Light Touch Regulation and the Global Financial Crisis

Light Touch Regulation and the Global Financial Crisis Carla Vecchio Contents (Jump to) 1.0 Light Touch Regulation and the Global Financial Crisis 2.0 Stress Scenarios and Credit Modelling 1.0 Light Touch Regulation and the Global Financial Crisis In October 2008, almost three years after stepping down as Chairman of the U.S. Federal Reserve Bank, Alan Greenspan, also known as the Maestro, admitted in a Congressional hearing that he had been â€Å"partially† wrong in assuming that lending institutions would act in the best interest of their shareholders (Greenspan 2009), thus deflecting blame for the Global Financial Crisis (GFC) that led to the collapse of dozens of major financial institutions and millions of mortgage defaults, costing the global community trillions of dollars in savings and millions of jobs. Yet it was he, an ex-director of JP Morgan, first appointed by Ronald Reagan, who was instrumental in creating the conditions that made it possible. Greenspan approved bank consolidation, pushed financial deregulation, advocated a reduction in bank capital reserves and blocked efforts to stop abusive subprime lending (Pearlstein 2013). Finally, when presented with warning signs of an impending disaster by fellow Federal Reserve Board members just before the GFC, he dismissed them and instead drew conclusions best described by Lord Adair Turner’s words (2010) â€Å"Panglossian, that is blindly or naively optimistic†. Greenspan did however concede during his congressional grilling that there should have been greater regulatory oversight of financial institutions, and it is now universally accepted that this â€Å"light touch regulation† leading up to the GFC materially contributed to the crisis. For people like Lord Adair, who now have the benefit of hindsight, the â€Å"major cause of the crisis† was the fact that â€Å"over several decades prior to 2008, private credit grew faster than GDP in most adv anced economies† and with it, leverage (The Institute for New Economic Thinking 2014). He agrees that the regulators failed, and proposes a new set of policies to â€Å"constrain the growth of private credit† and more importantly to â€Å"influence the type of credit extended† (INET 2014). The generally accepted ultimate causes of the GFC are deregulation of the financial markets; financial innovations; executive compensation; low interest rates; sub-prime loans; and speculation (The Global Financial Crisis 2012, 141).Whilst the changes to the financial sector were driven by ideology, the motivating force behind them was for the most part greed. Neoliberal theories â€Å"advocated policies that aided the accumulation† of wealth in fewer hands arguing that it would create jobs causing wealth to eventually trickle down to all (Beder 2009, 3). They also maintained that â€Å"government intervention in the management of the economy is unnecessary† because the market is self-correcting, an idea attractive to government because it absolved it of responsibility (Beder 2009, 3). The rapid growth of international trade in the 1980’s facilitated global financial liberalisation which made it easier for American banks to argue for deregulation to make them more competitive against foreign banks (The Global Financial Crisis 2012, 141). They found an ally in President Ronald Reagan who had been elected on a platform of limiting the role of government, and they embarked on an unprecedented and expensive lobbying campaign to convince other politicians of the benefits of financial deregulation (Johnson 2012). The first burst of deregulatory bravado came in 1982 with the ushering in of the Garn-St. Germain Depository Institutions Act. Key provisions of the Act like raising the â€Å"allowable ceiling on direct investments by savings institutions in non-residential assets from 20% to 40%† set the scene for the savings and loan crisis of the 1980’s and would later be blamed for thousands of bank failures (Gilani 2009). The ultimate price however, was the undoing of the Glass-Steagall Act of 1933, also known as the Banking Act of 1933. Among other things, the Act governed banks’ domestic operations; separated commercial and investment banks; and established the Federal Deposit Insurance Corporation (FDIC), thus ensuring bank deposits and giving the Federal Reserve greater control (The Chronology of Bank Deregulation n.d.). In 1987, Alan Greenspan took over the chairmanship of the Federal Reserve Board, and his free-market philosophies would champion the deregulatory movement (Gilani 2009). A year later, in 1988, the â€Å"Basel Accord established international risk-based capital requirements for deposit taking banks† that would require lenders to set aside reserves (Gilani 2009). Conversely, marketable securities would only require minimal reserves, which allowed unscrupulous banks to free up reserves by shifting from â€Å"originating and holding mortgages to packaging them and holding the mortgage assets in a now-securitized form†, thus severing the link between asset quality considerations and asset liquidity considerations (Gilani 2009). Greenspan asserted that bank deregulation was necessary for banks to become global financial powers, and by using his own powers, Greenspan set out to dismantle the Glass-Steagall Act firstly by allowing banks to deal in debt and equity securities, and finally by allowing banks to own securities firms (The Chronology of Bank Deregulation n.d.). The final demise of the Glass-Steagall Act came when Citibank was bought by Travelers, a deal which under the Act was illegal. It was then made legal when the Gramm-Leach-Billey Financial Services Modernisation Act, bulldosed through by Senator Gramm, was signed into law by Bill Clinton and at once doing away with the Glass-Steagall Act (Gilani 2009). Senator Gramm who was an economist and free market ideologist, further used his position of power to espouse the virtues of subprime lending by famously declaring â€Å"I look at subprime lending and I see the American Dream in action† (Gilani 2009). Subprime lending or lending to people who would ordinarily have little hope of obtaining a loan, thus came to be looked upon favourably by politicians as it allowed record numbers of consumers to purchase a home (The Financial Crisis and the Great Recession n.d., 337). A direct outgrowth of easy lending, its roots can be traced to the Technology Bubble of the late 1990’s which had been encouraged by the loose money policies of the Federal Reserve under Alan Greenspan (Bello 2008).When the bubble burst and sent the U.S. into recession, Greenspan tried to counter it by lowering the prime interest rate to a historical low of 1% (The Financial Crisis and the Great Recession n.d., 338). This in turn encouraged another bubble: the real estate bubble (Bello 2008). â€Å"Driving the demand for subprime loans was the development of a culture of entitlement† and the U.S. government’s push of home ownership as an inalienable right (The Global Financial Crisis 2012, 145). Th is combination of low interest rates and high levels of liquidity facilitated higher risk taking and speculation. Caution was often equated to lack of optimism so even the most cautious were driven by herd mentality into the market, even in the face of continuously rising house prices (The Global Financial Crisis 2012, 146). Financial wizards were in the meantime designing ever more complex financial products. Initially meant to â€Å"manage risk and make capital less expensive and more available†, they ironically ultimately led to the GFC (The Global Financial Crisis 2012, 142). Loans were bundled in a process called securitization, and sold globally to others who had no direct interest in the customers’ ability to repay the loans. In the process, vast amounts of money were made available to borrowers leading to more loans and further driving house prices up. Credit Derivatives, essentially bets on the credit worthiness of a particular company were used to transfer risk away from the banks leading to even more risk taking on the part of the banks (The Global Financial Crisis 2012, 143). Huge executive salaries and compensation packages played a major role in the creation of the GFC. Tied to short-term performance, they further encouraged risk taking, relaxing of lending criteria (The Finan cial Crisis and the Great Recession n.d.,340) and even accounting fraud as in the case of Enron, Global Crossing and WorldCom (The Global Financial Crisis 2012, 144). The proliferation of subprime lending was responsible for doubling the mortgage borrowing in the U.S. from an annual average of $500 billion in 1998 to over $1 trillion in the 2003-6 period (The Financial Crisis and the Great Recession n.d., 341). When mortgage repayments became more difficult in 2006, a wave of subprime foreclosures ensued creating a glut in the market and dramatic drop in house prices (The Financial Crisis and the Great Recession n.d., 341). The rest is history. Banks deemed â€Å"too big to fail† failed, and trillions of dollars were lost. In the U.S. alone, 3 million homes were foreclosed and 9 million people lost their jobs. In his congressional testimony, Alan Greenspan basically testified that he thought he could trust bankers and credit rating agencies to do the right thing by their shareholders and price risks accordingly, but with such huge profits to be made, it appears that greed triumphed. Considerable evidence has in fact mounted since the GFC to show that his vision of the markets and organisations â€Å"is not only oversimplified, but utopic† (Turner 2010). Critics and many economists now blame Greenspan for the crisis. Indeed, it is clear that notwithstanding his faith in others, it was incumbent upon him as the steward of the world’s largest economy to be vigilant. â€Å"You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,† said Representative Henry A. Waxman of California, chairman of the committee (Andrews 2008). â€Å"Do you feel your ideology pushed you to make decisions that you wish you had not made?† Mr. Greenspan conceded: â€Å"Yes I’ve found a flaw† (Andrews 2008). 2.0 Stress Scenarios and Credit Modelling When credit is extended by a lender to a borrower, there is a certain risk that the borrower may default on its payment, thus causing a loss to the lender. If the losses are large enough, the lender may be forced to default on its own obligations to others, as seen during the most recent Global Financial Crisis (GFC) which saw a number of large banks file for bankruptcy. To minimise the probability of the borrower defaulting, banks adopt lending practices and ratios, and conduct a review of the borrower’s ability to repay the loan. Competitive pressure from other banks to make credit more affordable means that banks have to try as best they can, to estimate the probability of defaults and the size and nature of possible losses, and make provision for them. The banks’ credit is mathematically modelled, which is then used to estimate the likely outcomes produced by different hypothetical but realistic and potential scenarios. Credit models can be divided into two groups: credit risk models and credit growth models. A credit risk model is used to predict the main credit risk parameters, particularly the probability of default. Conversely, a credit growth model is used to estimate the growth in bank portfolios and to estimate the growth of the bank’s risk-weighted assets, that is, the bank’s off-balance-sheet exposures weighted according to risk and hence the capital requirement as explained in the Basel Accord. A bank’s ability to withstand the most adverse conditions is tested by carrying out a so called â€Å"stress test†, whereby extreme values for certain variables are used in the bank’s credit model to predict the outcome. Most commonly, the stress test is applied to credit risk as this carries the most important and most serious consequences for a bank. The Banking Committee on Banking Supervision (BCBS) (2009, p.1) states that stress testing is a vital risk management tool employed by many banks â€Å"as part of their internal risk management and, through the Basel II capital adequacy framework, is promoted by supervisors†. The rigorous stress testing program requires management to adopt a forward thinking mentality and create â€Å"what if† scenarios that are extreme, but plausible. Thus the purpose of such an exercise is to assess a bank’s resilience to potential adverse shocks in the financial economic environment that may have a catastrophic effect on the institution or financial system as a whole. For example, a modeller may measure the effect rising interest rates has on home loan defaults. A mathematical formula can then be derived to link the two factors. As well as being a supplementary tool for other risk management approaches, stress testing provides management with an indication of the â€Å"approp riate level of capital necessary to endure deteriorating economic conditions† (BCBS 2009, p. 1). Since the GFC, stress testing of banking systems has been used more extensively and in a broader variety of contexts. The internal risk management exercises within the Basel II capital adequacy framework has led many financial institutions and supervisors to focus attention on stress tests in relation to credit risk as an additional way to test the reliability of the internal models they adopt (Schechtman and Gaglianone 2011). The increasing need for financial stability within today’s economic environment, and its role as a policy goal of central banks, has also promoted interest in macroeconomic stress testing and the link it has to credit risk (Schechtman and Gaglianone 2011). There are two broad types of stress scenarios: The reduced-form stress scenario and the sharply contrasting structural stress scenario. According to Roger Stein from Moody’s Research Labs (2011), these terms have been adopted from the credit modelling literature, and are the two main approaches used to model credit risk. A structural scenario possesses a â€Å"causal, economically intuitive relationship† (Stein 2011) between a firm’s asset and the probability of it defaulting, that is, it has a clear and logical economic rationale for the effect of a particular factor on a portfolio. It is focused on the state of the economy, as described by the macroeconomic factors involved and requires a definite link between asset behaviour and the stress factor. Because different asset classes within the portfolio are dependent on the same common factors, there is also a very high coherence or consistency of results between them. Unlike other models, the structural model can explain why a company or a bank, for example, is likely to default. Although intuitive, structural stress scenarios make high demands on the testers because not only do changes in the economic factors have to be consistent throughout the different asset classes, but the resultant asset behaviour must also be fully described by the mathematical function linking the assets to the economic factors. Because of this, few structural models for stress testing have been developed so far. One such model is at the core of the Bank of England’s stress testing agenda. Generally, structural models are useful from a central bank’s perspective as they assume a linear relationship between macroeconomic factors and credit risk, hence providing a way of estimating financial stability risks. In contrast, a reduced-form scenario focuses on the state of the assets and treats default events as â€Å"surprises†. It does not provide an economic cause for the resulting state of the assets, thus only requiring the stress tester to define the asset behaviours themselves (Stein 2011). Modelling credit risk under this approach requires no assumptions to be made concerning why defaults occur. Instead, the dynamics of default are directly linked to the default rate. Default in the feduced form stress model is an unforeseeable event which will always have a positive default probability. A relationship between assets is not required in the reduced form, nor is a logical reason given for a certain observed effect. Because of their less rigorous demand, reduced form stress models are used predominantly in the financial industry. For example, the stress testing approach used even by the Bank of France is based on a reduced form of the credit risk model wherein a borrower’s ability to repay his loan is found as the difference between the value of the assets and that of his loan, and default occurs when the value of the debt exceeds the value of the loan. Credit risk is one of the most important areas for stress testing since it ultimately affects a bank’s profits and even its solvency. When used in conjunction with credit models, both the structural and reduced-form stress scenario approaches assist management in providing a means of mitigating â€Å"risk by enabling intuitive interpretations of states of the world that may cause a portfolio or organisation to experience high losses† (Stein 2011). Stein (2011) states that it is indeed this â€Å"intuitiveness that makes stress testing useful in evaluating a credit model’s behaviour in general, and the appropriateness of a model’s linking functions in particular†. Both the Structural and the Reduced-form Stress Test models have found an important and useful role in the financial industry. Modellers will use either one depending on what is being tested and what is known or can be quantified. As it is, even though the credit models used by their very nature do not perfectly represent the real world, the stress tests applied to them, â€Å"still provide a measure of intuition that is generally otherwise not feasible† (Stein 2011). This is because both structural and reduced-form stress scenarios induce a connection to both the credit models and the risks in the portfolio which provides management with insights into both the model’s behaviour and also the drivers of the portfolio’s credit risk (Stein 2011). (http://www.cnb.cz/en/financial_stability/stress_testing/stress_testing_methodology.html). Referenced: Ricardo Schechtman and Wagner Piazza Gaglianone 2011 – Macro Stress Testing of Credit Risk Focused on the Tails http://www.bcb.gov.br/pec/wps/ingl/wps241.pdf STEIN 2011 – The Role of Stress Testing in Credit Risk Management BCBS 2009 – Basel Committee on Banking Supervision Breuer, Jandacka, Rheinberger Summer 2009 – How to find plausible, severe and useful stress scenarios

Toyota Motor Manufacturing Usa – Seat Problem

1. As Doug Friesen, what would you do to address the seat problem? Where would you focus your attention and solution efforts? Why? The two major causes of seat defects originate with KFS, relating to material flaws and missing parts. The seat bolster issue is a distant third. As KFS is the responsible party the situation needs to be addressed at their site. Using the traditional TMC first principle of ‘let’s go see it’ and then converge on the Five Why’s, Doug should visit KFS and inspect the manufacturing and QC process. By focusing on uncovering issues at the source of the seats, it is likely there will be fewer problems at the TMM plant. The focus on QC at KFS could potentially eliminate 113 of the 138 problems reported between 14-30 April, 1992. In the short term, address the immediate issue of the backlog by reconciling orders with KFS to ensure the backlog is cleared. This would require little resource and be a quick win. 2. What options exist? What would you recommend? Why? Simplifying the seats could reduce the problem since product proliferation appears to added complexity to KFS manufacturing process, though it’s unlikely that the designers will take this feedback as welcome given similar issues are not faced at the Japanese plant. Redesigning the seat or replacing easily broken parts could reduce breakage and installation issues, while training the staff to be more careful with installation, or the KFS staff with assembly, may also be an option. Replacing the supplier would be a high-risk option that would only be explored if the issues at KFS were so irreversible that TMM had no other choice. While all of these options may potentially address part of the issue, improving the QC process and then working backwards from there into the assembly and manufacture at KFS will ultimately have the greatest single impact on production efficiency. 3. Where, if at all, does the current routine for handling defective seats deviate from the principles of the Toyota Production System? One of the major underlying principles of TPS was building in quality on the line. The reporting of defects at the seat assembly point did not appear to be consistent and was only uncovered by interviewing team leaders on the factory floor. In addition, cars were reported as defective yet continued down the assembly line until completion, where they were taken off-line to wait for a replacement seat. Nowhere else on the line were cars removed due to defect: team leaders or production managers were responsible for resolving issues while still in the assembly line. The reasons for doing so appeared rational, since the car could be finished with a defective seat, seats needed to be ordered from KFS and stopping the line for such a lengthy period would have decreased productivity. One flaw in the process was that there were flaws that could be rectified in the Code 1 clinic. These flaws could have been dealt with while on the assembly line and thus reduced the burden in the clinic, while raising awareness of common defects and their source earlier in the process. The clinic did not appear to have the same reporting responsibilities as the assembly line since management were not aware of the main causes of the defects. 4. What is the real problem facing Doug Friesen? Process and feedback management problems at TMM and quality control management issues at KFS were the underlying reasons for the seat problems. Moreover, the ‘jidoka’ process had been bypassed in the seat installation process, exposing a potential weakness in the production line. Doug should implement an in-line attempt at fixing seat problems prior to the referral to the Code 1 Clinic. Regular feedback from the clinic as well as the assembly line would improve information transparency and identify the source of defects for management at the earliest point in the process. Finally, the same processes should be adopted at KFS and QC strengthened considerably to avoid the delivery of defective seats as much as possible. Since this is a critical path to seat delivery, no seats should pass to TMM without a thorough QC test at KFS.

Why Is Abortion Unacceptable to a Woman Free Essay Example, 1000 words

Religious principles in major religious denominations do not permit abortion. It is against religious values to procure abortion. No religion allows a woman to carry out abortion. If women subscribing to the said religious outfits conduct abortion, they will surely receive punishment of their religious wills. In the Catholic and Methodist doctrines do not allow women to take communion if they procure abortion. Before allowing them back to communion, the churches outline so many things they ought to complete termed as penitence. Women should not abort because no religion allows them to do so. The other reason against abortion is that no matter hard the person procuring abortion tries; it can never wash away what abortion does to her mind. What abortion does is that, it kills and in the process takes away the life the unborn child. However long it takes, time does not remove the fact that there was murder. The action remains a malicious heartbreak forever. Women should never such a ch oice ever in their lives. Abortion is an action that always remains in the conscience of the woman who procured it. We will write a custom essay sample on Why Is Abortion Unacceptable to a Woman or any topic specifically for you Only $17.96 $11.86/page

The Colonization Of Africa During The Late Nineteenth Century

Imperialism occurs when a strong nation takes over a weaker nation or region for economic, political, or social reasons. This type of foreign policy was practiced by European nations throughout the 1800s and early 1900s. Began in 1870s, Europeans started to colonize Asia and Africa by using military force to take control of local governments and exploited local economies for raw materials required by Europe’s growing industry. The takeover of Africa during the late nineteenth century has been known as the scramble for Africa. Africa was introduced to Europeans by missionaries and explorers who engaged in humanitarian and religious work but others saw the economic potential of the region. In 1876, King Là ©opold II of Belgium organized the International African Association which allowed the nation to gain more territory into the Congo basin through the treaties with African chiefs. Between 1885 and 1914 Britain, France, Germany and Belgium had territories all over Africa. Similar takeovers happened in Asia as well. Asia was opened to the West by the Opium War of 1839-1841, which was caused when the Chinese wanted to regulate the inflow of opium that was purchased from the British East India Company. A decade and a half later, Britain and France combined in a second war upon China in order to force the Chinese government to receive their diplomats and deal with traders. They destroyed the emperor’s Summer Palace and looted valuable Chinese art. As a result, the treaty ofShow MoreRelatedColonialism in Africa911 Words   |  4 PagesMitchell 10:00-10:50 (MWF) Colonialism in Africa Neither imperialism nor colonialism is a simple act of accumulation nor acquisition†¦ Out of imperialism, notions about culture were classified, reinforced, criticized or rejected† (BBC World Service). The nineteenth century saw massive changes in Africa. Some were driven by famine and disease (BBC World Service). Some changes were the result of the territorial ambitions of African rulers. As the century progressed alliances with merchants and missionariesRead MoreImperialism in the 19th century1746 Words   |  7 PagesThere was a great deal of Imperialism in the 19th century, led by mostly westerners from Europe. Imperialism is the act in which one nation extends its rule over another. Imperialism had a substantial effect on the 19th century throughout the entire world by bringing upon changes to many different countries, for better and for worse, especially to Africa. Prior to the nineteenth century, westerners did interfere with many of the affairs of nations outside of their boarders, so signs of imperialismRead MoreEssay on The Scramble for Africa1662 Words   |  7 PagesThe Scramble for Africa is one of the best examples of colonization in world history. Europe alone managed to colonize the entire African continent in a period of roughly twenty five years, spanning from 1875 to 1900. 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There were opportunities for profitableRead MoreNotes on Colonialism and Imperialism1489 Words   |  6 Pagesexpansion used to defuse internal tensions * Cultural justifications of imperialism * Christian missionaries sought converts in Africa and Asia * Civilizing mission or white mans burden was a justification for expansion * Tools of empire * Transportation technologies supported imperialism * Steam-powered gunboats reached inland waters of Africa and Asia * Railroads organized local economies to serve imperial power * Western military technologies increasingly powerful Read MoreThe General Act of the Berlin Conference on West Africa2361 Words   |  10 PagesConference on West Africa (1884-1885) and the partition of Africa among the main European powers, considering its importance for the construction of Europe. The Conference of Berlin was the culmination of a process that began with the presence of European traders in the costal areas of West Africa. The relations between Europe and Africa developed during the age of slave trade and were transformed on the 19th century. The Conference initiated the process of formal colonization, which lasted untilRead MoreColonialism in Africa Essay example2840 Words   |  12 PagesCOLONIALISM IN AFRICA How does the legacy of colonialism affect contemporary African international relations? If questioned today about Africa in general the first reactions I would have are poor governance, poverty, conflict, economic instability and hunger. These are the major characteristics that dominate most of the states within the continent as a whole. The question would be has it always been this way? Different debates and differences have been focused on the colonial legacy for

The Harlem Renaissance - 1317 Words

Over the course of time, many different movements have occurred. The most influential types have ranged from revolutionary movements to feminism. These movements have changed the course of society and kept a different outlook on new ideas. A very important idea that needed to be stressed was the freedom of African Americans. For so long they were slaves and treated extremely poorly. Eventually, they became free people. However, they were still not viewed as equal. It took many years to move even one step in the right direction. A specific movement did help the African America appear independent and equal. One of the most influential movements and still occurring to this day is the Harlem Renaissance. The Harlem Renaissance is the cultural movement of the 1920’s. The movement essentially kindled a new black cultural identity through art, literature and intellect. The Harlem Renaissance started during the Roaring Twenties. It took place in Harlem, New York. It became most promi nent in the mid to late 1920’s and it diminished toward the early 1930’s (Henderson). The Harlem Renaissance was initially called the New Negro Movement or the New Negro Renaissance. It was the result of numerous components, including the Great Migration. After World War I, countless African-Americans left the country South for urban communities of the North looking for better employment and a more tolerant environment. By 1918, Harlem, New York had the highest number of black people on the planet,Show MoreRelatedHarlem And The Harlem Renaissance Essay2269 Words   |  10 Pagessouthern African Americans migrated to a city called Harlem in New York. They relocated due to dogmatism and intolerance of melanin diverging out the of pores of many white southerners. The African Americans who migrated found new opportunities both economic and artistic that resulted to the creation of a stable middle class Black –Americans (Dover, 2006). This was the Harlem Renaissance a cultural, social, and artistic explosion. The core of Harlem expressed by Alain Locke is that through art, â€Å"negroRead MoreHarlem And The Harlem Renaissance1430 Words   |  6 Pagesmoved in to urban cities such as Chicago, Detroit, and Harlem. Out of these northern metropolises, the most popular was Harlem; â€Å"here in Manhattan (Harlem) is not merely the largest Negro community in the world, but the first concentration in history of so many diverse element of Negro life†(1050). Harlem became the mecca of black people, and between the years of 1920 and the late 1930s it was known as the Harlem Renaissance. The Harlem Renaissance, brought artiest, poets, writers, musicians, and intelligentRead MoreThe Harlem Renaissance850 Words   |  4 Pages Giselle Villanueva History IB Mr. Flores February 7, 2016 Period 4 Word Count: 693 Harlem Renaissance The Harlem Renaissance was the first period in the history of the United States in which a group of black poets, authors, and essayist seized the opportunity to express themselves. The Great Migration was the movement of six million African Americans from the rural South to the cities of the North during 1916 to 1970. Driven from their homes by unsatisfactory economic opportunities and harsh segregationistRead MoreThe Harlem Renaissance1154 Words   |  5 PagesIV AP 16 November 2015 The Harlem Renaissance The early 1900s was a time marked with tragedy in America. Started and ended with the Great Depression in between, it was not America s finest moment. Prohibition was in place, the Klu Klux Klan was still marching, and the Lost Generation was leaving for Paris. But despite the troubling times, people still found beauty and meaning in the world around them. They still created art and celebrated life. The Harlem Renaissance was an artistic and literaryRead MoreThe Harlem Renaissance941 Words   |  4 PagesThe Harlem Renaissance was a cultural movement, in the early 1920’s, that involved vibrancies of new life, ideas, and perceptions. The large migration of African Americans northward, after World War I, allowed people of color the opportunity to collaborate in the New York City neighborhood, known as Harlem. This renaissance allowed the city to thrive on a refined understanding and appreciation of the arts. Many individuals were involved in this movement including doctors, s tudents, shopkeepers,Read More The Harlem Renaissance Essay1513 Words   |  7 PagesThe Harlem Renaissance      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Chapter 1 Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Harlem Renaissance, an African American cultural movement of the 1920s and early 1930s that was centered in the Harlem neighborhood of New York City. According to Wintz: The Harlem Renaissance was â€Å"variously known as the New Negro movement, the New Negro Renaissance, and the Negro Renaissance, the movement emerged toward the end of World War I in 1918, blossomed in the mid- to late 1920s, and then withered in the mid-1930sRead MoreHarlem Renaissance Essay1069 Words   |  5 PagesHARLEM RENAISSANCE Throughout the history of African Americans, there have been important historical figures as well as times. Revered and inspirational leaders and eras like, Martin Luther King and the Civil Rights Movement, Nat Turner and the slave revolt, or Huey Newton and the Black Panther Party. One such period that will always remain a significant part of black art and culture is the Harlem Renaissance. It changed the meaning of art and poetry, as it was known then. Furthermore, theRead More The Harlem Renaissance Essay1031 Words   |  5 PagesHARLEM RENAISSANCE Throughout the history of African Americans, there have been important historical figures as well as times. Revered and inspirational leaders and eras like, Martin Luther King and the Civil Rights Movement, Nat Turner and the slave revolt, or Huey Newton and the Black Panther Party. One such period that will always remain a significant part of black art and culture is the Harlem Renaissance. It changed the meaning of art and poetry, as it was known then. Furthermore, theRead MoreThe Harlem Renaissance Of The 1920s1557 Words   |  7 Pagesnot until the evil intentions of slavery crossed mankind’s thoughts that hue became our downfall, our separator. White supremacy eroded the idea of equality, and darker hues began to symbolize worthlessness, inferiority, and ugliness. The Harlem Renaissance of the 1920s evoked the idea of black consciousness and pride. It was a movement established to express black literature, art, music, and culture. Blacks began to wear their dark hue like a badge of honor. Art, literature, and music became theRead More The Harlem Renaissance Essay524 Words   |  3 Pages Harlem Renaissance nbsp;nbsp;nbsp;nbsp;nbsp;The Harlem Renaissance was a time of racism, injustice, and importance. Somewhere in between the 1920s and 1930s an African American movement occurred in Harlem, New York City. The Harlem Renaissance exalted the unique culture of African-Americans and redefined African-American expression. It was the result of Blacks migrating in the North, mostly Chicago and New York. There were many significant figures, both male and female, that had taken part

Com/156 Week 5 Outline and Thesis Statement Guide Free Essays

Appendix H: Outline and Thesis Statement Guide name COM/156 date instructor Associate Level Material Appendix H Outline and Thesis Statement Guide A smoker may breathe better, have a less chance of getting cancer, and live longer if a choice is made to quit early in life. The benefits on their health when they quit smoking at an early age are immediate and substantial. A smoker may breathe better, have a less chance of getting cancer, and live longer if a choice is made to quit early in life. We will write a custom essay sample on Com/156 Week: 5: Outline and Thesis Statement Guide or any similar topic only for you Order Now There are more reasons to stop smoking than there are to continue. Smoking cessation is the most important step that smokers can take to enhance the length and quality of their lives. I. There are many causes which make people smoke and  the effect of smoking  to their health. Even though smoker claim to get a calming affect when smoking, the negative outweigh the positive. Scientists and experts have made their point about there are some very severe reasons of smoking but its critical consequences should also be taken into consideration. However, it can divide to two main causes which are physical and psychological. A. The main causes for smoking are physical and psychological. 1. The physical cause of smoking concerns the human body’s need for nicotine. 2. Smoking is psychological and seems to be due to low self-esteem. B. Not only does smoking cause diseases and is a slow way to die because of the effect smoking has on the human body. They know smoking has effects on the human body such like to the eyes, mouth and throat; lung, heart, stomach; pancreas and it also can cause cancers to those targeted areas. 1. The effect of smoking on the eyes, mouth and throat 2. The effect of smoking on the lung and heart 3. The effect of smoking on the stomach and pancreas II. When they stop smoking, their body experiences some positive side effects that may lengthen their lifespan. These positive aspects come in a lengthy time frame but with the ability to refrain from smoking, they will soon feel healthier all throughout their body. A. 20 minutes after they decide to quit smoking their body already starts healing. 1. Blood pressure returns to normal. 2. Pulse becomes stable and normal again. B. The effects of smoking cessation after 8 hours. 1. Oxygen levels turn to normal. 2. Nicotine and carbon monoxide levels in the blood are reduce by half. C. The effects of smoking cessation after 12-24 hours. 1. Carbon monoxide levels in blood drop to normal. 2. Carbon monoxide will be eliminated from the body. 3. Lungs start to clear out mucous and other smoking debris. D. The effects of smoking cessation after 48-72 hours. 1. There is no nicotine left in the body. 2. Ability to taste and smell is improved. 3. Breathing becomes easier. 4. Bronchial tubes begin to relax and energy levels increase. E. The effects of smoking cessation after 2-12 weeks. 1. Circulation improves. 2. Lung function increases. F. The effects of smoking cessation after 3-0 months. 1. Lung functions are increased by up to 10% which reduces coughs, wheezing and breathing problems. 2. Exercise becomes easier without losing your breath. G. The effects of smoking cessation after 12 months. 1. Excess risk of heart disease is about half and declines gradually hereafter. 2. A healthier heart starts to emerge on medical records. III. After the first year, their body continues to heal up until 15 years after they have quit the habit of smoking. The risk for certain disease becomes less and the way that they feel improves even more. A. The risk of heart attacks and strokes become less. 1. Risk of heart attack falls to about half that of a smoker. 2. Risk of stroke returns to the level of people who have never smoked (5-15 years). I. The effects of smoking cessation after 10-15 years. 1. Risk of lung cancer falls to about half that of a smoker. 2. Risk of lung cancer is less than that observed in nonsmokers. . Risk of coronary heart disease is no different than that of someone who has never smoked. 4. If you have quit smoking before age 50 you have halved the risk of dying in the next 15 years compared with continuing smokers. In conclusion the sooner they quit smoking the sooner their body can start to heal. The healing process takes 15 years to completely reach its full potential. With this being said, the sooner a person quits smoking, the more chance they have to breathe better, have a less chance of getting cancer, and live longer. It is said that if they quit smoking by the age of 50, they are giving themselves longer than 15 more years to die. Younger people heal faster than older people, this is a known fact. The younger a person is when they decide to quit smoking, the longer they will live according to their physical health. References Stop smoking programs. (2012). Retrieved from http://www. stop-smoking-programs. org/quit-smoking-benefits. html University Of Phoenix. (2012). Appendix H: Outline and Thesis Statement Guide. Retrieved from University Of Phoenix, COM156 Version 5 website. How to cite Com/156 Week: 5: Outline and Thesis Statement Guide, Essay examples

Capability of Organization Growth Process

Question: Discuss about the Capability of Organization Growth Process. Answer: Introduction: There has been a recent trend in the growth of educational sector with special reference to the online education and online university. The success of any organization depends on the existing relationship depends on the total number of people graduating from the university (De Boer et al. 2014). In addition, the capability of the organization to retain its clients also matters a lot. This report focuses on the online universities growth process. The main purpose of this report is to find out the existing relationship between these two variables namely graduation rate and retention rate. Graduation rate is the mathematical concept through which the percentage of students completing their graduation at any specific time with respect to the total number of enrolled student is calculated (Allen and Seaman 2013). Retention rate on other hand is the percentage of students who remains in the same college for the following years in order to complete their education. Both these rates are very crucial to evaluate the performance of any organization (De Boer et al. 2014). Background of this Study: Online education is the matured stage of the concept of distant education, which originated long back in the 19th century (Spada 2014). It was the after the Second World War that this system was initiated in Afro-Asian countries and then expanded throughout the global economy. After this, America and UK got involved in imparting online education to their students through different modes including radio and television. Under this circumstance, there has been an increasing trend in the growth of online university and that induced us in constructing this report. The impact of the rising demand for online education, the constant increase in the number of colleges, the retention capacity of these online education centers and the number of students graduating from these online universities has been the primary focus of this report (Jordan 2014). Since, there has been a constant growth in this sector, this report tries to observe the impact of growth these colleges using the statistical too ls of simple linear regression. Methodology: Through this report, around 29 different universities have been focused and their retention rate and graduation rate have been collected to evaluate the impact of these two criteria and the relationship amongst them. At the initial level scatter diagram has been used to show the relationship between the two variables and then the regression analysis has been done to confirm or reject the relationship already stated (Wooldridge 2015). The graduation rate has been taken as the dependent variable and the retention rate of these universities have been considered as as the independent variable. This scatter diagram is used to understand the correlation between the two variables. The way in which the dependent variable behaves can be identified from here (Sowell 2014). The scatter diagram below explains the relationship between the graduation rate and the retention rate of the online Universities operating in U.S. Figure 1: Scatter Diagram of GR RR Source: As Created by the Author Through this diagram, it has been seen that all the scattered points are plotted in a particular pattern. There is positive relation in between the two variables. The straight line given in the diagram is used to measure the goodness of fit of the measurement. This concept is used to measure the reliability of the data in accordance with the theory in practice. It is clearly seen in the above diagram that there is no point on the fitted line which implies that the model does not show goodness of fit at all. On other hand, since almost all the observations are clustered very close to the fitted line, therefore the variables have weak positive co-relation amongst them. This implies that universities having high retention rate is going to show high graduation rate and vice-versa. As in this scatter pot it can be seen that the university with 100% retention rate have nearly 60% and above graduation rate as highlighted by red arrows. In addition, the university, which show low retention r ate, have lower rate of graduating students as highlighted by the blue arrows. Results Obtained: The analysis about the impact of retention rate on the number graduation rate of the online universities has been done with the help of regression model. The econometric tool with the help of which investigators try to establish a causal effect between two or multiple variables is known as Regression analysis (Gujarati 2014). Usually one variable is taken as the independent variable and the others are taken as dependent variable. The regression analysis can be classified into 7 different types namely, Linear regression, logistic regression, polynomial, step-wise, ridge regression, lasso regression and Lasso regression (Asteriou and Hall 2015). Usually, the first three categories are widely used. Linear regression can again be subdivided as simple and multiple linear regressions. In this report the retention rate of the open universities acts as the independent variable. Since, there are only two variables present, hence simple linear regression has been used to establish the relation ship. Through this regression analysis, the economist tries to find out if there is existence of statistical significance between the variable. In other words, it tries to find out whether the sample reflects the estimated relationship of the population (Sowell 2014). A regression equation can be written as Y = a + bX. In this equation X is the independent variable which helps in explaining all the consequences and the extent in which it is faced by the dependent variable. Y is the dependent variable in the model. The intercept a allows the economist to understand the effect of the dependent variable when independent variable is 0. In this report the retention rates of all the mentioned universities has been taken as X and the graduation rate is taken as Y. The regression analysis of the GR and RR are given below as follows: Coefficients Standard Error t Stat P-value Intercept 25.4229 3.7463 6.7862 0.0000 RR(%) 0.2845 0.0606 4.6928 0.0001 From the table above the regression equation of the online universities can be formed. The estimated regression equation is given as: In this equation intercept a is 25.4229 and 0.2845 is the slope b. The slope coefficient helps in understanding the impact of unit change in independent variable on the dependent variable of the chosen model. Here, the slope coefficient 0.284 clearly indicates the fact that if there if 1 unit increase or decrease in the retention rate, the impact is going to be 0.284 unit increase or decrease in the graduating rate of the 29 open universities surveyed. In order to check out the existence of any significant association if any between the GR and RR, there is a need to concentrate on the p-value that has been yielded from the regression equation. To understand the use of p-value, first there is a need to understand the null hypothesis which is being tested by this value. This hypothesis states that there is no significance between the given observation set of variables and no variation occurs in between them (Gujarati 2014). In our model the p-value is 0.0001, which implies that there exists a highly significant association in between the variables and henceforth the null hypothesis of this regression analysis can and should be strictly rejected. The given regression equation do provide a good fit. The concept of fitness of a model comes from the urge to check out the digression of the observed value from the expected value as predicted by the model. In the given model p being 0.0001 is not even near to 1% level of significance and hence the chosen model is highly significant. In addition, the model also has high t-value which again establishes the significance of the model. South University has an average level of retention rate of 51%. Under this circumstance, the graduation rate is very poor that is around 25%. Being the President of South University, I would get worried under this circumstance. The students are the main capital of any educational organization. Henceforth, a less number of total graduate rates are a bad omen for the online education system as a whole. The data collected from the University of Phoenix suggests that retention rate of the university is only 4% whereas the the graduation rate is 28%. As the President of the University of Phoenix this result is going to bother me. This is because high graduating rate is indeed a bright aspect for a company but at the same time retention rate as low as 4% provides a negative vibes about the online university. Low retention rate also signals the potential customers to move away from this university. In addition, from the overall calculation there has been a positive relationship between these two variables. Hence, here since this relationship gets violated, this is a matter of concern for the president to uplift the retention level and maintain a subtle balance between these two factors. Discussion: The true impact of the retention rate and graduation rate on the rising trend in online university can only be properly analyzed with the help of R2 and Adjusted R2. In the initial stage of this report, the scatter diagram has been used to see the goodness of fit and the exiting co-relation between the variables of the model. From the scatter diagram it has been observed that none of the observations are lying on the fitted line but are clustering round the central point of the line. That clearly indicated that the model is not properly fitted. But the scatter diagram highlighted the existence of positive correlation between the two variables. Again while looking at the regression result it has been found that the line is getting best fitted. The regression statistics below provides with further modes of analysis. Regression Statistics Multiple R 0.670245 R Square 0.449228 Adjusted R Square 0.428829 Standard Error 7.456105 Observations 29 The table above shows that R2 is 0.449228. It implies that 44.9% variation of the model is explained by variables. Since, often this statistic gives misleading results, hence Adjusted R2 have also been calculated whereby it has been observed that the model can explain only 42.8% variation. It has been observed that retention rate plays a significant role in improving the performance of the online university whereas the graduating rate depends a lot on the retention rate. Any educational centre like University of Phoenix may face future problem in their field of operation due to the extreme low level of retention rate. Recommendations: The educational industry is dynamic in nature. It has been constantly changing its outlook with the advancement of time. Students are also getting focused on multiple things at a time and hence could not give time to daily education. As a consequence to complete their degree they are opting for online universities and studying in accordance with their own schedule. Therefore from this entire report one concept came very clear and that is the retention rate of these open universities play a significant role in grabbing the attention of the potential student. Researchers are constantly engaged in finding out ways to bring in more students into online processes. Along with it there has been a constant increase in the number of online colleges which possess a tough competition to the existing ones. Hence it is recommended that the existing universities should try to constantly upgrade their facilities and make changes in their curriculum in accordance with the industrial needs. At the in itial level they can retain their customer by providing them with discounts in their course fee. Then they may also retain the students by providing them with all time guide services through which the students may get guidance about their study material at any time of the day through online service. Also, providing a good career counseling and placement facility is surely going to attract and channelize the target customer towards these existing universities. References: Allen, I.E. and Seaman, J., 2013.Changing Course: Ten Years of Tracking Online Education in the United States. Sloan Consortium. PO Box 1238, Newburyport, MA 01950. Asteriou, D. and Hall, S.G., 2015.Applied econometrics. Palgrave Macmillan. DeBoer, J., Ho, A.D., Stump, G.S. and Breslow, L., 2014. Changing course reconceptualizing educational variables for massive open online courses.Educational researcher, p.0013189X14523038. Gujarati, D., 2014.Econometrics by example. Palgrave Macmillan. Jordan, K., 2014. Initial trends in enrolment and completion of massive open online courses.The International Review of Research in Open and Distributed Learning,15(1). Sowell, T., 2014.Basic economics. Basic Books. Spada, K., 2014. Higher Education in the Digital Age [Book Review].IEEE Transactions on Professional Communication,57(2), pp.150-153. Wooldridge, J.M., 2015.Introductory econometrics: A modern approach. Nelson Education.