ICELAND'S FINANCIAL CRISIS Case Study Example | Topics and Well Written Essays - 2000 words

ICELAND'S FINANCIAL CRISIS - Case Study Example During this time period, home values began to fall dramatically and sub-prime rates eventually readjusted so that individuals owed up to double their original mortgage value on homes that were no longer even worth their original market value. A vast variety of the sub-prime mortgages offered to individuals who actually did not maintain quality resources to sustain an adjustable home loan interest rate were suddenly forced into foreclosure, which left lending institutions with a significant inventory of now bank-owned homes worth less than their mortgage values at the time of signing. As the housing bubble burst and grew more fiscally unsound, global investors found that the many derivatives (swaps) associated with home mortgages were no longer viable and lucrative opportunities for investment (Simkovic, 2011). Many investors from the European Union and the United States began looking for better investment opportunities, leaving financial institutions offering these derivatives with c onsiderably less quarterly and annual revenues stemming from mortgage-backed swaps and securities. Because mortgage-related derivatives were, for many years, adequate and lucrative profit opportunities for financial institutions, many offering these securities backed by mortgage guarantees had not diversified their revenue-earning capacities. As such, investment trading partners in the United States witnessed capital depletion rapidly where many institutions required significant fiscal bailouts to keep the entity afloat. Further complicating this situation was what is referred to as a bank run, where nearly five billion dollars in investment resources were withdrawn domestically and internationally in a 48 hour period by concerned and speculating investment firms and independent investors (Altman, 2009). Low-valued credit default swaps, a variety of mortgage related derivatives, and banking facility capital depletion soon hit Iceland and many other European countries. Iceland, after banking privatization had been established, was very dependent on making investments in international capital markets (Olsen, 2010). However, this instability and credit downgrading that occurred during the sub-prime crisis in the U.S. had destabilized multiple investment opportunities associated with mortgage-backed securities and derivatives. Thus, a once lucrative revenue source for Icelandic banks and other financial institutions no longer provided adequate capital infusion for the now-private banking facilities in the country. Since there had not been enough portfolio diversification in Iceland to spark domestic investment opportunity to offset dependencies on international investment losses, the exchange rate of the Icelandic currency value was affected and derivatives relationships with foreign banking partners were largely nullified. As the IMF and the U.S. Central Bank began changing monetary policy and increasing regulation to correct the sub-prime crisis, it inflated the U.S. dollar which only served to further weaken the value of the Iceland currency on the international exchange markets. How could the Iceland Crisis have been Avoided? Firstly, Iceland should have recognized that the U.S. would not necessarily have explosive gains on mortgage-related securities and derivatives that would endure indefinitely. The U.S. had a long history of a volatile housing market which should have provided adequate

Discrimination Of Women Essay Example | Topics and Well Written Essays - 1750 words

Discrimination Of Women - Essay Example As we all know, global society is divided across many epidemiological variables and out of all these variables â€Å"gender† is the most primary one; as gender and equality have been the subject of many heated debates over the years. There are certain lines that are drawn according to one’s sex and these restrictions are particularly imposed upon women. Women all over the world; be it a developed or a developing country, all women endure the problems of harassment, discrimination and ill-treatment. Discrimination of women surfaces in the society in many forms; however, in the workplace, such occurrences are more ostensible and occur in the form of unequal pay, lower workforce participation, and a major disparity in the access that is given to all the male and female employees in the workforce. The problem has been a scourge and as mentioned earlier, it exists in the facet of the society. There has been numerous where women were subjected to intense discrimination; in many circumstances were looked down upon and deemed inferior to men. The bigotry involved in the view of women is a multifaceted phenomenon and its existence gave birth to the concept of â€Å"feminism† that subsequently led to the birth Women Empowerment movements. Its dynamics and prevalence in the society will be discussed in greater details as the substance of the prose progresses. Sex discrimination is a phenomenon that has been around for ages, as it is stated earlier; women were often deemed as the weaker sex and men were at the forefront all activities. This is also largely due to the fact that since women have ability t procreate, they were required to restrict themselves to domestic chores. This led to widespread domestication of women and they had a very restricted role in the society. This was fundamentally because of the physiological differences between men and women, but there were plenty other factors that contributed to the disparity that will be discussed in greater detail in the following parts. In the past, women were treated as â€Å"articles of trade† and were used to settle disputes between two tribes. There was widespread objectification of women, men viewed them only objects of pleasure and they did not have any real position in the society. Indian societal dynamics epitomizes this aspect of the subject and is perfect to further elab orate and compare the role of women in ancient and contemporary society. In India, female infanticide and sex-selective abortions are highly prevalent. (Weisner, 2001, p. 108) Incidents of female infanticide and feticide are particularly common in the rural India, where people are vastly hardwired to their religious and cultural values that are often considered to be quite misogynistic in their teachings. In India, the birth of a female child is considered a bad omen; an aspect that is similar to the Chinese society as well. However, in case f Indian societies there is an economic reason as well due to the widespread trend of dowries and the high costs that are associated with it have often led to disparity between males and females. Sex selective abortions were so prevalent in the early 70’