Friday, January 24, 2020

Compare and contrast the poems The Tyger and The Donkey and Essay

Compare and contrast the poems The Tyger and The Donkey and discuss which poet gives us the clearest depiction of humanity. William Blake is a wealthy, upper-class writer who separates himself from the rest of the wealthy community. Blake has a hate for the techniques used by many of the wealthy, company owners who gain and capitalise through cheap and expendable labour, supplied by the ever-growing poverty in the country. Blake makes a point to try and reveal this industrial savagery through his work. "The Tyger" is presented as a metaphorical approach to the struggle between the rich and the poor; good and evil. The several references to good and evil reinforce this idea and meaning. "The Tyger" holds one great metaphorical element, which is, what created the tiger? Good or evil? It raises many theories for the tiger's existence but the main point is to show that there is good and evil in everyone and everything. Blake shows us how something so beautiful can really be both beautiful but still retain a certain ferocity and savagery. Such as the wealthy factory owners of the 18th century, they offered a well-paid job and good employment benefits, but that was all just a faà §ade. The truth was cramped and dangerous working conditions, low pay and long hours; yet the people continued to labour in these factories at their own expense, while the wealthy owner sat back and watched workers toil and cash flow. The metaphor for this is like temptation, desperation and greed can lead people to be fooled, though true these people weren't greedy yet they were desperate for money to survive, although they could not judge correctly for themselves and became entrapped in the businessman's deception. Just like "The T... ...tent, the final stanza sums up everything within the poem, after all the questions it comes to a conclusion in the form of a final question: "What immortal hand or eye dare frame thy fearful symmetry?" "The Donkey" has a unique rhythm, one that also relates to the animal being referred to. The rhyme pattern imitates the donkeys walk, 1-2-1-2, this concept isn't easily recognised, but to notice it, shows the depth of the poem. Chesterton either included this simply by chance or meant to do it, which shows a strong backbone to his writings. Both poems are similar in many respects and both writers share common ideas, the use of animals to portray ideas and the views they have about human kind. Both "The Tyger" and "The Donkey" show elements of each other, and this is reflected in the writer, two great minds, with great mindsets on life and human kind.

Thursday, January 16, 2020

Analyse how information is presented in Tabloid and Broadsheet Newspapers

This essay will discuss in depth, the techniques both Tabloids and Broadsheets employ to present the information in their respective newspapers. The definition of a Tabloid is a small sized paper with many pictures, whilst a Broadsheet is generally a larger sized paper with a focus more on text than pictures. Size is not the only topic that will be covered in the essay; this essay will also explore the use of language of a paper, the main conventions of a paper such as The Headline and puffs, the use of visual effects such as pictures, adverts and special features such as double page spreads. The title poses the question of â€Å"how information is presented in Tabloid and Broadsheet newspapers†. From the Masthead to the Article the reader is inundated with information, this comes in many forms depending on the paper and its format. Tabloids utilize a number of methods for the transfer of information; this could include the use of Headlines, pictures and use of Language. The use of pictures in Tabloids is crucial to their success and popularity. Like most points the use of Pictures is important but is complimentary to another aspect of Tabloids and would not have nearly the same amount of effectiveness without the other conventions of the paper. The expression that a picture is worth a thousand words is not to be underestimated when examining tabloids. Tabloids often pick their pictures specifically for the type of story they want and more importantly the stance they want to take for this story, for example the picture featured in the Daily Express 6 September 2005 depicted two heavily armed police officers in the recently devastated city of New Orleans. This greatly complimented the article which even though reported on the recent disaster of Hurricane Katrina focused more on the lack of security forces in the area and the actions police had to take to keep control over the general populous. The picture itself did give the reader a feeling of the type of place New Orleans now was, that being a very dangerous one, and so in that sense the picture succeeded in rousing some sort of emotion in the reader before even having set about reading the text. The picture was very sensationalist as was the language and so the two complemented each other perfectly. This use of pictures to complement articles by giving the reader an insight on the article subject is common practice by both Tabloids and Broadsheets. But it is Tabloids who take it one step further and use pictures to stir emotions within the reader which to some extent subsidises and even does away with the need for emotive language within the article but not altogether. As pictures still do in many cases support the text. Everywhere we look on a paper we are consciously or subliminally gathering information. When a reader sees a masthead such as that of The Sun they have already gained information on the kind of paper it is and therefore what kind of stories it features. The Sun's masthead for example with it's big and bold white font set on a bright red background suggests that the paper is cheerful, not too serious and is a light read. This information can be gathered simply by the connotations that the actual masthead emanates as well as the simple preconception that the reader has from hear say and maybe previous experience of the paper. One of the main aspects of Tabloids is their use of Headlines and Sub-titles. Tabloids are shrewd in the art of Headlines, they are artful manipulators of language and this is one of the main â€Å"weapons† in their â€Å"armoury†. The Headline is one of the first things a prospective customer sees when browsing through the racks of papers, if the headline sounds appealing then hopefully the paper will be just as good, a lot of Tabloid sales depends on their headlines. Tabloids use such techniques as puns, rhetorical questions, alliteration, assonance and more. These techniques make a headline appealing to the reader and therefore make the paper more appealing, for example, â€Å"Runaway Roadent Rescued† this is a pun regarding the story of a hamster finding its way onto a road and being rescued by a passer by. This play on words is typical among Tabloids but that particular quote was from the 25 September 2005 Sun newspaper. This is directly linked to the use of language in newspapers and also the type of information in newspapers as the headline dictates what the article will be and vice versa. By far the most relevant part of the Tabloid is the news or information which is represented by its use of language. Language plays a critical role in the composition of a Tabloid. As with headlines, techniques such as puns and alliteration are common place within the articles of such Tabloid papers as The Sun and The News of The World. The type of language used in Tabloids can be most easily defined as Sensationalist. This is when the journalist or newspaper use lurid and often exaggerated material in this case, as its general style to gain public attention or sales. This comprises all writing techniques exploited to gain readership. Being sensationalist might also include focusing on one side of the article as is the case with the article from The Daily Express 6 September, in which the article was focused mainly on the action of the police and on the aggression posed to George W. Bush by The Louisiana Senator; † yesterday threatened to punch President Bush if he repeated his accusation that the local sheriffs had failed in their duty†¦ â€Å", this type of focus is another common characteristic of many tabloids who cannot seem to give an unbiased judgement on any situation. In most Tabloids you would find such words and phrases as; â€Å"living hell†, â€Å"boozy† etc. It is not uncommon for Tabloids to coin their own phrases for events, these phrases sometimes get adopted by the mainstream media and sometimes even broadsheets, for example: the very recent events about Roy Keane and his propose move from Manchester United has hailed a new nickname for him thought up by tabloids, The Sun â€Å"Don't leave Keano† as its headline. While in October 2, 2005 The Observer its opening statement on the story was â€Å"Whatever the future for Keano, Manchester United†¦ † There is a great difference between the average article lengths of Broadsheets and Tabloids. Generally Broadsheets would have the longer more analytical articles whilst Tabloids would stick to their more bias based short articles unless the subject matter is about a scandalous celebrity in which case you would be lucky to see such an article in a Broadsheet unless it really was big news, whilst Tabloids would devote a two page spread no doubt with a big compromising picture of the celebrity in question. The language used is casual, colloquial and often slang. This is how we would talk when addressing friends and so in using colloquial language the Tabloids are only reinforcing their friendly, cheerful image. Opening paragraphs are common place and another main convention in all papers. Their purpose is to give the reader a quick summary of the article topic whilst simultaneously introducing the article. Opening paragraphs do not differ very much between Broadsheets and Tabloids apart from the type of language used in them. Tabloids generally have more action orientated opening paragraphs, a good example of this would be in The Daily Espress September 6; â€Å"BATTLE-hardened Iraq war veterans were among 40,000 troops patrolling America's stricken Deep South last night as the rule of law at last began to be reimposed. This as an opening paragraph was very action orientated, in the quotation itself please note the â€Å"BATTLE†, the first word being in block capital letters, this was the newspaper itself wishing to obviously highlight this feature. This is not uncommon in Tabloids whose readers skim through the article at best and rely more heavily on the opening paragraph as an insight into the article itself, this action orientated opening was fully intended by the Tabloid and was there to catch the reader's eye with its Capital letters and its manipulative placing. Broadsheets generally keep their opening paragraphs brief but use more narrative techniques. In The Daily Telegraph, September 6 the article starts of with a quote and goes on to describe the scene following Hurricane Katrina; † as the familiar battered blue Buick station-wagon of her neighbours lumbered into their water-logged street for the first time in over a week. † This type of writing is familiar in Broadsheets who introduce the article in a more composed way so as to avoid both bias and proceed to the analytical approach that many Broadsheets take in their articles. Vocabulary in both Broadsheets and Tabloids vary depending on the paper. Generally Tabloids arguably have a more primitive use of vocabulary while Broadsheets have a more developed use of vocabulary. Quite simply Broadsheets use longer and more complicated words than Tabloids but Tabloids have an excuse. The average reader of a Tabloid is arguably Middle to Lower class, people who want a light read with not too much analysis and intense storytelling which is what papers are, storytellers. So the Tabloids mitigate their vocabulary so as not to offend any lower class readers who did not get the same standard of education as the average reader of The Times for example who is probably from a Middle or Upper class family and might have gone to a good Grammer or Public school therefore receiving a higher quality of education than his Sun reading counterpart. This is all a generalisation and therefore not a totally accurate view on society and who reads what paper, it is a mere illustration of the typical reader of certain Newspapers. Broadsheets on the other hand have an extended use of vocabulary and therefore one can conclude that the average Broadsheet reader is probably not poorly educated and therefore of at least a high lower class background. But the one aspect of all this that is an anomaly is that Tabloids use their language in a more manipulative and therefore intellectual way. The ability to use such techniques as puns and alliteration in an article is a very advanced use of language. This shows that even though on surface Tabloids use less sophisticated language they are really very shrewd manipulators of language. Such as the Tabloid the ever closer to extinction Broadsheet is a newspaper, and as the name suggests its main purpose is to inform the reader of yesterday's events. This is a big problem for Broadsheets, the fact that we now have twenty four hour news stations working tirelessly round the clock to give the news to the public the minute it happens is posing a threat to Broadsheets. Tabloids on the other hand rely on their light read and fun loving image to sell papers, but Broadsheets have an ever growing task ahead of them. As with most papers the masthead is the first factor that gives off information. With The Daily Telegraph for instance, the paper gives off the connotations of being honest, conservative, traditional and important news not to mention being daily. All of these features make up the image of the paper and obviously that is the image that most people get when thinking of The Daily Telegraph with its traditional but automatically recognisable font. This is correlated with the use of language in a paper as the masthead is an indicator of the general readership of a paper which determines the type of language used in the paper. Comparable to Tabloids the Broadsheet sells on its Headlines and subtitles. Instead of using puns and word play to attract customers it uses comparatively normal headlines and rarely utilizes puns but on occasion does use alliteration. Broadsheet Headlines are a lot more narrative than those of Tabloids, the story rather than relies on opinion and sensationalism, e. g. â€Å"New Orleans was living hell† and â€Å"Families go home to pick over the remnants of ruined lives†. The former of the two quotations is from The Daily Express while the latter is a headline from The Daily Telegraph, both of whom were some might say surprisingly reporting on the same story, The New Orleans disaster. As the quotations illustrated, Tabloids make use of a variety of techniques when composing their Headlines while Broadsheets generally simply tell the reader the subject matter of the article in more sophisticated methods than as was described. This is directly linked with the language used in Broadsheets as the Headline is an indicator of the complexity of the language in the article. The language used in the Articles of a Broadsheet like The Headlines differ to those in a Tabloid. Whilst in Tabloids you would expect to find colloquial and rather simple use of language, Broadsheets are very different in this way. They are analytical in their approach to the subject and without any bias unlike Tabloids. Broadsheets use more complex language with a more narrative style of writing rather than the sensationalist style you would find in a Tabloid. There is also a great contrast in the coverage of a story. In the Tabloid the article was firmly set around the law enforcement in New Orleans centring mainly about issues of action, as well as being very brief partly because there is only so much coverage you can give to the security forces when there is a noticeable lack of them. In the broadsheet article covering exactly the same story, The New Orleans disaster, the article is focused more on the victims and their loss post hurricane period rather than the security situation. The article is analytical offering a post hurricane analysis of all the key individuals to do with the matter. This is complemented by the more sophisticated use of language. The length of the Article is also a lot longer than that of the articles in Tabloids. Tabloids generally report directly on the story while Broadsheets analyse the story. A good example of this would be the recent hijacking of a British tank in Iraq. The Tabloids reported on the story itself and on how the soldier involved was a hero, while The Broadsheets analysed the whole episode, reporting on the story, analysing on why it happened, how it happened giving a step by step account on the days proceedings and the consequences of those events. Tabloids usually hone in on a single story while Broadsheets try to give an analysis on the â€Å"bigger picture†. The differences between Tabloids and Broadsheets are wide and varied. Tabloids are a modern creation, created to contend with magazines rather than the traditional news, they are popular newspapers simply because to find the news the average person can simply turn on the television and any relevant stories will be on. This is how Tabloids can be so successful in today's markets, they do not bother competing with giving the news instead they give opinion and stories the public want, another reason why Tabloids spend so very much money on exclusive scoops such as the recent wedding of Katie Price (Jordan, Glamour model) and Peter Andre (pop-singer). Broadsheets on the other hand are a victim of circumstance. The world has been changing in the last century and they have been slow to pick up on this, this is a simple answer to their dwindling sales, but they are good at what they do. They give out opinion as well but for the reader's benefit, it is often thought provoking and welcome by the reader, not subliminal and unknown like the case is with Tabloids. Broadsheets are sophisticated newspapers who give the news in its best possible way, refined and with a touch of sophistication. In conclusion the way information is presented in Tabloids and Broadsheets are varied and quite unique to their respective formats. Tabloids are cunning and develop their stories through their many techniques. Broadsheets are equally if not cleverer than tabloids and still retain their dignity and self worth, but they are fighting a losing battle against todays on the spot news broadcasting. They still have a devoted readership and hopefully a growing one but in the media world it truly is survival of the fittest and Broadsheets are only now realising that evolution is the answer even if it does mean the alienation of a small percentage of their readership.

Wednesday, January 8, 2020

Financial Crisis Is A Disruption To Financial Finance Essay - Free Essay Example

Sample details Pages: 11 Words: 3312 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? A financial crisis is a disruption to financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities (Mishkin, 1992,p. 115). The term financial crisis describes the several situations where financial institutions lose their values. Financial crisis are related to defaulting, subprime, currency crisis, stock market crashes, banking crisis, recession, securitization, wrong rating, common chocks and many others. Many empiric models have tried to explain the financial crisis. Principally, the first, second and third generation and the non-conventional models should be taken into account. The models examination started since 1979, by way of the first generation models that describe the unstable financial crisis, as an anticipatable but unavoidable event, resulting from the changeability of monetary policy with the exchange and fiscal rate. The second generation models existed in the mid-80, where anticipations examine the act of the auto crisis, where a financial crisis may or may not happen. The third generation models appeared after the East Asia financial crisis and join the economic crisis and the delicacy of the financial sector and infection from other countries (Ramrez et al., 2008). Kaminsky Reinhart (1998), state that the second generation models cannot be used to explain other financial crises where the trade balance is not an indicator of monetary crisis, as well as the first gener ation models. In addition to all that, regarding the non-conventional models of financial crisis, the events of the 90ÂÂ ´s financial crisis have encouraged the improvement of models in order to convey an empiric action which helps understand and simplify these events; and try to reduce the adverse impacts on the economy (Ramrez et al., 2008). Don’t waste time! Our writers will create an original "Financial Crisis Is A Disruption To Financial Finance Essay" essay for you Create order The latest credit crisis started in 2007 in the subprime mortgage market in the United States. The term Subprime describes the classification of the mortgagees who are not qualified for prime mortgage rates. The reason is their poor and impaired credit history or low income. Their low credit put forward for consideration that they are risky costumers because they are more likely to default on paying back the dept. Subprime lending carry more credit risk (or default risk) and a very high interest rates. Some mortgagees are considered as subprime borrowers even with their good credit history since they did not provide enough verification of the assets or income while applying for a loan. Taking for example, an employee who has a good salary and a good credit history (with no existing liabilities, charge offs, payment delinquencies or a low credit scores) applied for a loan but has elected to not provide the needed verification of her income. This costumer will be considered a subprime and charged a higher interest rate on the loan because she is considered a risky borrower who has a chance of defaulting (Subprime Lending, 2001). Many previous studies considered the factors and the aspects of the subpime mortgage crisis. Velde, in 2008, implies that the financial crisis is producing a slowdown in most developed countries and segments, and governments predict that the worst is not yet over. All regions have suffered declines in growth. According to World Bank estimates, the global economy contracted by 1.7 per cent in 2009, the first decline on record in world output (World Bank, 2009). Moreover, the UNCTAD, in 2009, explained that the risk of falling into deflation cannot be treated as unworthy of serious consideration for many chief economies and that the basis causes for the crisis should be identified. 1.1_Purpose of the study Financial crisis take place at the economic and the banking level. Since both a countrys economy and its banking system have a major effect, directly or indirectly, on the citizens budget, and thus, on their entire life, it is important to understand the different aspects of a financial crisis. The latest crisis was nothing like any other that happened before. Therefore, this study will shed light on it and comprehensively discuss the different factors that have contributed in the subprime mortgage credit crisis, its consequences and the policy responses. Chapter Two: Literature Review 2.1_Economy and the Banking Systems There is no strong country with a weak economy. The development of the financial position of public and private sectors in a country in addition to the average development of the financial position of each individual, which represent the Gross Domestic Product (GDP), determine the economic growth. The comparison between the economic growth of a country and that of its competitors identifies the local growths that are made or kept up. If there is no growth, or the economy is growing really slowly, then this is going to significantly have an impact on business strength. An economic growth can offer improvements in all the countrys segments. Even a small rise in annual economy can have great impacts thereafter. In addition to that, an economic growth lead to a human development, there is a strong relationship between economic growth and human development which shows the importance of a strong economic system (Ranis et a.l, 2000). The economy cannot operate unless being accompanied with the banks. The health of the economy is strictly associated to the soundness of its banking system. The banking system has made the personal transactions and the improvement of agriculture, industry and trade easier. Simultaneously, it made to economic development easier as well. The banking system plays an important role in the mobilization of savings; resources are organized by banks and as the banks deposit is liquid so people are able to get money even in crisis. The banking system have also a role in capital formation; it is essential for improving the economic state of a country which leads to a better employment rates and a better degree of material comfort available to a person or community. Regarding the promotion of employment; banks support the economy by reducing the level of unemployment since they give loans self-employers, manufacturer and businessmen to start or expand their businesses which create more job oppo rtunities. Therefore, a good banking system and economic growth support and encourage entrepreneurship. Furthermore, banks play a role in the safety of wealth; banks keep peoples money safe which lead to more savings. Lastly, banks help transfer money and make transactions in distant countries without difficulty which enlarged trade and market. C:UsersdayanaDocumentsMUBSseniornew articlesimportance Role of Banking System in the Economy 2.1.1_Financial Crisis and the Economic and Banking Systems The latest subprime mortgage crisis which started in 2007 caused the global economic system to tremble. It began in the financial sector and had a major effect on the economy. More essentially, the crisis spread widely and unexpectedly. Researchers, internationally, tried to find out how to stop the crisis of happening (European Commission, 2009) or how to reduce its possible impacts. The financial sector was well known to be very exceptional. Banks have several roles in the economy and are critical to the financial system and the real economy too. Above all, they perform an important role in corporate governance. Banks increase a big portion of their capitals by demandable deposits and investments in long-term assets. The maturity does not match between their assets and liabilities and their joinable through the interbank markets and the payments system, however, reveal financial institutions to the risk of insecurity and systemic crisis. Additionally, the good dependence on leverag e and property information that banks hold on their borrowers and mortgagers may convince them to take too much risk (OECD, 2009). 2.2_The Subprime Mortgages Crisis In the summer of 2007, subprime mortgage crisis was a widely used term to refer to the U.S. mortgage market, and losses from mortgage backed securities (MBSs) and collateralized debt obligations (CDOs) backed by subprime mortgages (kirk, 2007, p. 1). Mortgage-backed securities were the basis of the problem that caused the latest financial crisis. Mortgage-backed securities are a type of bonds issued by governments and firms who repay its holders a stable and constant interest rate for a distinct period (Chadda, 2008). 2.2.1_Types of Subprime Mortgages There are different types of subprime mortgages. They can be categorized in three types. The first type is the Interest-only mortgages that let borrowers pay just interest for a defined period (usually 5-10 years). The second type is the Pick a payment loans that let borrowers choose their monthly payment which can be full payment, interest-only, or a minimum payment (may be lower than the payment required to decrease the balance of the loan). The third and last type of subprime mortgages is the Initial fixed rate mortgages, it can be changed to variable rates (Chadda, 2008). 2.2.2_The Securitization of Subprime Mortgages Securitization is the financial practice of pooling together different types of assets and offer them as interest-bearing collateral for third-party investment. It first began in the 1970s in the US (Jobst, 2008). Lenders/originators often securitize mortgages into MBS bonds sold to investors. Payment of interest and principal on MBSs derive from the borrowers payments on the mortgages backing the bonds (Kirk, 2007, p.3). Securitized subprime mortgages (as MBSs) are distributed into portions of bonds so as the cash flow from the bonds may go well with certain investment necessities. Every portion is given a credit rating by rating agencies. By this credit improvement process, MBSs backed by subprime mortgages may get investment grade status in spite of the basic collateral is a poor quality. MBS bonds are paid in order of seniority, and more senior bond portions pay before lower portion. In case the cash flow received from the basic mortgages is not sufficient, then lower portions may not be paid. Taking into account, that the lower portions of the bonds have a high risk that they will not be paid, they obtain higher returns and profit. Higher risk means higher return. Furthermore, investment banks have securitized lower level portions of MBSs into collateralized debt obligations (CDOs). CDOs create portions for their bonds as well. Investment banks have been capable to get the highest credit rating for senior CDO portions despite the fact that they have MBS bonds ranked lower than the investment rating. In addition, MBSs and CDOs are hard to be rated because they are not sold or bought on dealing markets, this is why investors rate their MBS and CDO bonds according to how much they estimate these bonds are priced in the present-day market. Investors have to rerate their securities in case the defaulting level on paying back the interest and principal payment goes up and the liquidity goes down. This can result in cash or in collaterals via entities that borrowed money to the investors with the intention of investing in the MBSs or CDOs (Kirk, 2007). 2.2.3_Risks Associated with Subprime Mortgage Crisis There are four types of risks related to subprime mortgages and can cause a subprime crisis. The first risk is the credit risk; it is borne by the lending financial institutions and it represents the potential that the issuer of a debt security (in this case MBS) will not be able to meet its obligation to make periodic interest payments or repay principal to investors. In order to reduce the lenders credit risk, the lender may perform a credit check on the borrower or seek a third party guarantee. The second type of risk is the asset price risk; it is about the valuation of MBS, if it will be capable to overcome the credit risk or not. However, valuation of MBS is a personal perspective. It is resulted by computing the chances of subprime mortgage beside the presence of viable market into which these assets can be sold. Because the mortgage delinquency rates are rising, the MBS value began to decrease. Nevertheless, Banks and Institutional investors have recognized significant losses on adjustment of their securities downwards because of Mark to Market accounting. This is caused by asset price risk. Thirdly, there is the liquidity risk; it is on account of decliner of liquidity in market on account of the two risks previously mentioned. Many firms depend on access to short-term funding markets, such as commercial papers and repurchase market, in order to run their operations and make profits. Frequently, firms get short-term loans through issuing commercial paper by pledging MBS. Investors deliver cash in interchange for the commercial paper, receiving money-market interest rates. However, concerning the value of the MBS due to subprime crisis, the capability of many companies to issue such paper has been considerably impacted initiating liquidity risk. The last type of risks is the counterparty risk; it is on account of associated parties impacted by the brutal circle of subprime crisis. Investment banks support firms and governments increase money by issuing and selling securities in the capital markets, whether they are equity or debt, besides giving advices on transactions. Foremost Investment Banks and financial institutions have taken important positions in credit derivative (MBS) transactions. However, concerning the previously discussed risks, the financial health of investment banks has taken a southward position, possibly bringing a higher risk to their counterparties and creating additional uncertainty in the market (Chadda, 2008). 2.3_The Fluctuation of the Subprime Mortgage Market 2.3.1_Subprime Boom In the early years of this decade the residential and property prices went up, and securitization supplied more capital for mortgages, criteria level was deteriorated by lenders in order to issue more mortgages. Simultaneously, investors asked for higher returns on their investments and asked more for MBSs and CDOs backed by subprime mortgages. Between 1995 and 2005, subprime mortgages upraised from 5 to 20 percent of the mortgage market. In 1994, $35 billion were made in subprime mortgages, and by 2006, that number had risen to more than $600 billion. Moreover, between 2003 and 2006 AMP initiations were triplicated for residential mortgages. The most important cause for this boom seems to be the rise in the securitization of mortgages. Securitization supplied financiers with supplementary capital in order to issue extra mortgages, as well as a greater amount of AMPs, and to move the default risk to investors (Kirk, 2007). 2.3.2_The Deterioration of the Subprime Market It seems that the latest subprime mortgage crisis was due to a mixture of industry changing with both financial and economic aspects. In 2006, interest rates went up whereas the housing value fell. Some borrowers could not pay their obligations and were incapable to refinance or trade their houses in order to repay the mortgages. Additionally, in 2006 and 2007, borrowers faced payment chock because teaser rates went down and other higher inconstant rates came to be operative. Consequently, the rates of defaults on subprime and mortgages went up considerably in 2006 and 2007 as well as early payment defaults in 2006. Many lenders went bankrupt because they couldnt afford the repurchase of mortgages. This increasing in defaults has led rating agencies to reduce the rating level of MBSs and CDOs backed by subprime mortgages. Thus investors were at a loss and since the financial markets were insecure and unstable regarding the value of these securities and losses, the liquidity was affec ted. Several reporters expect that the losses would go above $100 billion (Kirk, 2007). 2.4_Countries at Risk The latest financial crisis had major effects on developing countries. Some types of countries are more expected to be at risk. The crisis has further effects on countries with important exports, whether direct exports or indirect, to other affected countries like the United States and European Union countries. Other countries are those exporting products that their prices are impacted or those with high income pliability; taking for example, Zambia would eventually be hit by lower copper prices, and the tourism sector in Caribbean and African countries will be hit (Velde, 2008, p.4). In addition to that, countries that depend on remittances are also affected. Countries depending greatly on FDI, portfolio and DFI finance to address their current account problems should be also mentioned besides the countries with sophisticated stock markets and banking segments with weakly regulated markets for securities. Besides, countries with a high current account deficit with pressures on excha nge rates and inflation rates (Velde, 2008, p. 4) are also included; South Africa cannot meet the expense of decreasing interest rates so it has to draw investments to address its current account deficit. And finally, countries those have high government deficits and countries that rely on aid (Velde, 2008). 2.4.1_List of Affected Countries According to the Publications Office of the European Union, in 2012, the countries affected by the subprime mortgage crisis are: Belgium, Bulgaria, The Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, The Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden, The United Kingdom, Croatia, The former Yugoslav Republic of Macedonia, Iceland, Montenegro, Serbia, Turkey, The United States of America, Japan, China, EFTA, and the Russian Federation 2.4.2_Social and Economic Effects Even though the effects change from country to country, but there are common economic and social effects that can be generalized and applied for all affected countries. The economic Effects include a decrease in the returns from exports, more stresses on current accounts and payments balance, the rates of investments and GDP go down. While the social effects include an increase in poverty rates due to the decrease of the GDP, a larger number of committed crimes, a fragile health system and fewer opportunities to fulfill the Millennium Development Goals (Velde, 2008). 2.5_The Size and Length of the Contraction The variety of previous crises means that averaging them to get an approximation of the possible effects of the crisis could be ambiguous. But as a substitute of considering these variations a negative aspect, it should be considered as an opportunity. This could happen by using the variance through time in order to comprehend the elements of the length and cost of the contraction following crises by conditional models. The goal is to have a better comprehension of the length and relentlessness of the existing contraction. (Cecchetti, et al, 2009). 2.6_Lebanon Facing the Financial Crisis The MENA region was affected by the subprime mortgage crisis just like other developed countries. These effects took place on many networks and they included terms of trade, capital inflows, tight credit, economic slowdown, higher unemployment, lower hydro carbon prices, and the bursting of real estate and stock market bubble (Byblos Bank Group, 2011, p.1). The latest financial crisis created a major external risk of remittance inflows to Lebanon lately. These inflows were affected briefly and limited at the beginning of the crisis.in the MENA region, Lebanon was the solitary country which was affected positively by the crisis, the GDP showed a raise of 1.3%. In addition to that, despite the insecure state of the country, Lebanon could manage to positively relate the remittance inflows and the risks that the country faced because of the political issues. Throughout the crisis, GCC economic risks went up, and the remittances inflows went up as well. Late 2009, comparative to the GDP, Lebanon was biggest receiver of money transferred by foreign Lebanese workers. It was the center of remittances inflows (Byblos Bank Group, 2011).///////////////////////////////////// Lebanons economy has shown remarkable resilience to severe shocks, thanks to a credible monetary policy, a stable currency, prudent banking practices, including the separation between retail and investment banks, and sound public debt management declared the Central Bank Governor Riad Salameh (Salameh: Lebanon endured, 2012, p.2).////////////////////////// 2.7_Gaps in Literature After reviewing several studies, articles and reports regarding the subprime mortgage crisis and related subject as well, many information gaps were present and need to be filled. The main gap is the data gap; there are no enough researches that give accurate numbers and results. Better researches should be done on the credit default exchange markets. In addition, the data on financial institutions activities were weak. The number of countries that reports their data was not fully complete; data on some countries (related to the topic) were missing or weak (IMF Staff and the FSB Secretariat , 2009).