Scarlet Letter, Chillingworth A Man Of Evil :: essays research papers

Chillingworth: a Man of Evil      In the novel the Scarlet Letter, Hawthorne’s character Roger Chillingworth should speak to the malevolence in the story. Hawthorne demonstrates Chillingworth to be malicious by a few methods. The physical depiction of Chillingworth shows him as a malicious character. Explanations are additionally made by Hawthorne alluding to the inward substance of Chillingworth that would lead the peruser to sentiments of his evilness. Another great way Hawthorne communicates that Chillingworth is abhorrent is his name. There are numerous techniques Hawthorne uses to exhibit the shrewd characteristics of Chillingworth.      When Chillingworth first enters the novel he is found in a group. Hester sees him since he sticks out. Chillingworth is dressed all in dark. Dark is a shading frequently used to speak to insidious, different well known characters that exhibit this are Captain Ahab and Darth Vader. Chillingworth is likewise said to have a mound on the left half of his back. The left or â€Å"sinister† side is utilized to speak to malicious. Chillingworth is additionally twisted and appalling. Hawthorne composes characters to show up outwardly the manner in which he needs the peruser to see them within. Chillingworth gives off an impression of being a monstrous individual outwardly thusly he should be one within. Chillingworth is appeared as a dim, underhanded, revolting character.      The first meager one as a rule sees about the man being referred to is his eyes. These eyes have the ability to add profound to a human spirit. He can see whatever drapes overwhelming on the core of the individual and uncover it; for instance Chillingworth could utilize this to draw out a person’s sins. Hawthorne sees this demonstration to be the best sin of all, making Chillingworth insidious.      Chillingworth is a name that has a solid undertone of underhandedness. The word chill has implications like that of the word cold. Having the postfix worth makes his name mean of cold worth. Cold is normally connected with abhorrent. This can be found in articulations like wanton. Chillingworth is an individual of cold worth in this manner he is a man of underhandedness.

Propylene Glycol Assignment Example | Topics and Well Written Essays - 2000 words

Writing An Argument In Favor Of A Class - Does Social Classes Having To Be Your Argument?

Writing An Argument In Favor Of A Class - Does Social Classes Having To Be Your Argument?If you're a second-year college student, you may have noticed that more students are writing essays about the differences between social classes. In other words, they're wondering if and when they can write an argument in favor of a particular social class. In this article, I'll explain why it's important to consider the social class perspective and show you how to write an argument in favor of a particular social class.First, let's discuss the important distinction between writing an essay on social classes and writing an essay on a particular class. In addition to the differences between writing an essay on social classes and writing an essay on a particular class, there are two main reasons why you should consider including a social class perspective. First, it can help you make sense of your own observations, and second, it can give you new ideas about how you should frame your argument.As yo u may be aware, many students are coming to college with very different ideas about how they should frame their arguments. Some think that just reading a single paragraph with examples will make them understand a complex topic. Others believe that they should be able to 'read between the lines' and understand why their professors have made the choices they've made.For example, if you are writing an essay on class discussion topics, and you want to include an argument in favor of a social class, you should definitely include a social class perspective. After all, you should be able to justify your choice of class by telling the reader what the class's goals and general structure are. Additionally, your essay will make sense if you clearly spell out the advantages and disadvantages of a particular social class and use the class as a means to emphasize these advantages.In addition, when you are writing an entire essay on a social class, it will make sense to include a social class pers pective. Forexample, if you are writing an essay on specific social class advantages, such as the ability to get better grades, a social class perspective can help you provide evidence for your claims. Just make sure that your evidence is comprehensive and persuasive, otherwise, you will look like you are cherry-picking information.It's also important to remember that being able to support a social class advantage in your essay helps you provide a powerful argument. This is because you can cite examples to back up your argument, and you can use your arguments to persuade readers to agree with you. You may be wondering, though, why it's necessary to provide evidence in support of your social class advantages in an essay about class discussion topics.The reason is that you can use the same examples you use in your research, even if you are only citing them to support your argument. In addition, because you're writing an essay about class discussion topics, the rules of grammar, punctu ation, and style are somewhat different than in a research paper. Therefore, it's okay to not use much of the same information you used in your research, but you should still use enough of it to make it clear that you have the same information as your research.In conclusion, if you're writing an essay on class discussion topics, and you want to consider including an argument in favor of a social class, you should definitely consider including a social class perspective. If you have questions about why it's important to include a social class perspective, you can read the rest of this series to learn more about writing an argument in favor of a particular social class.

Top 6 Situations Where You Shouldnt Wear Your Halloween Costume

Top 6 Situations Where You Shouldnt Wear Your Halloween Costume Indeed, it’s constantly enjoyable to wear a Halloween ensemble to work. But†¦ it’s not constantly proper.  There’s a dainty line between a zanyâ costume that shows off your character and oneâ that causes every other person to feel awkward. This video from FastCompany gives youâ the top 6 circumstances where you likely should leave theâ costume at home. 1. When terminating someoneâ€Å"This is the hardest an aspect of my responsibilities. As a result of ongoing spending cut, we’re must let you go†¦Ã¢â‚¬ Ã¢ 2. Duringâ a work lunchâ€Å"I didn’t have breakfast, I simply had a protein shake†¦I need to make sense of how to eat better†¦Ã¢â‚¬ 3. When setting out the lawâ€Å"Do you realize how idiotic we look at this moment? Please, individuals, develop up!†4. While supporting a major meetingâ€Å"With a gathering as large as this one, we’ll try to send the minutes directly after. Seth will do that†¦Ã¢â‚ ¬ 5. At the point when nobody gets itâ€Å"I am Charlie Chaplin†¦Ã¢â‚¬ Ã¢ 6. While giving a customer tourâ€Å"Here’s our innovation gathering. They’re working diligently right now on their innovation†¦let me acquaint you with our CTO.†

Personalized Framework for Patients-Free-Samples for Students

Question: Talk about the Personalized structure for Patients. Answer: A set up that depends on customized care of a patient is named as individual focused structure. This arrangements with creating and looking at system that is absolutely reliant on a patients condition (be it individual or natural) and the necessities of the patient in relationship with the relatives independent of the ailment the patient is managing (Pope 2012). The system likewise considers the qualities that the patients and their family have just instilled, it assists with growing better arrangement as the impedance of the patient reduces when their needs are satisfied (Gliton 2012). The exposition talks about the significance of customized care set ups, in present clinical set ups. It puts accentuation on the speculations accessible identifies with such systems. The significance of individual based arrangements as for training advancement has additionally been talked about in the article. The term can be depicted from numerous points of view, and has a few perspectives that are identified with the factor. A portion of the perspectives are, giving passionate help to the patient and their family members, organizing and giving consideration in an incorporated way, causing the patient to comprehend the significance of finishing the course of treatment recommended (Morgan, Stephanie and Linda 2012). The system ought to likewise be comprehensive of the way that the patients approach the particular consideration that they need and taking note of the people inclinations and requirements. The individuals associated with the development of such systems and structures should deal with the way that they are being humane to the cases they are taking care of. The patient by and large are both genuinely and intellectually frail, they need the nearness of individuals around them, who energize them, so empathy helps during the time spent recuperation. Significance of individual focused consideration: Organizing the individual based consideration process is critical in todays situation, the requests of the individuals is expanding with the expansion in the populace over the world. It is a key part in the field of medication. Individuals pick clinics and nursing homes based on the manner in which the faculty in the association act and work (Tolan and Cameron 2016). Placing the patients in the inside do construct the system profoundly improves the administration quality, it urges the patients to be dynamic and positive about their recuperation. The customized care base likewise assists with serving the specific necessities of individuals. The requests in the field of wellbeing administration is definitely expanding however the accessibility of the assets is constrained. These days, due to the improvement and upgrade in the meds and medications the life span of individuals over the globe has expanded yet the event of shifted ailments and infections have additionally expanded (Ross, T od and Clarke 2015). To monitor the recently happening illnesses and disorder, readiness of formats and plans are significant, it spares the parental figures time and builds the effectiveness of care giving. The procedure of customized care ought to be taught by all the social insurance places to screen the enactment related with it. The most significant possibility to be kept up during the arranging method is to ensure the respect of the individual the wellbeing work force are dealing with. The guardians ought to likewise have the right stuff to give transformational initiative when required as its need is expanding with the expansion of globalization. A few confirmations show that the teaching of such practices has given positive patient result (Hoffmann, Bennett and Del Mar 2013). The teaching has likewise expanded the level of employment fulfillment among the medical attendants. The system structuring procedure ought to likewise consider the teaching of proof based practices as it is the essential advance that causes the guardians to comprehend the fundamental necessity of the patient experiencing a particular infirmity (Clissett et al 2013). Job of individual based systems in progre ss of nature of providing care. Overviews led by a few associations on the social insurance habitats following such system has demonstrated some dumbfounding outcomes. The structures have been found to significant as it supposedly improves the fulfillment levels of the patients, it has made the patients substantially more associated with the recuperation procedure than previously. Practice improvement in clinical setting: Improvement of practices in the field of nursing is the development of a few systems in an imaginative manner to encourage the smooth working of a human services unit (Health.nsw.gov.au, 2017). The procedure is empowered by experts who draw in themselves with people under clinical help and mix their encounters and characteristics alongside their inventiveness and down to earth aptitudes to help the people. It likewise encourages figuring out how to the faculty to acquire different changes works on including either people or groups (McCormack, Manley and Titchen 2013). The procedure gives manageability by implanting the result of the administration given and the procedure itself. The improvement has the incorporation of a few techniques. It requires investigation of basic imagination, story strategies, learning dependent on work, techniques dependent on arrangements, learning based on activity, helpful request and assessment of the partners of the association (Pol-Grevelink, Jukema an d Smits 2012). The procedure supplements various clinical strategies for administration and characteristics of the clinicians by centering of social capability and hard working attitudes. Customized structure and practice improvement: Practice advancement these days, is accomplishing energy as the experts in the administration are valuing the procedure of methodical working for change of the clinical situation (Grove, Burns and Gray 2012). Individual focused or customized system is a basic part to be fused during creating practice designs, as the point of such advancements is chiefly to convey legitimate customized care to the individuals the clinicians are dealing with. In the ongoing occasions, it has been noticed that the frameworks of social insurance units having a prominent are likewise not going to the characteristics that are required in giving treatment to individuals by and by (Masters 2015). The individual based system consequently can be believed to have a urgent job in creating rehearses in the field of medicinal services. Without thinking about the customized system, building a training design is of no utilization, the strategy won't achieve flawlessness without assessing the need of the patients as people. The social insurance industry has the obligation to deliver to the systems created by senior clinicians who have been in the business for a significant stretch of time, it will yield a constructive outcome as experience of the work force responsible for laying the structure matters in such methods. Effect of customized structure on tolerant result: The teaching of the blueprints or systems essentially points on accomplishing appropriate patient result. The set ups decline the time that must be devoted to a patient as the they abbreviate the assignments of the parental figures by execution of the correct activity plan for the thought about patient. Improved patient result additionally builds work fulfillment of the attendants as they get positive responses from the patients under them. Customized system and Collaborative Inclusive Participatory (CIP) standards: The working face to face based systems requires the attendants and maternity specialists to adhere to specific standards which depend on the coordinated effort of individual clinicians with the group they are under, to give restrictive treatment to the patients. The training ought to be comprehensive of the experts reacting to the case in a capable way (Moon 2013). There ought not be any deferral or nonattendance in neighborliness that a patient has the right to get. The requests of the victims ought to be recognized in a conscious manner without segregating them on any premise. Participatory guideline includes the interest of the clinicians during the time spent consideration giving with the investment of work force in creating and improving the strength of individuals inside a network that is, dealing with powerless individuals in a gathering dependent on the network they have a place with (Mitchell et al 2012). The three key terms of the rule that is, coordinated effort, considera tion and investment improves the structure and facilitates the getting technique. Consideration of the terms in down to earth space, needs the administration specialists to work agreeably with one another and convey great results explicitly. Hypothesis supported by the association of Life Without Barriers for tolerant focused consideration: There are a few philosophies accessible to fuse quiet focused structures in the human services units around the globe. Numerous associations are attempting to assemble legitimate blueprints to honor the necessities of patients as people. The hypothesis drawn by the association Life Without Barriers, gives a straightforward knowledge of how the means brought up by the association can expand productivity and providing care to the patients. The association has classified a few focuses as significant viewpoints when structuring a system (Lwb.org.au, 2017). The structure planned by them, has five phases. The principal stage calls attention to the significance of the estimations of the individuals. Second stage organizes structure columns for training. The third stage manages moving toward the people handicaps. The fourth stage brings up some rule to follow that will exclusively concentrate on the consideration of the patient in a customized or altered way. The fifth and the last stage con solidates the usage of a few clinical assets and instruments, which will be being used for the patient viable. The estimations of the patient and their relative ought to be tended to first and foremost itself to go to the conviction of the patient, this progression requires the medical caretaker responsible for the patient to manufacture a positive

On-site vs. Off-site SEO Optimization

On-site vs. Off-site SEO Optimization When designing a search engine optimization strategy, it is natural to wonder whether the primary focus should be on on-site or off-site SEO factors, or some combination of the two. Moreover, it is important to understand how white hat and black hat SEO strategies fit into the context of determining the proper mix of on-site and off-site factors. © Shutterstock.com | Rawpixel.comIn this article, we will cover: 1) a comparison of on-site and off-site SEO; 2) key on-site strategies; 3) key off-site strategies; 4) black hat strategies, both â€"on-site and off-site; and 5) determining the right mix of on-site and off-site strategies.ON-SITE VS. OFF-SITE SEO: A COMPARISONTo understand how to evaluate the use of on-site or off-site SEO strategies, it is important to understand what is meant by both terms. On-site SEO strategies generally refer to strategies that are implemented within the web programming language, and appear on the website itself. These can include strategies to aid search engines in indexing and ranking the website in question, as well as encourage visits, especially repeat visits. Some common examples of on-site strategies include frequently publishing sticky content, properly using metadata, and ensuring site navigation is simple for humans and search engine crawlers.Off-site SEO strategies are all those SEO st rategies that are implemented off-site, such as those which incorporate third-party websites. Many off-site SEO strategies involve driving traffic to the website; however, some involve enhancing a website’s overall visibility in search results, while others involve enhancing its index-ability by search engine crawlers. Common examples of off-site strategies include backlinking and email marketing. It is important to note that all off-site SEO strategies are not necessarily performed online. Some of the most effective SEO strategies include traditional media.Both on-site and off-site strategies can be tremendously effective in enhancing search visibility. In a business context, often, the planning and execution of off-site SEO strategies require the assistance of departments external to that of the SEO professional. Because the SEO professional, or web developer in charge of SEO, can control on-page factors, the pursuit of certain off-site strategies is neglected, stymied, or poorl y implemented. For example, properly designing an email campaign is the domain of a digital marketing department, which may or may not include an SEO professional. Failure to incorporate staff with expertise in email marketing may result in either avoidance of that tactic or poorly designed email blasts, either of which may harm overall search efforts.However, the most successful SEO plans implement a combination of on-site and off-site strategies, and require the buy-in and support of multiple departments. Before evaluating different on-site and off-site SEO strategies, it is critical to understand the difference between white hat and black hat SEO strategies. White hat strategies refer to those strategies carried out in accordance with SEO best practices as defined by the search engines themselves. They involve developing a website and attendant content in a manner to maximize utility for the end-user, rather than the search engine crawler itself. In other words, SEO professionals should develop websites that people love and to which they keep coming back; and the high search visibility will follow.White hat SEO also involves eschewing strategies designed to fool a search engine into thinking that a website is more popular, relevant, or useful than it actually is. Such strategies comprise what is known as black hat SEO. While black hat SEO can be useful in effect short-term increases in search visibility, in the long run, generally speaking, they will not yield sustainable increases over time. Search engines are constantly on the lookout for websites that use such strategies, and often mete punitive measures (usually involving dramatically decreasing a website’s search engine visibility) to offenders. Moreover, many black hat strategies are the result of SEO professionals devising new ways to game the search engines.Once these methods become known and are adopted by many, their effectiveness is diminished.In general, white hat SEO strategies are the most e ffective in yielding sustainable increases to website search engine visibility. Three key white hat strategies that have onsite and offsite analogues should be a part of any on-site/off-site mix.KEY ON-SITE SEO STRATEGIESOf the many white-hat SEO strategies, few can surpass the impact of keyword research, on-site content publishing, and public relations.On-site keyword researchKeyword research involves researching those keywords and phrases that Internet users commonly use to find the products and services the organization sells, its brand and website, as well as those of its competitors. SEO professionals can then incorporate this content into meta data, indicating to search engine crawlers that the sites subject matter is about those keywords and phrases, and should be categorized with other similar sites. These keywords can also be incorporated into content published on the site, strengthening the argument to the crawler about how the site should be categorized. Keyword density the number of times keywords and phrases appear on a page or in metadata can influence a websites search results for searches involving those keywords.On-site content publishingOn-site content is more than just a placeholder for keywords. The content on-site can keep people on-site and convince them to perform an action, such as provide lead contact information, or purchase a product. Conversions are often a metric by which SEO results (not to mention marketing and sales results are measured); but time on-site (which is increased by the completion of conversion tasks) can boost SEO.Moreover, frequently posting new and relevant content can enhance SEO in myriad ways. It can attract new and repeat visitors, as well as provide more opportunities to convert consumers into customers or qualify them as leads. Engaging content can increase time on-site. New webpages allow an organization to increase overall keyword density, as well as signal to the crawler that it is a consistently updated site, both of which can improve SEO.Website content should be developed as part of the organization’s own integrated marketing communications (IMC) strategy. Ideally, the organization’s marketing department rather than the SEO professional should develop copy; however, the SEO professional should provide the marketing department with a list of branded and non-branded keywords for them to incorporate in website copy. The IMC plan should contain a content development plan and a schedule for publishing said content.On-site public relationsPublic relations professionals will perform most public relation activities off-site. However, consistently publishing press releases onsite can be a powerful part of an overall content development and publishing strategy, enhancing a website’s keyword density, index-ability, quantity of fresh content, and overall usability. Further, pulling public relations professionals into SEO strategy discussions can help generate ideas for additional on-s ite content, as well as greatly enhance off-site SEO strategies. KEY OFF-SITE SEO STRATEGIESLet’s look at how on-site keyword research, content publishing, and public relations play out off-site and drive other SEO strategies.Keyword research in advertising and social media marketingKeyword research is significant in a number of marketing strategies that have a significant benefit to overall search engine visibility. Keywords and phrases can provide invaluable consumer insights to advertisers. Increasing the efficacy of an online or offline ad that links back, or refers traffic back to, the website, increases website traffic that, in turn, improves SEO.Incorporating keywords and phrases into content on branded social media channels can not only enhance the search volume for those terms, and make it more likely that an organization’s brand appears high in one of the Big Three search engines (Google, Bing, or Yahoo); it also optimizes those pages in social network search engines. These often-neglected targets of SEO search are highly trafficked. For example, YouTube’s search engine has long garnered a higher volume of search queries than even Yahoo has. Moreover, even if a particular social search engine yields less total search query volume that is less than one of the Big Three, in many instances, organizations can more easily market to their target audience by casting a relatively narrower net on a social network than on a global search engine.Keywords/phrases can also be incorporated into content intended for distribution and/or publication off-site.Content distribution and off-site content publishingOne measure of the popularity of an organization and its brand is the reach of its content. If an organization is regularly publishing content that users are sharing via social networks and other online methods, the volume of keywords that can be indexed increases dramatically. This increases the probability that the organization’s website will appear hi gh in search results for those search terms.In addition to social media marketing, blogging, guest blogging, micro-sites, and email marketing, are among the many opportunities available to develop and publish content off-site that can link back to the website. Backlinking, as an SEO strategy, is important because it allows search engine crawlers to assess popularity partially based on the sites referring traffic to the website in question.Public relationsKey to a strong back-linking strategy is off-site public relations activity. Indeed, even backlink planning should be done in concert with public relations professionals, as search engine crawlers now assess whether the sites referring traffic to the website are relevant to the site’s subject matter. Further, they assign higher relative value to referring sites that are of high quality, and are organic â€" obtained naturally because of the website’s overall utility. Public relations professionals are tasked with developing earne d media â€" news coverage, in online and offline venues. A single backlink from well-established news sites like The New York Times can improve a website’s search visibility far more than a hundred paid links from webpage that are irrelevant to the organization’s website. Further, obtaining guest blogging opportunities and generating certain email copy is the province of PR professionals; again, they should be provided with keywords to optimize the copy for SEO purposes. BLACK HAT ON-SITE AND OFF-SITE STRATEGIESMost black hat SEO tactics involve on-page factors. Of the few that do not, many involve assailing the rankings of competing websites, and/or illegal methods. However, legal (albeit unethical) keyword, content, and public relations SEO strategies can be employed onsite.Keyword-based black hat strategiesA common black hat SEO keyword-based strategy is keyword stuffing which involves creating content with extremely dense use of keywords and phrases. This can be done in eith er meta data or in content itself. When it is done in the former, it is known as meta tag stuffing. Because meta data is self-reported data about what the site is about, it usually has less significance in SEO than on-site content. Many SEO professionals using this strategy create multiple articles extremely rich in keywords, often without regard for readability. Some that do create pages wherein keywords are stuffed on the page but invisible to the reader; this tactic is also frowned upon by search engines. It is known as cloaking â€" and includes more than just invisible text. Cloaking is a series of methods by which SEO professionals show the search engine crawler one site of content and human visitors another, and can include swapping optimized pages for other non-optimized ones, and invisible links, among others.Content-based publishing black hat strategiesSEO professionals may employ article spinning â€" a tactic wherein they rewrite a single piece of content multiple times, o ften stuffing each piece with keywords. The rewrites allow the SEO professional the opportunity to fool the crawler and users into believing the site is frequently updated, in addition to increasing overall keyword density. This is also often done by translating pages into multiple languages through translating programs. These imperfect translations may or may not be readable. Further, some SEO professionals may duplicate content from other sites without attribution to increase their site’s content.Unethical public relations practicesUnethical public relations are most often used, not to drive traffic directly to a website (which might be considered marketing), but to spin existing, or generate new news coverage, that assails a competitor, and drives traffic to the organization (and its website) as an alternative. These tactics are often used in political campaigns, but can and have been used by corporations to frame an issue as favorable to itself, usually at the expense of a thi rd party. This is known as negative buzz. One notable example, which actually involved an eyeglass firm, known as DecorMyEyes, creating negative buzz around its own products and services by providing legendarily bad customer service in order to obtain bad online reviews. These reviews pushed the site to the first page of Google search results, and significantly increased sales. Unfortunately for the owner, the poor service, which included death threats to customers, led to a jail sentence.DETERMINING AND ASSESSING THE RIGHT MIX OF ON-SITE AND OFF-SITE SEOThere is no one-size-fits-all for determining the best combination of on-site and off-site factors to use. The only way to determine what works for a particular site is, using best practices (whether white hat or black hat) as a framework, trial and error. Fortunately, there are many methods for testing and analysis, and a variety of metrics available for measurement. The key is a commitment to continuous testing and experimentation , and an understanding that both the dynamic nature of the data (what works one day may not tomorrow), and the interrelation between the variables.For example, while the exact criteria each search engine uses for keyword rankings is unknown, one can assume that keyword density in meta tags but not on-site content will send a crawler mixed signals and result in diminished visibility. Further, one might attribute a spike in traffic to the implementation of a new method, when it might be a natural spike due to seasonality associated with the brand. SEO professionals must be mindful that sustainable increases in any of the most common measures of SEO success: traffic, rankings, and conversions, are likely due to a number of factors, and must analyze the data until they understand the interplay of those factors in order to maintain and improve the current search results even further.

Housing Slump Credit Crunch And Role Of Government Finance Essay - Free Essay Example

The financial landscape of the United States has considerably changed since the Great Depression slowing moving towards less regulated platform where free market is desired and encouraged. What at first was labeled as a minute weakness in the mortgage/housing market has developed into a full blown financial crisis which has led the United States and the rest of the world into a recession. The American unemployment rate has jumped to 8.5%, its highest since 1984 while the US economy shrunk at a rate of 6.3% in the last the quarter of 2008[1]. The consensus on the main cause of the crisis is the housing market and the mortgage backed securities that it produced. The current financial crisis brought back talks on regulation and yellow tapes for entities engaging in the financial market. The role of the government has also been put into question; theres a debate on whether or not the government should just be a passive bystander or play a more aggressive role in regulating and intervening in the financial market. II Financial Markets Securitization is a process in finance that allows banks or other financial institutions to pool similar financial assets together and sell them to a separate entity that would issue securities based on the cash flow coming in from those pooled assets. The U.S Securities and Exchange Commission defines Mortgage-backed securities (MBS) as debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property[2]. When banks or mortgage companies issued mortgages to borrowers, they would turn back and sell those mortgages to entities such Fannie Mae, Freddie Mac or other private companies. These entities would then bundle the mortgages together and issue securities on them so that whoever bought those securities would have a claim on the principal and the interests of the original mortg` ages. This means that when the borrowers would make a payment on his/her mortgage to the bank, the bank would send the payment to the entities that would redistribute the income as interest payments to the securities holder. It is worth noting that the entities issuing the securities back them up; even if the borrower fails to make its monthly payment, Freddie Mac for example would still pay to the investor who holds the mortgage-backed securities his/her interests accrued. Most MBSs are issued by government sponsored agencies such Freddie Mac and Fannie Mae; there is a common belief that they implicitly have the backing of the U.S government which supposedly makes them safer and more attractive to investors. Subprime Loans Subprime loans were mortgages offered to individuals with low credits score; there was high a probability that they were going to pay the loan late or not pay it at all. Banks will tend to loan to the individuals at higher interest rates than it would have had the people been more credit worthy. It is undeniable that problems in the subprime mortgages sector triggered the financial crisis that started in 2007; as people couldnt pay their mortgages due to either high interest rates or low income (or both), the country began to see foreclosure which spread to subprime lenders and eventually cause the commercial paper meltdown. Nobody was willing to lend as there was a fear that loans couldnt be repaid. Lending standards were more than relaxed when it came to offering mortgages as borrowers either had no or low income and documentation was often not required. Lenders relied too much on high prices in the housing sectors and didnt factor in decline in prices which they should have in ord er for them to have been able to avoid much of the downside of the crisis. It is important to note that subprime loans only constitute a small part of the mortgage sector. The problem is that they were bundled up and sold as securities to investors everywhere who didnt have the knowledge necessary to make informed decisions on what they were buying. There was an issue of imperfect information in the distribution of risk that might have been avoided had all the actors in the financial arena known what they were getting into. Lending standards are in place for a reason, they allow for a safe flow of credit throughout the market. Mortgages offered to people who are credit-worthy easily translate into timely payments and pay down of debt. Out of all the possible culprits, subprime loans are highly ranked on the guilty list. Mortgage Brokers The subprime loans were not issued by commercial banks who have much tighter lending standards; mortgage brokers were the ones making those loans. Mortgage brokers didnt have to follow the rules and lent money to people who couldnt really afford it. Mortgage brokers were paid on the number of loans they could get out to companies that could bundle it up and sell it as securities. There was no incentive for quality but a strong push for quantity. Little efforts were put into explaining to borrowers how the mortgages worked and what the details were. Not only brokers can be blamed but also investment banks. The high demand for mortgage-backed securities (fueled by high housing prices), brought investment banks to accept questionable loans into their pool to create securities based on uncertain flow of capital. Government in this case could have done a better job regulating non-bank entities engaging in financial activities. Rating Agencies The role of credit agencies was to rate securities and other financial instrument based on their ability to pay their investors on a timely basis; the higher that ability (high creditworthiness) the higher the credit rating. The agencies rate the ability of a security to pay based on securities past behavior; especially they expected securities to still pay investors as they had been doing up until that point and didnt factor in financial shocks such a decline in housing prices, devaluation of securities and lack of liquidity in the market. The model used by rating agencies to assess those financial instruments were obsolete because they only took into account events such interest rates shocks but failed to evaluate risk and the level of leverage of each companies. In the case of mortgage backed securities they failed to see that those securities had a direct relationship with the mortgages underlying them, their models were too optimistic; people not paying their mortgages, difficul ties in the housing markets were unforeseen and not taken into account. Also, when assessing and rating the mortgage-backed securities, the agencies had little to no information on the people who were given the mortgages; their creditworthiness was never examined when the ratings were issued. The credit rating industry is dominated by 3 companies who share about 95% of the credit rating market: Standard and Poors (SP), Moodys and Fitch Ratings, the remaining 5% is shared by rating agencies who do not have as much influence and connections in the market to make a considerable impact. The market share, the power, the influence enjoyed by the three companies makes them monopolies that have developed over the years. With the government always trying to go after monopolies[3]because it discourages competition, the big 3 have had some impunity in operating as monopolies. This discouraged innovation because there was no incentive to do so, had there been more competition among the rating a gencies, models would have been updated, new and more accurate rating instruments could have been invented. Even though there are over 100 credit rating agencies besides those 3, the fact they owned such a big market share allowed them to rest on their laurels and not do the job as accurately as they should have. Credit rating agencies were hired by the companies issuing those instruments which in itself could create a conflict of interest on the part of the agencies. Having close ties with the private market did not allow for objective ratings as they were influenced by the money incentive and were telling the companies how to structure the securities in order to get a higher rating. Government should definitely have stepped up and not tolerate those relationships to get in the way of objective and accurate rating. It is only now that the SEC (Security and Exchange Commission) is thinking of way of dealing with the problem of conflict of interest, disclosure of information; however nothing seems to be done about the monopolies Standard and Poors (SP), Moodys and Fitch have enjoyed over the years. Even though commercial banks are still very much regulated, other players in the financial sector (such as mortgage brokers) are not and this is the area where lack of regulation played a role. Private financial markets where complex investment tools are developed are hard to regulate because those tools are hard to understand. Participants in those markets tend to be investments savvy individuals who have learned how to take advantage of loopholes in regulations and are not the average investor. Private rather than public interests are what fueled those investors allowing for the taking of irresponsible amount of risk. Investors created collateralized debt obligation backed by securities (such as mortgage-backed securities) and thought of themselves as protected against risk because they bought insurance against market downturn in the form of credit default swap[4]. Companies were not required by law to have the necessary capital to back up those swaps; this allow for high leverage and lack of protection for investors who actually thought they had some cushions against market downturn. Had there been some type of regulation private companies would been required to have enough money to back up the insurance claims that people had purchased. There is little doubt that more sophisticated investors took advantage of the system by designing financial instruments that were not easy to understand to the average investors and that went through loopholes created by regulations or lack of. III Role of the Government Community Reinvestment Act Government actions such as the Community Reinvestment Act, regulations or lack of have been accused of playing some part in the crisis. The government has been particularly active in trying to stop or slow down the current downward spiral and some are questioning if this is actually making things worse or better. It would be hard to know the full result of government intervention for quite some time but it is worth exploring what role, if any, had the government in the current economic state of the world. The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate.[5]This was to insure that banks met the needs of the population they were servicing, especially in middle-class to low income neighborhoods. Although law makers would rate banks on how well they were meeting those needs, they would make sure that banks still adhere to and enforced lending standards. To be in compliance with the CRA, banks didnt have to offer subprime loans, they could just invest in the community. So, although at first it might seem as if the Act shares some responsibility, it is hard to find a positive correlation that proves so Glass-Steagall Act The Glass-Steagall Act of 1933 created the Federal Deposit Insurance Corporation and separated banks according to the type of business they were engaging in (commercial vs. investment banks). According to law makers of the era, commercial banks engaged in risky behavior before the Great Depression; they argue that is was those risky behavior, or speculation, that caused banks commercial failure after the stock market crash of 1929. Banks could not pursue both activities and had to decide on one and stick to it; the end goal being eliminating those risky actions that could cause a bank to run into financial trouble. The act was in effect for most of the 20th century with some loosening over the years (especially in the 1980s) and some credited it in giving the banking system a sound financial platform for running bank activities while others argued that the act restricted banks to realize their full potential and not being able to compete in the international arena. Financial Modernization Act The Financial Modernization Act became law in 2000, officially repealing the Glass-Steagall Act. Commercial banks were allowed to dive into unchartered water such as investment banking and insurance. The act allowed commercial banks such Bank of America and Morgan Chase to assume a higher level of risk in the hopes of getting a higher return by exploring investment opportunities (such as securitization) that were not available to them before. The Act allowed banks to merge with each other; this allowed mega banks such Citigroup and Bank of America to surface. By doing so though, the Act might have indirectly contributed to the doctrine of Too Big Fail. Large banks (commercial and investment) were not allowed to merge with each other; the Act created those entities that became vital to the economy as they facilitate the flow of funds, and were intermediaries between those who deposit money as part of their saving and those in need of funds. By allowing banks to significantly increase their size and their market share, the government put itself in a position where letting those banks fail, should a problem arise, would not be option. The financial bailouts are evidence of this; a substantial portion of the Trouble Assets Relief Program (TARP) funds went to the biggest banks in the country.[6]The increase in the amount of risk that commercial banks were allowed to take on thanks to the Act was a contributory factor in the financial crisis but commercial banks are still well regulated. Deregulation is not what caused the crisis, peoples actions did. Fannie Mae and Freddie Mac The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation Freddie Mac are US-government sponsored enterprises (GSEs) created by Congress to cater to the needs of Americans desiring to own a home. Fannie Mae and Freddie Mac are part public and private meaning that while following a social agenda to insure that individuals who want a home could buy one, they also are stockholder-owned, profit seeking corporations[7]. Fannie Mae was created to buy loans, as investments, from the Federal Housing Administration in 1938 and resell them to interested parties. Freddie Mac was created by Congress in 1970 to purchase loans made institutions that were part of the Federal Home Loan Bank System3. Both entities were created to allow the flow of credit between suppliers and demanders of mortgages, it is worth mentioning that they do not directly lend to home buyers. By selling their mortgages to Freddie and Fannie Mae, banks are allowed to get more capita l in order for them to supply more mortgages to the population. Before the financial crisis, the two GSEs enjoyed benefits as they experienced the best of both world; although created by Congress, they did not answer to the Federal government but to their board of directors. The GSEs are independent of any government political agenda and are not subject to the federal laws and regulations that are applied to other government agencies, they ,also, are tax-exempt. The two entities enjoyed all the advantages of public and privates companies but experienced none of the disadvantages. For the most part the two companies have done the job they were supposed to do; furthering the social agenda of home ownership, especially among less financially well-off individuals. Together, Fannie Mae and Freddie Mac own about 50% ($11 trillion worth) of all mortgages in the United States. The securities issued out of those mortgages are considered safe investment as they are implicitly guaranteed by th e American government. Without the two entities mortgage rates would have been much higher than what they were at the time of the crisis because by dealing with large amount of mortgages they were able to keep their costs low. Although at first it might seem easy to place part of the blame on the shoulders of the two entities its worth exploring why they might not be as guilty as one might think. The vast majority of mortgages held by the two GSEs are the safe, conventional ones. Those are the mortgages that people still pay on time without defaulting (not subprime). What really got the two companies in trouble was that when the crisis was raging nobody was willing to buy the securities issued by them even though they were pool of safe mortgages, coupling that with few bad mortgages where people werent paying, allowed for losses that were not foreseeable. This forced the U.S Treasury to put the two companies under conservatorship of the U.S government to send a signal to outside inv estors that it would be safe to buy securities as they were officially backed by the U.S government. Government backed securities send a strong to the rest of the world that it is safe to now start buying American (in our case) securities because they are pretty much riskless; this allows for funds to start flowing in the country and there is a dire need for that. The government had to step in and reassure the rest of the world that America is still the best place to invest in because we know that it is very unlikely that the U.S government does not honor its debt. In the case of Fannie Mae and Freddie Mac during expansionary time, the implicit backing of the government allow mortgage-backed securities to be sold to investors looking for a safe return and it also allowed banks to offer more mortgage to those who were looking to buy a house. What Fannie Mae and Freddie Mac were guilty of was to fall under political pressure to allow themselves to relax the standards on what type of m ortgages they were willing to buy from banks. By accepting some subprime assets and taking more risk, they exposed themselves to greater loss should the economy take a downturn. The two companies would have reduced their losses had they not been exposed to the risk they decide to take on. The Federal Reserve (Fed) Theres an argument to be made as to the role of the Federal Reserve[8]in the housing crisis. By being able to influence the money supply in the United States the Federal has the power to influence interest rates which in turn influences the rate at which loans are given out. By increasing the money supply (which happens when the Federal Reserve buy Treasury Bonds from banks), it lowers the interest rates because now that banks have more spend they will tend to lower their lending rates to attract borrowers. One can argue that this is one of the reasons why there was a housing boom in the first place; more money to be lent at low rates meant more borrowers (such as housing contractors, individuals willing to own a home, mortgage brokers) were lining up to take advantage of the opportunity. Starting in the year 2000 and ending in around 2004, the Fed continuously pursued to lower interest rates by slowing increasing the money supply in the country. Interest rates levels where the lowes t they had been in a really long time and lower than what the Fed had been setting for awhile. It wouldnt be a stretch to conclude that a relationship can especially be found between the amount of credit available in the market and housing starts. Contractors were willing to build more houses because, first the money was there to do so and second they knew that people would be able to borrow money at a lower rate to buy a house. As the economy was overheating and housing prices were going up substantially, the Fed wanted to slow it down by lowering the money supply thus increasing interest rates and slowing down the amount of lending. As rates rose, the housing bubble started to burst and some borrowers were left with lower house values and huge mortgages. It is important to note that borrowers of subprime mortgages had adjustable rate mortgages; when interest rates were low they had more ease making their payments but as rates started going up, so did their monthly payments that th ey could no longer afford. As mentioned earlier, when borrowers stop paying, it starts a chain reaction where mortgage brokers do not get money and cannot send funds to the entity that bought the mortgages from them and the companies do not have the funds to redistribute to its investors. Privates firms and governments-sponsored agencies found themselves with troubled assets on their balance sheet because money is not flowing. In the midst of the crisis, the Fed decided to drastically reduce interest rates to reduce the size of the debt on the balance sheet. Sometimes it is better to let the market work itself out in terms of interest rates determination. The blame is definitely not on Fed in terms of who started the crisis, but it more than plausible that the Fed tight control over the money supply and supervision of the inflation rate were contributing factors in making a bad situation worse. IV Conclusion The American economy is a free market economy where government should try to stay out of it as much as possible. While following a political and social agenda, the government has to put in place safeguards to allow for a safe and responsible course of business. It is clear that the government failed to regulate blurry areas of our financial system and allowed individuals to take on huge risk without the capital to back it up. The goal is not to mingle with the business of banks but to put boundaries separating what is allowed and what is not. The American regulatory system tends to always come up with regulations after the fact which sometimes makes them ineffective and obsolete. The government should be stricter with the financial entities like it has been with other sectors. It is one of the only sectors where monopolies are not only allowed but encouraged. By allowing those mega banks to exist, the government put itself and the people that it represents into a difficult position w hen theres a market downturn; letting those companies fail will have disastrous consequences for the economy because there are the reason why credit flow through the economy. At the same time shouldnt the government send a stronger message saying that risky behavior that will send the country into a recession, behavior that would cause people to lose their jobs and their homes is not acceptable and would not be tolerated? But it seems as of the government and the financial markets never learn as the country goes trough some type of financial disaster every 10 years or so.