The 2007-2008 Financial Crisis Causes, Impacts and the...

THE 2007-2008 FINANCIAL CRISIS: CAUSES, IMPACTS AND THE NEED FOR NEW REGULATIONS The initial cause of the financial turbulence is attributed to the U.S. sub-prime residential mortgage market. The sustained rise in asset prices, particularly house prices, on the back of excessively accommodative monetary policy and lax lending standards during 2002-2006, increased innovation in the new financial instruments, unusual low interest rates resulted in a large rise in mortgage credit to households; particularly low credit quality households, the greed of investors’ for ever higher returns coupled with very minimal down payments, along with the dependence on major global rating agencies, allowed complex investments products to be sold to an†¦show more content†¦These corporations are known as the â€Å"monoline† insurers or â€Å"monoline† guarantors, and it became another casualty of the financial crisis. Globally, many financial institutions had purchased these new promising guaranteed of debts. But, every good item has a bad side, and sev eral of these factors started to emerge alongside one another. Insolvency on one of these institutions could threaten the solvency of many others. When the â€Å"monoline† insurers started to fall into insolvency problem, the market was illiquid. Suddenly, emerging financial institutions were short of cash, as well as become insolvent. Some of the affected are such Goldman Sachs, Merrill Lynch, and Bear Stearns. But, at the end of the day, the worst effected from this financial crisis were the mortgage borrowers. Most of these â€Å"monoline† insurers did not have adequate capital to fulfill their guarantee promises. Investors’ dependence lied mostly on the high ratings placed by major global rating agencies for these institutions put the investors in a position where they could experience enormous losses. In order to survive, many banks turned to sovereign wealth funds to obtain new capital. Bad news continued to pour in from all sides. In August 2007 that the financial market could not solve the subprime crisis on its own and the problems spread beyond the U.S borders. Lehman Brothers filed for bankruptcy, Bear Stearns was acquired by JP Morgan Chase,Show MoreRelatedFinancial Crisis : The Fiscal Crisis1355 Words   |  6 Pagessecond week of October in 2008 was the worst week for stock market during 75 years, Buckley (2011) state that the worst record was the Dow Jones Industrial Averages dropped 22.1%, but it fell 44.3% then. In general, a financial crisis is not an accident; it may take several years and has complex and interlaced causes (Claessens and Kodres, 2014). The 2007-08 global financial crisis is a typical case due to long-term non-intervention policy and loose regulation for financial market from government.Read MoreFactors That Affects The Global Economy And Its Impact On The Nigeria And Egypt Economy1568 Words   |  7 Pagesthat affects the global economy and their impact on the Nigeria and Egypt economy. In 2007, the fi nancial crisis, which later extended to the global financial crisis began in the United States of America. The origin and elements of the 2007/2012 global financial crisis have been widely discussed in the literature throughout the period. The aim of this work is to, however, try to point out the reasons and also the macroeconomic effects of the financial crisis in both countries economy and the resultingRead MoreThe Effect of Recent Financial Crisis and Regulatory Implications in Asia1532 Words   |  7 Pagesdue to lack of education. Now on the larger scale is the impact on the institutional level of the global financial crisis. The financial crisis began in United States in 2007 and spread to other countries. The crisis was triggered by a liquidity shortfall in United States banking system and resulted to the collapse of financial institutions. Asia is one major continent in which the recent financial crisis had spread. The impact of the crisis had far reaching effects on the economy of Asia than manyRead MoreCorporate Governance For A Future Economic Crisis Essay1288 Words   |  6 Pages-Can corporate governance prevent a future economic crisis. Ten years ago, corporate governance was still in the concept stage. There wasn’t a lot of information about corporate governance. After some big corporate failure that hit the economy, it has become obvious that corporate governance matters. After the collapse of Enron,Wordcom,..a new regulation was born (Sarbanes Oxley).The law was implement to increase transparency and to promote integrity and accuracy inside the companies. UnfortunatelyRead MoreEssay on Overview of the Recent Financial Crisis in the US1468 Words   |  6 Pages1. Introduction The financial crisis started in the USA because of subprime mortgage crisis in 2007. As a consequence of it, a credit crunch was originated and it quickly spread from the real state sector to other sectors, and furthermore, from USA to other countries. This caused a series of financial and economic crises like the collapse of housing markets in Europe, the global stock markets, global financial systems and markets, along with a lot of large banks and financial institutions, as (SunRead MoreRole Of Financial Sector On The United Kingdom1400 Words   |  6 Pagesinto trouble should be allowed to fail. Present The role of the financial services is vital to the United Kingdom, as it gives support to businesses and enables the economy to grow. The sector offers products and services which has a significant impact on the UK’s economy and forms one of the few world-class sectors. The significance of financial sector in an advanced economy implies that it is fundamental for financial development to provide support for a focused and strong money related frameworkRead MoreThe Effects of the Bursting of the US Housing Bubble on the European Union1340 Words   |  6 PagesStates housing bubble during the period of 2006-2007 had triggered the 2008 financial crisis which also spread to the European Union zone. Many major European banks, many of which had significant holdings in the American market, started to crumble, followed by bailout requests, initiating a subsequent crisis that led to the Eurozone crisis. The combination of government debt crisis, a banking crisis, and further worsen by a growth and competitiveness crisis had thrown what could probably the biggestRead MoreFinancial Crisis Impact On Institutions And Markets1196 Words   |  5 PagesFinancial Crisis Impact on Institutions and Markets The financial crisis, beginning in 2007, negatively impacted the stability of financial institutions and markets across the world. While there are many speculative causes of the financial crisis, dealings in subprime mortgages are considered the biggest culprit. As a result, those involved in subprime mortgages, such as lenders, investment banks, credit rating agencies and securities investors were among the first to feel the crisis’ ramificationsRead MoreIn What Ways Can Organized Labor Constrain the Strategic Choices of an International Business? How Can an International Business Limit These Constraints?8367 Words   |  34 PagesAssignment Cabinet in ACBT Reception. 3. This Cover Sheet does NOT need to be date stamped if you are placing in the Assignment Cabinet. STUDENT NUMBER: | NAME OF STUDENT: (PRINT CLEARLY)FAMILY NAME OTHER NAME(S) | COURSE: | NAME OF LECTURER:Mr SanjikaPerera | RECEIVED BY: | TITLE/TOPIC OF ASSIGNMENT:Group assignment – global financial crisis | â€Å"I certify that the attached assignment is my own work and that any materialRead MoreSubprime and Adjustable Mortgages1156 Words   |  5 Pagespay because they cannot afford to make the higher payment. Many buyers accepted those offers without doing enough research on these types of loans; therefore, we will see the causes and effects of subprime mortgage rates. First, the â€Å"subprime mortgage† started between the middle of the year 2005 and the end of the year 2007 driven by low-interest rates and â€Å"excess liquidity†. During this period, Mortgage brokers offered potential buyers the opportunity of obtaining their dream home. In those years

Physics Of The Moon And Mercury - 1525 Words

Nadia Szijjarto 101019833 PHYS 1901 Tuesday November 17, 2015 Professor Maybury Assignment 2 1. At first glance, the Moon and Mercury have similar surface features yet on closer inspection we find that significant differences exist. Compare and contrast the surfaces of the two bodies and outline their respective geological histories. The geology of the moon and mercury are very similar due to certain key aspects, but there are also a few qualities that differentiate the two bodies. The Moon has a radius of 1738km in comparison with Mercury, the smallest of the major planets with a radii of 2440km. The average density of the Moon is 3.37 g/cm3 that is consistent with basaltic silicates. Like Earth the Moon has a layered system, consisting of a crust, mantle, and core. From the radius and the mass Mercury has a mean density of 5.4 g/cm3 which implies a dense iron (Fe) core. Just as the Moon consists of an iron core with a softer molten liquid iron outer core. The outer core is believed to extend out as far as 500km. The Moons core only holds 2% of its mass. Since Mercury is low in mass there is less heat stored from formation its core is probably sold rather than liquid. The lunar surface of the Moon is grey and tan, with a low albedo. Albedo is the reflective properties of planets, satellites, and asteroids. Mercu ry also has a low albedo, which signifies that theShow MoreRelated the study of aerodynamics and gravity Essay1515 Words   |  7 Pages My topic for the science fair is â€Å" Which falling objects fall the fastest? â€Å". Many factors affect the speed of aerodynamics such as the different forces on the object. The aerodynamics of the object and the physics surrounding the object. Great scientists have studied falling objects such as Galileo Galilei and Sir Isaac Newton. I will discuss their lives, experiments and scientific findings. Aerodynamics is the study of force on an object. It has been called the science of flight. AerodynamicsRead MoreScience And Physics : Physics And Chemistry934 Words   |  4 Pagessame to help us in our lives and numerology is one of the oldest sciences from the time of Pythagoras. Physics and Chemistry is based on mathematics and biology and Psychology is based on Physics and Chemistry, thus this makes numerology the base for all sciences. We use numbers in everyday of our lives, Each digit of the alphabet has a number assigned to it, It even rules astrology as the Sun, Moon and other planets, all have numbers assigned to them and have known to influence everyone on Earth.Read MoreCopernicus s Theory Of The Planetary System Essay1025 Words   |  5 Pagesregarding this model because of the fact that the planets seemed to be traveling backwards in the sky. This traveling backwards was called the retrograde motion. â€Å"Secondly, these bodies are not seen moving uniformly in their orbits, since the sun and moon are observed to be sometimes slow, at other times faster in their course. Moreover, we see the other five planets also retrograde at times, and stationary at either end (of the regression)† (Copernicus, Chapter 4). This quote comes from Copernicus’sRead MoreAristotle vs. Copernicus1501 Words   |  7 PagesHe died there the following year. His works on natural science include Physics, which gives a vast amount of information on astronomy, meteorology, plants, and animals. His writings on the nature, scope, and properties of being, which Aristotle called First Philosophy ( Prote philosophia ), were given the title Metaphysics in the first published edition of his works (c. 60 bc ), because in that edition they followed Physics. His treatment of the Prime Mover, or first cause, as pure intellect, perfectRead MoreApplication And Values Of The Non Living Entities1350 Words   |  6 Pagesof physical science (Physics, Chemistry, Astronomy, Meteorology, and Geology) all touch some area of our lives on a daily basis. This assignment asked that I choose three chapters that I have read from our textbook (An Introduction to Physical Science - 12th Edition) and explain the applications and values of the non-living entities in the three chapters that benefit daily living. The chapters that I have chosen are, 15 – Place and Time, 16 – The Solar System, and 17 – Moons and Small Solar SystemRead More The Life of Galileo and the Effects of his Findings on Faith1719 Words   |  7 Pagesmagnifying power of thirty-two times. And it was through Galileo’s discoveries in turning his telescope toward the heavens, which made him both a famous, and a controversial man. GALILEOS TELESCOPE Using the telescope, Galileo found that the moon featured hills and valleys such as on earth, directly contrary to the teachings of Aristotle. He also found the sun to have spots, which once again showed the error in Aristotle’s philosophy of the perfection of the heavens, and the disorder and irregularityRead MoreEssay on Astrology and Its Role in Our World3364 Words   |  14 Pagesto be practicing astrology independetely. People noticed the Sun in particular had a change on how crops grew. Many people viewed astronomy and astrology as a similar science until the 1500s. People knew by looking at the sun or what the size of the moon was when to plant crops or even when a baby was going to be born. These early astrologers were searching for their place in life. A place where they fit into the universe. They believed that every component of the universe was linked together and everyoneRead MoreThe Contributions of Isaac Newton Essay863 Words   |  4 Pagesinertia, which sa ys that once a body is set in to motion it will not stop until affected by some outside force. Newton used this to deduce what gravity is and how it works. He stated that an object fired into space will orbit the earth just like the moon. He called this work â€Å"A Treatise of the System of the World.†2 Newton later formed three laws of motion from his work with gravitation: 3 * Every Body continues in its state of rest, or of uniform motion in a straight line, unless it is compelledRead MoreThe Automotive Industry and The SRS System1199 Words   |  5 Pagesresolved which one of the fulfillments general motors wanted to offer. Airbags are used through the help of impact sensors that sense impact, which then through the release of compressed air, trigger the nylon fabric air bag to deploy. The laws of physics and motion play a heavy role in the way the air bag is used. First of all the idea of creating the air bag was of course made when an event took place and wrong which lead to the creation of this new revolutionized concept that would be foreverRead MoreJohannes Kepler Essay991 Words   |  4 Pagesastronomers of the day, Michael Maestlin. The curriculum included geocentric astronomy. This is the study of how all seven planets at the time - Moon, Mercury, Venus, Sun, Mars, Jupiter and Saturn - moved around the Earth. Their positions to the stars were being calculated by combining circular motions. This system was what worked with the current physics of the time, although there were certain difficulties. However, these astronomers, who also saw themselves as mathematicians, were content to carry

Financial Application Package Reckon in Australia

Question: Discuss about the Financial Application Package Reckon in Australia. Answer: Introduction The financial market in Australia is currently booming with lots of financial software competing among them featuring almost similar kinds of features and service. Reckon is one such type of financial software used for bookkeeping, bank reconciliation, invoicing among others. After numerous acquisitions, awards and recognitions, and innovative new features, it has differentiated itself from others and created a niche for itself. This literature review on the financial software Reckon discusses the history of the company from its inception in 1987 as a small scale business to acquiring some of the leading software in the market used for business process and bookkeeping like APS, and Shelco. This study also mentions the company's development by its major decision to migrate its application to the cloud, and the vast customer base it currently enjoys. Its current challenges mostly have to do with Payroll update and the problems are detailed. Reckon has many competitive advantages in the form of its products Reckon One and QuickBooks over its competitors like MYOB, Xero, Intuit, among others. Recommendations are made based on the challenges faced by the latest Payroll update, and user friendliness of the software. Literature Review History Going back all the way to 1987, Reckon was founded with a loan against an old Holden Commodore car and a credit card that was maxed out. It was the start of a small business. In 1993 personal financing software was released by Reckon dubbed as Reckon Quicken in Australia, and history was made. The Australian market saw business software being released in 1994 called Reckon QuickBooks. By 1998 Reckon expanded its business to Singapore and New Zealand. On 19th July 1999, the Australian Stock Exchange saw the stock price rise to 167% premium (Reckon Australia 2016). Reckon QuickBooks was selected by the PC Magazine as the Editors choice in 2000. In 2002 integration between Microsoft Office and Reckon QuickBooks was established through a strategic partnership with Microsoft. 2004 saw the acquisition of APS by Reckon. In the same year, Reckon QuickBooks was named Best Small Business Accounting Package by PC Users Top 100 products review. By 2006, Desktop Super, and Elite, which was tax so lution and small practice management was bought by Reckon. To start helping business with new company registration, Reckon bought Shelco. 2009 was a significant milestone for Reckon when it released Reckon Docs, used for business registration, and Reckon Billback, used by top law firms. The same year also saw a release of QuickBooks Hosted (Reckon Accounts Hosted as it is now called). In 2012 Reckon bought Virtual Cabinet online document management and Lindenhouse and renamed Quicken and QuickBooks. In 2013 Reckon SyncDirect was released. 2014 saw the end of the relationship of Reckon with Intuit Inc, USA, and the brand QuickBooks could no longer be reused (Allert 2015). 2016 saw the acquisition of SmartVault online document management; Reckon One Payroll module was released. The same year also saw the release of Reckon One online financial software launch in the UK. It has also launched Rocket Loans, in partnership with Prospa, a Deloitte Fast 50 winner. Development and Adoption Reckon One software has many happy customers in its testimonial. It provided customers the affordability to pay for the features they would use, which was quite useful for those running small businesses and wanted an easy way to watch financial report and the performance of their business. By utilizing the bank feed module and the built-in simple reporting, companies found huge cost savings in bookkeeping expenses (Reckon Australia 2016). When Reckon One adopted cloud computing, the companies saw taking more control over their finances. The invoices were emailed to the clients on the spot, they could run and view reports, and the dashboard view gave them a lot of control over their business, which increased productivity. As stated by Hossack (2015), Reckon was founded by Greg Wilkinson with a maxed-out credit card and a loan against an old Holden Commodore car 30 years ago. It currently employs over 500 people and is publicly listed on Australian Stock Exchange with good financial records. Even then, the company is still led by the entrepreneurial spirit and excitement that led to its inception. The company also employs futurists, designers and coders and a network of over 6000 partners in their active customer base (Fool.com.au 2016). Their aim is to move forward while doing continuous innovation. They have established themselves as the market leader in the following three core areas: Practice Management, Document Management and Business Solutions. Current Market Size Reckon APS, which is a practice management software after it has migrated to cloud it took a step ahead in the competition globe (Reckon Australia 2016). It is used for Practice Management and is used by 70% of the top 100 accounting firms and other leading legal firms across the. Reckons document management solutions like Reckon VirtualCabinet (for enterprises) and Reckon SmartVault (for professionals) have seen incredible growth (Smartvault.com 2016). Through this software over 560,000 documents were shared with users and used by more than 48,000 customers. Reckons software is utilized by thousands of businesses across the world. The company is also looking forward to their next-generation accounting software, which is Reckon One, and Reckon Loans for small business learning venture (Reckon Australia 2016). Present leaders in the market Currently, there are many financial software packages available in the Australian market for business managers to control their financial reports and records. There is free accounting software which requires no cost, but among paid options, there are some leading ones like MYOB, Intuit, Sage, Quicken/QuickBooks, Xero online, Cashflow Manager, Nominal, and Saasu. MYOB is battling for supremacy in the financial cloud market and confirmed details of its IPO in April. Intuit and Xero have opened their cloud services for the bookkeeping industry (Businessinsider.com.au 2016). Competitive advantage Every product of Reckon offers its set of benefits. Quickbooks, which is hosted by Reckon Online includes all the main functionalities with the ability to access data files of the company anytime and anywhere, resulting in improved productivity and efficiency. Other features that give it an edge ahead of its competition are Real-time BAS lodgement, automatic backup and disaster recovery, multi-company reporting, industry tailored solutions and more (cutcher.com.au 2016). Reckon One, the cloud accounting software can do far more than just business accounts. It provides flexibility by offering the modular approach, which means users can opt for any number of features they want and turn them off when they are not needed (Allert 2016).. Other features offered are invoice reminders for pending invoices, collaboration among users, mobility, syncing with bank feeds, has guaranteed compliance, better security with professional grade security technology and helps prevent fraud. Current Challenges Encountered and Literature Gap With the announcement that the 101 release of Payroll and enhancements to be delivered, it may come with not so good functionalities (Liburd et al. 2014). Payroll is one such feature where many small users struggle and the more user-friendly, the less complicated it gets. The current challenges are: It does not integrate Payroll values into the BAS reports. Navigation features of User Experience are still in need of more polish. General ledger posting accounts specification is very limited. Compared to MYOB Essentials, it used preset defaults without the need of any specification. The current process is quite complex when it comes to recording leave for employees and opening balances of pay. The Standard Pay Items are not preloaded and are to be setup from scratch (BIT 2016). Reckon One is lagging by two years behind Xero regarding add-ons and features and seven years in development hours, and by ten years behind Intuit regarding development time, but the gap is closing fast by releasing their updated payroll module (Growthpath.com.au 2016). Conclusion Reckon, the financial accounting software package company, may not be in the same league with MYOB, but it has certainly evolved a lot through acquisitions, a release of accounting products and re-brandings of its products over the years from its humble inception in 1987. The company still maintains the entrepreneurial spirit that led to its current success. Its development took an edge when it moved towards cloud computing with its product Reckon One, which offered some advantages of using cloud application and more. Its current market size explains itself with its Reckon SmartVault software used by 48,000 customers, and Reckon APS, which is by top 70 accounting firms across the globe. Its competitors are MYOB, Intuit, Xero, and more, but Reckon has been quite steady. It still has some payroll features to iron out which limits it from coming on to the top. Recommendations Reckon needs to focus on the userfriendliness of the Payroll system because small business depends on it as it is the only thing they struggle with. It needs to load preset defaults without the need of a specification like MYOB. Opening and closing balances must be quite simpler. References Allert, S. 2015.The accounting industry is changing - whether you're ready or not. [online] Accountantsdaily.com.au. Available at: https://www.accountantsdaily.com.au/columns/8104-technology-driving-change-for-accountants [Accessed 31 Aug. 2016]. Allert, S. 2016.15 Little Known Benefits of cloud Accounting Software. [online] Blog.reckon.com. Available at: https://blog.reckon.com/15-little-known-benefits-of-cloud-accounting-software [Accessed 31 Aug. 2016]. BIT. 2016.7 accounting packages for Australian small businesses compared: including MYOB, QuickBooks Online, Reckon, Xero. [online] Available at: https://www.bit.com.au/Review/344651,7-accounting-packages-for-australian-small-businesses-compared-including-myob-quickbooks-online-reckon-xero.aspx [Accessed 31 Aug. 2016]. Businessinsider.com.au. 2016. [online] Available at: https://www.businessinsider.com.au/charts-the-battle-for-supremacy-in-australias-cloud-accounting-market-2015-4 [Accessed 31 Aug. 2016]. cutcher.com.au.2016. [online] Available at: https://www.cutcher.com.au/files/docs/software%20flyers/reckon%20online%20for%20pc.pdf [Accessed 31 Aug. 2016]. Liburd, J., Chitayat, S., Crawley, S. W., Munro, K., Miller, E., Denis, C. M., ... Smith, S. P. 2014. Structure of the small Dictyostelium discoideum myosin light chain MlcB provides insights into MyoB IQ motif recognition.Journal of Biological Chemistry,289(24), 17030-17042. Fool.com.au. 2016.ASX:RKN (Reckon Ltd.) | Motley Fool Australia. [online] Available at: https://www.fool.com.au/tickers/asx-rkn/ [Accessed 31 Aug. 2016]. Growthpath.com.au. 2016.Review of Cloud Accounting (Xero, Saasu, MYOB Essentials, QuickBooks) | Business IT. [online] Available at: https://www.growthpath.com.au/Business-IT/review-of-myob-liveaccounts-and-xero-accounting-in-the-cloud.html [Accessed 3 Sep. 2016]. Hossack, S., 2015. Cloud-based accounting and productivity tools for practitioners and taxpayers.Taxation in Australia,50(5), p.265. Reckon Australia. 2016.About Us | Reckon. [online] Available at: https://www.reckon.com/au/about-us/ [Accessed 31 Aug. 2016]. Reckon Australia. 2016.AP- Reckon Australia. [online] Available at: https://www.reckon.com/au/aps/ [Accessed 31 Aug. 2016]. Reckon Australia. 2016.Timeline of our history | Reckon. [online] Available at: https://www.reckon.com/au/reckon-history/ [Accessed 31 Aug. 2016]. Smartvault.com. 2016.Reckon acquires SmartVault Corporation (USA). [online] Available at: https://www.smartvault.com/blog/2016/reckon-acquires-smartvault-corporation-usa/ [Accessed 31 Aug. 2016].