The Climate for Change by Al Gore Pg. 301 Essay Example | Topics and Well Written Essays - 750 words

The Climate for Change by Al Gore Pg. 301 - Essay Example children would want the people today to hear and recognize the truth of the prevailing situation, before everything might be too late (Laurence and Rosen 301). Al Gore was simply trying to show special concern on the preservation of life in this world. Based on his speech, this looks like the very reason in the first place why he initiated primary move of encouraging and informing everyone of the prevailing condition of planet earth in the advent of man-made contribution to the climate change. Thus, the entire speech of Gore consists of very important points in order to justify what he actually would want to convey to the people prior to convincing them so as they would create elemental actions for the preservation of life. The first point was all about addressing the climate crisis. For Gore, attending to this problem is just the same way on how one should do it with the prevailing concerns on economic and energy security crisis. â€Å"Here is the good news: the bold steps that are needed to solve the climate crisis are exactly the same steps that ought to be taken in order to solve the economic crisis and the energy security crisis (Laurence and Rosen 301). Gore was just actually emphasizing at this point on how exactly to simultaneously hit various opportunities with one essential decision. He was offering in as much as possible the best move to initiate in order to address both economic and environmental concerns associated with global warming issue. For him, it would be the best move to identify first the real cause of the problem and after that initiate an action plan as the basis of actual implementation for the solution-making process. So as for the second point of Gore’s speech, here are the important plans or suggestions that he presented to the people (Laurence and Rosen 302-303). For Gore it would be now the right time to invest in alternative sources of energy such as geothermal, wind, and solar energy. To implement this, Gore encouraged the executive

The Subprime Meltdown Essay Example | Topics and Well Written Essays - 1250 words

The Subprime Meltdown - Essay Example (Gordon, 2008). The less stringent regulations for financial sector encouraged banks and other financial institutions to go on lending spree by defying prudent lending practices and lend into those areas which were historically considered as bad credit areas. Subprime mortgages is also the part of same sequences under which banks financed mortgages of those borrowers who had the histories of default. Based on the concept of high risk-high reward, banks and financial institutions devised products which catered the needs of subprime borrowers which ultimately resulted into the crisis as subprime borrowers started to default on their payments. The problem emerged when, through financial innovation, banks and financial institutions securitized those mortgages and issued fixed income securities whose payments were tied with the repayments received from subprime mortgage repayments. The process of securitization thus created essentially the mismatch between cash flows which finally culmina ted into the crises. This research paper will attempt to analyse and understand how and why crisis emerged, where the crisis emerged and the possible role of hedge funds into crises besides discussing its impact on world financial markets in general and Australian Financial Markets specially. "Sub-Prime lendSubprime lending "Sub-Prime lending typically has been characterized as lending at relatively costly interest rates and fees to credit impaired or otherwise high risk borrowers." (Lax, Manti, Raca, & Zorn, 2004). Sub prime lending is relatively a new and a popular especially for mortgage loans like interest loans. These types of loans are typically targeted to first time buyers of homes or borrowers with restricted capacity to finance new home purchase. Most of the homeowners tend to use this class of borrowing in order to consolidate their debts or when their credit ratings fall to a level where they can be declared as bankrupts mainly due to the fact that their available funds are utilized in some other resourcess such as high medical bills etc. (Blanton, 2005). Subprime lending became famous for many reasons. On one hand it not catered the needs of low quality customers but also provided an opportunity to the financial institutions to charge high amount of interest rates and other fees therefore b anks, spotting the opportunity to earn high started to lend extensively in this area. Due to this perceived high reward, financial institutions take the risk because it is compensated through better returns. Subprime lending- a problem Most of the subprime lending has been made in mortgage markets. It was because of this reason that homeownership increased tremendously over the period of time besides being favorite of the persons with loose credit ratings and a history of defaults. With the advent of financial innovation which took place especially after 1970s saw the emergence of financial derivatives as one of the most important financial instruments for banks to use in different situations. Banks, in order to regain the lost liquidity used in subprime lending started to securitize their mortgage portfolios by issuing mortgaged backed securities. However,