BAO3309 ADVANCED FINANCIAL ACCOUNTING Semester 1‚ 2013 INDIVIDUAL ASSIGNMENT – 20% (Due date week 9) Please contact your local lecturer. “What was the primary cause of the current financial crisis? Sub-prime mortgages‚ credit default swaps‚ or excessive debt? None of those‚ says Steve Forbes‚ chairman of Forbes Media and sometime political candidate. In his view‚ mark-to-market accounting was "the principal reason" that the U.S. financial system melted down in 2008. Do accounting rules actually
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In this article‚ I present evidence that psychological pitfalls played a crucial role in generating the global financial crisis that began in September 2008. The evidence indicates that specific psychological phenomena—reference point–induced risk seeking‚ excessive optimism‚ overconfidence‚ and categorization—were at work. I am not saying that fundamental factors‚ such as shifts in housing demand‚ changes in global net savings rates‚ and rises in oil prices‚ were not relevant. They most certainly
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Global Financial Crisis for Four Important Economic Sectors in Indonesia The global economic crisis that occurred in several countries of the world in economy sector has resulted in higher volatility in weaker economic growth. European region in the global have monetary crisis that caused by the national debt of Greece‚ also Ireland and Portugal have same problem‚ and eventually affected almost the entire European Union‚ the political deterioration of Countries in the Middle East‚ the nuclear
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15 Sept *Insurer American International Group Inc. seeks $40 billion in short-term financing from the Federal Reserve. *Lehman Brothers Holdings Inc. said it plans to file for bankruptcy protection. The bankruptcy represents the end of a 158-year old company that survived world wars and the collapse of long-term capital management but could not survive the global credit crunch. *Bank of America agreed to buy investment bank Merrill Lynch for $50 billion in a transaction that creates the world’s
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There are a vast array of similarities and differences when comparing and contrasting the Berlin Blockade and the Cuban Missile Crisis. The United States had been trying to make Germany a democracy since the end of World War II‚ but had faced much opposition from the Soviet Union‚ which wanted to make Germany communist. The United States and Germany ended up splitting the country and capitol city‚ Berlin‚ in half; half communist and half democratic. In Berlin City the people just kept moving from
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Subprime Mortgage Crisis ECO561 January 19‚ 2015 Subprime Mortgage Crisis Subprime mortgages are generally granted to borrowers who cannot obtain conventional mortgages due to insufficient or delinquent credit histories. These borrowers may be forced to take interest-only loan‚ which have lower monthly payment but are very difficult to pay off in the end. Problems with mortgage financing are the generally accepted cause of the financial meltdown that occurred between 2007 and 2008 (Gorton‚ 2009)
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The impact of the global financial crisis on the Philippine financial system – an assessment “The problem in politics is this: you don’t get any credit for disasters averted.” Henry M Paulson Jr‚ Former US Treasury Secretary I. Introduction The crisis that originated from the US subprime mortgage market escalated into a global phenomenon. Earlier debates on “decoupling”2 died down as the crisis’ contagion effects proved headstrong‚ cascading to the financial markets of advanced
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Safe as houses by André Evju Starting by quoting Warren Buffet: “Derivatives are the financial answer to weapons of mass destruction”. So how exactly was this fragile system build up? Since the beginning of the 1980s‚ the US experienced a continuously deregulation of it’s financial markets‚ allowing financial institutions develop complex financial instruments to gain enormous profits. In the late 1990s‚ there was a consolidation of financial institutions in the US‚ contrary to previous legislation
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The Cuban Missile Crisis: Soviet Diplomacy and United States Aggression The Cuban missile crisis brings to mind visions of a great triumph over the Soviet Union and the defusing of an all-out nuclear war. However‚ this "crisis" was not so much the product of true Soviet advances towards war as much as it was a series of misinterpretations and miscommunications between the United States and Soviet governments that culminated in excessive aggression by the U.S. and unnecessary escalation of tensions
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Study Design The purpose of this study is to examine which of the known predictors or risk factors of metabolic syndrome are relevant in low-income New Haven neighborhoods‚ those that experience the largest health disparities. This will be a cross-sectional study design that use secondary data from the Community Alliance for Research and Engagement (CARE) Neighborhood Survey. The dependent variable will be metabolic syndrome. The independent variables will be environmental risk factors (neighborhood
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