Have we learned any lessons from the financial crisis of 2007-8 Assignment

Have we learned any lessons from the financial crisis of 2007-8 - Assignment Example When the criticality of the matter dawned on the American society, it was difficult to accept the dire consequences of the downfall. Organizations deemed stable enough to survive any surging economic pressure proved to be at the verge of collapse in the 2008 scenario. President Obama had to help America resolve the issue, and settling it needed firm decisions taken in good time to save the average American from the consequences resulting from the crisis. This is how the Dodd-Frank law surfaced as a potential solution to the imminent financial collapsing of the great economy. It is of essence to highlight the critical lessons learnt from the crisis and doing that is the sole purpose of this paper. Causes of the 2008 Recession An analysis of the real situation in 2008 and highlight the main causes of the collapsing of big financial institutions. One fact about the issue is that Americans had build too much trust on some of the banks that they did not see the crisis, coming and this is the main reason why Americans became victims. This does not assert that people should not trust banks but should do so after judging their credibility based on their financial reports. At least people should make an informed choice be ore trusting financial institutions. ... Understanding how banks operate is essential in analyzing how the recession resulted. All banks often make investments that can turn to be failures. If that happens, experts can calculate the asset value and these banks can receive recapitalization for the loss. However, the level of trust is very fundamental in determining whether a bank is worthy of recapitalization. Its performance in the market must prove that it is not subject to sudden collapsing. Banks deemed stable enough in the market have resulted to a form of pathology as Fischer described in his recent speech. These banks reached a point whereby assessing how much they lost in bad investments became a challenge. Before the onset of the recession, these banks were safe havens for most people. Majority of financial experts thought that these banks only suffered losses via mortgage insecurities. However, facts reveal that other toxic investments increased the losses incurred by banks. The bigger banks stand better chances in the market because of the privilege they have. Their stability in the market becomes a crucial factor that serves to reduce chances of bankruptcy declaration. While the less stable banks have a great fear of taking great business risks in fear of ending up bankrupt, the bigger banks can take costly risks much more easily as Arcand, Berkes and Panizza mentioned in their working paper released in 2009. In 2006, big banks sought to take advantage of the declining house prices hoping to make profits in the secondary market as Feng, and Serilitis in their research paper in 2009 on efficiency and technical change in U.S banks. Their investment in housing had its basis on mortgage security. Predictions were that housing

In what respects does the postmodern city differ from its modern Essay

In what respects does the postmodern city differ from its modern counterpart - Essay Example The way in which the cities are built and expanded, as well as the framework for different buildings and components create this difference and lead to an understanding of how the city has changed while those living in a specific society have also altered. The Postmodern City The concept of the postmodern city became associated with the 1960s and was parallel to the changing lives of those in Western cities. The buildings as well as the structure of the city was known to construct with the cultural components, specifically with individuals moving out of the industrial age of mass production and into the entrepreneurial spirit. This was combined with the desire to build a sense of diversity, both in terms of the structures and architecture of buildings as well as the way in which the economics of different neighborhoods were able to work together. It was the two concepts of diversity and expansion out of the mass production that began to drive forward the ideology of the city. This was combined with the imperialist thought that was still associated with the elite, specifically which became interested in cities that could express a sense of wealth and power in various areas. Each of these proponents changed the city as well as the architecture and designs associated with each neighborhood. The concept of capitalism and the growth of urban renewal that could offer restructuring for money then became the most important component to building structures (Harvey, 1990: 6). The idea of development and the associations with postmodernism became reflective of the culture in several ways. While there was a movement outside of the mass production, there was also an increase in the consumer society. Individuals were interested in expansion specifically from the viewpoint of capitalism and economic structures that would assist in the building of wealth. Building a consumer culture followed this, specifically by building diverse neighborhoods that combined systematic areas whi ch allowed individuals to consume easily and to maintain a heightened lifestyle through various products and goods. The consumption not only became relevant in the basic needs but also became reflective of one’s personality, social status and meaning of lifestyle which was associated with those in society. The result was the desire to create a sense of utopia by presenting the perfect image and by associating this with the neighborhoods which had been built, all which were based on consumer behaviors (Clarke, 2003: 167). Development of Modernism The concept of consumerism and diversity in is one which arose from a backlash among those interested in architecture and the transformations of society and culture. This came from the modernist approach of society. Many began to believe that the culture which was a part of each community was reflective of the values or loss of morality which occurred, specifically with the concept of creating and developing while maintaining a balanc e with those in society. Modernist thought was based first on the need to develop, specifically so individuals could come out of the communities and recognize a sense of diversity that was associated with a given region. The development was followed by reflecting this with the values and morality which one held as well as how this could create a reflection from the architecture and construction of the city (Berman, 1988: pg. 90). The idea of value which was built formed into the development of moving back into the natural and into