Causes of 2008 Financial Crisis Essay Example | Topics and Well Written Essays - 1000 words

Causes of 2008 Financial Crisis - Essay Example Ohanian (2010) explains the cause to be due to the fall in the value of asset-based securities and a let-down by financial institutions. There were reduced intermediary services in finance that had a connection to the rise in interest rates (Ohanian, 2010, p. 55). First, banks produced too much currency in the economy. Normally, if banks give out loans, there is the creation of new money in the economy. As Eakins and Mishkin (2012) confer, banks made too many loans, creating huge sums of money. By 2008, the amount of money in the economy had doubled compared to the amount seven years prior. As a result of this, huge sums of money were remitted to the public, especially the mortgage sector. Despatch of large amounts of loans happened, without consideration of the credit histories of the lenders.After creating a huge amount of currency in the economy, house prices went up since large quantities of money ended up in the property market. Arnold (2012) connotes that financial institutions largely used the currency created between 2001 and 2007 to finance the residential property. Thirty-one percent of it was loaned to the mortgage sector, 20% to profit-making real estates, while 32% went to monetary divisions. While 8% went to businesses external to financial segments, another 8% was given as personal loans (Arnold, 2012, p. 23). The above statistic shows that much of the money in the banks went to the mortgage and housing investors compared to other institutions.

Interpersonal communication and the internet Research Paper

Interpersonal communication and the internet - Research Paper Example People relying solely on social media for interpersonal communication may judge their relationship partners on the basis of limited information. There is a probability of electronic transmission of threats making college life complicated for some students. Facebook is the cause of distraction and often plays the role of a life savior for otherwise socially awkward students. Internet, sometimes, promotes racism and hatred making interpersonal communication among the people of different beliefs almost improbable. Schools, colleges and universities should allocate some time and resources to equip students with the basic ethics of online communication. Interpersonal Communication and the Internet The most significant characteristic of a man is his ability to communicate with his fellow human beings to achieve the desired outcomes. Man has always struggled to develop and expand the means of communication available to him. In recent years, internet and online social networks including Face book, Twitter, MySpace, and Tumblr have revolutionized the field of communication. People have become so reliant on technology that those who tend to disconnect themselves from it seem odd to the rest of the people. Internet provides a medium to vent frustration and social anxiety and is an easier way to communicate. But the controlling influence of social media, increasing reliance on internet leading to a decline in interpersonal communications, probability of electronic transmission of threats and promotion of racism and hatred often outweigh its advantages. The internet has no doubt transformed the world into a global village. However, at the same time, the yawning gaps between people in their interpersonal relationship seem to get bigger day by day. Women, in earlier times, used to gather at the river to wash their clothes. This provided them with an opportunity to mingle with the people living in the same locality. With the introduction of new technologies and easier ways to w ash, a decrease in interpersonal communication is apparent as the people in general and women in particular no longer gather at the river. The same explanation can be presented to explain the decline in interpersonal relationships due to the creation of innovative and technologically advanced communication tools including the internet and the social media. People have become less interdependent and more self-governing. Even the advertising campaigns seem to promote it. As far as the impact of internet is concerned, millions of emails are sent by people to their friends, relatives and colleagues every day making it tremendously unproblematic to communicate. Internet, on one hand, has a number of advantages. Conversely, on the other hand, it has dramatically reduced the exchange of information among the masses. Those who use these forms of communication may evaluate their relationship partners on the basis of inadequate information. Internet, indeed, encourages the growth in interpers onal communication. However, those who entirely rely on online means encounter difficulties in face to face communications (Riqdon). Studies suggest that students use internet mainly for finding people, seeking, distraction, coping and E-mail. The availability of internet on the college campuses, provision of free email addresses to the students and high speed broadband connection-equipped