The Tell Tale Heart Essay Essay Example for Free

The Tell Tale Heart Essay Essay In Poes The Tell-Tale Heart, the narrator claims that he is not mad but his behavior tells a different story. He is truly determined to destroy another male human being, not because of jealousy or animosity but because one of his eyes resembled that of a vulture- a pale blue eye, with a film over it (1206). The narrator sees the man with this ghastly eye as a threat to his well being, but it is he who is a menace to his own being. He kills the man with pride only to concede to his horrific crime due to his guilt-ridden heart. His heart is empty, except for the evil that exists inside which ultimately destroys him. The narrator insists that it his duty to kill the man with the evil eye because he can no longer bear to observe the horrifying sight. He has become obsessed with the eye and when he conceives his ultimate plan he says it haunted me day and night (1206). Just as he describes the mans eye as similar to that of a vulture, the narrator suddenly bares the resemblance of a true vulture. He is now a predaSymbolism in Edgar Allen Poes The Tell-Tale Heart In Poes The Tell-Tale Heart, the narrator claims that he is not mad but his behavior tells a different story. He is truly determined to destroy another male human being, not because of jealousy or animosity but because one of his eyes resembled that of a vulture- a pale blue eye, with a film over it (1206). The narrator sees the man with this ghastly eye as a threat to his well being, but it is he who is a menace to his own being. He kills the man with pride only to concede to his horrific crime due to his guilt-ridden heart. His heart is empty, except for the evil that exists inside which ultimately destroys him. The narrator insists that it his duty to kill the man with the evil eye because he can no longer bear to observe the horrifying sight. He has become obsessed with the eye and when he conceives his ultimate plan he says it haunted me day and night (1206). Just as he describes the mans eye as similar to that of a vulture, the narrator suddenly bares the resemblance of a true vulture. He is now a predaSymbolism in Edgar Allen Poes The Tell-Tale Heart In Poes The Tell-Tale Heart, the narrator claims that he is not mad but his behavior tells a different story. He is truly determined to destroy another male human being, not because of jealousy or animosity but because one of his eyes resembled that of a vulture- a pale blue eye, with a film over it (1206). The narrator sees the man with this ghastly eye as a threat to his well being, but it is he who is a menace to his own being. He kills the man with pride only to concede to his horrific crime due to his guilt-ridden heart. His heart is empty, except for the evil that exists inside which ultimately destroys him. The narrator insists that it his duty to kill the man with the evil eye because he can no longer bear to observe the horrifying sight. He has become obsessed with the eye and when he conceives his ultimate plan he says it haunted me day and night (1206). Just as he describes the mans eye as similar to that of a vulture, the narrator suddenly bares the resemblance of a true vulture. He is now a predaSymbolism in Edgar Allen Poes The Tell-Tale Heart In Poes The Tell-Tale Heart, the narrator claims that he is not mad but his behavior tells a different story. He is truly determined to destroy another male human being, not because of jealousy or animosity but because one of his eyes resembled that of a vulture- a pale blue eye, with a film over it (1206). The narrator sees the man with this ghastly eye as a threat to his well being, but it is he who is a menace to his own being. He kills the man with pride only to concede to his horrific crime due to his guilt-ridden heart. His heart is empty, except for the evil that exists inside which ultimately destroys him. The narrator insists that it his duty to kill the man with the evil eye because he can no longer bear to observe the horrifying sight. He has become obsessed with the eye and when he conceives his ultimate plan he says it haunted me day and night (1206). Just as he describes the mans eye as similar to that of a vulture, the narrator suddenly bares the resemblance of a true vulture. He is now a predaSymbolism in Edgar Allen Poes The Tell-Tale Heart In Poes The Tell-Tale Heart, the narrator claims that he is not mad but his behavior tells a different story. He is truly determined to destroy another male human being, not because of jealousy or animosity but because one of his eyes resembled that of a vulture- a pale blue eye, with a film over it (1206). The narrator sees the man with this ghastly eye as a threat to his well being, but it is he who is a menace to his own being. He kills the man with pride only to concede to his horrific crime due to his guilt-ridden heart. His heart is empty, except for the evil that exists inside which ultimately destroys him. The narrator insists that it his duty to kill the man with the evil eye because he can no longer bear to observe the horrifying sight. He has become obsessed with the eye and when he conceives his ultimate plan he says it haunted me day and night (1206). Just as he describes the mans eye as similar to that of a vulture, the narrator suddenly bares the resemblance of a true vulture. He is now a preda

The Field Of Decision Making Effectuation Business Essay

The Field Of Decision Making Effectuation Business Essay The creation of new businesses has a significant impact on creating more jobs and economic growth. Entrepreneurial studies have significant results. Personal characteristics of entrepreneurs, market forces and conditions, Industry trends and dynamics can have an important influence on the success of the entrepreneur but also the social skills that helps them to interact successful with others. Entrepreneurs are linked to perform financial activities of new ventures, after other studies proved high social skills is good for almost all individuals. In recent years causation versus effectuation has become an essential subject in Entrepreneurial science. Ten years ago, two terms of different styles of entrepreneurship were introduced called Causation and Effectuation. In the field of decision-making Effectuation is a relatively new theory of entrepreneurship research. Entrepreneurial process is an inverse of the classical causational process. Many scholars have written different books on this concept but in my assignment I will use ideas and concept of one particular person her name is Sarasvathy. She explained these two terms causation and effectuation in a very nice way. Sarasvathy (2001a) defines that causational process take a particular effect as given and focus on selecting between means to create that effect, while defining that effectuation process take a set of means as given and focus on selecting between possible effects that can be created with that set of means (p.245). She has also given different examples to explain this concept in good way and clarify her statement and difference between causation and effectuation. Using her example which she established in her dissertation (p.245): a chef that is asked to cook dinner for a host. The causation process would mean the host chooses a menu, upon which the chef shops for the necessary ingredients and cooks the meal. Hence, the end is given and predictable, and the focus is on acquiring, and selecting between, the means to achieve the end. The effectuation process mean would that the host asks the chef to imagine possible menus based on the available means in the kitchen: available ingredients and utensils. Hence, the mean are given and focus is on what can be achieved with them. Nowadays mostly entrepreneurs use effectuation model rather than causational model thats why effectuation model continuously gaining foothold in the field of entrepreneurship research. In this assignment, I will address a piece of that gap. If we go back to the Sarasvathy theories about entrepreneurship, Sarasvathy (2001a) indicates that the theory of effectuation is influenced by a large list of scholars for example Knight, Weick, March, Buchanan, Vanberg. According to Sarasvathy theoretical framework. Effectuation inverts the fundamental principles, solution process and overall logic of predictive rationality Sarasvathy (2001a p.2) It is argued that effective mechanisms associated with the discovery and exploitation of opportunities in new markets with high levels of uncertainty (Sarasvathy, 2001). For this reason, Sarasvathy suggests that the success of the first participants in a new industry is more likely to use the process of achieving causal processes. Because the effectuation and has a sophisticated design and prediction, the costs associated with these activities are reduced (Bhide, 2000; Mintzberg, 1994). Sarasvathy (2001) argues that while new businesses fail created by effectuation model, they will fail in initial levels and / or lower investments than those businesses which created through the causal model. Implementing the theory based on the decision of the literature suggests that if decision makers believe that it is a relatively unpredictable, they will try to gather information about the future trends of experimental, iterative learning (for example, Ries, 2011).The elements of effectuation help us to reconstruction experimental and iterative learning techniques that allow entrepreneurs to discover information about the future as time passes. (Sarasvathy, 2001). Sarasvathy describes succinctly the difference in the two logical modes: Causal problems are problems of decision; effectual problems are problems of design. Causal logics help us choose; effectual logics help us construct. Causal strategies are useful when the future is predictable, goals are clear and the environment is independent of our actions; effectual strategies are useful when the future is unpredictable, goals are unclear and the environment is driven by human action. The causal actor begins with an effect he wants to create and asks, What should I do to achieve this particular effect? The effecutator begins with her means and asks, What can I do with these means? And then again, What else can I do with them? (Sarasvathy 2008). The study showed that the two methods differed by five factors Resource driven objectives The first and most definitive part which separated experts from novices was how they began the process of making decisions to create a business. (Sarasvathy,2008). The beginner started with a business plan (with corresponding targets) and market research. Business experts entrepreneurs, meanwhile, made three key issues: 1) Who am I? 2) What do I know? 3) Who do I know? To do this, the employer is strictly inventory of resources. What services or goods, the employer already know how to deliver? When asked who the employer has identified these things were more passionate. Finally, the most extreme effectuators always started with what he knew well, could begin to build partnerships. For example, one participant said: The traditional market research, he says, based on a broad collection of information, perhaps via e-mail. I would not do that. I literally would seek, as I said at the beginning, company key star call; do a frontal lobotomy on them. . . The challenge is to actually choose your partners and yourself early package before you have to put a lot of capital. (Sarasvathy, 2008). This line of thinking is very similar look with Napoleon. As in the Battle of Toulon (Note 4) Napoleon had decided to conquer these strategic resources to rigorously examined and their position. (Duggan, 2009). Similarly, entrepreneurs resources expert study before making a decision. Minimizing losses rather than focusing on returns The second element is that entrepreneurs like to spend only what they could afford to lose. (Sarasvathy, 2008). In contrast, novices focused on the amount that can be expected in return. Ends effectuators not want to spend money. He was careful in spending money on marketing. An entrepreneur may even sell a product that was not available to the client. He built only after the customer wanted to buy. (Sarasvathy, 2008). Forming partnerships The third element is that the business experts differ from novices focusing on partner search. First, he tried to quickly turn customers into partners which come in their new business. Second, unlike novices who focus on competition, experts are diligent in building associations. Refining the service or product based on customer feedback The fourth element is that entrepreneurs specialists recognize that the initial product is not where it should be. (Sarasvathy 2008). When applying iterative information for customers about your product or service, the entrepreneur has the ability to transform. Thus, the contractor is not an expert to say a fixed idea of à ¢Ã¢â€š ¬Ã¢â‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹what the market needs. Instead, the entrepreneur and the dialogue with the market to determine what the market wants. (Sarasvathy 2008). Arriving at a different destination The fifth and final point is that entrepreneur experts do not have a fixed goal or destination. For example, unlike the classic strategic model, the journey from A to B is often converted into a journey from A to C, where C is unthinkable death or diversion. Two thirds of the study participants, eventually selling products or services that is different from their origin. (Sarasvathy 2008). This is another look resonate with Napoleon. Map of Napoleons final battle and the strategic points have changed their plans before the battle. Similarly, when employers use guidance based media must change their original plans of the dynamics of resources, knowledge, alliances, customers and environmental changes. (Sarasvathy 2008). EXAMPLES Following are the examples of effectuation model businesses. Ebay.co.uk Kelkoo.co.uk Gocompare.com Facebook.com Zara Gap Auto trader Ali baba Conclusion Effectuation has big hold on the imagination of researchers because it identi ¬Ã‚ es and questions basic consideration of how individuals think and behave when starting businesses, and it offers on other hand explanation to causation that many believe has face validity. An effectuation model company seems particularly appropriate as it can best be explained how, in the absence of current markets for future goods and services, these goods and services manage to come into existence (Venkataraman, 1997, p. 120). In other words, it seems preferable to describe the actual thoughts and behaviours that some experienced entrepreneurs to start a new business. Therefore, we believe that the application of entrepreneurship and effectuation model is a theoretical model to be tested by the researchers. In this assignment, I aimed to answer the question, what is currently known, in terms of literature, about the relationship between causation and effectuation? This was done through a comprehensive literature review, first realise that effectuation is relatively new but already well established in entrepreneurial decision making, enjoying a large number of species theories and empirical evidence proving its existence. Secondly, it was found that there was only one role associated with the effectuation and start-up performance. Thirdly, I studied the relationship between causation and effectuation although there is a big contradiction as relationship between the two is obvious. The last part of the literature review focuses on other influences on performance that could be distilled from a business plan to control their growth and motivation / intention was the result.

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

Factors that Influece a Healthy Heart Essay -- Exercise, Health, Lifest

Healthy Hearts 1. Different ways in which exercise keeps your Heart Healthy. Cardiovascular System (preventing Angina and Cardiovascular diseases) Citizens who regularly exercise, significantly have less cardiovascular diseases such as Angina (which described in in image 1a is caused due poor blood flow through the blood vessels in the heart.) lowering their risk of heart attacks, strokes, and impotence. Regular exercise lowers blood pressure, raises the level of protective high density lipoprotein (HDL) cholesterol, stimulates weight loss, decreases inflammation and helps prevent blood clots. The Harvard Alumni Study found that the incidence of heart attack was proportionate to the amount of exercise performed. Men exercising less than 2,000 kcal a week had 64% higher risk of heart attack than those who exercised at higher rates. Another study showed that a three-month period of intense physical activity, can alternatively increase HDL cholesterol as much as 33% and decrease in LDL cholesterol as much as 9% reducing chances of Cardiovascular diseases. Even Non-intense exercises as much as 20 minutes of walking reduces 19% of such chances. b. Deduction in the Heart Rate (increase in lifespan) The average resting heart rate for an normal adult ranges between 60 to 100 beats per minute (The table below describes the pulse rates for different age groups). Generally, a lower heart rate implies a more efficient heart function and a better cardiovascular system. For example, a well-trained athlete might have a normal resting heart rate as low as 40 beats per minute. Researchers have also found that men with fast resting heart rates are more likely to develop high blood pressure symptoms than those with slower rates. Some sympto... ... - Heart & Circulatory System. N.p., n.d. Web. 30 Mar. 2014. . 3. http://www.nydailynews.com/life-style/health/long-work-hours-extra-weight-women-article-1.1112902 Images- "How Angina Pectoris Occurs?" Health Giants RSS. N.p., n.d. Web. 30 Mar. 2014. . 2. Vasagar, Jeevan, and Martin Williams. "Teachers Warned over Befriending Pupils on Facebook." The Guardian. Guardian News and Media, 24 Jan. 2012. Web. 30 Mar. 2014. . 3. "Running in Cork, Ireland." : Running Marathons May Cause Damage to Your Heart. N.p., n.d. Web. 30 Mar. 2014. .

The Janissaries Of The Ottoman/Turkish Empire Essay -- essays research

The Janissaries of the Ottoman/Turkish Empire   Ã‚  Ã‚  Ã‚  Ã‚  The Janissaries was an elite corp. in the standing army of the Ottoman Empire from the late 14th century to 1826. Highly respected for their military prowess in the 15th and 16th centuries, the Janissaries became a powerful force to be reckoned with on the battlefield, and in government administrations. The janissaries were organized into three unequal divisions: the cemaat, bà ¶là ¼khalki, and segban. The Janissary corps was originally staffed by Christian youths from the Balkan provinces who were converted to Islam on being drafted into the Ottoman service. Another way the Janissaries found new soldiers was by enslaving their enemies and forcing them into service. The sultans gained a great deal by using slave soldiers because they had no ties to family or land and they were remarkably resilient in accepting the ways of Islam. All soldiers must be converted into Islam and taught the proper code of the elite before service. Religious conversion was mandatory an d all soldiers were subject to strict rules, including celibacy. In the late 16th century the celibacy rule and other restrictions were relaxed, and by the early 18th century the original method of recruitment was abandoned.   Ã‚  Ã‚  Ã‚  Ã‚  Whenever the Turks invade foreign lands and capture their people an imperial scribe follows immediately behind them, and whatever boys there are, he takes them all into the janissaries and sends ... The Janissaries Of The Ottoman/Turkish Empire Essay -- essays research The Janissaries of the Ottoman/Turkish Empire   Ã‚  Ã‚  Ã‚  Ã‚  The Janissaries was an elite corp. in the standing army of the Ottoman Empire from the late 14th century to 1826. Highly respected for their military prowess in the 15th and 16th centuries, the Janissaries became a powerful force to be reckoned with on the battlefield, and in government administrations. The janissaries were organized into three unequal divisions: the cemaat, bà ¶là ¼khalki, and segban. The Janissary corps was originally staffed by Christian youths from the Balkan provinces who were converted to Islam on being drafted into the Ottoman service. Another way the Janissaries found new soldiers was by enslaving their enemies and forcing them into service. The sultans gained a great deal by using slave soldiers because they had no ties to family or land and they were remarkably resilient in accepting the ways of Islam. All soldiers must be converted into Islam and taught the proper code of the elite before service. Religious conversion was mandatory an d all soldiers were subject to strict rules, including celibacy. In the late 16th century the celibacy rule and other restrictions were relaxed, and by the early 18th century the original method of recruitment was abandoned.   Ã‚  Ã‚  Ã‚  Ã‚  Whenever the Turks invade foreign lands and capture their people an imperial scribe follows immediately behind them, and whatever boys there are, he takes them all into the janissaries and sends ...

Philippine’s Political Dynasty Essay

The 1987 Constitution of the Philippines states in Article II Section 26, â€Å"The State shall guarantee equal access to opportunities for public service, and prohibit political dynasties as may be defined by law. † How can we define political dynasty? Political dynasty is a family, clans or group that maintains power for several generations. These clans root themselves into our national and local governments for many decades. Almost every position in the government has been posted either by relatives, or friends who are indebted to the clan for appointing them into position. In a sense, they have already established political kingdoms throughout the country. In the course of the rising and expanding political kingdoms ruling over the country, it has become hard to tell where democracy is to be found. With rules unclear and morality questioned, people can never tell if they deserve more than what they are getting from the government. Political dynasties inhibit democracy, further adding instability and weakness of political institutions that are supposed to be working on their sense of rationality and individualism for the country. With political dynasties, it is no longer a question on qualifications and slogans, it will now be a question on connections and guns. The establishment of political dynasties is an effective way of monopolizing and perpetuating power. With various seats in the government occupied by a single family it would be easy to manipulate the system to benefit their family. The concept of check and balance will be thrown out the window. More often than not, politicians get to be elected not because of their merit, but because they belong to a family that is been in the government for generations.

John Locke Essay

The topic that I chose for my philosophy paper is empiricism. Empiricism is the theory that all knowledge is derived from sense-experience. This idea was developed from a famous English philosopher, John Locke, states that knowledge can only come from our sensory experience, nowhere else. Empiricists believe that getting knowledge without the experience is unachievable. There are three subcategories of Empiricism; Classical, Moderate, and Radical. Classical Empiricism completely rejects the thought of â€Å"in-born† knowledge. It states that at birth, we are born as a blank slate. Throughout the years, the more experience the more we learn. Radical empiricism is a dividend of the theory that concludes that knowledge comes from our senses. When we experience certain things, the sense that comes along with it is what gives us the knowledge that we take from it. Moderate empiricism is a more improved on and fits today’s philosophical and psychological findings. Moderate empiricism writes that not all knowledge should come from what you live through; some of it is simply learned. A valid example that they used to further prove their theory is the understanding of school subjects such as math or history. A person doesn’t have to live through anything to understand that a triangle has three sides or that George Washington became president in 1789. I interpret this theory the way it was written. I understand where john Locke’s idea of empiricism evolved from and there are many pieces of evidence to support it. I think what this theory states is that our experiences define us as humans. What we live through is what gives us the knowledge on either how to improve on it, to learn from it, or to continue doing it. In many ways, I believe that this is true in sculpting our personality. I think this theory goes in search of why people are so different, despite that they are taught the same material in school, and they answer that with the fact that every individual goes through incomparable experiences and that’s what makes us different and therefore gives us our knowledge. There are numerous examples of empiricism. Any experience in which a lesson is taken from is proof of empiricism. That may include a job experience in which the employee disappointed their manager and now knows to do everything he can to avoid doing what it is that he did. This goes along with Classical and Radical empiricism. The individual has learned something based solely on experience, but also through the sense of embarrassment and disappointment. A student who puts in a large amount of effort in his work and then receives praise on it from his teacher will want to go through that experience again and feel accomplishment. I feel very diverse about this theory. In many ways I do agree with it because our experiences are what give us our beliefs and set us as different individuals. However, the theory in ways contradicts itself because it underestimates the power of learning in class and knowing  not to do certain things even. An example that I have lived through that goes along with my opinion on this is my health class in the seventh grade where we were taught all the vital effects of drugs. Therefore, I have learned, but not through experience, not to do drugs. I did not have to go through addiction or even experimentation of illegal substances in order to get the knowledge not to do them. The theory that more closely relates to my belief is rationalism. Rationalism states that knowledge is based off of reason. Examples of that is mathematical problems,  knowing an illusion isn’t real and that your mind is actually being deceived, and why things happen the way they do. We don’t touch a pot of boiling water because we’ve done it before and experienced pain, we don’t touch it because we see the steam coming out of it and with that, we imply our reasoning that it would burn if we do touch it. There is also a flaw in empiricism. We all perceive things differently, and therefore our knowledge may be inaccurate. A student presenting might think he did awful and never volunteer again because his experience gave him the false knowledge that he wasn’t able to do good. Meanwhile, his fellow classmates might have thought greatly of his presentation. Empiricism can give off false knowledge of our experience, making us self-conscious, and even changing our personality completely, all because of how we perceived it. That is why I apply rationalism to my life and personality. I don’t have to experience something in order to gain knowledge from it. I am able to make decisions based off of reasoning, knowing the effect of an action without having to experience it, and knowing what is right without having to do what is wrong first.