial crisis and a global recession. The example given in the article was the case of the US, whose immediate response would be Paulsons initial $700 billion bail-out package that was envisioned to foster government spending through state and local governments spending.The research gaps identified in the studies presented above, namely the lack of coherent recommendations to address the financial crisis at the practical level were addressed by Harris and Davidson (2009). The reason for this is that Harris and Davidson (2009) stressed on the need for fiscal policies to counteract the immediate effects of the credit crunch. Although the focus on government intervention can be considered both as a positive and negative aspect of the study for the reason that in order to fully control both the financial and the social effects of a credit crunch, it is not sufficient to simply rely on fiscal policy but have a combination of both monetary and fiscal policy. Wit h these things taken into account, the only identifiable gap in the study by Harris and Davidson (2009) is that it was not able to discuss existing and potential monetary policies that may go hand in hand with fiscal policies in managing the negative consequences of the financial crisis.The research gaps identified in the study by Harris and Davidson (2009) were effectively addressed in the study by Belke (2009) for the reason that it may have proposed the use of fiscal stimulus to counteract the direct effects of the credit crunch and that of the crisis as well but Belke (2009) also explored the option of having a combination of both monetary and fiscal policy in order prevent the credit crunch and the financial crisis from initiating a move towards a global economic meltdown. According to Belke (2009) the generic answer to prevent the generic economy from collapsing is that use of fiscal policy to sustain demand, since monetary policy with its main concentration on interest rates approaching zero is no longer effective.The strength of the study made by Belke (2009) is that it was able to cite concrete situations that will illustrate the effectiveness of using both fiscal and monetary policy. For instance, the case of the European Union (EU) specifically the UK wherein tax cuts are implemented in order to effectively increase demand and to foster higher levels and consumption were cited by Belke (2009) as an example of fiscal policy to boost the economy.With these examples and conditions taken into account, the research gap in the study presented by Belke (2009) lies on the fact that it was not able to fully exhaust the potential options that will aid nations, especially those that are not dependent on credit consumption, to handle the immediate impact of the financial crisis that has been triggered by the credit crunch in the US in 2007. Moreover, even if the most suitable cases to illustrate the proposed solutions would be that of the US and other developed EU countries, it would have been better if Belke (2009) used a comparative method between countries that relied on both fiscal and monetary policy and those that did not. It is only through comparison that Belke (2009) could further justify the assertions and recommendations that she had made in her study. As it had been previously raised in this literature review, Belke (2009) was not able to establish a relationship between fiscal policy, monetary policy and the housing sector. The reason for this would be that the housing sector was the triggered the financial crisis. Thus, it is just apt that immediate solutions be directed toward the housing sector as well. Furthermore, the fact the Belke (2009) also focused on the case of the US and the developed countries in the EU is also considered as a gap in the research for the reason that the effectiveness of both fiscal and monetary policy cannot be generalized in the case of only the US or the UK.The financial crisis and the housing sectorThis portion of the literature review briefly presents the effect of the financial crisis on the housing sector, where it is believed to have originated. It is already given that the credit crunch and eventually the financial crisis emanated from the housing industry in the US, but this does not mean that research should be confined in the case of the US and other economic superpowers such as the UK. The academic literature available regarding the effect of the financial crisis on the housing market and vice versa was once again confined to the case and experiences of the US.For example, in a speech delivered by Ben Bernanke (2008) he stated that housing markets remain weak, with low demand and the increased number of distressed properties on the market contributing to further declines in house prices and ongoing reductions in new construction. The observation made by Bernanke was reinforced by the arguments raised by Barrell (2008) wherein he pointed out that one of the signi ficant factors that affected the worsening of the credit crunch into a full blown financial crisis would be the inability of the US government to respond to the need to intervene to economic activities.Based on these statements, it can be said that homeowners are affected by the decline in demand for houses because they cannot sell at a loss given that the current market prices for the house are low. In addition to this, homeowners cannot make further investments because their money has been trapped in the real estate property that they hold and their inability to shoulder the dept payments. In another scenario, homeowners who are facing debt for their mortgage are facing high risks of losing their property since they may not have the proper mechanism to generate additional income in order to finance for the payment. This was supported by Miron (2009) when he stated that if government redistributes income by intervening in the mortgage market it will however, it creates the potentia l for large distortions of private behavior.The financial crisis and the Australian EconomyPrior to examining available literature on the effect of the present global financial crisis to the Australian housing sector, it is necessary to present the broader picture by determining the effect of the financial crisis to the overall Australian economy as well as immediate policy responses employed to control its negative consequences. The need to examine the effect of the financial crisis on the economy lies on the fact that the contagious effect of the subprime crisis has hit financial institutions in Europe and Australia, therefore, damaging health of s significant number of financial institutions and reducing the ability of others to run their business properly (Moosa, 2008). Under these conditions, Moosa (2008) presented a study that was driven by the need to clearly identify the effect of a US induced credit crunch and financial crisis towards the Australian economy, particularly in terms of the underlying policy decisions implemented by both the RBA and the government.The bursting of the US housing market bubble in 2007 led to the rapid decline in the house prices and the downgrades of related asset-backed securities as well as the collapse of the banking and lending institutions in the US and most of the EU (Moosa, 2008). The same cannot be said in the case of Australia, where the housing market was not particularly overvalued as in the case of the US, but was nonetheless vulnerable to the harsh effects of the credit crunch. The explanation behind this is that there are still large portions of subprime loans granted to borrowers in Australia, hence there is still the risk that they may not have reliable credit records.The only difference between the case of the most countries like the US and Australia in terms of the extent to which the financial crisis affected the economy are in terms of policy initiatives and effective regulation. Given this basic premise , Moosa (2008) asserted that one of the reasons why Australia was not subjected to massive losses after the financial crisis in 2008 was due to the fact that the housing sector did not experience massive shocks as in the case of the US, the UK and most countries in the EU.Typically, mortgages in banks and lending institutions was hit hard by the collapse in the subprime housing market in the US, in the case of Australia, the effect was not severe by the bursting of the housing bubble. In his study, Moosa (2008) began by discussing the reason why the subprime crisis in the US took effect in June of 2007. Moosa (2008) identified two critical areas in order to explain this. First would be the lax monetary policy as indicated by the low interest rates second, reckless lending of banks to dodgy borrowers and excessive securitization. Although Moosa (2008) indicated in his study that the Australian economy is still susceptible to the effects of the subprime crisis brought about by liquidi ty situations that push investors to stay away from private sector securities, the only difference is that the Australian financial sector had the necessary policies to balance this out.The positive aspect of the study presented by Moosa (2008) is that it was able to showcase the difference between the effect of the current financial crisis in the US and other nations and Australia. Through Moosas (2008) study, it becomes clear that even though financial crises have a common shape, its consequences are not always the same for every nation. The explanation behind this is that each nation has its own set of fiscal and monetary policy. Consequently, nations, such as Australia respond differently to the same conditions set by the global financial crisis.Regarding the research gap in Moosas (2008) study, it had failed to establish the elements that were present in the Australian economy that enabled it to respond differently and optimally to the shock that was brought about by the financ ial crisis, as well as the credit crunch which preceded it. What could have been done by Moosa (2008) in order to address this gap would be to cite concrete instances in the Australian economy wherein the implementation of effective policies was able to overcome the negative consequences of the financial crisis.Malcolm Edey (2008), Assistant Governor of the RBA, was able to articulate reasons on why the Australian economy was able to withstand the detrimental consequences of the 2008 financial crisis. The arguments raised by Edey (2008) directly address the research gap identified in the article by Moosa (2008). According to Edey (2008), the reason why the Australian economy was able to minimize the losses despite the financial crisis and the looming threat of recession was due to the following reasons.First, subprime loans are essentially loans that do not meet standard criteria for good credit quality. In Australia, a different policy was employed to address non conforming loans. Ellis (2009) supports this by stating that in Australia, citizens pay the interest in their homes mortgage against their tax, so they are encouraged to keep their mortgage balances low. Second, unlike in other countries such as the US, the Australian government was able to develop coherent fiscal and monetary policy that will encourage households and business sectors to be more risk averse by having higher levels of savings and investment. An example of this would be the AUD 42 billion stimulus package that was called the National Building and Job Plan (Edey, 2008).To further support the points raised by Edey (2008) and Ellis (2009), Steven Kennedy (2009) from the Australian Treasury presented three reasons on why the Australian economy was one of the few who managed to overcome the negative consequences brought about by the 2007 credit crunch and the existing global financial crisis. The primary reason identified by Kennedy (2009) was that the Australian government and the RBA had timely policy responses to the occurrence of the financial crisis. Second, being at close proximity with Asian countries, such as China, Australia was able to benefit from the continuous growth rates of these Asian economies. Finally, the Australian banking system has remained in good shape throughout the crisis which meant that it has effectively operated with sound rules and regulations.The benefits offered by the studies made by Ellis (2009) and Kennedy (2009) is that both were able to acknowledge the unique characteristic of the Australian economy, which are deeply rooted in effective policy making and regulatory ability on the part of both the RBA and the government. In addition to this, income growth in Australia was already strong prior to the crisis which means that policy makers have to option to concentrate on weaker sectors of the economy that will experience the consequences of the crisis in a different scale.Again, the research gap in the observations given by Ellis (20 09) and Kennedy (2009) is that the practical examples and illustrations on how these policies were translated into actual practice are once again insufficient. Another problematic aspect of these articles is that the authors only presented the positive aspect of effective monetary and fiscal policies, thus, disregarding the fact that these might also manifest flaws that might jeopardize the success of the regulation. Ellis (2009) and Kennedy (2009) in their separate articles mentioned that Australia had an edge over other nations in terms of counteracting the direct effects of the financial crises, but both scholars failed to provide stronger basis to support such assertion.The financial crisis and the housing market in AustraliaThe final section of this literature review is allotted in examining the available studies made with regard to the current state of the housing market in Australia and how it responded towards the occurrence of the financial crisis. With regard to the overal l condition of the housing market, Edgerton (2008) presented a detailed discussion of the through the pricing, purchasing and selling trends in major Australian cities namely, Sydney, Melbourne, Brisbane, Adelaide, Perth, Darwin, and Canbera. The method used by Edgerton (2008) was to analyze trends in housing price increase and/or decrease as well as trends for sales and purchases of houses in these major Australian cities.The findings from the study made by Edgerton (2008) indicate that it is not only the international factors such as the 2007 credit crunch and the existing financial crisis that may affect the overall performance and condition of the housing market. Instead, national factors may also affect the formation and eventually the bursting of housing bubbles. In order to support his claims Edgerton (2008) cited that Australia employ better lending standards compared to other countries, specifically the US.To illustrate this further, in Australia, there are no recourse loan s unlike in the US where many mortgages are non-recourse. Non-recourse loans mean that the borrower in financial difficulty to pay their debts has the option of handing their house back to the bank without incurring any liability for any shortfall when the house is sold. It is a different scenario in Australia because borrowers, regardless of whether they give back the house or not (Edgerton, 2008). Hence, unlike in the US and other markets, the borrowers in Australia remain liable for any shortfall. With this, the housing markets as well as banking and lending institutions in Australia are not tasked to shoulder the losses from subprime mortgages.The strength of the study by Edgerton (2008) is that he was able to stress that Australia employs rather different regulatory practices compared to the US, particularly in handling mortgage. From a description of the quick acting policies in the housing, banking and lending sector, the Australian economy, most specifically the housing sect or was able to survive and overcome the detrimental elements of the financial crisis.It is also important to point out that Edgerton (2008) is one of the few scholars who gave attention to the importance of the housing market in determining the overall performance of the economy, specifically in the case of Australia. Besides, the housing market can serve as an avenue for added investments and new business opportunities hence it should not be taken for granted, particularly during times of crises. It was also helpful that the paper presented had visual illustrations such as graphs in order to illustrate further the performance of the economy relative to the financial crisis and its effect on the housing sector.On the other hand, the research gap in the study by Edgerton (2008) is that it was not able to establish the reasons that serve as motivation for the government to implement stricter mechanisms.

Theories Of Drunvalo Melchizadek And Jungian Biology Essay

Theories Of Drunvalo Melchizadek And Jungian Biology EssayIn genetics, it is understood that humans entertain 44 chromo close tos (22 meets), plus 2 sex chromo roughs that determine gender. That is scientific fact. Heres where it gets tricky. Suppose one has more or less than 44? Indeed, it stack happen some genetic disorders argon caused by this. But what put on could it have not simply on the human body, but on the human consciousness? From the metaphysicist himself, Drunvalo Melchizadek in that respect are three totally different kinds of humans on the Earth, meaning that they perceive the One reality in three different ways, interpreted differently. The freshman kind of human has a chromosome composition of 42+2. They comprise a unity consciousness that does not see boththing outside themselves as being branch from themselves. To them, there is only one energy one life, one beingness that moves perpetuallyywhere. Anything happening anywhere is within them, as well. They are like cells in the body. They are all connected to a single consciousness that moves through all of them. These are the aboriginals in Australia. There might be a few African tribes left like this. Then, there is our take aim, comprising 44+2 chromosomes. We are a disharmonic level of consciousness that is used as a steppingstone from the 42+2 level to the next level, 46+2. We are dangerous to both ourselves and nature, but we are necessaryThese two additional chromosomes change everything (Melchizedek).In short, those lacking a pair of chromosomes (compared to normal humans) perceive all reality and being as one. This falls into line quite well with the spiritual beliefs of the Aborigines in particular (however, it must be turn oned out that no group of people today currently possess the requisite 42 chromosomes). In metaphor, reality is one giant landmass with no divisions, no someones.Those with the 44 chromosomes (in short, us), are unstable. Our level of evolution is simp ly a building block to 46. We have individual lives, but now fail to ever come together. In essence, each reality is a completely isolated island from one different. Building from this, it could be reasoned that our pain, suffering, ignorance, apathy and general bad qualities fore from our chromosomal imbalance. Therefore, the only way to truly rid ourselves of these is by moving on.Finally, to 46 the next step in human evolution. According to Melchizadeks theories, it is at this point that we come together as individual to make one, each separate, but unified. In his words againThe main change will be a shift to the unity consciousness. Every cell in your body has its own consciousness and memory. You, the higher being that occupies your body, make the millions of different consciousnesses in your body exit together as one being. How does this relate to this new evolution? Think of yourself as a cell and the grid as the higher being. We will still have individual consciousness, but will be united in the form of a higher being in order to work as one entity (Melchizedek).In the perspective of the Christian religion, it could be viewed as a step towards becoming more God or Christ like individual pieces making up a whole, not far from the Body of Christ belief. As all-in-one, we would achieve universal understanding. There would be no pain, no suffering, nor ignorance or apathy. To draw another parallel, it would be quite similar to the Kingdom of God or Heaven.Being said, how do we move from 44 to 46? In more general terms, perchance it is simpler to ask how we can move from where we are as imperfect humans to something beyond, something greater, the next step. Heres where the lyrics of Forty-Six 2 and elements of Jungian psychology come into play.At the nub of Maynards Forty-Six 2 lies the concept of deviate is coming through my shadow. In Jungian psychology, the mind is broken tear down into many parts, including the anima/animus, the ego and the s hadow.In males, the anima is a group of feminine traits suppressed deep into the subconscious. Similarly, the animus is the group of masculine traits suppressed in the subconscious of females. Though not consciously present, the anima and animus affect our behavior in powerful ways. Commonly, we seek out or project those traits out onto other of the opposite sex. This accounts for the feeling of falling in love at first sight. Though we may hardly know the person, our subconscious knows what they represent. As the opposite of the conscious self, the anima/animus can act as a aim to our own subconscious. They are often expressed as the guiding female (if youre male) or male (if youre female) figures in our dreams. In short, our unconscious egos (the anima/animus), are traits we desire in the opposite sex we ourselves suppress.Conversely, the ego is our conscious mind, our sense of personal self. This sense of personal identity is purchased, however, at the expense of certain tendenc ies that are rejected as not-self. These rejected traits come together as a kind of unconscious counter-ego, termed the shadow.Unexplainable feelings of annoyance, anxiousness or even anger can be a result of being in contact with someone who possesses elements of our repressed selves. In dreams, out shadow may take a physical form, often as an adversary of the same gender. Of all the elements that make up our psyche, the shadow has the potential to be both the roughly dangerous and the most critical to our personal developments. It represents everything we most fear and despise, but as well represents everything we must master to move forward.Maynards suggestion for moving from our level to the next is by embracing the shadow. By taking in the previously rejected aspects of ourselves (the not-self) and learning to live with them (it), we take a great leap towards making ourselves whole again. Do what it takes to move through, to lie, cry, die, and kill but also to move, grow and to learn are fundamental.Deep concepts and New Age theories are nothing new for Maynard and Tool. With track titles like Stinkfist, Pushit, Third Eye, Schism and Parabola, Tool has never been, nor tried to be, a band easily understood from the surface. Their tune lyrics, stage shows and even album artwork all reflect this. The cover to the album Aenima, from which the song Forty-Six 2 is taken, even follows some of the themes from the aforementioned song. At first glance all one notices is the burst of white light at the center. nearer inspection reveals a series of out of focus eyes ringing the light. In typical Tool fashion, theyve said exactly what theyve wanted to say without apparent to have said anything coherent at all. Think outside the box (literally). Sure, we can all see or understand out personal shadows to some degree (hence the shadowy, out of focus eyes). What lays beyond them, though, no one truly understands. Its a revelation so blindingly bright theres no seeing through it, nor any turning back. Those willing to think for themselves (a motto of soft for the band), will see the album cover, open the CD and learn things they may never had known before. With luck, theyll never be quite the same for it.Our shadows are elementary, almost primal. Only by looking within, to listen to my muscle memory and reflect on what makes us us can we find our way through to the other side. By picking scabs and metaphorically uncovering old wounds we can confront what we previously rejected and avoided. We can step into the shadow and find new understanding on the other side.Works Cited or ConsultedKeenan, Maynard James. Forty-Six 2. Aenima. Rec. Sept. 1995. Volcano, 1996.Melchizedek, Drunvalo. Leading butt against Interviews Drunvalo Melchizedek. Interviewwith Val Valerian. Leading Edge Interview with Drunvalo Melchizedek. Ed. Joshua Shapiro. Dec. 1995. VJ Enterprises. 13 Sept. 2008.Tool. Album Booklet. Aenima. Rec. Sept. 1995. Volcano, 1996.Appendix AFort y-Six 2Written by Maynard James Keenan of ToolMy shadowsshedding skin andIve been pickingScabs again.Im downDigging throughMy old musclesLooking for a clue.Ive been crawling on my bellyClearing out what couldve been.Ive been wallowing in my own confusedAnd insecure delusionsFor a piece to cross me overOr a word to guide me in.I wanna feel the changes coming down.I wanna know what Ive been hiding inMy shadow.Change is coming through my shadow.My shadows shedding skinIve been pickingMy scabs again.Ive been crawling on my bellyClearing out what couldve been.Ive been wallowing in my own chaoticAnd insecure delusions.I wanna feel the change consume me,Feel the outside turning in.I wanna feel the metamorphosis andCleansing Ive endured withinMy shadowChange is coming.Now is my time. take heed to my muscle memory.Contemplate what Ive been clinging to.Forty-six and two ahead of me.I choose to live and toGrow, take and give and toMove, learn and love and toCry, kill and die and toBe paranoid and toLie, hate and fear and toDo what it takes to move through.I choose to live and toLie, kill and give and toDie, learn and love and toDo what it takes to step through. contain my shadow changing,Stretching up and over me.Soften this old armor.Hoping I can clear the wayBy stepping through my shadow,Coming out the other side.Step into the shadow.Forty six and two are just ahead of me.Appendix BAenima album cover

Free Essays - A Clockwork Orange :: Clockwork Orange Essays

Clockwork Orange by Anthony Burgess This novel is shortonly being intimately 180 pagesbut looks maydeceive you, or in other words dont judge a book buy its recompense or itsthickness. A Clockwork Orange is actually 360 pages because youhave to read between the lines. You may think that the storys theme isthat the future will be filled with horrible decadent violence (that is whatI first thought), but if you read between the lines you will understandthat this book is written for wholeness principal(prenominal) purpose, a purpose other thanentertainment. A Clockwork Orange was written in 1962, story rough the future which was meant to be around 1995 to 2000 (a car used in the storycalled a 95 Durango). A boy about seventeen, Alex the narrator andmain character living in London, rampages about with his droogs(friends) raping, stealing, beating and even killing people. Alex one dayis caught for murder and jailed but two years later he is luckily freedtwelve years before his sentenc e ends to take proceeds of a newtreatment for violent people like him that he volunteered for. He goes through the therapy and succeeds and returns back to civilization. Henow becomes sick when he is about to commit a violent or sexual, butalso when the Ninth Symphony by Beethoven plays (a minor defectfrom the treatment). Alex is driven to attempt suicide from this defectbecause he is locked within a chamber playing this song and does nonaccomplish his task. He is hospitalized and returns to his ultra-violentself while the inhumane treatment does not work because it does noteven give people a choice about being violent.While Alex helps to present the theme, two different outcomes areformed. First, Alex goes through a great change from being ultra-violent to becoming Lamb-chop and then back to being ultra-violent.Second, the theme defines the major conflict of the story. Although theconflict does not have to do with Alex directly, he helps to illustrate it.The conflict is not solv ed in the book and will probably never be solved,but it does operate up for debate what Anthony Burgess thinks about rightor wrong, regarding the controversial situation of a cycle of violence.Violence makes Violence, is what was once said to Alex by P. R.Deltoid, his instructor from school before he went to prison. This bookbrings up . What do we do to someone who has committed a violentcrime? Do we punish them with more violence, for instance death, or do

Industry Analysis: Banking Essay example -- Essays Papers

Industry Analysis Banking The banking industry has come under increasing pessimism of late because of rising short and long-term invade rates. The banking industrys market capitalization made a substantial decline. Most investors are concerned with whether the industry can sustain continued profitability as a result of these factors.Banks acquire responded in recent years to these problems by diversifying away from interest sensitive products and services. But interest rates are the fundamental outlook of any financial services. Therefore, I believe the financial services industry will be deeply affected by rising interest rates. Banks have experienced good business factors over the past two years. Interest rates were low, credit quality was good, and inflation was low. These factors are usually predictive of the types of profit banks should report. But good times cant continue because interest rate hikes cause reduced lending activity, damaged credit quality, and reduced values of bond portfolios.Porters v Forces Analysis1.Rivalry among competing sellers The banking industry is continuing to restructure and position itself for our changing economy as a result, many mega-mergers have occurred in recent years. Citicorp and Travelers damages agreed to merge in April 1998 at a value of $70 billion. Bank of America and Nations Bank also agreed to merge shortly later which became the largest bank in the United States. Bank merg...

SCO vs. IBM :: Businesses Microsoft Essays

SCO vs. IBM AbstractOn March 6, 2003, The SCO Group filed a $1 trillion suit 1 against IBM. The lawsuit alleges, among other things, that IBM has violated contractual obligations it has with SCO by incorporating calves of AIX (IBMs UNIX derived operating system) into Linux the open first version of UNIX. The lawsuit has not g 1 to court and, when it finally does, may take upwards of a year to settle. Nevertheless, a preliminary look is worthwhile. Since the time of the initial filing, the empty words has escalated and it has become clear that the ramifications of the suit are much broader than just IBM vs. SCO. SCOs claims, should they be proven, would not only have a major impact on Linux, but could also claim other casualties chief among them the Open Source movement. After some introductory material, this paper examines the potential effects and provides an ethical evaluation. If one assumes that SCOs claims are valid, Linux is in serious trouble, and a black-eye wi ll be placed on the face of the Open Source community that will not quickly heal. But, even if SCO prevails, its far from clear that theyve done the right thingIntroductionOn March 6, 2003, The SCO Group filed a $1 billion lawsuit against IBM. Central to the lawsuit is the claim that IBM has violated contractual obligations it has with SCO by releasing into the public domain AIX source law as part of enhancements the company has made to the Linux operating system. Why does SCO care? Because SCO claims to hold the copyright to the UNIX operating system 2. AIX is a derivative of UNIX not only is UNIX source code used as the basis for AIX but IBM (and a host of other UNIX vendors) readily admits this and pays licensing feeds to SCO. Linux, on the other hand, is open source. Its source code is freely available for usage, viewing and modification. SCOs claim is simple IBM is illegally distributing its intellectual property by placing it into Linux and thereby diluting the valu e of UNIX.Over the last hardly a(prenominal) months, there have been a number of key developments that are beyond SCO and IBMs current spat. Of particular interestSCO stopped releasing its Linux distribution assert that the Linux is derived from code that is copyrighted by SCO 3.