What you think of the subprime crisis and how it impacts todays Essay

What you think of the subprime crisis and how it impacts todays economy - Essay Example In obvious circumstances, the lenders mortgaged the loan security to other investors in various esoteric combinations. The adverse effects of the subprime crisis lead to hike in interest rates, which forces the Fed to raise rates to combat inflation, which has to be incurred by the common man. Economies of developing countries classified as emerging markets, are still seen by developed country fund managers as risky propositions. So the flight to safety will see some funds pull out of developing countries. This could lead to a stock markets slide in these economies, loss of confidence and slowdown of the real economy. The other source of disruption is construction-led slowdown in the US. This could hit developing economies that export a lot to the US. The subprime crisis also places downward pressure on economic growth, because fewer or more expensive loans decrease investment by businesses and consumer spending, which drive the economy. A separate but related dynamic is the downturn in the housing market, where a surplus inventory of homes has resulted in a significant decline in new home construction and housing prices in many areas. This also places downward pressure on growth. Crisis has caused panic in financial markets and encouraged investors to take their money out of risky mortgage bonds and shaky equities and put it into commodities as "stores of value". Most of the recent increases in global food prices have been the result of speculation and the collapse in the value of the US dollar which is now at Indian Rupees 38.62 per dollar. This crisis has an immense effect on the national stock markets, where the fluctuations in the market prices and shares of the corporations do create an element of doubt in the stakeholders mind and thus leading to kiosk among them. The market value chips down and which tends the financial institutions to come forward and ask for their loans

Module 1 and Module 2 Essay Example | Topics and Well Written Essays - 1000 words

Module 1 and Module 2 - Essay Example he assumptions that things must be done differently or new things done which at the end of the day drive to learning (Berthoin, Ariane, & Katrin, 1997). The first topic, changing the consulting story, generally talks about the consulting role and postulates that consulting is about experts giving advice and further states that any time one is asked to help and do not have direct responsibility for the outcome, then that is consulting. The two most popular categorizations that distinguish the different types of the roles of consultants is content vs. process and the directive/non-directive continuum. While the roles of the content focused consultants involve the provision of expertise advise and delivering specific service for the client organization which could be like designing a new system for the organization, process consulting on the other hand has been basically associated with the different activities by the consultant that seek to help the client perceive, understand and act upon the process events occurring in the environment of the client (Berthoin, Ariane, & Katrin, 1997). The recent past has however seen the emergence of a trend towards the recognition of the complementarity of content and process consulting thus making consultants to find it necessary to acquire skills on both modes. As postulated by the author in the topic, it is true that the consulting profession is not a regulated industry and that consulting projects are as a results not publicly scrutinized. This could lead to potential for abuse especially when opportunistic snake-oil salespeople operate alongside highly reputable professionals. The author goes further to suggest that from the perspective it would be prudent that clients exercise due diligence whenever seeking the help of consultants. However, numerous studies on the consultancy profession has postulated that the profession just like the other professions have evolved as a result of government regulations. This arises from the