FINANCIAL CRISIS, HOME MORTGAGES, CREDIT MARKETS, FINANCIAL Case Study - 1

FINANCIAL CRISIS, HOME MORTGAGES, CREDIT MARKETS, FINANCIAL INSTITUTIONS, MORAL HAZARD, ADVERSE SELECTIONS, - Case Study Example Securitization can be considered as a disruptive innovation as it drove the world economy into an all-time debauched predicament whose shattering effects are still felt to-date in America and the world over (Driffill, 2013). Securitization is a financial engineering practice where financial institutions create a pool of assets, including mortgages and loans, and resell the repackaged assets to investors who takes responsibility of the assets thereafter (Bertaut & National Bureau of Economic Research, 2011). The mushrooming of securitization saw the emergence of asset-backed security (ABS) as a common type of mortgage-backed security (MBS) and a structured investment vehicle (SIVs) which become a driving force in the financial crisis by empowering banking institutions to possess superfluous capital which could be given out as loans to prospective homeowners without clear ascertainment of their credit worthiness (Glaeser,  E.  L., & Sinai, 2013; Farmer, 2010). Eric (2010) asserts that MBS was flavored by apportioning between agency MBS, and non-agency MBS. The agency MBS were insured by the government thus resulting to no real credit risk to the investors a factor that made it effective for many organizations to offer mortgage loans to mortgage loan seekers who later painfully defaulted the loans (Manoj, 2010). Apparently, securitization endorsed the disintegration of risks. Investors and mortgage seekers could gravitate towards investments or transactions that best met their reward or risk preferences. This was consequentially backed by securitization which transformed the mortgage market to a lascivious condition. It transferred possession of mortgages from lenders to investment banks and non-bank financial institutions (Batten & Szilagyi, 2011). Noteworthy, the mortgage owners were well acquainted with information pertaining to their borrowers default probability, but securitization bestowed the obligation of offering loans on investment banks

Life Span Perspective Paper Essay Example | Topics and Well Written Essays - 500 words

Life Span Perspective Paper - Essay Example In a life-span perspective, ageing implies changes, which for its part, take many forms. For instance, we have the purely biological changes such as weakening of the muscle strength, shortness of breath, graying of the hair, wrinkling of the skin and so on. There is the incidence of human disease, particularly those of the elderly who at certain point may be diagnosed with more than one illness. Next we have the cognitive decline such as the benign forgetfulness or the onset of dementia. This also includes the changes in the social environment and thus the experiences arising from it. Bere Miesen and Gemma Jones (1997) write that a model of a life-span perspective may be characterized by type of change, individual characteristics, coping behavior, adjustment in adaptation and the experience of quality of life. (p. 32) Finally, the Darwinian concept is very important in this perspective. It banks on the idea that humans share important characteristics through heredity and this in turn becomes a variable in the whole life-span development process. For example, virtually all of us develop in similar ways at similar ages such as walking and talking at age 1. And so, the study of development from a life-span perspective is multidisciplinary involving both biological and social sciences. Human development falls into three broad domains, namely: physical development, cognitive development and psychological development. (Sugarman 2001, p. 14) There are some who include personal and social developments but the previous three roughly cover everything. Human development meanwhile is divided into 8 periods: infancy, early childhood, middle childhood, late childhood, adolescence, early adulthood, middle adulthood and late adulthood. (Sugarman, p. 56-60) Contemporary concerns regarding life-span development include the questions on the eight periods in