The Recent Global Financial Crisis Essay Example | Topics and Well Written Essays - 1500 words

The Recent Global Financial Crisis - Essay Example The current study focuses on a discussion and analysis of the recent global financial crisis and the consequent credit crunch in an international financial perspective, including the events leading up to the crisis, the economic and financial consequences, as well as the government responses and lessons to be learnt. Events Leading to the Incidence of the Global Financial Crisis: The global crisis was initiated in the mortgage lending market in the US, the problem arising with the Federal Home Loan Mortgage Corporation deciding not to pay for mortgages that involved high risks. Secondly, the bankruptcy filed by New Century Financial Corporation that remained a primary lender of mortgages for customers who were riskier in nature. With the occurrence of these incidents, the house prices started dripping down and foreclosures started increasing. With the increases in the risk factors and the fall in asset prices, the financial institutions feared the payments of interests and apprehensi on of severe losses prevailed. Although Federal Reserve had taken some initiatives in this context to assist the financial firms, however, the fall in prices of the assets could not be held back. Gradually the crisis affected the banking industry in the nation reflected by the bankrupt conditions of Lehman Brothers as well as purchase of Merrill Lynch by the Bank of America in the midst of government not prepared to bail out all banks. The financial markets gradually became highly unstable with severe fall in stock markets (Marshall, 2009, pp.7-8). Some of the primary events leading to the global crisis can be outlined as follows: August 9, 2007- The intimation of liquidity crisis followed by addition of capital by Fed and European Central Bank. March 2008- Bear Stearns was rescued by the Fed. September 8, 2008- Fannie and Freddie were nationalized by the treasury. September 15, 2008- Bankruptcy filed by Lehman Brothers (assets of $600 billion being the largest in the history of the US). September 16, 2008- Fed made bridge loans to the largest insurance company in the world, A.I.G. October 3, 2008- Bailout policy passed out by the government; Treasury was given the authority to spend $700 billion. With all these above mentioned events gradually occurring, the stock prices fell rapidly accompanied by fall in real housing prices by about 30 percent from 2006 to 2008 (Historical Context, n.d.). Economic and Financial Consequences of the Global Recession: The severity of the global recession has had its impacts on the prices of assets, the productions as well as the employment. These effects were not only restricted to the US but spread across the world with differences in the levels of their impacts. The most significant of these has been the impact on the debts and creditworthiness of companies and that the crisis led companies to encounter difficulty in performing exports and earn gains following their settled plans (Reinhart, 2009). Three particular consequenc es could be realized from the global recession. These included: (i) the rising debt, the household debt in particular; (ii) the possibility of a comeback to an insecurity with respect to international

Epistemology Assignment Example | Topics and Well Written Essays - 1500 words

Epistemology - Assignment Example Empirical form of knowledge can determine truth based on the actual experience of an individual through events or things that happen around the environment. b.) EMPIRICAL claims there are the four different theories concerning the determination of the truth of empirical claims: Correspondence theory of truth Coherence theory Pragmatist theory Scientific Theory Describe each of these four theories for proving empirical claims to be true. Explain each one. Do not simply list them. Describe them and explain them. This will take more than one sentence for each one. Correspondence theory is an empirical theory of truth that was espoused by Aristotle that holds that truth is what propositions are consequent to a way things in the world are. In other words, this theory claims that a proposition is true as long as there are present and existing facts that correspond to it. Coherence theory accounts for a proposition’s truth that occurs from an association between that proposition and another proposition. In that way, coherence theory will assert that a proposition is true if it fits together and coheres with any other related proposition. Pragmatic theory holds that a proposition is true if it is practical to accept as true.  This concept of truth was formed by the American Pragmatic philosophers such as C.S Peirce, William James and John Dewey who believed that the mark of truth is based on its practical utility above anything else. Beliefs that result to the best outcomes, are justified best from actions, that advance practical achievement, are held as  truths. Scientific truth hold that knowledge can only be sought ascertained through various scientific methods or operations that can lessen the chances of uncertainty since it is generally held by scientists that truth at best can is only approximate and never absolute. For the scientific theory, the method on reaching a close-to-certain result is just as important as the outcome itself. For if a method is based on opinion alone, it would be considered nothing more than just subjective bias. 2.) Critical Thinking c.) What do you think of the theory that there can be simultaneous multiple truths concerning claims? Concerning all types of claims? Does it apply to claims that are semantic, systemic, logical or empirical? Comment on each type. Can there be multiple truths for each type of claim? For any type of claim? Please indicate your familiarity with the readings in your answer -this means use some quotations to support your answers. Subjectivism and Relativism would claim that there are various points of views regarding a certain truth. The reason due to this is because there are different situations and circumstances that happen that are sometimes overlooked, whether intentionally or unintentionally, by the objective forms of knowledge. This could also apply to semantic, systemic, logical and empirical forms of knowledge. Semantic knowledge is knowledge that is the result of learn ing the meaning of words which the knowledge of words is knowledge of definitions, and such definitions are set in dictionaries (Pecorino, â€Å"An Introduction to Philosophy†). It should be taken into consideration that there are various languages around the world, and each language has their own rules or way of inferring