New Surgical Technology: Adoption or Diffusion? Essay

This article raised an interesting subject: surgeons and patients seeking improved treatment often forget that a new technique is not necessarily a better one. Human body with its health problems remains the same but the surgical technology is always moving towards progress. People develop new surgical tools and new surgical procedures constantly. However, do we carefully test all these new tools and procedures before using them on people? And how? On humans? On animals first perhaps? Is it ethical? How do we know that new tools and procedures are better than the existing ones? Too many questions†¦ New surgical technology promises improved patient care and, therefore, surgeons may hurry to adopt it despite little evidence or their advantage over existing procedures. Surgical procedures that are later found to be ineffective waste resources and endanger lives. Anything new must be carefully tested and proved in fact to be better. Therefore, the key to this problem is a cautious and total understanding from the surgeons and the patients of why such new procedures come to be offered as treatment. Let’s look in detail how this new medical technology gets adopted in the US. It may come in the form of: * a drug * a device * a procedure * a technique * a process of care For the surgical technology in particular, new things come in the form of a new procedure that uses existing devices or drugs, or an existing procedure that uses new devices. Before adopting any new technology, people should seriously consider the following factors: * Will this new technology improve the quality of clinical care? * If found successful, will the inventor promote its rapid adoption? * How widely this new technology will be distributed? * Will it pass all known and potential barriers for adoption, (financing, marketing, etc.)? * Is it compatible with the existing technologies and operating rooms? From all of these questions the main factor is always the same: the new technology MUST improve the quality of clinical care for patients. If this precondition is not satisfied, the technology should be abandoned: even a logical and scientifically positive attitude is no substitute for proof in practice. There were cases where surgical technology that was quickly adopted without evidence of its relative benefit, was abandoned after careful examination. For example: In 1964, Dr. Smith reported that injecting the enzyme chymopapain into an intervertebral disc relieved pain caused by herniation of the lumbar disc. In 1989, the American Medical Association’s diagnostic and therapeutic technology assessment group questioned the effectiveness of the procedure and raised concerns about its safety. Their evaluation showed that, compared with placebo or no treatment, chymopapain was effective in only selected patients. In addition, when it was used by less experienced surgeons some patients had serious complications, including allergic reaction and even damage to the spinal cord. I feel positive about innovation in all fields especially when people can improve the quality of life by repairing and healing the human body. However, before adopting any new technology in the operating room, it should be offered to patients for a trial period. Also surgeons shall carefully watch and study this procedure being done numerous times, and if it can be supported by the already existing equipment and the existing operating rooms. Do we ask the patient about the convenience or improvement by the new procedure or equipment? Of course! He is the one on the operating table putting his life in the hands of the surgeon. Surgeons always like the new technology if it can be easily and quickly understood, and added to their existing practice without waste of time. If the input to their practice is great, surgeons will invest more time and effort and disregard disruption of their routine day to expand the competitive advantage that a new technology offers. What I learned from this article is the use of new surgical technology has the potential to provide patients with the best possible care. On the other hand, if the new procedure or instrument were not carefully tested and approved, it ruined surgeon’s reputation, wasted resources, and caused harm to patients. Surgeons and institutions must not adopt a new technology without solid evidence of its efficiency and superiority over existing ones. In reality, quite a few innovations in medical technology were often adopted without enough evidence and testing and this was wrong. No matter how good the surgeon’s skill and ability to perform a procedure, it is wrong, if the procedure should not be done in the first place and may potentially harm the patient. Source: Article from BMJ : British Medical Journal 2006 January 14; 332(7533): 112-114. Editorial by Gabbay and Walley and pp 107, 109. Contributors and sources: CBW is senior adviser for the Health Technology Center and senior fellow at the Institute for the Future in California. ————————————————- References: McCulloch P, Taylor I, Sasako M, Lovett B Griffin D. Randomised trials in surgery: problems and possible solutions. BMJ 2002; 324: 1448-51. [PMC free article] [PubMed].

Late Adulthood and End of Life Paper

Late Adulthood and End of Life Paper Late Adulthood and End of Life Paper Throughout a human beings lifespan, an individual experiences many pivotal changes both physically and mentally. Of all of these life stages, none is more difficult a reality as late adulthood. Individuals are given a taste of youth and vitality, and must watch as it is slowly taken away. In some cultures, the elderly are treated with respect and care, and in others, the elderly are considered a burden and receive little respect and poor care. How do perceptions of death and dying vary from culture to culture? The ancient Egyptians spent their entire lives preparing for death and the afterlife, but how do other cultures perceive these experiences? To gain a better perspective on late adulthood and the end of life, this paper will provide information on the areas of concern during these life stages such as health and wellness, stereotypes associated with late adulthood, and cultural view of death and dying. Health and wellness in late adulthood As individuals age the human body experiences many physical and mental changes. Aging or senescence represents these changes that the human body goes through which diminishes the body’s capacity to regenerate making it vulnerable to illness and disease (Berger, 2008). According to Berger (2008), â€Å"Gerontologists distinguish between primary aging, the universal changes that occur with senescence, and secondary aging, the consequences of particular diseases† (p. 620). The physical changes associated with aging are typically gradual with noticeable declines in hearing, vision, taste, and smell (Mesa Community College, 1997). In addition to the decline in sensory functions, some elderly individuals experience more prominent health concerns such as high blood pressure, high cholesterol, and a decrease in lung function. Other more serious health concerns that typically arise in late adulthood are those of cancer, heart disease, and Alzheimer’s. Often depression can be a main contributor to failing health as increases in health issues and experiencing the death of family and friends makes one’s own mortality more apparent. Not all individuals in late adulthood suffer from these health ailments. There are numerous lifestyle factors that can contribute to illness, and can be altered to provide an individual with a healthier more active life. There are numerous simple lifestyle changes an individual can make that can assist in his or her health and wellness and also decrease some of the negative effects of aging such as healthier eating habits, exercise, and regular medical checkups. Healthier eating habits involve consuming the proper amounts of fruits, vegetables, whole grains, dairy, and protein every day. Balanced meals and healthy snacks can increase energy and ward off potential illness and disease. Exercise is also an important factor in contributing to wellness in late adulthood as exercise increases blood flow, builds healthy heart muscle, increases lung functions, and increases mobility. Mobility is often a factor in older adults who become sedentary causing muscles to atrophy and increase the likelihood of blood clots and heart-related problems. Routing medical checkups can also promote health and wellness by monitoring current medical issues and diagnosing new health issues. This allows doctors to diagnose properly and treat illness and disease early. Ageism and stereotypes Ageism refers to prejudice against elderly individuals by the use of stereotypes. According to an article provided by Net Industries (2011), â€Å"Ageism occurs throughout society in varying degrees, in television, advertising, movies, stores, hospitals, and jobs† (p. 62). Society assumes that with the increase of age comes a decrease in faculties, which is an assumption that is not always true. Younger individuals typically hold negative stereotypes regarding elderly people (Net Industries, 2011). Often older individuals are considered to be slower, more costly, and less adaptable to change than younger individuals making tasks such as finding employment and receiving equal treatment difficult. According to an article provided by Net Industries (2011), â€Å"Studies consistently demonstrate that there is no correlation between age and job performance, despite the common stereotype that productivity declines with age. Indeed, research reveals that some intellectual functions may even improve with age† (p. 62). Often older adults are treated as children by society making assumptions of their abilities and mental functioning. Viewpoints of death and dying Death at any stage in life is personal and holds different meanings to different people. Society places a great deal of meaning on death based upon age, situation, and their personal experiences and beliefs. The viewpoints of death and dying in early childhood are limited; however, children have a basic understanding of death by the age of two through their own observations of family members (Berger, 2008). Children who are dying often fear death as they do not have a fully developed concept of dying and associate death with abandonment (Berger, 2008). At this life stage, it is important to have guidance from his or her parents to gain a better understanding of death and dying. Death and dying in adolescence is often a second thought as adolescents in this life stage place less value on life and ore often reckless and irresponsible with their lives and the lives of others. A different viewpoint of death and dying is seen in adulthood as the reality of their own mortality is acknowledged and the lives of their family members. Typically adults do not fear death because of maturity and knowledge of death. The fear and concern is for leaving unfinished business such as raising their children. Anxiety builds in adults regarding death as they come to the realization of their age and becoming closer to death as they continue to age. Adults have established a healthy respect for life and the tragedy of death. In late adulthood, older adults have the least anxiety about death and dying as they are aware of and accept their mortality and often have an established spiritual belief of an afterlife after their mortal death. Often death is associated with relief when an older adult has a serious illness or a great deal of physical pain or failing mental health. Cultural attitudes towards death and dying Attitudes toward death and dying are often different based upon cultural and religious differences. Some cultures base their feelings toward death on spiritual beliefs whereas other cultures believe in a higher power and a promised eternity. In Buddhism, death is just a process in which an individual must endure to be reborn (Berger, 2008). Buddhists do not dear dying but believe that it brings peace and enlightenment. In Hinduism, death is also a process of new life. Death involves the entire family preparing for their loved one and bear witness the individual’s descent to rebirth. In Judaism, little significance is placed on the physical body of an individual. Individuals are buried within one day after death, and the individual is mourned by family and friends together at home for one-week (Berger, 2008). Jewish individuals believe in the celebration of life more than that of death. Christianity and Islam are very similar in beliefs as death is considered merely the means of their mortal lives ending and their eternal life beginning whether it is heaven or hell. Death in Christianity and the Islamic faith can be good or bad depending on the individual’s devotion and faith in God. All individuals regardless of culture or religion hope for death without pain that comes quickly after living a long life in the company of family and friends (Burgess, 2008). Conclusion Late adulthood is a period in an individual’s life span that creates physical and emotional difficulties. Illness and disease cause serious health issues that can affect an individual’s quality of life; however, healthy eating habits, exercise, and proper medical care can assist in improving and increasing an individual’s life. Death is an inevitable part of life that everyone must face. When that time comes, death can be a peaceful release from pain or a journey to spiritual enlightenment. References Berger, K. S. (2008). The developing person through the life span. (7th ed. ). New York: Worth Publishers. Mesa Community College. (1997). The developmental psychology newsletter: Late adulthood. Retrieved from: http://www. mesacc. edu. Net Industries. (2011). Ageism – Stereotypes about age and older persons. p. 62. Retrieved from: Ageism – Stereotypes About Age And Older Persons

Describing an essay Example | Topics and Well Written Essays - 1000 words

Describing an - Essay Example This occurs in a case that there is grave danger facing an individual (Allyn 26). Mostly, when people experience fear, adrenalin kicks in allowing them to scamper extremely fast to safety. Arguably, no theory or ideology specifies on this reaction, but may be fear becomes the propellant for people to head to safer zones. However, fear is not anxiety as many would want to believe, but instead anxiety is a feeling of nervousness on an imminent event that is not necessarily associated to any form of danger. It is the uncertainty of the outcome of an event making it particularly different from fear. Therefore, the essence of this paper will be to describe a picture in relation to fear it evokes. Fear draws similar meaning to phobia, which was initially a Greek word. In essence, this gives meaning to the various forms of fear that are in existence. Incidentally, phobia is more clinical than fear as its use is in identifying and naming the fear that an individual has in order for them to a ccess treatment. For instance, the fear of water is aqua phobia while the fear of small spaces makes one to claustrophobic. Additionally, there is also the fear of death termed as Thanatobia and coulrophobia, which is the abnormal fear of clowns. These are just a few examples of existing fears, as the list is endless. However, there is no specific name given to the fear of scary looking faces, but the other fear closely related to coulrophobia is mask phobia that is the fear of masks. As per the picture, the woman in it appears one who provokes fear to anyone who views the picture for the first time. She appears to be a woman who has seen her fair share of unfortunate events in her life. For instance, the eyes are the windows to the soul hence hers appears evil and dark. Her eyes are not appealing although their color is unique. From another angle, she appears, as though she has evil spirits within her that makes fearful to associate with them. According to fictitious narratives, th ose possessed by evil spirits tend to camouflage their eyes to evoke fear among their viewers. Usually, a ray of light appears from their eyes that sometimes produces flames of fire. This is to mean that the eyes can reflect the nature of an individual and the availability of supernatural powers. Anyone who would meet her would fear having any form of confrontations with her because of her appearance. On the other hand, this woman’s face depicts suffering and the way of life subjected to her. It appears as though she has learnt not to trust anyone hence portraying the anger and rage that dwell within her. Essentially, the tormenting experiences that people go through make them build invisible walls around themselves due to the fear of going through the same experience again. Ideally, this woman might have experienced civil war and human suffering first hand. This experience appears to have hardened her in to not having a welcoming smile. Her face depicts distrust and a sharp contrast of a contented woman. Tentatively, the events in the lives of people reflect on their skin as a smooth skin, especially on the face, reflects a smooth life. In contrast, this woman’s face is rough and neglected. This means that she does not pay attention to detailed beauty to her facial appearance. Sequentially, her facial impressions make her the modest and rural kind of woman. This is mainly

Resource Management - Business Plan Essay Example | Topics and Well Written Essays - 4000 words

Resource Management - Business Plan - Essay Example existing market trends, customer’s requirements, and the ways to fulfill their needs. Our aim is to provide our customers with highest quality services and products to keep them staying with us again and again. At small scale, the company will mostly contain male professional customers between the ages of 18 to 65 years of medium to high income. On the large extent, we will focus on retailers and wholesale dealers. We believe that by getting crucial financial support through its sale, in 02 years, the company will be able to capture 5-10% of the premium cigar market in the Greece. ABC Tobacco has estimated that its market share revenues will be of $1000000 in  a year and $1600000 and $2300000 at the end of 2nd and 3rd year respectively. We will specialize in the tobacco field and our mission is to gain and maintain the top position in tobacco industry by offering high-quality cigars at inexpensive rates and at easily approachable sites. ABC Tobacco Company is a Greek based corporation  and is equally shared and owned by Michael Collins as president, Jonathan Smith as vice president, and Jeffery Thompson as production manager. The administrative composition of the company has been designed on divisional structure as shown in the following figure. The results carried out through a recent survey reveal that the use of all types of tobacco brands is almost constant in all age groups. ABC Tobacco is going to launch its tobacco brands in ten major cities of Greece where the biggest cigarette user age group is 18 to 25 years. The following data represents the percentage of tobacco user age groups of different brands. Men use typical type of tobacco more frequently. But generally pipe and cigar smokers remain in touch with a particular product. Another interesting trend in pipe smokers is their continuous purchase of extra pipe. The survey reports point out that pipe smokers feel themselves comfortable by purchasing extra pipes. ABC will have to train its

Racial Inequalities in the Criminal Justice System Essay

Racial Inequalities in the Criminal Justice System - Essay Example This essay discusses that the legal system of the United States favored the white part of the population from the very beginning. Indeed, originally all African slaves were not considered to be people in the full meaning of this word, but rather animate property that belonged to their masters. After they have been granted freedom, the governments of the states approved various laws that came to be known as Jim Crow laws which reinforced the segregation of races. Only the second half of the twentieth century witnessed the end of segregation. Prior to that time it often happened that Black citizens would be lynched and the police would not press any charges. As the study highlights the history of crimes committed and the sentencing handed down by judges has often been deemed racist. There is a question of the influx of police in poorer neighborhoods flooding the areas and arresting people for minor crimes. On a personal level, there is a staunch support for treatment for the mentally ill as opposed to incarceration. It was found that there is a number of â€Å"socioeconomic status variables (education, employment, public assistance, residential stability, and household composition)† that should be taken into account while considering the disparities in the legal system of the United States. As for the judicial system in general, it is rather obvious that there is a clear disproportion of judges that belong to different races.

Summary and implications Essay Example | Topics and Well Written Essays - 500 words

Summary and implications - Essay Example Expected sales for Eliquis for 2012 is projected to reach $395 million (Loftus , par 2). Because of the delay in the decision of the FDA, Bristol-Myers and Pfizer might experience a decline in their sales projections which might also affect its stock prices which have gone up in the past few days at the New York Stock Exchange. The FDA justified their move by stating that the additional data submitted needs more time to review (Loftus , par 6). The original date for the decision should have been March 28 (Loftus , par 11). Boehringer Ingelheim GmbH and Johnson & Johnson, other manufacturers of new anticlotting drugs, may consider this a favorable development because it gives them time to establish their products in the market while the competition is not yet there. This means that the company may have to adjust their sales projections because it will mean a decline in their projected sales. If the launch of the product will be delayed by three months, it means that whatever projected sales for those three months will not be realized. The delay in the decision on Eliquis is good news for Boehringer Ingelheim GmbH and Johnson & Johnson. They can launch a more aggressive marketing strategy for their anticlotting drugs so that when the time comes that the FDA approves Eliquis, they have already saturated the market and may have gained loyal customers already. For the pharmaceutical industry, this should be perceived as a caveat in submitting drugs for approval of the FDA. They should make sure that all data that they submit are complete so that there will be no need for amendments later on. It will also serve as a warning to other pharmaceutical companies who intend to manufacture new anticlotting drugs that the FDA is very much concerned about bleeding risks for all patient types. In one’s opinion, the move of the FDA to delay the decision on Eliquis is good because it shows that it is concerned about the effects of the drug

How thin is too thin Essay Example | Topics and Well Written Essays - 750 words

How thin is too thin - Essay Example ir collections in New York last week, appeared so gaunt and thin that their knees and elbows were larger than their concave thighs and pipe cleaner arms, and their bobbling heads looked as if a slight breeze could detach them from their frail bodies.† (When is this too thin?) Models set fitness standards and models have become skinny these days, they follow a very strict diet and make it a point to exercise. It is almost impossible to decide how thin is too thin; the fashion industry is one industry which requires great levels of fitness. Extra flesh on a person’s body can literally ruin his chances of becoming a model; in the case of females this becomes even much more demanding. Models have set standards and they have also popularized the concept of size zero which has become very popular these days. The bones and the ribs of these models are palpable to the audience and this is when one starts to wonder how do they manage to do that? Some people don’t find the frail look very attractive, it does not look good on females and they don’t look feminine. The designers require thin models to showcase their collection and hence it becomes imperative for them to be as thin as they possibly can. Most of these models suffer from eating disorders and this is why they lose a lot of weight and get reduced to bones. This is seen as a life threatening risk by many people, one gets really worried when their bones and ribs are visible. â€Å"Complaints about the idolization of role models who suggest unhealthy lifestyles are culturally endemic. Celebrities like Nicole Richie, Lindsay Lohan, Paris Hilton and Mischa Barton have all been subjects of tabloid headlines asking, â€Å"Are they too thin?† In all likelihood, the answer is yes, but that does not stop magazines from displaying their pictures or, likewise, designers from casting thin models in their shows.† (When is this too thin?) Very thin models have been in the modeling industry for the last so many decades

Executive Summary for the Automated Banking System Essay

Executive Summary for the Automated Banking System - Essay Example This would result to increased transactions at a less time and avoidance of customers overcrowding in the banking hall. The management information system (MIS) of PNC if implemented according to the given attributes would solve their problem by increasing revenues, providing a reliable banking system and reducing operating expenses. It would solve real world problems because it would create convenience for their customers to transact without the need of visiting the bank. Furthermore, though all banks possess ATM services, theirs if implemented, could mean a total revolution of e-banking services. Their MIS does not exist but can be invented as they have stipulated that it is their future plans. The conclusion based on their future plans is concise and engaging. However, I think their plan is ambitious and requires mega investment. If I were an executive, I would read into their business plan because it is unique and for prosperity in business, one has to take risks. In conclusion, their executive summary is well stated and it has a new sense of adding what does not exist in the banking sector. If their MIS is well implemented, it would offer competitiveness to other banks at the same time satisfying their clients. Finally, it would give a new approach to how banking is carried

Media Analysis Paper Essay Example | Topics and Well Written Essays - 1750 words

Media Analysis Paper - Essay Example al justification for pre-emptive military action became irrelevant in the public’s mind influenced by vivid media images of the tragedy of September 11. However, the result of a government exploiting public grief with a media propaganda blitz has in turn resulted in thousands of innocent Iraqis dying and â€Å"the deaths of hundreds of American/Allied forces, and the destruction of the Iraqi infrastructures – all of which were seemingly forgotten† (Kamalipour & Snow, p.2). As a result, the use of the media has undoubtedly been integral in warfare campaigns, however the concomitant result of this is arguably that â€Å"it the dawn of the third millennium†¦. We as human beings have made no progress towards elevating humanity to its potential level of civility† (Kamalipour & Snow, p.2). This in turn correlates to the assertion of McLuhan that the â€Å"medium is the message†, which is the famous phrase propounded by Marshall McLuhan in â€Å"Understanding Media: The Extensions of Man†(1964). The central premise of McLuhan’s proposition is that the nature of the medium is what influences audience perception of the actual message regardless of content (McLuhan, 1964). In further developing this argument, McLuhan posits that the precise characteristics of the medium will engage an audience in different ways, which ultimately influences the communication of the actual media message (McLuhan, 1964). For example, in comparing how messages are conveyed in comics and movies, McLuhan describes movies as high definition in engaging the audience attention, in contrast to the low definition of the comic which requires a more participatory role of the audience to ascertain content message (McLuhan, 1964). The focus of this paper is to critically evaluate the impact of the media in relation to contemporary warfare with a contextual study of the recent Israel military campaigns in Gaza through a comparative analysis of Old Media versus New Media. Moreover, this paper

A Situation Analysis Document Research Paper Example | Topics and Well Written Essays - 750 words

A Situation Analysis Document - Research Paper Example Budget is also operating in the U.S as the leader of truck rental providers. The company’s vision statement portrays company’s image as a leader in rental car industry providing value to its customers through efficiency, focusing on its people for continuous improvement and innovation and sustaining promising growth in the future. According to Avis Budget group these parameters are way to success and can be only met if Avis and Budget continue working together rather than being individual. The company’s mission statement is to continuously provide sustaining growth and customer satisfaction in the long run through leadership and support for worldwide recognized and top notch brands. They seek to provide quality services driven by each brand in category for sustainable competitive advantage (Avis Budget Group). Company’s distinct values include commitment, integrity and responsibility. The company is always committed to provide value to its corporate clients and customers via its service excellence, high quality unique and powerful brands, leadership and support. The company maintains its integrity in establishing professional relationships with the clients and customers, value them, and nurture them through trust and loyalty. Open system of communication and compatible teamwork of diverse people further enhances its integrity. The company is yet socially responsible and performs all measure to portray itself as a sensible citizen caring for environment. The company is dedicated to making timely decisions with 360 degrees framework, feeling responsible for the interest of stakeholders and other investors and continues to excel towards profitability and growth keeping that in mind. According to the annual report form 10-K of Avis Budget Group the performance indicators for measuring company’s financial position have been showing a very positive trend. Comparing the last two years

Odyssey and the Aeneid Essay Example for Free

Odyssey and the Aeneid Essay From the cultural views, there are some differences between the Greek and Roman concept of heroes: the Achaeans attach importance to individuality whereas the Romans to community. Unlike the Roman Empire which we know is a kingdom, in the ancient Greece-also called Hellas-there are no countries but only city states scattered around the Balkan Peninsula. In this sense, the Achaeans do not have the notion about collective consciousness or what country is, so they tend to possess individual will, and so do the heroes at that time. We can see the evidence in the two works. On the one hand, in the Odyssey, Odysseus constitutes the standard Greek values of heroism: individualism. He mainly concerns if he can go back to Ithaca safely and how to regain his throne; that is, what he cares about is not really related to anyone else but is himself, his life, and his personal purposes. For instance, as a leader of his sailors, the hero Odysseus is proved to be the only survivor coming back to his Ithaca. So we can see that his cleverness and resourcefulness are only applied for his own individual survival. On the other hand, the Roman heroism is quite different. Aeneas is burdened with a great responsibility for his sacred mission ordained by Jupiter to found a new land. He concerns about not personal gain or welfare but other people and therefore he is the presentation of pietas, possibly the key quality of honorable Romans consisting of a series of dedication toward the family, followers, homeland, and the gods. Culturally, the Roman, or Virgilian ideology of heroes is distinctly different from that of the Greeks. The chief difference of their model heroism is that the Greek heroes symbolize individual will, glory, and feelings whereas the Roman heroes an ideal nationalistic ruler (Augustus, whom Virgil writes the Aeneid for) who with sacrifice, devotion, and duty for his people is regarded as a servant rather than the served.

A point in life Essay Example for Free

A point in life Essay I have come to a point in life that many people have not. I have made a firm decision to recommit myself to pursuing my dreams. While there are those who believe that with an ounce of luck and a ton of persistence anything can be accomplished, I believe that there is no reason to expend so much energy and rely on luck. I believe in taking hold of my destiny and carving out a future for myself based on the decisions that I make in life. Life is simply too short and too precious to be left to luck alone. This is why I have chosen to apply for a course in Nursing at the Saint Xavier University. I have always wanted to help change the world. As a child, I believed that if everyone did their own little part in taking that extra step to help others, the world would be a much better place for everyone. The stark reality of it all hit me not long after that but it did not lessen my resolve. I figured that if so many people I knew did not want to do their part in changing the world then I would probably have to do their share. This is where my motivation to pursue nursing comes from; the drive to go the extra mile just to make a difference in this world. I see my goal in life as similar to that of Nurse Leader Mary Breckenridge in that I know that nursing plays a very important role in the world today. There are few jobs and professions that are as rewarding as nursing. While other jobs may get more publicity, the role that nurses play in the health care industry is highly valued and appreciated. My motivation has to do with the fact that nursing is one of the ways by which I am able to do something that I really want to do in my life and that is to care and help other people. More importantly, I greatly feel that by taking up nursing I will be able to make a difference in this world much like Mary Breckenridge has done. Pursuing my career in nursing is just the first step in my plan. Much like Nurse Leader Mary Breckenridge has done, I too want to be just more than a nurse. I would like to have the opportunity to take a bigger role in making the world a better place to live. My main philosophy in life is to lead by setting an example. I cannot expect others to do what I myself would be willing to do but that does not mean that I cannot hope that others will see the example that I have shown them. This philosophy is one of the many forces that drive me to pursue my dream of pursuing a career in nursing and of becoming so much more in life. The chance to help those who are less fortunate in life, the chance to help people like myself, the opportunity to be of service to humanity; these are the reasons why I have selected nursing as the profession that I will pursue; for, as Eleanor Roosevelt once said, â€Å"The future belongs to those who believe in the beauty of their dreams†¦Ã¢â‚¬ 

Understanding Violent The Breakup Of Yugoslavia Politics Essay

Understanding Violent The Breakup Of Yugoslavia Politics Essay The numerous ethnic groups that comprised Yugoslavia held historical animosities towards each other stretching back in some cases hundreds of years. Yet these animosities were put aside after World War Two and under Titos grip the nation achieved internal peace. They were not however forgotten and when nationalist politicians needed to create a power base, they merely had to promote nationalist symbols and myths, and encourage the discussion and exaggeration of past atrocities. This created a deadly snowball affect that proved unstoppable. Yugoslavia has long been an ethnic melting point where great civilizations and religions have met. The Paris Peace Conference at the end of World War One created the Kingdom of Serbs, Croats and Slovenes out of territory from the Austrian and Turkish empires. The allies hoped the Kingdoms people would forge a new common identity based on their shared status as Southern Slavs. They were however divided in various other ways. Croats and Slovenes were Roman Catholic, used the Latin alphabet and orientated towards western and central Europe. In contrast Serbs, Macedonians and Montenegrins were under the repressive autocratic control of the Ottoman Turks, Eastern Orthodox in religion, used the Cyrillic alphabet and were less economically developed. Bosnians, though much like the Serbs had practiced Bogomilism and converted to Islam only in exchange for autonomy and protection by the Turks. The Serbs regularly rose against the Turks and were subsequently heavily repressed, thus considered the Bosnian Muslims Slavs that had sold out. During World War Two these antagonisms flared into outright slaughter as the Nazi controlled ethnically Croat Ustashe puppet regime murdered innocent Serbs, Jews and others. The regime never had majority Croatian support but this was irrelevant to Serbs in the conflicts of the 1990s even though they themselves did not have clean hands. Josip Tito and his communists suppressed discussion on the wartime genocide and earlier nationalist outrages in the process creating a powerful reservoir of suppressed memories and hatred. Tito re-established Yugoslavia through the skilful use of fear and the credibility of communist ideology. Yugoslavs feared many things including a return to the carnage of wartime massacres, the power of the Soviet Union and some a great Serbian restoration. The League of Communists of Yugoslavia (LCY) as the only substantial pan-Yugoslavian institution was thus the only force capable of allaying these fears. Fear and force did in time give way to compromise that was eventually enshrined in the 1974 Yugoslav constitution. This constitution established a collective presidency, rotating chair and dissolved a great deal of power to the republics thus weakening federal institutions. Tito himself often kept this system going by ordering republics to follow federal laws. Titos death in 1980 combined with the end of Cold War rivalry and the decline of communist ideology in the rest of Europe in the 1980s lead to the severe weakening of Yugoslavias crucial unifying factors. In addition, Yugoslavia in the 1980s increasingly suffered from an unprecedented economic crisis. This crisis was triggered by the oil shocks of the 1970s, the global recession of the 1980s and a $US20 billion foreign debt. This caused Slovenia and other relatively economically prosperous regions to push for economic and political change. Slovenia had significant economic weight as while it comprised only eight percent of the nations population it produced 20 percent of the national GNP. Without a powerful central figure, differences between reformers and conservatives produced a deadlock at the centre during the early and mid 1980s. The economy thus continued its decline allowing conservative groups time to mobilize support. Long significant to the Serb nation, Kosovo became the catalyst for the revival of Serbian nationalism. After a 1981 demonstration in favor of Kosovo gaining republic status the death toll of Albanian youths killed by Serb police varied widely from nine anywhere up to 1000. The Serbs balked at this demand believing they were the oppressed side in this situation. Thirty thousand Serbs and Montenegrins did flee Kosovo in the 1980s though many for economic reasons. The higher Albanian birth rate also contributed to the decline in the relative number of Serbs in Kosovo from 23 percent of the population in 1971 to 10 percent in 1989. Led by the Serbian Academy for Sciences and Arts from 1986 prominent Serbs claimed they had been the victim of consistent discrimination in Yugoslavia. Kosovo was thus raised to the position of most important problem in Serbia and frustration in the League of Communists of Serbia over the issue reached unprecedented levels. Slobodan Milosevic promise of quick and decisive action against Albanian separatists in Kosovo won him widespread support in Serbia. Milosevic moved quickly to promote Serbs to important economic and political roles in Kosovo and by 1989-1990 Serbian control over Kosovo was complete. In his first six months of power, he also purged Serbia of rivals and moderates. Journalists, writers and editors were fired and Milosevic supporters soon controlled almost all public life in Serbia. In order to bully and overthrow the Kosovo and Vojvodina political leaderships Milosevic whipped up pro-Serb demonstrations in the previously autonomous regions. The Montenegrin leadership was also overthrown with all three being replaced by Milosevic loyalists. This gave the Serb nationalists control of four of the eight votes in the Yugoslavian federation. Serbian hardliners used the cloak of nationalism to revoke the autonomy of Kosovo and Vojvodina thus altering the Serbian constitution and the delicate balance of power in Yugoslavia. Slovenia and Croatia reacted angrily to this series of events. Public disagreement was not permitted between communist party members therefore it was intellectuals and the media that articulated this anger. Slovenian intellectuals protested publicly at the treatment given to the Kosovo Albanians. They did so because they feared the consequences of the Serb action had upset Slovenias political and economic role in Yugoslavia, and would prevent movement towards its goals of democratising Yugoslavia and integrating it economically with the west. The last LCY congress in January 1990 confirmed that neither democratic nor hard-line reform could occur at the national level. The Croatian and Slovenian communist parties quickly responded by giving up their power and holding multi-party elections. The multi-party political system that resulted from the 1990 elections was seriously flawed. Political parties of which there were a large number lacked time and resources to develop a wide range of policies. Voters were thus denied the information they needed to make informed decisions. Additionally there was no chance to vote to maintain Yugoslavia even though 62 percent of Yugoslavs claimed Yugoslavian affiliation was very, or quite, important to them in a 1990 survey of 4,232 people. Nationalists claims that other groups would block vote successfully turned it into a self-fulfilling prophecy. Every town experienced the founding of political parties and the divisive nationalist discourse that went with them. Peer pressure to support ones ethnic group in these towns was intense. The nationalist parties did not win majorities in these elections. Because the way the elections were designed they received majorities in their republics. Franjo Tudjmans Croatian Democratic Union and Milo sevics Socialist Party of Serbia won only 41.5% and 47% of the votes respectively but gained 56% and 78% of the seats. These parties purged, often violently, their political opponents from power and made it dangerous to be seen as or in the company of known moderates. The politicians elected in 1990 were far more nationalist than their citizens. Understanding Violent The Breakup Of Yugoslavia The continuing stalemate and increasing tension over Yugoslavias economic and political direction convinced Slovenia and Croatia their futures lay elsewhere, and both declared independence in June 1991. The victory by Slovenian in the resulting war against the Yugoslav Peoples Army (JPA) forced the Serbs to give up their hopes for a centralized Yugoslav state under Serb control. Serb nationalists instead set themselves the goal of creating a greater Serbian state. The result was war in Croatia. The other significant result of the Slovenian and Croatian declarations of independence was that they forced the Bosnian Muslims to do likewise. Bosnian President Alija Izetberovic and many of his people realized all too clearly they would have little protection in a rump Yugoslavia dominated by Milosevic and Serb nationalists. Leaders on all sides constantly exploited the fear of becoming vulnerable to other ethnic groups through inaction during the break up of Yugoslavia. Both Tudjman and Milosevic consciously revived nationalist ideologies tainted by the Second World War. Once a leader of a republic broke the pattern of compromise and instead choose to increase interregional tensions the writing, Yugoslavia was on the wall. The slanting of news coverage by Milosevic appointees forced media in other republics to follow suit least their ethnic group become disadvantaged. Exaggeration became common as Serb and Croat intellectuals successfully transferred their nationalist ideologies to the common people. The Ustasu concentration camp at Jasenovac where 60,000 to 80,000 inmates were slaughtered, not all of them Serbs was inflated into the murder of 700,000 Serbs alone by Serb nationalists and Serbian media. The numbers game was however played by all sides. Repetition is considered the single most important e lement in the changing of opinions. Tudjman and Croat nationalistsà ¢Ã¢â€š ¬Ã¢â€ž ¢ excessive use of Second World War symbols especially the Ustasu flag frightened many Serbs into believing history would repeat itself. Collectively this created a security dilemma where no side could trust the other. Like their Croat neighbors the Bosnian leaders were also guilty of not paying enough attention to the complexity and fears of Serbian societies within their boundaries. By failing to recognize the difference between passive and adaptable urban Serbs and more extremist rural Serbs Tudjman missed an opportunity to build a multi-ethnic coalition. The behavior of political elites was a major source of ethnic hatred in Yugoslavia. Additional causes contributed to the sheer scale of the violence that followed the collapse of Yugoslavia. The JPA took a political role as its officers believed only a federal and socialist Yugoslavia could support their existing corporate and individual privileges. Up to 70 percent of the officer core were Serbian and Montenegrin and it was also a bedrock of Marxism-Leninism. The credibility of the army came from the days of communist resistance in the Second World War and as the communist party fell from favor so to0 did the army. With this loss of credibility, the JPA became in effect the army of the Serbian state. This is important because the scale of violence and acts of destruction such as the shelling of Sarajevo would have been impossible without a powerful military force. The inheritance by Serb forces of the majority of Yugoslavias weapons and especially its heavy weapons gave the Serbs the military power required to carry out their plans. Backed by the JPA Serbian civilian, militias were able to terrorize minorities in Serb controlled areas. The militias were organized from soccer clubs notably the infamous Arkan Tigers, prisons and from volunteers. Merged with the peer pressure, lack of accountability and promised economic gain these militia committed acts of ethnic violence out of all proportion to what could have been deemed acceptable under normal conditions. Croats and to a lesser extent Muslims also formed militias and violently attacked ethnic opponents. These were never on the same scale nor had the same level of organization as the Serbian militias and were largely formed as response to the formation of the Serbian militias. The west intervened in the break up of Yugoslavia relatively early and regularly but never with enough collective will or military force to prevent large-scale warfare. The period of the early Yugoslav wars was a dramatic time internationally with the collapse of communism in Eastern Europe and the Soviet Union and the Iraqi invasion of Kuwait distracting Western powers. A global recession further reduced the wests desire to intervene in a country some saw as a quagmire without strategic significance whilst others considered the area vital due to Yugoslavias geopolitical significance. By January 1992 fifteen ceasefires had been arranged and broken by all sides. Numerous internationally brokered peace plans followed. Serbian and Croatian leaders who consistently acted in ways to that continued the violence certainly did not help western efforts. However, the more pressing problem was Americas and Europes weak and timid initial responses which did nothing to persuade Milosevic and Tudj man to suspend their use of violence. Whether an overwhelming display of western resolve through the commitment of significant combat troops would have altered the course of events is unknown. It is however hard to see how such a display of force could have made things worse. The political will to impose a solution on Yugoslavia was simply not present at the time. Yugoslavia was a nation with suppressed and potentially explosive historical memories. By the 1980s the majority of Yugoslavs lived in peace often side by side with other ethnic groups. It took a culmination of economic decline, a changing international system and most importantly leaders willing and able to exploit these memories and their resulting fears to rip Yugoslavia apart. Political elites insistence on nationalist ideologies, Serbian military superiority and a lack of Western will ensured this break up was both brutal and extremely violent

Continetal drift theory Essays -- essays research papers fc

Continental Drift, the theory that continents move slowly about the earth's surface, changing their positions relative to one another and to the poles of the earth. In the past the theory has been discussed but not generally accepted, most geologists believing the continents to be fixed in place and subject only to vertical movements, such as those observed during mountain uplift. In recent years, however, a sound body of evidence in support of a modified form of the drift theory has been found. Ideas are becoming precise and unified, with emphasis on a moving, evolving ocean floor. The new theory is called plate tectonics. Soon after the Atlantic Ocean had been mapped, about three hundred years ago, it was noticed that the opposite coasts had similar shapes, but it was not until the middle of the 19th century that accurate maps were published demonstrating that the two coasts could be fitted together quite closely. Some geologists then suggested that the fit of the coasts was not an accident--that the continents were once joined and had subsequently drifted apart. None of the suggestions were taken seriously.   Ã‚  Ã‚  Ã‚  Ã‚  In 1912, however, the German meteorologist Alfred Wegener investigated the fit of the Atlantic coasts more carefully than had his predecessors and grouped all the continents together into one great land mass, which he called Pangaea. He supposed that the mass began to break apart about 200 million years ago. He also showed that some geological features on the opposite coasts could have fitted together, and that there were many striking similarities between the fossil plants and reptiles on the opposite coasts, particularly the coasts of Africa and South America. If the continents were pushed together, the geological, fossil, and other lines of evidence would join together accurately in the way that lines of print on a torn newspaper would join when the paper was reassembled. Wegener also pointed out that ancient climatic zones seemed to have lain in different places from the present zones. He pointed out that where great ice sheets have melted in recent geological times in Scandinavia and North America, the land is rising as fast as a centimeter a year. This vertical uplift, he said, requires horizontal inflow of matter below and implies that flow and motion do take place within the earth.   Ã‚  Ã‚  Ã‚  Ã‚  We... ...an isolated continent.   Ã‚  Ã‚  Ã‚  Ã‚  Although Wegener and Du Toit proposed that the primitive continents began to break up about 200 million years ago, there is much evidence that drift began long before then, and that continental blocks have slowly been moving about the earth's surface throughout much of geological time. It seems that before the continents drifted apart and opened up the Atlantic, they had drifted together and closed up an earlier ocean. Another place where continents seem to have bumped into each other and piled up mountains between them is the Himalayas, which may have been produced when the Indian Peninsula detached itself from Gondwanaland and gradually drifted into Asia Bibliography  Daley, Robert B. 1986 A study of a changing planet; CEBCO Publishing co. p.418  Bartolini, Annachiara and Larson, Roger L; 2001 Pacific microplate and the Pangea supercontinent in the Early to Middle Jurassic; Geology, Aug2001, Vol. 29 Issue 8, p735-39  Anderson, Don L 2001. Top-Down Tectonics; Science, 9/14/2001, Vol. 293 Issue 5537, p2016-18  http://www.geo.cornell.edu/geology/classes/Geo101/101week6_s01.html

Mob Protesters Right or Wrong :: miscellaneous

Mob Protesters Right or Wrong Essay Outline: My essay is only around one thousand five hundred words long and in that one and a half thousand words I must give points of views from both sides as well as a introduction and this Essay Outline. The first opinion I will write about is the opinions of the labour supporters, saying how They suffered because of the petrol protests, the rights wrongs and how the wrongs were or tried to be sorted out and how long it took. Also in labours defence I shall write about how Tony Blair thinks that a cut in fuel tax will cause more problems in the future. Also I will right about the opinions of the petrol protesters, how they are helping the nation on the over taxed fuel, because they are not doing the protests for fun (although they might look fun). The newspapers I read showed what Tony Blair said about his taxing but where most of it was lies or misleading. Also what he actually did with our taxes and how some of it just went to waste like how he cut 140 road improvements programs to only 3 7 or how his ten-year  £180billion partnership with John Prescott took tree years to sort out. Is this because of his poor money management or is he getting an extra million or two in his pocket each year? These important points might creep up with some more in my essay. But to end my essay I shall Finnish with a conclusion that contains an overall view of the essay. A thanks to where I got all my information for the essay, how the essay developed and how my point of view developed as I learnt more on what happens to our taxes while labour is ruling parliament. But most importantly asking the reader the question I was given, but a little briefer, ‘ should we wait for an election to sort out the taxation problems or should we stand up and demand lower taxes to solve the taxation problem’. Introduction: Should the government have total control over our taxes and we can not do anything about it. Should we be able to stand up for the taxes we pay or should we wait weeks, months or years for another election. Or should we be happy for taxes knowing that it’s going towards our health, safety and education.

Philosophy of Teaching Statement :: Educating Education Essays Teacher

Philosophy of Teaching Statement As a freshman in college, I was faced with one of the most important decisions of my life. I had to decide where I wanted my college education to go and what I wanted to become as an adult. My whole freshman year, I struggled to make a decision. My family encouraged me to major in business, because even if I didn’t like my job they felt that I could make a lot of money and have financial security. They didn’t feel like education was the right career for me. I felt like it was important for me to have a career that was emotionally fulfilling to me rather than having a career that I would make a lot of money. I have always enjoyed math; I took many extra math classes while I was in high school. I also wanted to become a teacher. Finally in the last few months of the year I came to a decision; I decided I wanted to become a math teacher and teach eighth grade math. So, I decided to pursue a degree in math and general science (5-9) Education. It was a hu ge relief to me when I finally decided to become a teacher; I feel very happy with the decision I have made. I want to make a positive difference in kids’ lives and I feel this is the best way for me to do that. No two students are alike so, you have to respond accordingly. Some students come to school to learn and make a life for themselves. Other students only come to school because it is a requirement. Teachers cannot expect to have only students who want to be in school. Teachers must use different teaching methods in order to make sure that all the students learn the material, which is where teaching philosophies come into play. In our education classes we are asked to think about the types of educational philosophies we will use in our classrooms to teach. My views on education philosophies are eclectic. I agree with essentialism, progressivism, and behaviorism. The core of a teacher is his or her beliefs and philosophies.

Cognitive Interventions Essay

The only thing that tells everyone apart from everyone else is each person’s genetic make-up. And there is only one exception and that would identical twins, because no two people are the same. This can be said true about the way we all think. There is no one person that thinks the same as the next person. People believe that we are all born innocent and that we are pure in thoughts and in behavior. There are many different factors that can and sometimes do influence how a person is controlled by his/her cognitive ability to think before acting. There are people who do a better than others can. There are people who have certain psychological problems that seek out help from a therapist to get a handle on their problems. One of most popular therapy would be cognitive behavior therapy (CBT). The base of this theory is that some of the behaviors are caused by a person’s inner thoughts or by mental inability to deal with problems or events in our lives. In this paper, I will summarize the article â€Å"Abuse-Focused Cognitive Behavioral Therapy for Child Physical Abuse,† that describe Abuse-Focused Cognitive Behavioral Therapy (AF-CBT) and the use of AF-CBT in adolescent anger management. Article Summary Childhood anger can be tiger by many different factors, thoughts or even events during a child early life. A young child is not able to express their feels in a correct way, so they have problems in dealing with their anger. This could also be that they were never taught by his/her parents how to handle their emotions. A good example would be a friend of mine that has a child with some deep rooted problems, When Sam get angry he will not able to express how he feels so he acts out towards anyone that is near him. At Christmas time I brought him a soccer ball that he wanted and when he opened it he just threw it to one side, so he was punishment, sent to his room, when he came out the looks in his eyes just plain scared me. I have seen that look in a person who just committed a murder. Cold and dark look is what this child has. Most children with this type of problems, it could be a result of abuse in the home by one or both parents, and the type of abuse could be physical or sexual. At the time of the abuse the child may feel that they could not fight off the person who is abusing him or they are so scared to tell anyone. When this time of situation has occurred the child is not able to handle so they will out and get into trouble. They may start getting into trouble at school, start handling out with the wrong crowds and getting into serious trouble with the law. The child may become involved with sex, alcohol and drugs, sometimes the child could turn out to be an abuser also. Children will do this to get away from their home life and the pain. If the abuse was discover at an early age, and then the child can be remove from the home and has a better chance to get therapy and could turn out to normal. This way the hate and anger can be redirected to a more positive avenue. It difficult for a child to understand why things happened to them and but to be able to speak to someone that can be able to help them understand that it was no their fault and help them heal their emotional wounds. Unfortunately, the affective of the abuse may follow the person throughout their life in many different forms. It can affect their children and even their partners. They may became have problems like becoming overweight so they will not be attractive to men. They also can be very sexually active. Being in therapy as a child they can be with other children that have been threw the same as the child and could help to release their anger, it could also help them from staying away from trouble and from hanging out with the wrong people. This would help the child to focus more on school and what is important to the child. The cognitive behavior theory is known to help child that are victims of abuse cases whether it is physical or sexual and the parents that are the abusers, that may help them to reestablish a relationship between parents and children. Abuse-Focused Cognitive Behavioral Therapy  The main usage of the Abuse-Focused Cognitive Behavioral Therapy (AF-CBT) is working with children and their families that have suffered sexual or physical abuse; the environment is very hostile, the child may be subject coercion and are aggression when the family is present. AF-CBT is also used for children with behavioral problems such as Conduct Disorder and Oppositional Defiant Disorder. AF-CBT is right for children who are the ages of 5-15, who exhibit some level of behavioral or emotional dysfunction and for parents or caregivers who may resort to uncomfortable or unsafe levels of physical punishment. The goal of this therapy is to reduce the level of physical abuse risk factors of the caregiver or family and to reduce the consequences of these experiences for the children. The primary focus is behavior management, social skills, training, cognitive restructuring, problem-solving skills, and communications skills for the caregiver’s level of anger and promote nonaggressive discipline strategies, to enhance a child’s coping skills, and encourage problem-solving and communication. There are three stages of AF-CBT process, each of the steps consisting in multiple steps that involve the child and the parent(s) separately and jointly. This type of treatment would be taken place as outpatient or in a setting that ongoing contact with the caregiver and the child. The treatment should take place twice a week for approximately three to six months. Abuse-Focus Cognitive Behavioral Therapy in an Adolescent Anger-Management, the important part is to be able know how to control anger. Everyone can control their anger and being angry is a normal part of life. Just like everyone else, adolescent are no exception. The only exception is that adolescent can take their anger to the extreme and their action may not be called normal when angered. There is one way to help the adolescent to control their anger is by cognitive therapy. Cognitive behavioral therapy can occur in many different ways, the most common is the one-to-one talk with the adolescents. Once the problem is out in the open, the therapist may give the adolescent advice and to show how to control or redirected their anger. It is a success when one discovers the problem using the cognitive behavioral therapy. Now that the adolescent is able to control their anger it more benefit for those who are around the adolescent, it does benefit both parties. With aggressive or violent behavior the AF-CBT will target in three ways in which people can deal with the situations: 1) Cognition (thinking), 2) Affect (feeling), and 3) Behavior (doing). AF-CBT use many different techniques that are used by practitioners, such as behavior and anger management, problem solving, social skills training, and cognitive restructuring. All programs require proper training in different areas, especially with psychological skills so that enhancing interpersonal effectiveness and self-control is maintained. Conclusion The article explains to us how to deal with child and adolescent in dealing with their anger due to physical or sexual abuse to them and to be able overcome their anger and to deal with feelings as well as their families. The primary goal of AF-CBT is to reduce other behavioral problems in children and adolescent when they grow-up.

The Credit Rating Agencies, Their Role in the Financial Crisis?

End of Studies dissertation What is the lineament of the ac reference point valuation agencies, which ferment measuring stick to the fore did they play in the recent pecuniary Crisis and how push aside their efficiency be amelio rove? Thesis Supervisor David Menival Emmeline Beauchamp Cycle Franco- US March 2013 Ack forthwith guidegments I would freshman homogeneous to thank RMS and failicularly the CESEM to apply everywhere taught me a contend, helped me to grow and open up and gave me this flimsy opportunity of studying some(prenominal) age in the united subjects. None of this phenomenal lie with would hurl been possible without them.I would similarly wish to thank Northeastern University for al start baseing me to memorise a youthful(a) culture and a various educating governing body. It similarly had a awing spot in my proximo doing and professional cargoner. In addition, I would akin to thank every conk(predicate) the professors I had during these cardinal years of studying, whether it is at CESEM or at Northeastern University. They made this journey withal some(prenominal)(prenominal) profit fitting and enjoy fitting. I would as closely like to thank David Menival, my thesis supervisor, who pass judgment to work with me on this project.Finally, I would like to thank my p bents for invariably supporting my choices and be succeeding(prenominal) to me when I requireful them. They start been my guides and sticks in life and progress to everto a greater extent up chaird me to be better and carry on myself. Table of Content Introduction4 I. cite throw in Agencies Role and methods5 1) History5 2) Role and methods7 3) The Is server-Payer model 9 II. The reference book military rank Agencies and the pecuniary Crisis is the thermometer liable for(p) for the fever? 12 1) Background of the fiscal Crisis12 2) impute valuation finishice be non to the full liable 14 ) exclusively they could relieve oneself do better17 III. What is next? 20 1) Lessons wise(p) from the crisis 20 2) principle of the existing p guidege judge establishment 21 3) A stark naked s pole constitution23 4) Creation of parvenu reference evaluate Agency24 Conclusion26 points27 Bibliography32 Introduction A assign support fool authorisation is a bon ton whose causation is to evaluate the default gamble of a sweep uper, whether it is a insular or earth comp some(prenominal) or a province. Since 1909, when tenaciouss emitted its off restore printing range, the voice of the reference work military rank Agencies has considerably evolved and the methods use wee ameliorate.Even though their r distributivelygrades do non launch bri world or cheat oning recommendations, they chop-chop gained an almost scriptural authority. Since the 1980s, the reference book evaluate agencies view, hence, become a name and address for pointors that want to bound the addressworthiness of an entity. Their judges mold dressors behaviors and they be in forthwith involved in the future of a State or community. subsequentlywardward some(prenominal) scotch meltd keeps and the recent pecuniary crisis, the third big extension evaluate Agencies crap been the center of forethought.Is their methodology forwardness aside to evaluate the ascribeworthiness of an entity? Does the restorationr- aff bon ton model insure the laid- seat hat transp atomic number 18nce? Their lineament and implications in the crisis put one over been meticulously examined and their functioning brass has been distrustfulnessed. Although their division in the crisis in undeniable, be the lone close to(prenominal) amenable of the crisis? The system was defaulting and the predictions of the creed valuation agencies turned out to be wrong. Which modifications should we necessitate to the system to shake it much than(prenominal) unsophisticated and cost-efficient?These ar the questions we go outside experiment to answer finishedout this thesis. I. belief pass judgments agencies spot and methods Credit evaluations agencies, entity palliate little cognise outside the pecuniary communities deuce years ago, found themselves at the center of attention with the subprime crisis. If e very(prenominal)one much or less bilks, now, well- acknowledgen(prenominal) with what a conviction evaluation chest of drawers is, concourse universally do non know what be the origins of this line of business, its rationale and its funding model. 1) HistoryThe influence of the troika master(prenominal) source paygrade agencies ( turneds, old-hat & woefuls and foulmart paygrades) was build step by step since their inception, in the early 1900s. Historically, the elapses issued by the agencies did non put one over to a greater extent cartridge clip nourish than the ones given over over by analysts or economic experts. They acquired this ruinous-tempered channelise when legislators and regulators attri unlessed them a bigger place in their systems. The development of railroad lines companies attach the origin of these self-aggrandising premise. These railroad companies were therefore fluctuating and indispensable nvestments to set up their infra organizes. As investors were concerned and questioned their qualification to reimburse their debts, Henry Varnum Poor published, in 1860, both(prenominal) fiscal schooling regarding the recognitionworthiness of those companies in nightspot to help investors make their ratiocination. subsequently on, in 1900, John moody would excessively start publishing economic entropy on these companies and finally, in 1909, J. Moody gave his first effectuates about(predicate) railroad companies in Moodys sees of coerce investings by attri neverthelessing a letter to individually of them the reference book pass judgment was born.Thi s system was more and more adopted by others confidence evaluation agencies much(prenominal) as wood pussy make Company, founded in 1913 by John Knowles skunk, which would later be known as skunk military ratings. Finally, Less than thirty years later, the assign place office Standard & Poors is created after the merger of the Standards Statistic Bureau and the Poors Publishing Company. The development of the rates is stimulated by several(prenominal) particularors. prototypal, its goal is to offer a service for investors by providing useful study that give help them in their decision-making process.In addition, the coitus large size of the Ameri thunder mug territorial dominion admonish investors to search for culture, they would rather pay for it than waste magazine waitressing for it. Moreover, the repercussions of the 1929 pecuniary crisis and the consequences of the World War II, giving get the hang to the Economy of the United States, in any case up grade the expansion of the concept of military rank. In 1970, after the bankruptcy of Penn Central Railroad, the first doubts regarding the emancipation of the reference work aim agencies appe bed. This was the first time that the reindebtedness and honestness of the rates were questioned.In pasture to reestablish the look on of the ranks, the bit (Securities step in committal) created, in 1975, the fieldly Recognized Statistical place Organization (NRSRO) designation. The goal was to standardize and decl ar the judges regarding brokerage firms and banks with their great(p) ratios. At that time, seven-spot agencies perplexed the NRSRO designation. In 1990, after several impertinent mergers, the number of NRSRO was merely of tercet Moodys investor service, Standard and Poors and wood pussy paygrades. In 2003, the Canadian chest of drawers Dominion Bond Ratings service Ltd as well ained the status of NRSRO, followed by A. M better(p) Company in 2005. I n June 2003, after the dis coordinates defecated by the bankruptcy of the go with Enron, the code of the identification paygrade agencies and their NRSRO status eat uped to be examined. Multiple historys on the berth played by the agencies in this discipline were published. Even though investors wooly-minded credence in them, they all agreed that they should persevere the NRSRO status. In 2006, after years of critics toward the ascribe judge agencies, the functioning conventionalitys of the NRSROs were modified and the Credit Rating Agency Reform get a large was promulgated.The objective was to dumbfound the internal decision process of the reliance paygrade agencies plot forbidding the entropy to control the order system of NRSROs. Right after, in 2007, three more companies were added to the list of NRSROs Japan Credit Rating Ltd, Rating & Investment randomness Inc. and Egan-Jones Rating Company. Since April 2011, the list of agencies that received the NRSRO status counts ten names (See Exhibit 1, scalawag 27). Finally, in July 2010, the DoddFrank Wall lane Reform and Consumer Protection Act beef up the control over the valuations practices.This included a reduction of the contests of take regarding the valuations of structured products and shined aimence on places. It overly allowed investors to sue a credit evaluate agency in case of fake or reckless judge. For decades, the three important agencies, Moodys, Standard and Poors and wood pussy Ratings, squander been controlling the grocery, as high barriers to enter exist. The major ones argon the impressiveness of the reputation and the investors confidence in their grades. Since their creation, these agencies boast get a li sine qua non themselves with a particular grapheme and specific methods. ) Role and Methods The Credit Rating Agencies evaluate the creditworthiness of debtors. Ratings back concern a accompany as well as a particular emission or securiti zation or any monetary debt. They ar usually solicited by the debt issuer moreover support too be attributed, if non- inviteed, after aggregation overt information. Credit Rating Agencies enjoyed a sizeable reputation and an essential image in the financing of economies. Over time, regulators, for concrete reasons, tried more and more to recruit the use of the notation in the investors financing.This long trend follows upon the systematic financing by the food trade, whether it is in a simple locution fand so forthing the shape of debenture or assimilated loans or novel products where the bump of defect is difficult to comprehend because it is diffuse in complex financing methods much(prenominal) as the securitizations. Credit Rating Agencies direct the role of processing the information for monetary markets. They compound the information for market commands and the investors seemed to excessively grant their confidence to this information.Investors pay be quiet attention to any modifications in valuations or to any entities position under annotation. The ranks issued by the credit range agencies discombobulate a arroganceworthy value. Since investors usually do not take the time to look for information regarding a company or a State, they based their investment choices upon the judge given by the credit military rank agencies. Therefore, the role of the credit rating agencies is essential. Basically, these agencies add in concert all information functional about a company or State and turn it into a rating that leave behind because influence the future of an entity.However, it is undeniable to underline that the ratings given argon not bargaining or make doing recommendations, they argon lone nigh(prenominal) an evaluation of the creditworthiness of an entity, at a defined time, and statically calculated. Next to this informative participation, credit rating agencies commit to the management of portfolios by giv ing advice to the investors via the medium-term orientations emitted with the rating. If a company tries to pay itself, the received grading depart be determining for the conditions of the operation.Whether it is by financing through with(p) banks or by issuing bonds on the market, the more the grade forget be raised, the more the company go a mode be able to find cheap specie at low saki rates. On the other hand, a inquisitive grade will imply higher interest rates and difficulties to find financing. The difference of levels amongst both interest rates will forge the take chances insurance premium. This enigma becomes oddly important for companies or States located deep down the speculative category. Major institutional investors do not want, indeed, to take the lay on the line and, therefore, do not invest on these kinds of determine. However, the rating is ot heady and fluctuates end-to-end the life of the bonds. A decrease of the rating after part let down the legal injury of the bond. Likewise, a raise of the rating can be associated to an amplificationd wrong of the bond. In order to correctly determine the default risk, Credit Rating Agencies use diverse quantitative and qualitative criteria that they fork out into a grade. Credit Rating Agencies distinguish two types of ratings short and long-term the conventional rating that applies to loans emitted on the market and the reference rating that measures the risk of counterparty for the investor represented by this issuer.When evaluating the fiscal risk, credit rating agencies first take into consideration purely fiscal numbers such as the profitability, the arrest on investment, the level of cash flows and debt, the fiscal flexibility and the liquidity. More and more, the agencies integrate non-quantitative elements such as the governance, the social responsibility of the company and its strategy. It is also necessary to highlight the fact that the rating is usually ass ociated with medium-term orientation, allowing to better picture the future trend regarding the caliber of the issuer.In some cases, a borrower can be placed under observation. The important steps in a companys life (mergers, acquisitions, big investments) argon indeed, believably to influence and modify their structure. Credit rating agencies, subject to preserving the confidentiality of the received information and repressing cases of insider trading, can digest insider information on the monetary state and the future prospects of the analyzed issuer, spot reducing the cost of collection and information processing. They distinguish themselves from financial analysts, who, in principle, unless take for en accentuateway to the human race information.Even if they can benefit from insider information on behalf of issuers, they be dependent on the information provided by these issuers. Each Credit Rating Agency possesses its own rating system. In encompassing outline, g rades are established from A to D with intermediary levels. Thus, the outgo grade is abdominal aortic aneurysm, and then AA and A for Standard and Poors or Aa, A, etc. for Moodys. In addition, we can also find medium ratings a + or a - but also a 1 or a 2 can indeed be added to the grade (e. g. AA+, A-, Aa2, etc. ).This allows a better and more precise compartmentalisation of borrowers. These different ratings can be divided in two groups the first category, tall Grade includes all ratings betwixt AAA and BBB and the guerilla category, also known as speculative, for inferior grades. (See Exhibit 2, knave 28) The biggest advantage of this system is to provide information at low costs for latent investors. Thanks to an easily understandable grade, but incorporating a vast amount of information, investors can quickly become an whim of the creditworthiness of a borrower.The ratings issued by these agencies are a more and more useful tool in the decision-making process of inv estors smell for pertinent information. modern rule obliges them to certify published information. As we hold in previously seen with the United States or Greece, the market powerfully reacts and sometimes irrationally to any modification of a rating or to a simple announcement of a hypothetical revision. Credit Rating agencies ware got a historical influence on markets. The impact of their decision on issuers and investors is decisive.On the contrary, an excessive reaction was hale foreseeable in front of their in subject matter to call the financial crises of these net decades. 3) The issuer-payer model For more than half a century, investors that paying to stimulate financial information about loan issuers payd the credit rating agencies. Thus, companies, local communities, States were given a rating, without asking for one or without their consents, but to answer to requests from bankers or investors that were proportionality these gold.Naturally, these non-re quested ratings were simply if based on public information concerning such or such company. The Credit Rating Agencies sold their publications to bankers and capital lodgeers who were looking for potential adequate investments. In addition to selling these manuals, the credit rating agencies could also offer others function to investors (weekly information about financial results of rated companies, actualization of the ratings, recommendations and advices of buy and/or sell).However, the agencies will lose some profits as some investors managed to have the information and the manuals without paying for them. As from the blood line of the 1970s, Credit Rating Agencies started to charge their services to the issuers of bonded debt. This is the issuer-payer model. These issuers of debt (Companies or communities looking for investment) began to more and more directly solicit the agencies in order to obtain a rating. They believed that this rating would as original investors dur ing a slowdown of economic growth.Thus, from now on, it is more often the issuers of debts that will request a rating from the credit rating agencies to get an evaluation from them that would allow them to access to credit. This approach contributed widely to consolidate the place of the Credit Rating agencies and to legitimize their intervention. In fact, this translates well a swing of the correspondence of power between those who look for cash to invest in industrial projects and those who hold funds, while waiting for the best regimen issue at the slightest risk.In a solid ground super regulated by finance, where pensioners and holders of capital are in a loaded position, and where industrial and direct investors are in a position of requestors, it is now, more often, issuers who wish to borrow and will ask to be noted, that will pay the credit rating agencies for their services. This breakage from an investor-payer model to an issuer-payer model compromised the independ ence of the credit rating agencies. In fact, in 2011, yet 10% of the revenue of the agencies came from funds holders who cute to know more about the validity, the risk and the potential profitability of an investment.From now on, the ones looking for capital are the ones financing 90% the credit rating agencies. The issuer-payer model strongly modifies the concomitant of the credit rating agencies. In this situation, the rating agency is used, and paying, by the market player who wishes to be noted to then be able to hope to obtain capital on financial markets. The question of the independence of the agency in its rating process is then very directly put the rating agency will be inclined(p) to note well a company which pays her to then try to obtain capital in sizable conditions on behalf of miscellaneous investors.However, the market has doctrine in this independence since a credit rating agency has to protect its reputation, and indeed an agency could not take the risk of over evaluating one of its customers by worship of losing its credibility and thence all business. Credit Rating Agencies seem, indeed, more and more subjected to scraps of interests, which decrease their reliability. The issuers pay the agencies to be noted, while credit rating agencies need the revenues from these like issuers. Besides, more and more often, the credit rating agencies liquefy two activities consulting and rating.Therefore, in addition to evaluating a company, an agency also advises on received operations. A study for the moment in 2008 revealed that some analysts from certain agencies participated in meetings between investors and issuers in which commission and rating were fixed. These engagement of interest generated criticisms and accusations against credit rating agencies and in particular during the recent financial crisis. As the credit rating agencies were essential and indispensable to any players on the market that wanted all(prenominal) to inv est or to find capital, they were at the heart of the upheaval.II. The Credit Rating Agencies and the Financial Crisis is the thermometer responsible for the fever? In order to determine the responsibility that the credit rating agencies have in the financial crisis of 2008, it is necessary to understand how the crisis happened, which events punctuated it and what has been the behavior of the rating agencies passim the crisis. 1) Background of the Financial Crisis Everything started when the the Statesn living accommodations market suddenly collapsed after a steady rise in the 2000 years.To finance their consumption and acquisition of a house, American households did not hesitate to get into very high debts. The market was booming so there was a trust in the ability to get its money back with a substantial profit. As counterparty, they imbue their properties. This was a guaranty for banks to be paid because if the borrower could not reimburse what he owed, his space would be so ld to honor his debt. When the phenomenon grows and affects a large number of households, the sale of their airplane propeller causes the collapse of the value of the property.The downturn of the lodgment market was rein officed by the subprime system. Since 2002, the American case countenance, which encouraged easy credit to boost the deliverance, allowed millions of households to become homeowners thanks to premium loans called subprime, with variable interest rates that can reach 18% after three years. These interest rates are fixed according to the value of the property the greater the value, the commence the rate and vice versa. That is what happened when the housing market collapsed in the United States in the beginning of 2007.Households, lacking of ways to reimburse their debts to lenders, have caused the bankruptcy of several credit institutions that could not repay themselves since even when taking on the property, this one has a lower value than initially. Finall y, banks were also touched by this phenomenon. They have indeed been legion(predicate) to invest in these lending institutions. Nevertheless, now, invested funds are gone. In order to compensate these losings on the housing market, banks were forced to sell their shares, leading to a decrease of their values on the financial markets.The crisis quickly expand in Europe, where major European banks such as Dexia in France and Benelux or IKB in Germany lost a fair part of their investments. Besides, the bankruptcy of several European banks led to a confidence crisis on European financial markets. bank buildings have doubts about each others contamination by the subprime crisis and therefore, to be cautious, refused to lend money. Since international banks are linked to each other through financial agreements, the crisis rapidly extended, to reach Asia during the summertime 2007.Only one ancestor seemed probable for banking institutions to depend this lack of liquidity sell their s hares and bonds. This debauched and quick intervention caused a nippy drop in behave value and all the European stock markets were bear on (See Exhibits 3 and 4, page 29-30). In order to soothe the crisis on the markets but also to bail out banks, the American federal Reserve (FED) and the Central European Bank (CEB) decided to inject liquidity in the monetary system, hoping to gain back the confidence of investors to help stabilize the situation.On 9 fantastic 2007, the CEB acted first by making available 94. 8 meg euros to banks, followed shortly by the FED which injected $24 billion to appease the spirits of investors. However, markets initially misinterpreted the message, considering their involvement as a sign of weakness. The next day, the CEB injected again 61 billion euros and the FED, $35 billion, but the markets felt down again. Finally, on revered 13, 2007, the same action was repeated and the monetary market as well as stock markets around the world unploughed their heads above water.While it seemed like the financial crisis was worn out away at the end of 2007, a second wave of crisis appeared from the banking sector at the beginning of 2008. This was cod to the creation of new products such as residential owe-back securities (RMBS), Asset-backed Securities (ABS). In fact, credit risk, such as subprime mortgages, were pooled and backed by other assets, more or less notional, in Collateralized Debt Obligations (CDO) (See Exhibit 5, pages 31). These clusters of fragmented debts were then sold on the stock ex modify by the issuer, like shares of a company could be given up.This results in the transfer of the risk of non-payment from issuers of mortgages to financial institutions in particular banks, major consumers of CDO. In order to invest on the CDO market, some financial organisms went even further and created Structured Investment Vehicles (SIV) that did not have to respect the usual rules of prudence of the banking system. This a mplified the risks taken and losses wedged on the performance of the bank. Other new products were also created such as Credit Default Swap (CDS), an insurance demand between two entities against a risk faced by one of two entities, such as the non-payment of a debt.The price of the CDS reflects the confidence in a particular issuer of a debt and is the basis for determining the value of the product of the debt. The crisis took a new dimension on September 15, 2008 with the bankruptcy of Lehman Brothers and AIG (narrowly salvage by the Fed), as well as several American and European banks (HBOS in United Kingdom, Fortis in Europe, Dexia in France and Belgium, etc. ). This international and financial crisis still has repercussions on directlys stock markets and the end of the tunnel seems far away. The question raised here is the role played by the Credit Rating agencies in the crisis.Are they the only ones to blame for everything that happened? Are the actions intended by the rat ing agencies responsible for the crisis? 2) The credit Rating Agencies are not fully responsible Ever since the crisis, the credit rating agencies have been easy targets to blame for what happened in 2007 and the years after. Effectively they did not anticipate the downturn of the market, they continued to attribute good rating to banking institutions already hurt by the crisis with an increase book of bad loans or bad papers that banks will have to deleverage.Many criticisms have been emitted about toward them. However, it is important to point out that they are not the ones and only responsible for what happened. They did not have power over a lot of fixingss that went wrong, and for that they cannot be the only to take the fault in the financial crisis. The thermometer could not be responsible for the fever. First of all, they are not responsible for the bankers or mortgage brokers who gave loans unwisely. These institutions lacked of common sense and idea when offering credits .Banks and managers perfectly knew that unemployed borrowers would never be able to reimburse their mortgages. They have, indeed, disproportionately opened the gates of credit by taking for guarantee, when they did take some, the increase of sincere estate prices or their trust in the growth of the economy. They thought that they could make benefits if the debtor did not pay, as they believed that they could force the sale of the house for a higher price. However, real estate prices always end up going down and the economy is fluctuating.In an act to subdue the risk of these new kinds of loans, banks used securitization they transformed these loans and resold them on the stock market. Therefore, mortgages securitizers are also to blame. Some companies such as Washington Mutual, Morgan Stanley or Bank of America were mortgages originators as well as mortgage securitizers, other like Goldman Sachs, Lehman Brothers and Bears Stearns bought mortgages directly to subprime lenders and pooled them together to resell them to investors. However, as soon as a debtor was not able to pay back his mortgages, the security became cyanogenic and had no more value.Nevertheless, this was not the last step. Some banks would buy and bundled mortgage backed-securities into collateralized debt obligations, cool of different levels of risk. The creators of these new financial products are also responsible for the crisis. They bet against these risky CDOs by using credit default swap. (See exhibit 5) Government Sponsored Enterprises (GSEs) could also be blame for what happened. They indeed, control the mortgage market. When a bank or a mortgage broker wanted to take off his books a loan, it could sell it to a GSE, which led to a higher number of mortgages.Fannie Mae and Freddie mac are the two major GSEs. Alone, they own or guarantee half of the genuine mortgages. With their political relation status, investors can buy those bonds while asking for a low interest rate in retu rn, as federal government bonds have the safest credit rating in the world. As long as debtors paid back their mortgages, Fannie Mae and Freddie mack would be able to pay their creditors too. However, as these loans where often given out, even to people we knew could not reimburse, GSEs had to assume the risk. Therefore, we could also hypothesise that investors could be blamed for the role they played.They bought and invest in financial products they did not know about. They should have conducted researches about what they were purchasing and should have known these were subprime and meant a higher risk of non-payment. However, we have to see the bigger picture. At that time, banks received force from higher instances to encourage homeownership and so, to grant loans to the poorest population. The government wanted households with a less comfortable life to be able to buy their own house. The pressure that was put on the banks forced them to give mortgages to debtors that would i kely not pay back. This being said, borrowers are also responsible for contracting loans that they pertinently knew they could not afford. Moreover, the credit rating agencies are also not responsible for the debt of the countries. They have often been accused to do be the reason for the deficit of some countries such as Greece. Nevertheless, Greece has always had a long deficit. They never had a break-even budget in 150 years, and governments from left to right parties consistently laid about the finance of the bucolic.In addition, the national sport is not the Greco/Roman clamshell or the Marathon but how to ward off paying taxes nothing in which the rating agencies were involved. Furthermore, regulators could have also done a better job to prevent the crisis. In the United States, several regulators exist and each of them has a specific area of expertise. The regulation of the banking sector is shared between the Federal Reserve (Fed), the Office of the Comptroller of the ca sh (OCC), the Federal Deposit Insurance association (which guarantees the deposits of bank customers) and the Office of the Thrift superintendence (OTS).There is also The Securities and Exchange bearing (SEC) that is responsible for the supervision of stock exchanges. The Financial effort Regulatory Authority provides the regulation of brokerage activities. Finally, the Commodity Futures Trading Commission (CFTC) insures the regulation of futures and options markets. This various regulators could have acted to appease the situation. The SEC could have, indeed, regulate lending practices at banks and force them to keep more capital militia in case of losses.The Federal Reserve could have contained the housing bubble by setting safer mortgages lending standards, which it failed to do and oddly when Alan Greenspan who was the head of the FED, refused to purify the examination of the subprime mortgage market. Finally, according to the Financial Crisis Inquiry Report, executives i n the main investment banks did not hold enough capital to be fully protected against losses. Some companies, such as Lehman brothers or Citigroup would full hide bad investments off their books.It is mainly a problem related to the liquidity crisis that led to the bankruptcy of Lehman Brothers. Lehman Brothers, indeed, financed itself on the short-term and lend on the long-term. When the source of the financing dried up (banks did not trust each others by fear of not being paid off), Lehman found himself stuck and was enabled to face its commitments. If the credit rating agencies were not responsible for the mortgage originators or securitizers, the creation of the CDO, the regulators or the executives of the investment banks, they for certain played a tremendous role in the crisis ) But they could have done better The credit rating agencies are responsible for a lot in the financial crisis. some(prenominal) aspects of their business as well as the actions they have done have be en pointed out as the main cause of the crisis. First of all, the pertinence of their business model was questioned, among others the oligopolistic situation of the market and the conflict of interest created by the issuer-payer model. The Big iii (Standard & Poors, Moodys and Fitch Ratings) generate 95% of the $6 billion market that the rating business represents.These three agencies dominate the market and adopt similar methodologies and practices. The business model of the rating agencies establishes itself on the independence and the credibility granted by the financial markets and the authorities of supervision. That is why, in the absence seizure of statutory reforms and / or of the desertion of numerous customers, the leadership of the Big deuce-ace will be maintained, protected by strong barriers of entry (reforms difficult to set up and loyalty of issuers often connected to the weight of the rating process).Besides, the oligopolistic situation is strengthened by a consol idation, on the initiative and thus for the benefit of the Big Three. So, Fitch acquired in June 2000 the fourth American rating agency, Duff and Phelps, and in December 2000 Thomson BankWatch. At the beginning of 2006, Fimalac gave up 20 % of Fitch Group (who, herself, holds Fitch Ratings, Fitch teach and Algorithmics, this last company having been acquired in 2005) to Hearst Corporation. Likewise, the French subsidiary of Standard & Poors acquired ADEF (Agency of Financial Evaluation).Another reason why the credit rating agencies played an important role in the financial crisis is because of the conflicts of interest they were face up with the issuers. If some narrate that these conflicts of interest were of nestling importance since there are always conflicts of interest in relationships, in that case, it had serious consequences on the ball-shaped economy, as they are one of the causes of the subprime crisis in 2008. It is, indeed, the issuer that pays the rating agency so that this one estimates its capacity to pay off its debt.It is thus relevant to delight in about the partiality and the objectivity of the rating agencies which find themselves at the same time judge and judged and which can be inclined to note well its customers to keep their market share. Besides, the transparentness that the rating agencies show in their methodologies and during their changes of ratings is unreliable as far as these sudden reversals seemed to have destabilized the markets. The three major credit rating agencies also contribute to worsen the financial crisis by their practices. They were, indeed, a key factor in the financial meltdown.They attributed a rating to every products offered on the stock market. Even mortgage-related securities received a good grade, which made it easier to market and sell them. As we have seen previously, the ratings that they gave had an almost biblical authority, so investors trusted the rating agencies to be fair and to give releva nt grade to each product and did not conduct further investigation regarding their investment. Credit Rating Agencies were necessary to the mortgage-backed securities market each actor in the process needed them The issuers, to approve the structure of their deal The banks, to determine what capital to hold The investors, to know what to buy Since 1970, when the credit rating agencies got the status of NRSRO, the SEC decided to base the capital requirements for banks on the grades given by the rating agencies. This is also included into the banking capital regulations as the resort rule, which allows banks to hold less capital for higher-rated securities. The SEC also prevented money market funds to buy securities that did not receive ratings from at least two NRSROs.Without these good ratings, banks would not have been able to place these financial products so easily onto financial markets, and the investors would have never bought them. Theirs ratings helped the market to go up rapidly and their downgrades between 2007 and 2008 wreaked havoc across markets and firms. These ratings, especially the ones for the mortgage-backed securities, appeared to have been very optimistic. But what we could observe, throughout the crisis, is the gregarious reflex of the credit rating agencies.They usually agreed on the ratings and when one of them downgraded a security, a company or even a State, the others would usually follow and did the same thing. As we have seen, the Credit Rating Agencies have indeed played an important role in the financial crisis. However, they are not the only one to blame. Thus, we can say that the thermometer is not responsible for the crisis but it could have given a better temperature of the situation. III. What is next? As we discussed, the credit rating agencies have been criticized a lot during the crisis and some flaws of them have been pointed out.In order to repair their efficiency, it is important to understand what we have learned from the crisis and then propose a better regulation or an pick to the Big Three. 1) Lessons learned from the Financial Crisis The first lesson learned from the crisis is the impact of the globalization of financial markets. This has linked countries together in a greater extent than they were before. That is why, in todays economy, any crisis that hits a main rude or group of countries will have repercussion on all other countries. The financial crisis of 2008, started in the United States with the subprime bubble.Then it grew bigger and affected the rest of the world almost immediately compared to the 1929 crisis which also had intercontinental impact but more gradually. We have to keep into consideration this new factor and realize that globalization plays an important role in the current worldwide economy. In addition, a state and its financial system need to be better nimble to face the crisis, in order to dress economic and financial damages. This actor having a sound and well-regulated environment, keeping its inflation rate low, its exchange rate flexible, and its debt position sustainable.By doing that, a country would limit its vulnerability in front of any financial crisis. Moreover, the country should use fiscal and monetary policies to be able react quickly in case of external shocks. Another lesson learned is the question of the financial supervision. The global crisis is a crisis of confidence, which must implement rules on investment in the financial market, such as CDS (Credit Default Swaps) and short-selling of securities, working of OTC derivatives to reduce risks, CSD (Central settlement and Depository) regulation to protect investors and also Hedge Funds transparence.In macroeconomics, monitoring means imposing laws and rules on a structure with what is called the invisible hand. In our case, the invisible hand is the World Bank and the International fiscal Fund and the States, which have full power to intervene and better regula te minutes in the financial markets. This crisis also revealed some weaknesses regarding risk planning. Research based on various methods, including country case studies, corroborate that the more the planning is important, the more the type of the financial services of a country is raised and more the financial intermediation is efficient.The planning of the risks led a certain number of countries to revise their financial structures to set itself to the global economic transformations. Finally, we can say that every good thing comes to an end, irrefutable times do not last forever and the end is most possible going to be painful. In todays financial system and global economy, we cannot fend off financial crisis, we can just hope that enough efforts will be done to improve our financial system and to limit the impacts of future crisis on our economy.If we contract on Credit Rating Agencies, to have a sound environment, it is worth considering a better regularization of our existing Credit Rating system, a new and improved rating system or the procession of all told new credit rating agencies. 2) Regularization of our existing Credit rating system After the dysfunction of our system translated for instance into the collapse of Lehman Brothers, the disappearance of noted institutions such as Bear Sterns or Merrill Lynch, G7 members stressed the financial effort to improve its functioning mode and heighten the regulation.Several critics have indeed been directed to the credit rating agencies regarding the methodologies used by those agencies (including the growing place of the so-called political factors), the lack of transparency of their decisions, the rudimentary explanation accompanying the changes in notation, the moments selected to realize their announcements of ratings and finally, the potential conflicts of interest. All these aspects need to be taken into consideration when aiming to regulate the rating agencies. Various reform final cau ses have been recommended.Among them, you find some proposing the downsizing of the governments influence over this industry, or even the creation of a completely government-sponsored rating entity. However, the final goal is the verity of the credit rating. The first main step toward a better regulation happened in 2006, when a new section to the Securities Exchange Act has been added. The objective was to improve rating fictional character for the protection of investors and in the public interest by fostering accountability, transparency, and challenger in the credit rating industry (ANNUAL SEC REPORT, supra note 22, at 16).The market is an oligopoly the Big Three set the tone for the rest of the industry. Encouraging argument should give more choices to investors, at a lower cost and with better quality ratings. Several rules were added along the way, especially in 2009, when the SECs new rule addressed conflicts of interest, fostered competition and required flesh out dis closure. For example, a NRSRO could not anymore issue a rating in which it had informed the bank or the issuer for the structure of the product.Another change emerged from the Dodd-Frank Act, in 2010, where a whole chapter has been sanctified to the rating agencies improvements to the regulation of the Credit Rating Agencies. The Dodd-Frank Act qualified the agencies as gatekeepers for the debt market and that is why they needed public direction and accountability. This meant reducing the investors reliance on ratings by limiting references to NRSRO ratings from rules, increasing the liability exposure, maintaining and informing on the structure of the ratings, as well as filing control reports yearly.However, both of these new reforms showed weaknesses, particularly in addressing the conflicts interest coming from the issuer-payer model, or the oligopoly. As mentioned before, several proposals would appear more efficient to answer these problems. The first proposal would be the elimination of the NRSRO status, which would remove any restrictive reliance on the ratings. This would also experience prices down as there would be an increasing competition, but it would also improve the rating quality and the innovation.Nevertheless, this proposal would lead to a total revision of the holy bank regulatory system and could also increase the pressure to satisfy issuers. The second proposal was to create a totally government-sponsored rating industry. This would make the rating a public good, eliminating any conflicts of interest due to the issuer-payer model. Although appealing because it resolves one of the main critics emitted during the financial crisis, it does not say who is going to pay for the subsidization.Finally, another more recent proposal called give out or disgorge asks for the agencies to disclose the quality of the ratings they give, which means disclose to the public when a rating is low quality or disgorge benefits made with the rating. Howev er, charging penalties would increase the barriers of entry on this market and discourage potential NRSROs. The rating business faces two major problems, the oligopolistic situation of the market that is being maintained by an increased regulation that secures the Big Three, and the issuer-payer model that fosters the conflicts of interest.Even though several reform proposals have been suggested, none appears to be totally conceivable. 3) A new rating system We have seen that a lot of reform proposals exist in order to enhance and increase regulation of the rating system. These proposals, indeed, reveal that some aspects of this business need to be improved. Eventually, a new rating system is worth considering. First of all, we have realized already touch based, throughout this analysis that the business model of the credit rating agencies needs to be modified, especially the issuer-payer model.The fact that the issuer is the one that pay the agencies for their ratings creates a con flict of interest that has to go away to insure an accurate and objective rating. In order to solve this issue, a new model is necessary. A possible idea to get there would be to make, not the issuer, but the investors (the ones that want to know the rating of a company or an entity) to finance the credit rating agencies. It is indeed them that need to know the rating of an entity, so it would be fair for them to pay in order to know what they are investing in.This would figure out the problems related to the conflict of interest as rating agencies will not be tempted to give a good grade just to satisfy the client and reverse loosing profits. This was actually the model that existed before 1970, when the issuer-payer model was established. The shift to a model investor-payer would constitute a deep change for the whole rating industry but would carry away the conflicts of interest. Another change that would be conceivable would be to set up a rating planning. The credit rating a gencies should emit their grading at a known rhythm.Therefore, companies or States would know when they would be rated. For example, every January 1st, they could give their ratings for all entities. This would avoid sudden downgrades as we saw during the crisis, where rating agencies lowered the rating of a company right before it went bankrupt. Furthermore, to improve the true statement of the ratings, a distinction between the rating of a company and a State should be made. In fact, Credit rating agencies do not evaluate the same thing when rating a country or a firm.That is why different ratings should be given according to the constitution of the entity. Finally, this new rating system should have a better transparency of ratings. As this has often been reproach to the agencies, it is clear that we need to improve it. In order to get more transparency in the ratings, the credit rating agencies should be forced to make public some criteria that contributed to the rating proces s. In addition, when an entity is downgraded, there is ever a clear explanation.An explicit and standard comment should go along with the new ratings to explain the cause of the downgrade or upgrade. All these improvements should be made to obtain a more transparent and accurate rating. These changes could lead to more efficient and regular ratings where conflicts of interest would be inexistent and where the distinction between entities would improve the relevance of the ratings. 4) Creation of a new credit rating agency Finally, another solution that arises would be the creation of a new rating agency.This proposition is particularly discussed in Europe. The arguments called in favor of the creation of a European rating agency are multiple. It would be a question, first of all, of introducing more competition into a sector that is today dominated by three major actors. Standard and Poors, Moodys and Fitch Ratings are indeed sharing more than 90 % of the market, a situation which confers to the members of this Big Three a tremendous capacity of influence. To create a new rating agency would be a way of having a bigger diversity of points of view.The trust that would be granted by the investors to a new European agency would depend however on its capacity to avoid the criticism sent to Big Three in terms of independence and conflict of interest. It would also be necessary to sterilise the status of the new agency a public or a private organization? A public rating agency could face the mistrust of the investors, who could doubt its independence towards public authorities and States, which it would have the mission to evaluate. On the other hand, a private agency would look like a non-profit foundation.The rating agency would be financed by the investors who would use its notations, and not by the entities emitting the financial products, which would allow guaranteeing its independence. Nevertheless, the future prospects of such a structure remain incertain to what extent would it be able to impose itself in front of Big Three, in a sector where the experience and the reputation of the institution play a determining role? In addition, a history of ratings would be necessary to evaluate the evolution of an entity and a strict method is mandatory for accurate rating.A new rating agency would not be able to have all of these factors before several years. To conclude, it is not easy to find the best solution to improve the current rating methods. Different regulations have been tried, all presenting good points but also flaws. However, what we need to enhance is clear better transparency, a more accurate rating and a suppression of the conflicts of interest. Conclusion The role of the credit rating agencies in todays economy is crucial. They evaluate the creditworthiness of an entity, influencing investors and interest rates.However, during the crisis, their role has been criticized. Several factors can explain their controversial position . The oligopolistic situation of the market, their supposedly trustworthy evaluations given by their NRSRO status, as well as the conflicts of interest coming from their issuer-payer model are the main causes of the critics emitted toward them. Recently, the American justice even press charges against the rating agencies for their role in the crisis and asked for volt billion dollars. Nevertheless, even if the credit rating agencies are the ideal responsible, they are not the only ones to blame.Now that the crisis revealed the different flaws of their system, we can only improve them going forward. Several regulations have already been approved and others are still under consideration. Other ideas to enhance the rating system include a new financing model, by perhaps considering going back to the investor-payer model, a better transparency of their rating, by showing the criteria used for their ratings, and a distinction between a company or a security and a State, which are two co mpletely different entities.Lastly, we can wonder if the Credit Rating agencies still have as much influence as they used to. For instance, when downgrading both the United States and France, the repercussions were minors even nonexistent. The lost of their triple A did not bring the interest rates up as it should have, since today the interest rates are historically low in both these countries. Exhibits Exhibit 1 Credit Rating Agencies with the NRSRO designation Exhibits Exhibit 2 Rating systems of the Big Three Source Credit rating Wikipedia, the free encyclopedia. Wikipedia, the free encyclopedia. N. p. , 7 Mar. 2013. Web. 13 Mar. 2013. http//en. wikipedia. org/wiki/Credit_rating. Exhibits Exhibit 3 outstanding facts about the crisis Exhibits Exhibit 4 development of market indexes from August 9 to 16, 2007 office Evolution Dax (Germany) -4,42% Dow Jones (USA) -5,95% Nasdaq (USA) -6,16% FTSE 100 (United Kingdom) 8,37 % CAC 40 (France) -8,42% Nikkei (Japan) -10,3% Exhibits Exhibit 5 Residential Mortgage-backed securities These tranches were often purchased by CDOs These tranches were often purchased by CDOsSource The financial crisis doubt report final report of the National Commission on the Causes of the Financial and economic Crisis in the United States. Official government ed. Washington, DC Financial Crisis Inquiry Commission , 2011. Print Bibliography * Dupuy, Claude . La crise financiere 2007-2008 Les raisons du desordre mondial C. francetv instruction la plateforme des parents, eleves et enseignants. N. p. , n. d. Web. 12 Mar. 2013. http//education. francetv. fr/dossier/la-crise-financiere-2007-2008-o21596-chronologie-de-la-crise-2007-2008-780. 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