Lawrence THE HANDLE, which varies in length according to the height of its user, and in some cases is made by that user to his or her specifications, is like most of the other parts of the tool in that it has a name and thus a character of its own. I call it the snath, as do most of us in the UK, though variations include the snathe, the snaithe, the snead, and the sned. Onto the snath are attached two hand grips, adjusted for the height of the user. On the bottom of the snath is a small hole, a rubberized protector, and a metal D-ring with two hex sockets.
Sub-prime mortgage crisis GAO Historical Data Based on the assumption that sub-prime lending precipitated the crisis, some[ who? Securities and Exchange Commission SEC to relax the net capital rulewhich encouraged the largest five investment banks to dramatically increase their financial leverage and aggressively expand their issuance of mortgage-backed securities.
Mortgage underwriting standards declined gradually during the boom period, particularly from to The quality of loans originated also worsened gradually during that period. The combination of declining risk premia and credit standards is common to boom and bust credit cycles. In other words, standards gradually declined but defaults suddenly jumped.
Furthermore, the authors argued that the trend in worsening loan quality was harder to detect with rising housing prices, as more refinancing options were available, keeping the default rate lower.
A low down payment means that a home represents a highly leveraged investment for the homeowner, with little equity relative to debt.
In such circumstances, only small declines in the value of the home result in negative equitya situation in which the value of the home is less than the mortgage amount owed. Homeowners with negative equity have less financial incentive to stay in the home. Such strategic defaults were heavily concentrated in markets with the highest price declines.
An estimatedstrategic defaults occurred nationwide duringmore than double the total in Such loans were written into mind-numbingly detailed contracts and then swapped for more expensive loan products on the day of closing.
This created negative amortizationwhich the credit consumer might not notice until long after the loan transaction had been consummated.
Countrywide, sued by California Attorney General Jerry Brown for "Unfair Business Practices" and "False Advertising" was making high cost mortgages "to homeowners with weak credit, adjustable rate mortgages ARMs that allowed homeowners to make interest-only payments.
This caused Countrywide's financial condition to deteriorate, ultimately resulting in a decision by the Office of Thrift Supervision to seize the lender. Countrywide, according to Republican Lawmakers, had involved itself in making low-cost loans to politicians, for purposes of gaining political favors.
Risk-taking behavior[ edit ] In a June speech, U. President Barack Obama argued that a "culture of irresponsibility"  was an important cause of the crisis.
He criticized executive compensation that "rewarded recklessness rather than responsibility" and Americans who bought homes "without accepting the responsibilities. And a growing economy bred complacency.
Formulas for calculating aggregate risk were based on the gaussian copula which wrongly assumed that individual components of mortgages were independent. In fact the credit-worthiness of almost every new subprime mortgage was highly correlated with that of any other, due to linkages through consumer spending levels which fell sharply when property values began to fall during the initial wave of mortgage defaults.
Using technical terms, these firms were highly leveraged i. A key to a stable financial system is that firms have the financial capacity to support their commitments. This increased their vulnerability to the collapse of the housing bubble and worsened the ensuing economic downturn.
They borrowed to improve their standards of living, buying bigger houses than they could afford and using those houses as piggy banks. Research by Raghuram Rajan indicated that: Faced with little regulatory restraint, banks overdosed on risky loans. To counter the Stock Market Crash and subsequent economic slowdown, the Federal Reserve eased credit availability and drove interest rates down to lows not seen in many decades.
These low interest rates facilitated the growth of debt at all levels of the economy, chief among them private debt to purchase more expensive housing.
High levels of debt have long been recognized as a causative factor for recessions.The table below presents an abbreviated geologic time scale, with times and events germane to this essay. Please refer to a complete geologic time scale when this one seems inadequate.
To improve our odds of reaching decisions we feel good about, Schwartz suggests figuring out ways to reduce the options to a more manageable number. 7 Steps to Better Decisions A handy guide to weighing your options. 1.
Identify your goal. the latest from Oprah's world and more! Get more inspiration like this delivered to your inbox. The case study for this assignment is Sunrise foods PLC by David J Edwards (), sunrise foods plc is a family owned small business which is a member of local SME support group working within the food production sector,producing snacks products, pies, pasties and sandwiches selling to pubs.
The Case for Reparations.
Two hundred fifty years of slavery. Ninety years of Jim Crow. Sixty years of separate but equal. Thirty-five years of racist housing policy.
Mar 28, · 6 Tips for Making Better Decisions. standing behind what one believes is the right decision in the face of tremendous controversy is the stuff great leaders are made .
reviews the Eight Steps in the decision-making process. Materials: Emphasize that often decisions are made on the basis of satisfying the most important idea and compromising on others. Listen and think about easy decisions and difficult decisions especially, decisions that made a difference in life.