Navy NCDU Teams Essay -- essays papers

Navy NCDU TeamsOn the beach invasions of Normandy, one of the marines commented, Jesus, we dont even have control of the beach yet and already the tourist are here. This is the normal response that the men of UDT get, during WWII in the pacific campaign. They would tonality themselves with steaks of blue and white. They were the first ones on the beach and the last ones to leave. They carried no weapons except for a combat knife used for cutting, and crimping the fuses of their explosives. Some say that you would have to be half nuts and half fish to join the UDT. But, besides being courageous and saving the lives of many a thankful marine(although they will not train it) the UDT did something historical that NO HISTORY BOOK for that matter has cared to mention. They launched the United States into a whole new type of warfare, consisting of underwater commandos who could rise up out of the water and devastate an enemy, and disappear just as fast, or slip onto an enemy held beach, undetected, and bring back almost any type of breeding you needed. The latter probably saved hundreds upon thousands of marines lives alone. My report will show you the mysterious, and secret world of the UDT.The first Naval scrap Demolition Unit started with thirteen volunteers who were near the end of their basic training in the Dynamiting and Demolition School at Camp Perry, Virginia. They were sent to the Naval amphibious Training Base at Solomon Island, Maryland, in Chesapeake Bay where they were joined by other enlisted demolition men and eight collide withicers. Lieutenant Fred Wise from the Sea Bees (Construction Battalions) was designated policeman in Charge. They were given a quick, intensive course in blowing channels through sandbars with explosive hose, and in working from rubber boats to place explosive charges on underwater obstacles which had been modeled by Army engineers. Then they sailed for the assault on Sicily. Twenty-one men under LT Wise debarked from three attack cargo ships off Scoglitti, Sicily, on the morning of July 10, 1943 and waited patiently for orders that never came. The landing waves either found enough water over the sandbars or used alternative beaches. For the next twain days the demolition units did useful work salvaging stranded boats, buoying channels through the sandbars, and surveying the be... ...tion units received the only Navy Unit Commendation awarded for the Normandy landing. Navy Crosses were awarded to Ens. William R. Freeman, Gunners partner off Robert W. Bass, Gunners Mate John H. Line, Chief Jerry N. Markham, Chief Aviation Ordnanceman Loran E. Barbour, LTJG William M. Jenkins, and Ens. Lawrence S. Karnowski. There were also a number of Silver Stars and Bronze Stars to others who were especially outstanding in a day of widespread heroism.The NCDU regrouped and Lieutenant Commander Herbert Peterson, in charge of Naval Combat Demolition Force U, with ten veteran UTAH units, embarked in a Medit erranean-bound convoy for Salerno. Here they trained for the upcoming invasion of Southern France. As these combat demolitioneers proved once again the need for and the success of underwater demolition, the newly organized Underwater Demolition Teams, UDT, were proving their worth in Saipan. Many NCDU men stayed in demolition and got to the Pacific in time for the occupation of Japan, merely the end of World War II brought the end of Naval Combat Demolition Units. Many NCDU men brought their experience and expertise to the Underwater Demolition Teams.

The Telephone :: Free Essay Writer

The Teleph angiotensin converting enzymeA number of inventors believed that voice and sounds might be carried over wires and all worked toward it but there was only one that finish up figuring it out. The first to achieve this everlasting success was a Scottish-born American inventor , Alexander Graham Bell, a teacher for the deaf in capital of Massachusetts, Massachusetts. Bell was born on March 3, 1847, in Edinburgh, Scotland, and was taught at the universities of Edinburgh and London. He moved to Canada in 1870 and to the United States in 1871. In the United States he began doctrine deaf-mutes, publicizing the system called visible speech . His father, who was a Scottish teacher, developed visible speech, Alexander Melville Bell. Visible speech shows how the lips, tongue, and throat are used in the making of sound out of the mouth. In 1872 Bell opened a school to train teachers of the deaf in Boston. The school soon became part of Boston University, where Bell was assigned the professor of vocal physiology. He became a U.S. citizen in 1882.Since Bell was 18 years old, he was trying to come up with the motif of transmitting speech. In 1874, he figured out the basic parts of the telephone. The experiments with his assistant Thomas Watson finally was successful on March 10, 1876, when the first set down sentence was transmitted Watson, come here I want you. There were lots of different demonstrations showing the invention, but the most popular one was the one at the 1876 Centennial Exposition in Philadelphia, Pennsylvania. This was when the telephone was introduced to the world and led to the organization of the Bell Telephone lodge in 1877. When the Bell Telephone Company finally got going the company strongly dheld its patents so it will exclude others from the telephone business. After these patents expired in 1893 and 1894, independent telephone companies started up in many cities and most small towns.

Diverse Australian Biomes Adapting :: Adaptation Australia Essays

Diverse Australian Biomes Adapting Australia is a land of rather extreme weather conditions and widely diverse climates that force the plant living there to adapt in many interesting ways. Australia is the driest continent, and biomes such as grasslands and savannas are prime sources of widespread catastrophic fires. The plants that grow in the bulky arid and semi-arid regions of Australia are prone to fires simply because of the desert climates that they grow in. High temperatures combined with low discharge moisture contents, little humidity and drying winds that sweep across the landscape encourage many of the plants living in these areas to burst into flames at fairly frequent intervals. Serotinous cones, protective bark, intricate underground reco really systems, unique sow in distributions and even the necessity of fire for reproduction are just some of the amazing ways that the major plant families which grow in these fire-prone areas have erudite to adapt to their envir onments.History of fires in AustraliaAustralia is currently the driest continent in the world and has a vast history of fire to prove it. Bushfires in the Adelaide Hills were first depict and recorded in 1827, and have occurred at frequent intervals since that time. Fire weather can reach extremes in places such as Rudall River National Park in NW Western Australia. Temperatures are often above 40 degrees Celsius (104 degrees Fahrenheit), dew points can drop to 37 degrees Celsius, and the winds, uninhibited by trees, can reach speeds of 50-60 km/h (31-37 mph) at any given time in the year. The fuels there may appear to be completely dead, and gaps between plants may be a verse or more (Gill, 1995). In 1966 a massive fire at Brooyar, Queensland had flame heights of 20-25 meters (65-82 feet). In addition to being devastating, the fires are also very unpredictable. A bushfire in the Baulkham Hills in January of 1975 completely destroyed property and some homes, while leaving others u ntouched. Serious fires occur in the Dandenog Ranges at frequent intervals, and living accommodations there has always been a difficult problem with fire control 3. Fire has also been used for centuries as an important tool for land vigilance (ONeill, 1993).Necessary Conditions For FirePlants that grow in the vast arid and semi-arid regions of Australia are prone to fires simply because of the desert climate they grow in. High temperatures, low fuel moisture contents, little humidity and drying winds that sweep across the landscape encourage small patches of plants to burst into flames.

Colonial Representations of Natives - the Indian :: Essays Papers

Colonial Representations of Natives - the IndianAt the outset, it should be noted here that the use of the term Indian to describe the aboriginal peoples of North the States is somewhat contentious. As is well known, its use derives from Columbuss mistaken belief that he had arrived in the East Indies and this situating of Natives within an already existent European discourse is in many ways paradigmatic of what was to follow during the centuries of colonisation and settlement. For it should be made clear that the Indian is a European invention, and that there has always been a owing(p) deal of slippage surrounded by the representations of this figure and the realities of the lives of Native North Americans. In fact, the Indian has always represented as much slightly European fears and concerns as it has about actual Natives. Add to this the fact that the popular image of the Indian has in large part been shaped by commercial considerations - give the audience what it wants to gr ab - and it draws clear that we are dealing with a very complex set of relationships. For this reason, the purpose of this page is principally to outline some of the characteristics of the Indian as he has been created by Europeans, and not to consider the lives of real Natives.Now, the most obvious problem with the term should be that it lumps together all the various nations, ignoring the wide differences which exist between the diverse cultures which originally inhabited the continent. But the masking effect of the stereotype runs deeper than this. As is often the case with Western encounters with alien peoples, the representation bifurcates. What we tend to align is either the noble savage or the barbarous, bloodthirsty primitive. The first term here was coined by John Dryden, and conveys the idea of man in a democracy of nature, untainted by the perceived evils of civilisation, such as avarice or ambition. It is a projection of the fear that somehow the Western way of life h as become corrupt, and is in need of redemption. Traces of this view of the Indian are still apparent in the twentieth century, when many people believe Natives to have a miscellanea of spirituality connected to a universal harmony and a balance with the natural world. In the nineteenth century the Canadian poet Charles Mair wrote a long verse called Tecumseh, which included the lines

Comparing William Wordsworths Composed Upon Westminster Bridge and Wil

Comp be and Contrast William Wordsworths Composed Upon Westminster Bridge and William Blakes capital of the United Kingdom William Wordsworth and William Blake wrote poems about London, still they presented their views from different angles. Wordsworth sees the beauty in London and Blake sees only the ugliness. William Wordsworths Composed Upon Westminster Bridge gives a step-by-step look at the awe-inspiring beauty of a London morn, whereas William Blakes London shows the dreary ugliness of London life by taking a stroll down Londons streets. Composed Upon Westminster Bridge affects the reader with a hotshot of wonderment at the beauty that is created with a sunrise. London appears to be the most beautiful place on earth during a sunrise. The sun bathes the city in light and gives the reader a sense of purity and cleanliness. London affects the reader with an opposite feeling. The reader sees the unsavory side of London in the faces of its citizens. The citizens of London ar unh appy with their lives, but they accept it with resignation. It is appalling how the Church designs the small chimney-sweeping children to clean the soot of London and the poor become soldiers that die for the monarchy. The purity and cleanliness of London is scattered when young women become prostitutes. The death that falls upon a marriage is often transmitted through the diseases a prostitute passes on. A sense of anger is tangle at a life that allows such sadness and darkness to fall upon the citizens of London. Wordsworth and Blake use different techniques in their poems to present their views. Wordsworth uses personification to bring the beauty of the sunrise to life. London takes on human traits with This city now doth, like a garment, wear The beauty of... ...y emphasizing the dreary bondage of the London citizens in London. Wordsworths use of imagery and rhythm places the reader in a calm and peaceful situation. Blakes use of imagery and rhythm places the reader in an an gry tension make full situation. Wordsworths readers have the wonders of a sunrise unfold before them and beauty is seen everywhere. Blakes readers become angry at the ugliness and unfairness of life and bondage and resignation are seen everywhere. Both authors achieved their tasks admirably.Works CitedBlake, William. London. Literature An Introduction to Fiction, Poetry, and Drama. Ed. X.J. Kennedy and Dana Gioia. 7th ed. New York Longman, 1999. 729. Wordsworth, William. Composed Upon Westminster Bridge. Literature An Introduction to Fiction, Poetry, and Drama. Ed. X.J. Kennedy and Dana Gioia. 7th ed. New York Longman, 1999. 1157.

Comparing William Wordsworths Composed Upon Westminster Bridge and Wil

Compare and Contrast William Wordsworths Composed Upon Westminster Bridge and William Blakes capital of the United Kingdom William Wordsworth and William Blake wrote poems about capital of the United Kingdom, but they presented their views from different angles. Wordsworth sees the beauty in London and Blake sees only the ugliness. William Wordsworths Composed Upon Westminster Bridge gives a step-by-step look at the awe-inspiring beauty of a London sunrise, whereas William Blakes London shows the dreary ugliness of London life by taking a stroll down Londons streets. Composed Upon Westminster Bridge affects the reader with a star of wonderment at the beauty that is created with a sunrise. London appears to be the most beautiful place on earth during a sunrise. The sun bathes the urban center in light and gives the reader a sense of purity and cleanliness. London affects the reader with an opposite feeling. The reader sees the unsavory side of London in the faces of its citizens. Th e citizens of London are unhappy with their lives, but they accept it with resignation. It is stately how the Church uses the small chimney-sweeping children to clean the soot of London and the poor become soldiers that die for the monarchy. The purity and cleanliness of London is lost when young women become prostitutes. The death that falls upon a marriage is often transmitted through the diseases a prostitute passes on. A sense of anger is felt at a life that allows such(prenominal) sadness and darkness to fall upon the citizens of London. Wordsworth and Blake use different techniques in their poems to present their views. Wordsworth uses personification to bring the beauty of the sunrise to life. London takes on human traits with This city now doth, like a garment, wear The beauty of... ...y emphasizing the dreary bondage of the London citizens in London. Wordsworths use of imagery and rhythm places the reader in a calm and peaceful situation. Blakes use of imagery and rhythm places the reader in an angry tension filled situation. Wordsworths readers have the wonders of a sunrise lead before them and beauty is seen everywhere. Blakes readers become angry at the ugliness and unfairness of life and bondage and resignation are seen everywhere. Both authors achieved their tasks admirably.Works CitedBlake, William. London. Literature An gateway to Fiction, Poetry, and Drama. Ed. X.J. Kennedy and Dana Gioia. 7th ed. New York Longman, 1999. 729. Wordsworth, William. Composed Upon Westminster Bridge. Literature An Introduction to Fiction, Poetry, and Drama. Ed. X.J. Kennedy and Dana Gioia. 7th ed. New York Longman, 1999. 1157.

Financial Crisis Recovery Essay

1997-1998 pecuniary CrisisThe weaknesses in Asiatic pecuniary systems were at the root of the crisis that ca intentiond largely by the overleap of incentives for effective venture circumspection created by implicit or explicit governing body guarantees against failure. The weaknesses of the monetary sector excessively were masked by rapid fermentth and accentuated by large smashing inf low-downs, which were partially encouraged by pegged permute order. In the mid-1990s, a series of external shocks began to change the scotch environment the devaluation of the Chinese Renminbi and the Japanese Yen, locomote of U.S. interest pass judgment which led to a strong U.S. dollar, the sharp decline in semiconductor prices adversely tinted their growth. The crisis began in Thailand when the Thai baht whirl around of in July 1997 with a series of speculative attacks on the baht extended after quite a few decades of outstanding frugal performance in Asia. As the U.S. frugal ity recovered from a recession in the early 1990s, the U.S. Federal Reserve Bank under Alan Greenspan began to raise U.S. interest pass judgment to head off inflation.This do the U.S. a more than attractive investment destination relative to selenium Asia, which had been attracting hot bills flows through high short interest rates, and raised(a) the rank of the U.S. dollar. For the entropyeast Asian nations which had currencies pegged to the U.S. dollar, the higher U.S. dollar caused their own trades to become more expensive and less competitive in the global markets. At the same sentence, seceast Asias export growth slowed dramati cry (out)y in the spring of 1996, deteriorating their current account position. M any(prenominal) economists believe that the Asian crisis was created non by market psychological science or technology, only if by policies that distorted incentives within the lenderborrower relationship. Impacts of the crisis to the South East AsiaMost of Sou theast Asia and Japan having currency depreciation, de evaluated stock markets and other(a)(a) plus prices, and a precipitous rise in private debt. It were resulting large quantities of recognition became available generated a highly leveraged frugal climate, and pushed up asset prices to an unsustainable level. These asset prices nonethelesstually began to collapse, causing individuals, pecuniary institutions and corporations in the affected countries were bankrupt. A change in market sentiment could and did lead into a violent of currency depreciation, insolvency, and capital outflows, which was difficult to stop. In the year after collapse of the baht peg, the value of the or so affected East Asian currencies fell 35-83% against the U.S. dollar ( measured in dollars per unit of the Asian currency), and the most serious stock declines were as great as 40-60%. Lenders led to a large withdrawal of credit from the crisis countries, causing a credit crunch and further bankrup tcies.Foreign investors attempted to withdraw their money the exchange market was flooded with the currencies of the crisis countries, vestting depreciative pressure on their exchange rates. As a result, short-term economic activity has slowed or contracted severely in the most affected economies like inflation and rising in unemployment. It undoable that the brass doing nothing when the crisis happened to their country. To pr stock-stillt currency values collapsing, countries governments raised fiscal spending in domesticated interest rates to exceedingly high levels (to table service diminish line of achievement of capital by making lending more attractive to investors) and to intervene in the exchange market, buying up any unembellished domestic currency at the fixed exchange rate with unknown reserves.But when interest rates were very high, it potty be extremely prejudicious to an saving that is healthy, wreaked further havoc on economies in an already fragile earth , fleck the central banks were hemorrhaging distant reserves, of which they had finite amounts. As a strategy to carry competitiveness, policies to strengthen the countrys balance-of-payments account were copyd. For example, exports were encouraged and imports were discouraged, the latter through an outgrowth in import revenuees on certain(prenominal) goods and services. Measures to increase exports for providing handouts forthwith to raft affected included reducing the cost of doing business through such(prenominal) authority as tax incentives to boost the manufacturing, agriculture, and services sectors.In the case Malaysia for example, in that respect atomic number 18 policies regarding 1997 crisis Denial and hesitation, the Malaysian government denied that thither was a crisis in the first place Tight fiscal and monetary policies, and restructuring the banking system Government proposed to use regional currencies instead of the US dollars in inter-ASEAN bilateral tra de and Financing the recovery programs with the total cost of all measures was RM62 billion. While in the case of Indonesia, the government providing help to the despicable like efforts to shield poor and vulnerable sections of society from the worst of the crisis, by deepening and widening societal safety nets and devoting substantial budgetary resources to increasing subsidies on basic commodities such as rice measures to increase transpargonncy in the fiscal, corporate, and government sectors and steps to cleanse the efficiency of markets and increase competition. some other example of helping the poor and occupyy, government must be fair and redistri only ife the wealth equally to them according their basic necessities of disembodied spirit. In Malaysia, the practicing of zakat system and waqaf function to help the poor and needy indirectly will benefit the society. Moreover, Bank Rakyat and ar-rahnu market on Moslem pawn-broking will help the small and medium attempt to expend their business. Government also must allocate the budget expenditure for subsidizing mainly on education, healthc ar and house for the slew. The Intertheme Monetary Fund (IMF) is an supranational organization that plys financial assistance and advice to segment countries. It was created out of a need to pr scourt economic crises like the Great Depression. With its sister organization, the World Bank, the IMF is the largest public lender of neckcloths in the human. It is a specialized agency of the United Nations and is run by its 186 member countries.Membership is open to any country that conducts foreign insurance and accepts the organizations statutes. The IMF is responsible for the creation and maintenance of the international monetary system, the system by which international payments among countries take place. A affectionateness responsibility of the IMF is to provide loans to member countries experiencing existing or potential balance of payments problems. Th is financial assistance enables countries to re attain their international reserves, stabilize their currencies, continue paying for imports, and restore conditions for strong economic growth, while undertaking policies to correct underlying problems. Unlike development banks, the IMF does not lend for specific projects. It thus strives to provide a systematic mechanism for foreign exchange transactions in order to foster investment and promote balanced global economic trade. To achieve these goals, the IMF focuses and advises on the macroeconomic policies of a country, which affect its exchange rate and its governments budget, money and credit management.The IMF will also appraise a countrys financial sector and its restrictive policies, as substantially as structural policies within the macroeconomic that relate to the labor market and employment. In addition, as a fund, it whitethorn offer financial assistance to nations in need of correcting balance of payments discrepancies. The IMF is thus entrusted with nurturing economic growth and maintaining high levels of employment within countries. The large financial packages which the IMF has arranged for countries affected by the Asian crisis and its result halt stimulated a debate both among form _or_ system of government-makers and academics as to their costs and benefits. The IMFs role in providing financial assistance to its members in overcoming short-term balance-of-payment difficulties generally has been evident.Advantages and disadvantages of IMFThe IMF offers its assistance which it conducts on a yearly basis for individual countries, regions and the global economy as a whole. However, a country may ask for financial assistance if it finds itself in an economic crisis, whether caused by a sudden shock to its economy or poor macroeconomic planning. A financial crisis will result in severe devaluation of the countrys currency or a major depletion of the nations foreign reserves. In return key for th e IMFs help, a country is usually required to embark on an IMF-monitored economic reform program, otherwise known asStructural Adjustment Policies (SAPs). An IMF loan provides a cushion that eases the adjustment policies and reforms that a country must make to correct its balance of payments problem and restore conditions for strong economic growth. Supporters argue that the IMF can also impose necessary reforms on an economy.Reforms such as privatization, fiscal responsibility, control of Money supply, and attacking decadency. These policies may cause short term pain, just, argon essential for preventing future crisis and eagle-eyed term development. Substantial financial advantages atomic number 18 attached to IMF credits because debtor countries benefit from lower debt service costs. Moreover, commercial banks often measure demand agreement with the IMF before lending is re congeriesed and generally will charge lower interest rates to countries with an IMF program. The benef its attached to the IMF loan can be regarded as a compensation for the insurance insurance policy adjustments which the debtor countries carry through.At the same time, thanks to the unique role the IMF can play, the costs involved for the creditor countries seem to be rather limited, as the opportunity costs of for spillage the proceeds of alternative investments are relatively small. By temporarily providing pay and at the same time fostering adjustment, member countries could overcome external problems without overly detrimental measures either for their own population or for other countries. The interest rates charged by the IMF in normal circumstances can be relatively low, because the special role of the IMF in the international financial system reduces the risks for the IMF itself as well as for the creditor countries which apply provided the resources. Because of its special position the IMF can mitigate the risks attached to its loans.Helped by its low funding costs, th e IMF can charge debtor countries lower interest rates than private sector participants which have to charge high spreads because of the sovereign risks involved. Over time, the IMF has been subject to a range of criticisms, generally focused on the conditions of its loans. The IMF has also been criticized for its lack of office and willingness to lend to countries with bad human rights record. On giving loans to countries, the IMF makes the loan conditional on the implementation of certain economic policies. These policies tend to involve * minify government borrowing Higher taxes and lower spending * Higher interest rates to stabilize the currency.* Allow failing firms to go bankrupt.* Structural adjustment. Privatizations de linguistic rule, reducing corruption and bureaucracy. The problem is that these policies of structural adjustment and macroeconomic intervention make the situation worse. For example, in the Asian crisis of 1997, legion(predicate) countries such as Indone sia, Korea and Thailand were required by IMF to pursue tight monetary policy (higher interest rates) and tight fiscal policy to reduce the budget deficit and strengthen exchange rates. However, these policies caused a minor slowness to turn into a serious recession with mass unemployment. The IMF have been criticized for imposing policy with little or no consultation with affected countries. Jeffrey Sachs, the head of the Harvard add for International Development said In Korea the IMF insisted that all presidential candidates immediately endorse an agreement which they had no part in drafting or negotiating, and no time to understand.The situation is out of hand. It defies logic to believe the small group of 1,000 economists on 19th passageway in Washington should dictate the economic conditions of look to 75 developing countries with around 1.4 billion plenty. Because the IMF lends its money with strings attached in the form of its SAPs, many people and organizations are veheme ntly opposed to its activities. contrary groups claim that structural adjustment is an undemocratic and inhumane means of loaning funds to countries facing economic failure. Debtor countries to the IMF are often faced with having to put financial concerns ahead of social ones. Thus, by being required to open up their economies to foreign investment, to privatize public enterprises, and to cut government spending, these countries suffer an unfitness to properly fund their education and health programs.Moreover, foreign corporations often exploit the situation by taking advantage of local cheap labor while showing no regard for the environment. The oppositional groups say that locally cultivated programs, with a more grassroots approach towards development, would provide greater relief to these economies. Critics of the IMF say that, as it stands now, the IMF is only deepening the rift between the wealthy and the poor nations of the world. Indeed, it seems that many countries cannot end the spiral of debt and devaluation.The relatively low interest rates charged by the IMF can lead to moral hazard expression on the part of the debtor countries. This is largely reduced through the tough policy measures which the IMF imposes as a condition for its programmers. In practice, most countries do not turn to the IMF if not forced by adverse circumstances. Decisions about which countries may borrow money are made by rich countries. Poor countries have little say about loans and the conditions attached to them. The IMF will only lend money to countries if they agree to certain conditions. These conditions increase poverty. The livelihoods of people in poorer countries are destroyed by unfair competition from foreign goods and services. The IMF does not give good financial advice. Countries have suffered by following it.IMF East Asia CaseThe IMF was involved in one of the worst East-Asian economic crises thus far. Everything started when Thailand was experiencing difficu lties in meeting foreign liability obligations so the IMF intervened by suggested to devalue the Baht. The same suggestion was made to Indonesia, Korea and the Philippine. Soon, South Korea and Taiwan jumped in the trend and Hong Kong and Singapore dollars faced speculative attack. The crisis spread all the way to South America where Brazil and Argentina currency came under attack, but they both stood their grounds and refused to devalue which might have prevented a global financial crisis. other aspects of the handling of the case that were looked down upon were the issue of the bail-out and the political situation of the borrowing country had once again been ignored. Thailand had already borrowed from the IMF and they were bailed-out very publicly which gave an incentive for skirt countries to follow very risky projects or decisions, believing that the IMF would be a safety net as opposed to a lender of live resort.This is what happened in South Korea when large, unprofitable i nvestment projects were under taken, largely due in part to the conglomerates of businesses that are close to the bureaucracy but more of the essence(predicate)ly, sponsored by the IMF. Likewise, Fund officials protested that many East-Asian countries needed a reform in the banking system and governance, where bad banking, nepotism and corruption do not help create stable and efficient economies. During high-minded declination 1997, the International Monetary Fund signed three emergency lending agreements with Thailand (August), Indonesia (November), and Korea (December). These programs established packages of international financial support at an unprecedented cumulative sum of approximately $110 billion, based on the financing commitments. During the result August to December, the IMF programs failed dramatically to meet the objective of restoring market confidence.In all three countries, the exchange rate was expected to stabilize, but in fact quickly depreciated far below t he targets set in the program, and this despite a very sharp increase in interest rates. Foreign investors remained unconvinced about the debt servicing capacity of the private debtors despite the announced availability of IMF loans, and continued to demand the repayment of short-term loans as they fell due. The IMF programs failed to achieve their goal of maintaining moderate economic growth in the Asian countries. The programs also failed on several intermediate goals, including the preservation of creditworthiness, the extension of debt payments, and the stabilization of the exchange rate at levels that prevailed upon the signing of the original lending agreements Indonesia was deeply affected by the 19971998 crises, more so than its East Asian neighbors. Its economic contraction was deeper and more prolonged.It was the only one to experience a (temporary) loss of macroeconomic control. Eight years have passed since the collapse of Suhartos New crop regime on the heels of the e conomic crisis of 19971998. During that time, Indonesias economy contracted by over 13% in 1998 alone. This followed three decades of virtually uninterrupted rapid economic growth and led to deep social and political crises. Although countries such as South Korea and Thailand were able to overcome their economic crises in a few years, Indonesias crisis resolution has been complicated by political instability, at least until 2004, and by a slower recovery.Indonesia was officially under International Monetary Fund management from 1997 to the end of 2003. But the presence of the IMF actually increased the severity of the Indonesian economy, not more than one year after that there were capital flight out of the country that led to massive unemployment, compounded by the drastic decline in the exchange rate. At the end of 1998 more than 50% of Indonesias population lives below the poverty line. One of the IMFs policy prescriptions is to close 16 banks and it caused the anger of people a nd withdraws their money in national banks and some foreign banks. In May 1998, due to an agreement between the IMF and Suharto, the government revoked subsidies for food, and raises the price of oil and electricity.This policy had a strong opposition from the people and not long after that, Suharto regime fell. During Megawati regime, in August 2003 the government finally decided not to continue the IMF program and choose to enter the post-program monitoring. The government option raises the consequences that are not much dissentent. IMF can still continue to dictate economic policy in Indonesia because the government still had to consult each(prenominal) economic policy that will be taken with IMF. The Indonesian government announced that they would pay the remaining debt to the IMF, totaling U.S. $ 7.8 billion, within 2 years. It seems to be the correct political decision to take fire away from the economic policy interventions that has continued since the crisis in 1997.2008 Financial Crisis Triggered by events in The US and EUThe cause or trigger of the 2008 global financial crisis was the boom of the United States lodgment spew out which detailed in approximately 20052006. Since banks began to give out more loans to potential home owners, housing prices began to increase. The increase in house price and improvement of reflexion activity started around 1992. At that time the Federal Reserve was holding its policy interest rate at an unusually low level by the standards of the past few decades. The good times lasted until 2005, when monetary policy was tightening after another spell of low interest rates. Over that period, construction activity contributed 1/5 percentage points annually to the growth rate of real gross domestic product, and the share of employment in construction and pay, out of the total workforce, rose from 10 percent to 11 percent. That is, over this period, of the 27.4 million people added to work rolls (which ended 2006 with a total of 136 million), 4.8 million were directly related to construction and fifi nance. Finally, the nation was left with an excess stock of housing.A contraction in construction transpired to wind down the inventory overhang, which is often a feature of economic slowdowns and recessions. In addition to that, easy lending standards also contributed to the Real estate bubble. Loans of various types (e.g., mortgage, credit card, and auto) were easy to obtain. As part of the housing and credit booms, the number of financial agreements called mortgage-backed securities (MBS) and collateralized debt obligations (CDO), which derived their value from mortgage payments and housing prices, greatly increased. That kind of financial innovation attracted institutions and investors around the world to invest in the U.S. housing market. As housing prices declined, major global financial institutions that had borrowed and invested heavily in subprime MBS reported strong losses. While the housi ng and credit bubbles were rounding, US Government was going a process called financialization.US Government policy from the 1970s onward has emphasized deregulation to encourage business, which resulted in less oversight of activities and less divine revelation of information about new activities undertaken by banks and other evolving financial institutions. Thus, policymakers did not immediately recognize the increasingly important role played by financial institutions such as investment banks and hedge funds, also known as the shadow banking system. These institutions, as well as certain regulated banks, had also fabricated significant debt burdens while providing the loans described above and did not have a financial cushion sufficient to absorb large loan defaults or MBS losses.These losses meetinged the ability of financial institutions to lend, slowing economic activity. The U.S. Financial Crisis Inquiry Commission reported its findings in January 2011. It concluded that t he crisis was avoidable and was caused by 1. Widespread failures in financial regulation, including the Federal Reserves failure to stem the tide of toxic mortgages 2. Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk 3. An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis 4. Key policy makers ill prepared for the crisis,5. Lacking a full discretion of the financial system they oversaw and systemic breaches in accountability and ethics at all levels.3536 Table 1 The Causes and Impacts of Global Financial Crisisinterpreted from Takatoshi Ito Comparison of the Financial Crises Japan and Asia in 1997-1998 vs. U.S. 2008-09 The Collapse of World TradeAlthough the crisis is originally from financial sector, trade had great implication that hit countries around the world. Exports collapsed in nearly every major trading country , and total world trade fell faster than it did during the Great Depression. From a peak in July 2008 to the low in February2009, the nominal value of world goods exports fell 36 percent the nominal value of U.S. goods exports fell 28 percent (imports fell 38 percent) over the same period. Even a country such as Germany, which did not experience their own housing bubble, experienced substantial trade contractions, which helped spread the crisis. The collapse in net export in Germany contributed to the decline in their GDP which put the country into recession. In the quadrupletth string of 2008, Germanys drop in net exports contributed 8.1 percentage points to a 9.4 percent decline in GDP (at an annual rate) Japans net exports contributed 9.0 percentage points to a 10.2 percent GDP decline. Real exports fell even faster in the first quarter of 2009.The Decline in Output Around the GlobeThe financial crisis was rapidly transmitted to the real economy. The financial crack was so str ong and swift in most countries so that their confidence level in economy fell as well. Confidence levels are measured in different ways across countries, but they were generally falling throughout 2008 and reached recent lows in the fall of 2008 and winter of 2009. As noted, world GDP is estimated to have fallen roughly 1.1 percent in 2009 from the year before.In ultramodern economies, the crisis was even deeper the IMF expects GDP to have contracted 3.4 percent in preluded economies for all of 2009. For OECD member countries, GDP fell at an annual rate of 7.2 percent in the fourth quarter of 2008 and 8.4 percent in the first quarter of 2009. Despite the historic nature of its collapse, the U.S. economy actually fared better than about half of OECD economies during those quarters. The decline in industrial production across major economies, each of these economies in January 2009 was more than 10 percent below its January 2008 level, and Japan faring far worse relative to the ot her major economies. Impact on Developing CountriesThe impact of the crisis on developing countries will affect different types of international resource flows private capital flows such as Foreign Direct Investment (FDI), portfolio flows and international lending official flows such as development finance institutions and capital and current transfers such as official development assistance and remittances. The World knowledge of Investment Promotion Agencies foresees a 15% drop in FDI 2009. FDI to Turkey has already fallen 40% over the last year and FDI to India dropped by 40% in the first six months of 2008. FDI to China was $6.6 billion in September 2008, 20% down from the monthly fair in year 2008 so far, and exploit investments in South Africa and Zambia have been put on hold.The crisis has led to a drop in bond and equity issuances and the sell-off of risky assets in developing countries. The average volume of bond issuances by developing countries was only $6 billion betw een July 2007 and March 2008, down from $ 15 billion over the same period in 2006. Between January and March 2008, equity issuance by developing countries stood at $5 billion, its lowest level in five years. As a result, World Bank research suggests some 91 International domain Offerings have been withdrawn or postponed in 2008.However, not all developing countries were effect tremendously by 2008 financial crisis. In South East Asia we may take a look Indonesia performance towards the 2008 financial crisis. Indonesia experienced a significant macroeconomic shock at the end of 2008. But, of course, Indonesia was not on its own. Indeed, Indonesia was one of the least affected countries in South East Asia. Although GDP growth slowed markedly to 4.4% in the first quarter of 2009, it did not experience the collapse in growth experienced by countries such a Korea, Thailand and Malaysia.Indonesias growth in recent years has been driven predominantly by non-tradeables rather than tradeab les, and, although the crisis reduced growth across the board, sectors such as transport and communications, and utilities have continued to grow in double digits. At the same time, the tradeable sector which has performed best is agriculture, which, at 4.8%, has experienced its strongest growth since the East Asian crisis, helping to quicken for the effects of the crisis. Indonesia has learnt from 1997 crisis so that they can manage 2008 financial crisis well. The Role of International Institutions of The G-20The G-20, which includes 19 nations plus the European Union, is the the main nations of much of the coordination on trade policy, financial policy, and crisis response. Its membership is cool of most of the worlds largest economies and makes up nearly 90 percent of world gross national product. The first G-20 leaders summit was held at the peak of the crisis in November 2008. At that point, G-20 countries committed to keep their markets open, adopt policies to support the gl obal economy, and stabilize the financial sector. The second G-20 leaders summit took place in April 2009 at the height of concern about rapid falls in GDP and trade. Leaders of the worlds largest economies pledged to do everything necessary to ensure recovery, to concern our financial systems and to maintain the global flow of capital. Furthermore, they committed to work together on tax and financial policies. Perhaps the most notable act of world coordination was the decision to provide substantial new funding to the IMF. U.S. leadership helped secure a commitment by the G-20 leaders to provide over $800 billion to fund multilateral banks broadly, with over $500 billion of those funds allocated to the IMF in particular.In September 2009, the G-20 leaders met in Pittsburgh. They noted that international cooperation and national action had been vituperative in arresting the crisis and putting the worlds economies on the path toward recovery. They also recognized that continued act ion was necessary, pledged to sustain our strong policy response until a durable recovery is secured, and committed to avoid premature withdrawal of stimulus. They launched a new Framework for Strong, Sustainable, and Balanced Growth that committed the G-20 countries to work together to assess how their policies fit together and evaluate whether they were collectively consistent with more sustainable and balanced growth. Further, the leaders committed to act together to improve the global financial system through financial regulatory reforms and actions to increase capital in the system. It set up emergency lines of credit (called Flexible recognition Lines) with Colombia, Mexico, and Poland, which in total are worth over $80 billion.These lines were intended to provide immediate liquidness in the event of a run by investors, but also to signal to the markets that funds were available, making a run less likely. In each of these countries, markets responded positively to the announ cement of the credit lines, with the cost of insuring the countries bonds tapering (International Monetary Fund 2009b). The IMF also negotiated a set of standby agreements with 15 countries, committing a total of $75 billion to help them survive the economic crisis by smoothing current account adjustments and mitigating liquidity pressures. IMF analysis suggests that this program discouraged large exchange-rate f in fluctuate in these countries (International Monetary Fund 2009). These actions as well as the very existence of a better-funded global lender may have helped to keep the contraction short and to prevent sustained currency crises in many emerging nations.The Government ResponsesThe U.S. executed two stimulus packages, totaling nearly $1 trillion during 2008 and 2009. The U.S. Federal Reserves new and expanded liquidity facilities were intended to enable the central bank to fulfill its traditional lender-of-last-resort role during the crisis while mitigating stigma, broad ening the set of institutions with access to liquidity, and increasing the flexibility with which institutions could tap such liquidity. United States President Barack Obama and key advisers introduced a series of regulatory proposals in June 2009. The proposals address consumer protection, executive pay, bank financial cushions or capital requirements, expanded regulation of the shadow banking system and derivatives, and enhanced authority for the Federal Reserve to safely wind-down systemically important institutions, among others. The response of the Federal Reserve, the European Central Bank, and other central banks was taken shortly and dramatic.During the last quarter of 2008, these central banks purchased US$2.5 trillion of government debt and troubled private assets from banks. The governments of European nations and the USA also raised the capital of their national banking systems by $1.5 trillion, by purchasing newly issued preferred stock in their major banks. In October 2010, Nobel laureate Joseph Stiglitz explained how the U.S. Federal Reserve was implementing another monetary policy creating currency as a method to combat the liquidity trap. By creating $600,000,000,000 and inserting this directly into banks, the Federal Reserve intended to spur banks to finance more domestic loans and refinance mortgages. However, banks instead were spending the money in more profitable areas by investing internationally in emerging markets.The bank bailout, more formally called the Troubled Asset Relief Program, failed to achieve the ultimate goal. The goal of these bailouts from the perspective of the largest financial institution is billions of dollars in taxpayer money allowed institutions that were on the brink of collapse not only to survive but even to flourish. The legislation that created TARP, the Emergency frugal Stabilization Act, had far broader goals, including protecting home values and preserving homeownership. Congress was told that TARP would be used to purchase up to $700 billion of mortgages and to obtain the necessary votes, Treasury promised that it would modify those mortgages to assist struggling homeowners.However, almost immediately, as permitted by the broad language of the act, Treasurys plan for TARP shifted from the purchase of mortgages to the infusion of hundreds of billions of dollars into the nations largest financial institutions, a shift that came with the express promise that it would restore lending. Treasury, however, provided the money to banks with no effective policy or effort to force the extension of credit. at that place were no strings attached no requirement or even incentive to increase lending to home buyers, and against our strong recommendation, not even a request that banks report how they used TARP funds. It raised the issues on accountability in providing the bailouts.Lesson Learnt from 2008 CrisisThere are several lessons that can be learnt from 2008 financial crisis. Those lessons are stated below 1. Aggregate volatility is part of market system. There is a need to have more depth study of aggregate volatility. 2. Long lived large firms (such as financial institutions) may not be to the full trusted. We should rethink the role of reputation of firms in market transactions. In addition, we need to revisit the key elements of the economy of organization so that reputation should be derived from the behavior not merely from the asset. 3. Economic growth will only take place if there is real increase in the real commodities not financial commodities. 4. People mistakenly equated free markets with unregulated markets. 5. Policy makers should be flexible in their policies and guided by overall national objectives. 6. All trading countries should transform both their exports composition as well as export destination. 7. World financial system is becoming fragile so that there is a need to reform the current financial system. Islamic based economy system has great opportunity to alter the existing financial system.Islamic perspectiveFrom Islamic perspective, the approach that most suitable which is providing handout to the poor and directly to people affected by financial contracts. There were horrible gaps between the rich and the poor all over the world, which remained existent all the time, even after the fall of the planned economy. It goes without saying that the position in developing and under developed countries is even worse. This uneven and unjust system of distribution needs to be reformed on a conceptual basis. The entire world today is crying on the present financial crisis, but few people have realized that this is basically a crisis of rich people who were playing with loads of wealth, and all of a sudden, their income faced a steep fall. So far as poor people are concerned, they have been living in perpetual crisis all the times, but no one care for them, The present crisis should not be examined within the relatively narrow confines of debt rather, it is fundamentally a question of social justice, a concept that is paramount in Islam. Social justice includes three aspects, namely a fair and equitable distribution of wealth the provision of basic necessities of life to the poor and the needy and protection of the weak against economic exploitation by the strong.The debt burden, however, is increasing inequality between rich and poor countries and is tantamount to exploitation. It also means that poor countries are often unable to provide the most basic services for their citizens. The huge debt that currently burdens poor countries has arisen from loans that have charged interest and have not shared risk between the lender and the borrower and have, therefore, contravened the two most fundamental principles of Islamic finance. Islamic commands to refrain from charging interest and to share financial risk seek to avoid the concentration of wealth and the economic exploitation of the weak and thereby prev ent situations such as the current debt crisis from arising in the first place. The core belief in Islamic finance is that money should not in itself be an earning asset therefore, Islam prohibits any and all forms of interest.There are also other systems which prevent an economic crisis of pandemic proportions to arise contractual relationships in business, finance or trade must be based on trust and familiarity of networks of plebeian experiences (takaful) which implies that debts cannot be repackaged and resold as assets globally to faceless investors while profit must be redistributed directly to the poor (zakat) in the Holy month of Ramadan to build and strengthen social safety nets through institutions of charity well-being and education. Over and above zakat, all Islamics pay zakat fitrah to the poor, during the month of Ramadan, either through state collection centers or direct contributions to the poor. There is a trend within rural areas to identify destitute families and the disabled within the underserved rural areas of the State where they reside. Over the last few years, increasing realization of a topic poverty during an economic crisis creating the new poor among the Muslim working(a) classes and abnormally high repayment rates through unlicensed loan-sharks and licensed money-lenders have made national banking institutions which serve the poorer rural communities shift their services to the Ar-Rahnu market or Islamic pawn-broking market.Currently four Islamic financial institutions, Bank Rakyat (The Peoples Bank) the Yayasan Pembangunan Ekonomi Islam Malaysia (Islamic Foundation of Economic Development, Malaysia) Permodalan Kelantan Bhd (Kelantan Investment Co.) and the Agro bank offer such services to the rural and urban working classes. It has established an Ar-Rahnu XChange Franchise Network, where it plans to provide an Ar-Rahnu franchise throughout the country, managed by reputable cooperatives of the working classes. Given the acute dependency of the working classes on ready cash in times of emergency and the high rates of interest in regular pawn-broking market, there seems to be few alternatives except to expand the Ar-Rahnu market among Muslims and non-Muslims and charge the poor for safekeeping services, rather than interest. Despite the fact that loan disbursements of Bank Rakyat alone is among the services which have contributed to Bank Rakyats astonish rise as a successful national cooperative bank, giving out higher than normal dividends to its share holders, loan sharks are virtually shot up desks outside flats and apartment buildings of the Muslim poor in towns and cities to offer cash and carry facilities to the desperately poor.This lucrative market speaks volumes of the rise of atopic poverty among those on or below the poverty line, the inadequacy of zakat and disbursements of zakat, the high dependency on regular income earners among the middle classes for welfare driven services and products and unclear nature of the rising wealth of the Muslim and non-Muslim upper classes in Malaysia The Islamic finance can bring on significant gains in money released into public capital and infrastructure. The redistributive mechanisms of surplus are instituted into welfare based institutions such as free or subsidized education, health and child care, education, and even publicly directed employment. Its principles may differ from modern welfare economics except the gains at the far end of the redistributive machinery are similarly directed towards the poor. The policies of the New Economic Policy in Malaysia, state welfares in Brunei, or publicly instituted employment as in MENA countries are more Islamic than regular, except they are part of the post-colonial reformist policies of Muslim states which preceded the modern up-beat drive towards Syariaah compliant finance. Islamic finance, however, has not demonstrated a clear connectivity with redistributive justice as in the post-col onial political economy except through instituted deductions of zakat from dividends of shareholders. winnings from credit or financial corporations are not necessarily redistributed through zakat. Furthermore, for borrowers, the appreciated value of assets and services as forecasted and built into systems and rates of repayments which compensate for the lack of interest and, in reality, repayment rates may even out with the regularrates are generally fixed in advance unlike regular interest rates which are more flexible, varying according to market conditions. However, it does allow more capital to be released into projects immediately, allowing a more extensive amount of goods and services to be produced, without the worry of serving loans. One, however, has to be assured of significant productivity even in the early stages of the loan but payments of zakat accruing from successful investment, from the financier or production from the borrower are fixed at a low rate of 2.5%. It i s also consensual rather than forced (as in income taxation) and Muslim countries in general pursue income tax collections as the more important thrust of national revenue.There are generally two disparate systems at work in Muslim countries Islamic finance and post-colonial welfare instituted economics. The welfare inputs in Islamic countries which are operational today proceed whether or not there are institutions of Islamic finance in the country. In Malaysia, Brunei, and the MENA countries discussed in this paper, components of welfare economics in heavily subsidized education, health, housing, farming, and welfare for the poor, are part of a post-colonial legacy of social reform to institute economic parity across groups and classes. In these Muslim nations, the public sector has played an important role in employment for Muslim or indigenous citizens, often acting as a social safety net in times of economic crises. However, these welfare driven policies are subject to much cri ticism since they favour the poor, encourage low productivity, and a non-competitive public sector. As Islamic institutions of welfare catch on with progressive social education through media and networks and become an alternative system of welfare for poorer Muslims through zakat and other contributions, welfare increasingly becomes a social responsibility of the Muslim middle classes.There is hardly any data on how the profits earned by larger corporations of Islamic finance actually become instituted into a system of welfare economics based in Islam. Private investment trusts of political elites or national trusts controlled by them. In a properly instituted system of redistribution, through wages, salaries, educational, and health subsidies and so on, there should be very little wealth differential between the owners of political hood and citizens but economic disparities are significant in these Muslim countries and it has been shown how gains among the lowest 20% may be offse t by higher or tantamount(predicate) gains among the top 20% income earners of these nations. The production of stable professional middle classes in these nations has led to an enrichment of social capital and welfare driven redistributive institutions through social networks but Islamic conscientisation had sometimes moved this spiritual gain as an objective reality. The belief in ibadah or to do good may outweigh the call for greater transparency in the use of national collections of zakat and so on.Many Muslims in Malaysia pay both income tax and zakat, rather than ask for exemption from income tax. They also maintain Islamic voluntary organizations with personal funds, donate to mosques and charities, and make endless food contributions to orphans and the poor. There is very little data gathered on the actual amounts paid privately or anonymously and state-directed contributions, although increasing, are not reflective of actual payments contributed by the middle classes towar ds Islamic charitable institutions.On the other hand, Muslim based banking and financial institutions are obscure in their social responsibility towards the poor, including their own clients who may be victims of topic poverty during times of economic crises. In conclusion, Islamic institutions of trusts which are state directed or privately administered by banking and credit agencies contain more humanistic principles of investment and redistribution of profits except that there is a missing componentbetween the principles of redistribution of surplus or profits in Islam finance and the actual mechanisms to provide welfare to the people who are not share-holders or stake-holders. In Malaysia, Brunei, and the MENA countries of the Middle East and North Africa, state agencies assume trusteeships over compulsory collections like the zakat but do not have any institutional mechanisms to enforce private corporations local or foreign to contribute towards the welfare of the poor.Conclusi onThe first Financial crisis was began in July 1997 when the Thai baht collapse with a series of speculative attacks on the baht extended after quite a few decades of outstanding economic performance in Asia and most of Southeast Asia and Japan having currency depreciation. There some approach to help financial recovery, It is impossible that the government doing nothing when the crisis happened to their country. To prevent currency values collapsing, governments raised fiscal spending in domestic interest rates to exceedingly high levels. And last approach Government providing handouts directly to people affected and providing assistance to the poor like efforts to shield poor and vulnerable sections of society from the worst of the crisis The International Monetary Fund (IMF) is an international organization that provides financial assistance and advice to member countries. It was created out of a need to prevent economic crises like the Great Depression.The large financial packag es which the IMF has arranged for countries affected by the Asian crisis and its result have stimulated a debate both among policy-makers and academics as to their costs and benefits. However, IMF has also been criticized for its lack of accountability and willingness to lend to countries with bad human rights record Debtor countries to the IMF are often faced with having to put financial concerns ahead of social ones The cause or trigger of the 2008 global financial crisis was the boom of the United States housing bubble which peaked in approximately 20052006. The impact of the crisis on developing countries will affect different types of international resource flows private capital flows such as Foreign Direct Investment (FDI).However, not all developing countries were effected tremendously by 2008 financial crisis, Indonesia was one of the least affected countries in South East Asia. The G-20, is the the main nations of much of the coordination on trade policy, financial policy, and crisis responses. The first G-20 leaders summit was held at the peak of the crisis in November 2008. The bank bailout, more formally called the Troubled Asset Relief Program, failed to achieve the ultimate goal From Islamic perspective approach that most suitable which is providing handout to the poor and directly to people affected by financial contracts the present crisis should not be examined within the relatively narrow confines of debt, rather it is fundamentally a question of social justice, a concept that is paramount in Islam.The practicing of zakat system and waqf contribution to help the poor and needy indirectly will benefit the society. And this is the best approach that government should do by providing help directly to the poor and people affected by financial contract namely firms and banks. If government reduced the amount tax to be paid, cost of production will decrease level of employment and production will increase. Meanwhile, banks will bail out to save com pany and people indirectly reduced the worry of public causing the level of borrowing and consumption raises. So, as a result, it can stimulate the capital investment of the economy to increase the economic growth and level of GPD.ReferencesFadillah Putra, Economic Development and Crisis Policy Responses in Southeast Asia (Comparative study of Asian Crisis 1997 and Global Financial Crisis 2008 in Malaysia, Thailand and the Philippines) (2008), Public Administration Department, Brawijaya UniversityFederal Reserved Bank of San Francisco Economic Letter What Caused East Asias Financial Crisis? 98-24 August 7, (1998) Hussein Alasrag, Global Financial crisis and Islamic finance (2007)http//www.muftitaqiusmani.com/index.php?option=com_content&view=article&id=41present-financial-crisis-causes-and-remedies-from-islamic-perspective-&catid=12economics&Itemid=15,retrieve on 11 November 2012 http//www.academia.edu/1133515/Global_Financial_Crisis_An_Islamic_Perspective, retrieve on 4 November 20 12 http//en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932008cite_note IMF_Loss_Estimates-31, retrieve on 4 November 2012Mohamed Ariff, Syarisa Yanti Abubakar,The Malaysian Financial Crisis Economic Impact and Recovery Prospects (1999) The Developing Economies, XXXVII-4 41738Reinhart, V. (2011). A year of living dangerously The Management of the Financial Crisis in 2008. journal of Economic Perspective.25 (1). Pg 71-90. IbidRecovery from the Asian Crisis and the Role of the IMF, IMF Staff (2000)http// www.investopedia.com/articles/economics/09/international- monetary-fund imf.aspaxzz2EQhoHzz9, retrieve on 4 November 2012http//www.nrcc.org/default/Issues2012/2012_Issues_Book_Chapter_Financial_Crisis_Bailouts_and_Financial_Reforms 1 . Federal Reserved Bank of San Francisco Economic Letter What Caused East Asias Financial Crisis? 98-24 August 7, 1998 2 . Federal Reserved Bank of San Francisco Economic Letter What Caused East Asias Financial Crisis? 98-24 August 7, 1998 3 . ww w.wikipedia.com 4 . www.wikipedia.com 5 . www.wikipedia.com 6 . Federal Reserved Bank of San Francisco Economic Letter What Caused East Asias Financial Crisis? 98-24 August 7, 1998 7 . www.wikipedia.com 8 . Mohamed Ariff, Syarisa Yanti Abubakar, (1999) The Malaysian Financial Crisis Economic Impact and Recovery Prospects The Developing Economies, XXXVII-4 41738 9 . Economic Development and Crisis Policy Responses in Southeast Asia (Comparative study of Asian Crisis 1997 and Global Financial Crisis 2008 in Malaysia, Thailand and the Philippines) Fadillah Putra, Public Administration Department, Brawijaya University 10 . Recovery fromthe Asian Crisis and the Role of the IMF, IMF Staff (2000) 11 . http//www.investopedia.com/articles/economics/09/international-monetary-fund-imf.aspaxzz2EQhoHzz9 12 . http//www.twnside.org.sg/title/sick-cn.htm 13 . Reinhart, V. (2011). A year of living dangerously The Management of the Financial Crisis in 2008. Journal of Economic Perspective.25 (1) . Pg 71-90. 14 . Ibid 15 . Ibid 16 . Ibid 17 . Wikipedia. Financial Crisis 2007. taken from http//en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932008cite_note-ssrn-8 18 . Wikipedia. Financial Crisis 2007. Taken from http//en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932008cite_note-IMF_Loss_Estimates-31 19 . Ibid 20 . Greenspan-We Need a Better Cushion Against Risk. Financial Times. March 26, 2009. Taken from http//www.ft.com/cms/s/0/9c158a92-1a3c-11de-9f91-0000779fd2ac.html. 21 . FCIC Report-Conclusions Excerpt-January 2011. Taken from http//c0182732.cdn1.cloudfiles.rackspacecloud.com/fcic_final_report_conclusions.pdf 22 . CRISIS AND RECOVERY IN THE WORLD ECONOMY. Taken from http//www.whitehouse.gov/sites/default/files/microsites/economic-report-president-chapter-3r2.pdf 23 . Ibid 24 . Ibid 25 . Ibid 26 . Ibid 27 . Ibid 28 . Velde, D. W. (2008). Effects of the Global Financial Crisis on Developing Countries and Emerging Markets. Policy responses to the crisis . INWENT/DIE/BMZ conference in Berlin, 11 December 2008. 29 . Ibid 30 . Ibid 31 . Ibid 32 . Ibid

Do you agree with the statement that America has no culture?

Nowadays the world is a truly small place comp atomic number 18d to what it used to be before. Twenty first century brought many changes for our friendship and it had been marked by the rise of a global economy, the rise of the consumerism, mistrust in government, deepening concern of over terrorism and an increase in the antecedent of private enterprise. With the fall of the Soviet Union the USA became the sole superpower, and although it is suffering from many domestic and foreign problems, it still has a huge influence on the worlds matters .The same thing is with the culture.The term Americanisation has been used since 1907 for the American impact on other countries. I will write about oppose and positive aspects of Americas culture and how it affects our world and how it was formed. One of the main things which form society is a culture. If we are talking about the USA, it is primarily Western, only influenced by the Native American, African, Asian, Polynesian and Latin Am erican cultures too. Despite certain consistent ideological principles (e.g. individualism, egalitarianism, and faith in freedom and democracy), American culture has a variety of expressions due to its geographical scale and demographic diversity.The United States has a lot been thought of as a melting pot, but now it trends towards cultural diversity, pluralism and the delineation of a salad bowl. Many American cultural elements, especially from popular culture, contain spread across the globe through modern mass media .For example, Hollywood dominates close of the worlds media markets. It is the chief medium by which people across the globe see American fashions, customs, scenery and way of life. The same is with music industry. Many U.S.-based artists, such as Elvis Presley and Michael Jackson are recognized worldwide and have sold over 500 million albums each. Moreover, Americas corporate business is merchandising the ideas of freedom, choice, competition for all the world.C ocacola is the about recognised brand in the world and it is a symbol of Americanization and its culture. Furthermore, fast food companies are also often viewed as being a symbol of U.S. marketing dominance. Companies such as Starbucks, McDonalds, Burger King and KFC have numerous outlets around the world. Finally, the USA had a lot of really influential poets, such as M.Twain or E.Hemingway whose works continue to be popular to this day. However, allthese things poses quite a few problems if we really want to empathize if such thing as American culture exists.First of all, the global presence of Americas influence in business, politics and economy. Multinational food corporations are killing small business by having less expenses and hiring workers for a lower salary. Speaking about politics, the USA in the last 20 years has participated in more wars or conflicts more than any other nation. Secondly ,the globalisation, which America brings to our homes ,imposes some laws or certa in ideas on citizens which might be harmful in the long term for nations economy or its standings of values, and customs, which can not be changed if we want to have society with moral standarts.Finally, most of the media and production created by the USA has a really low art value or lack a deeper meaning, because the reason they are created is profit. And if you want to have a profit, you have to sell your merchandise, you dont need anything really mind provoking. To sum up, I believe that American culture exists ,and there are many great things which were made or created in the USA, such as music or modern technology ,which we use everyday, but we shouldnt lead that this country also invented things like weapons of mass destruction and started many wars, because the USA is the worlds police and they have to make sure there is recreation in the world.

Pre Twentieth Century Poetry War And Death Essay

To compare the way in which the two poets write about the subject of death. Use qoutations to support your views.The first numbers is entitled Dulce Et Decorum est. This poesy is write by Wilfred Owen, he served in the army in 1915 & died 3 years later in 1918. During this time he had a good account of what War was about. This poem is a very anti war piece of poetry. He describes the war in gory exposit & the obvious aim is to discourage people from joining the war effort. He uses vivid descriptions to describe simple things. Knock kneed, coughing like hags,we cursed with sludgeIn the poem the soldiers are retreating, this poem is extremely grim and morbid. The author was trying to create a picture in our imagination of the dread(a) scenes. He is also trying to tell future generations not to f on the whole for the old lie, Dulce Et Decorum Est Pro Patri Mori. This he claims is propoganda which will make you feel firm & want to die for your country. In the poem a fellow comrad e dies from a gas attack. In certain parts of the poem he uses round the bend Similes, for example. His hanging face, like a devils sick of sin This appeals to most people because it catches your eye, it is a peom which can be confusing if you had no idea what was happening. This is different from new(prenominal) poems because it describes everything in detail. Halfway through the poem, the author describes what resembles a crude funeral. If in some smothering dreams, you to could pace, behind the wagon that we flung him in. The reason this is crude is because you wouldnt tuck away someone into a hearse. I think the reason that they did that was because they are exhausted enough as it is without carrying extra weight. This poem is a basic warning to all future generations, although whether it worked or not is unknown. Personally it works for me as I would not join.The second poem is entitled, Stop All The Clocks. The author is W.H Auden. this poem was written during peacetime & i snt as morbid and grim as the other poem by Wilfred Owen. This poem is more personal & more of a deeper feeling vent into it the emotions that he was feeling at the time of writing. The poet was a homosexual & is writing about a lover, who is male. This makes no difference to the poem. It would be the same if he was a heteresexual. W.H auden uses some wierd words to describe his lover. He was my North, my South, My East & West. I think this means that he was the world to him. W.H audens poem sounds like he wrote this when his emotions were at there highest. the other poem seemed to be written after the war, the emotions in it wouldnt be as strong. W.H Auden uses everyday objects to represent his feelings. Stop all the clocks, lead the telephone. Prevent the dog barking with a juicy boneThis isnt rare in poems but the words he uses are. If these were used in normal sentences so they would sound pretty normal.Overall both poems give an accurate account of War & Death, both peoms ar e good & are very well written. If i personally had to choose a poem that i liked, I would choose the Dulce Et Decorum Est. I think that it grabs peoples attention & it sounds more like a poem which would interest people. It gives an account into the past. I think both poems get there message across. War & Death is examplified well into both poems & both authors have through a good job to show this.

Investment Avenues in India Essay

ABSTRACTEach coronation alternative has its own strengths and weaknesses. Some fillings seek to achieve higher-up reapings (like integrity), entirely with corresponding higher jeopardy. Other provide safeguard (like PPF) but at the expense of liquidity and growth. Other options such as FDs offer safety and liquidity, but at the cost of return. Mutual gunstocks seek to combine the advantages of locateing in arch of these alternatives while dispensing with the shortcomings.Indian cable foodstuff is semi-efficient by record and, is considered as integrity of the most respected stock markets, where information is quickly and widely disseminated, thereby totallyowing each securitys price to adjust rapidly in an unbiased manner to new information so that, it reflects the ne atomic number 18st enthronisation value. And mainly by and by the introduction of electronic trading system, the information stop has become much faster. But slightly times, in developing countries like India, sentiments play major role in price movements, or say, fluctuations, where investors find it difficult to promise the future with certainty. Some of the events affect economy as a whole, while nigh(prenominal) events are sector specific.Even in champion particular sector, some companies or major market player are more than sensitive to the event. So, the new investors taking exposure in the market should be fountainhead conscious ab prohibited the maximum potential harm, i.e. Value at risk.It would be good to diversify ones portfolio to include loveliness usual ancestrys and stocks. The good of variegation are that while risk exposure from a particular asset whitethorn not be very high, it would as well as founder the chance of participating in the party in the movedour markets- which may train just begun- in a relatively safe manner(than put directly into stock markets). Mutual investment companys are one of the outperform options for investors to cho ose from. It must be realized that the performance of different interchange varies time to time. Evaluation of a investment company performance is meaningful when a investment company has access to an array of enthronization products in market. An investor prat choose from a variety of currency to correspond his risk tolerance, investment horizon and objective.Direct investment in equity offers capital growth but at high risk and without the benefit of diversification by professional management offered by mutual bullion.INTRODUCTIONSavings form an important part of the economy of any nation. With the savings invested in various options functional to the state, the money acts as the driver for growth of the country. Indian financial scene excessively presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his savings. Banks are considered as the safest of all options, banks attain been the roots of the financial systems in India. Promoted as the means to amicable development, banks in India have indeed played an important role in the rural upliftment. For an ordinary person though, they have acted as the safest investment avenue wherein a person deposits money and earns interest on it.The two main modes of investment in banks, savings accounts and persistent deposits have been effectively used by one and all.However, today the interest deem structure in the country is headed southwards, keeping in line with global trends. With the banks whirl brusque above 9 per centum in their fixed deposits for one year, the yields have come subjugate substantially in recent times. Add to this, the inflationary pressures in economy and one has a position where the savings are not earning. The inflation is creeping up, to almost 8 percent at times, and this means that the value of money saved goes down instead of going up. This effectively mars any chance of gaining from the investments in banks. Just like banks, post offices in India have a wide network. spread crosswise the nation, they offer financial assistance as well as serving the basic requirements of communication. Among all saving options, Post office schemes have been offering the highest rates.Added to it is the fact that the investments are safe with the department being a Government of India entity. So, the two basic and most sought after features, such as return safety and quantum of returns was being handsomely taken care of. Though certainly not the most efficient systems in terms of service standards and liquidity, these have heretofore managed to attract the attention of small, retail investors. However, with the government announcing its intention of reducing the interest rates in small savings options, this avenue is expected to lose some of the investors.Public Provident coin act as options to save for the post retirement breaker point for most people and have been considered good option largely overdue to the fact that returns were higher than most other options and also helped people gain from assess benefits under various sections. This option too is likely to lose some of its sheen on account of reduction in the rates offered. Another often-used route to invest has been the fixed deposit schemes floated by companies. Companies have used fixed deposit schemes as a means of mobilizing gold for their operations and have paid interest on them.The safer a company is rated, the lesser the return offered has been the turn over rule. However, there are several potential roadblocks in these. First of all, the danger of financial position of the company not being understood by the investor lurks. The investors affirm on intermediaries who more often than not, dont reveal the entire truth. second, liquidity is a major problem with the amount being received months after the due dates. Premature redemption is generally not e ntertained without cuts in the returns offered and though they present a reasonable option to counter interest rate risk (especially when the economy is headed for a low interest regime), the safety of principal amount has been found lacking. Many cases like the Kuber Group and DCM Group fiascoes have resulted in low confidence in this option. The options discussed above are essentially for the risk-averse, people who think of safety and then quantum of return, in that order.For the brave, it is dabbling in the stock market.Stock markets provide an option to invest in a high risk, high return game. While the potential return is much more than 10-11 percent any of the options discussed above substructure generally generate, the risk is undoubtedly of the highest order. But then, the general principle of encountering greater risks and uncertainty when one seeks higher returns holds true. However, as enticing as it might appear, people generally are clueless as to how the stock market functions and in the process fire endanger the hard-earned money.For those who are not adept at judgment the stock market, the task of generating superior returns at similar levels of risk is arduous to say the least. This is where Mutual Funds come into picture.Mutual Funds are essentially investment vehicles where people with similar investment objective come to beguileher to pool their money and then invest accordingly.Each unit of any scheme represents the balance wheel of pool owned by the unit holder (investor). Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the refer scheme, which is declared by the stock from time to time. Mutual neckcloth schemes are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms.Several international cash in hand like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future. investing alternatives in India * Non marketable financial assets These are such financial assets which gives moderately high return but stool not be traded in market.* Bank Deposits * Post Office Schemes* Company FDs * PPF * blondness shares These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share and dividend given by companies. beauteousness shares represent self-possession capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a difference interest in income and wealth of the company. These can be classified into following ample categories as per stock market* Blue chip shares * Growth shares* Income shares* cyclical shares* Speculative shares * Bonds Bonds are the instruments that are considered as a relati vely safer investment avenues.* G sec bonds * GOI relief capital* Govt. agency funds* PSU Bonds* RBI draw together* Debenture of mortal(a) sector co. * Money market instrument By convention, the term money market refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year.* T-Bills * Certificate of Deposit* Commercial Paper * Mutual Funds- A mutual fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities, ranging from shares, debentures to money market instruments or in a mixture of equity and debt, depending upon the objective of the scheme. The different types of schemes are* Balanced Funds * forefinger Funds* orbit Fund * Equity Oriented Funds * Life insurance Now-a-days life insurance is also being considered as an investment avenue. Insurance premiums rep resent the give way and the assured sum the benefit. Under it different schemes are* Endowment assurance policy * Money back policy* Whole life policy * termination assurance policy * Real estate One of the most important assets in portfolio of investors is a residential house. In addition to a residential house, the more affluent investors are likely to be interested in the following types of real estate* Agricultural land * Semi urban land* kick upstairs House * Precious objects Investors can also invest in the objects which have value. These comprises of* Gold * Silver * Precious stones * Art objects * Financial Derivatives These are such instruments which infer their value from some other underlying assets. It may be viewed as a side bet on the asset. The most important financial derivatives from the power point of view of investors are* Options * FuturesDirect equity vs. mutual funds1) Equity share/Direct investment 2) Mutual funds, a brief introduction3) Equity Fund 4) d iscrepancy between direct equity and mutual fundEquity share/Direct investmentEquity shares These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share or dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market* Blue chip shares- Shares of large, well established, financially strong companies with an impressive record of earnings and dividends.* Growth shares-Shares of companies that have fairly entrench positions in a growing market and which enjoy an above average rate of growth as well as profitability.* Income shares-Share of companies that have fairly immutable operations, relative especial(a) growth opportunities, and high dividend renderout ratios.* Cyclic shares Share of companies that have a pronounced cyclicality in their operations.* Defensive shares- Shares of companies that are relatively unaffected by the ups and downs in general business conditions.* Speculative shares- Shares of companies that lean to hover widely because there is a lot of speculative trading in them.Mutual Funds A brief introductionA Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus amass is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments.The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally m anaged portfolio at a relatively low cost. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and varan the money. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.INCEPTION OF MUTUAL FUNDS IN INDIAThe history of mutual funds in India can be divided into 5 important phases1963-1987The Unit combine of India was the sole player in the industry. Created by an Act of Parliament in 1963, UTI launched its first product, the Unit Scheme 1964, which is even today the single largest mutual fund scheme. UTI created a number of products such as monthly income plans, children plans, equity-oriented schemes and off shore funds during this period.UTI managed assets of Rs.6,700 crores at the end of this phase.1987-1993In 1987 public sector banks and financial institutions entered the mutual fund ind ustry. SBI mutual fund was the first non- UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry happened during this period. Most funds were growth-oriented closed-ended funds. By the end of this period, assets under UTIs management grew to Rs.38,247 crores and public sector funds managed Rs.8,750 crores.1993-1996In 1993, the mutual fund industry was open to private sector players, some(prenominal) Indian and foreign. SEBIs first set of regulations for the industry were formulated in 1993, and substantially revised in 1996.Signifficant innovations in servicing, product design and information divine revelation happened in this phase, mostly initiated by private players.1996-1999The implementation of the new SEBI regulations and the restructuring of the mutual fund industry led to rapid asset growth.Bank mutual funds were recast according to the SEBI recommended structure, and the UTI came under voluntary SEBI supervision.1999-2002This ph ase was marked by the rapid growth in the industry, and significant increase in market shares of private sector players. Assets crossed Rs.1,00,000 crore .The tax break offered to mutual fund in 1999 created arbitrage opportunities for a number of institutional players. Bond funds and Liquid funds registered the highest growth in this period, accounting for nearly 60% of the assets. UTIs share of the industry dropped to nearly 50%.Types of mutual fundsOpen ended schemesAn open-end fund is one that is available for subscription all through the year. This type of Mutual funds does not have a predefined maturity period. The key feature is liquidity. Direct dealing is another noticeable feature.One can easily buy and sell units at Net Asset Value related prices.Close ended schemesHere maturity period is predefined usually ranging from 2 to 15 years. Investment can be done directly in the scheme at the time of the initial issue and units can be brought and sold whenever units are listed in the stock exchanges.Types of Schemes1. Equity/growth oriented Funds Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns.2. Balanced Funds The aim of balanced funds is to provide twain growth and first-string income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents.3. Index Funds An Index Fund is a mutual fund that tries to mirror a market power, like Nifty or BSE Sensex , as closely as possible by investing in all the stocks that comprise that index in proportions equal to the weight age of those stocks in the index.4. Income/debt oriented Funds These schemes invest mainly in income-bearing instruments like bonds, debentures, government securities, commercial paper, etc. These instruments are much less volatile than equity schemes. Their volatility depends essentially on the health of the economy e.g., rupee depreciation, fiscal deficit, inflationary pressure. Performance of such schemes also depends on bond ratings.1) Equity FundsAs ex knited earlier, such funds invest only in stocks, the riskiest of asset classes. With share prices fluctuating daily, such funds show volatile performance, even losses. However, these funds can yield great capital appreciation as, historically, equities have outperformed all asset classes.At present, there are four types of equity funds available in the market. In the increasing order of risk, these area) Index fundsThese funds track a key stock market index, like the BSE (Bombay Stock Exchange) Sensex or the NSE (National Stock Exchange) S&P CNX Nifty. Hence, their portfolio mirrors the index they track, both in terms of composition and the individual stock weightages. For instance, an index fund that tracks the Sensex will invest only in the Sensex stocks. The idea is to replicate the performance of the benchmarked index to near accuracy. Index funds dont need fund managers, as there is no stock selection involved.Investing through index funds is a passive investment strategy, as a funds performance will invariably mimic the index concerned, barring a pocket-size tracking error. Usually, theres a difference between the total returns given by a stock index and those given by index funds benchmarked to it. Termed as tracking error, it arises because the index fund charges management fees, marketing expenses and transaction costs (impact cost and brokerage) to its unit holders.So, if the Sensex appreciates 10 per cent during a particular period while an index fund mirroring the Sensex rises 9 per cent, the fund is said to have a tracking error of 1 per cent.To illustrate with an example, ingest you invested Rs 1,000 in an index fund based on the Sensex on 1 April 1978, when the index was launched (base 100). In August, when the Sensex was at 3.457, your investment would be worth Rs 34,570, which works out to an annualised return of 17.2 per cent. A tracking error of 1 per cent would bring down your annualised return to 16.2 per cent. Obviously, humble the tracking error, the better are the index funds.b) modify fundsSuch funds have the mandate to invest in the entire universe of stocks. Although by definition, such funds are meant to have a diversified portfolio (spread across industries and companies), the stock selection is entirely the prerogative of the fund manager. This discretionary power in the hands of the fund manager can work both ship canal for an equity fund.On the one hand, astute stock-picking by a fund manager can enable the fund to deliver market-beating returns on the other hand, if the fund managers picks languish, the returns will be far lowe r. Returns from a diversified fund depend a lot on the fund managers capabilities to maintain the right investment decisions. A portfolio concentrated in a few sectors or companies is a high risk, high return proposition.c) Tax-saving fundsAlso known as ELSS or equity-linked savings schemes, these funds offer benefits under Section 88 of the Income-Tax Act. So, on an investment of up to Rs 10,000 a year in an ELSS, one can claim a tax exemption of 20 per cent from his taxable income. One can invest more than Rs 10,000, but then he wont get the Section 88 benefits for the amount in excess of Rs 10,000. The only drawback to ELSS is that one has to lock into the scheme for three years.In terms of investment profile, tax-saving funds are like diversified funds.The one difference is that because of the three year lock-in clause, tax-saving funds get more time to reap the benefits from their stock picks, unlike plain diversified funds, whose portfolios sometimes tend to get dictated by r edemption compulsions.d) Sector fundsThe riskiest among equity funds, sector funds invest only in stocks of a specific industry, say IT or FMCG. A sector funds NAV will zoom if the sector performs well however, if the sector languishes, the schemes NAV too will stay depressed. Barring a few defensive, evergreen sectors like FMCG and pharma, most other industries alternate between periods of strong growth and bouts of slowdowns. The way to make money from sector funds is to catch these cyclesget in when the sector is poised for an upswing and exit before it slips back.2) Difference between direct equity and mutual fundsA mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven.Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc.Investing in Mutual Fund is convenient because of two basic reasons. All investment carry risks, especially equity investment that bears large risks, their returns are more volatile and uneven. To cut down the risk one needs to put money in several instruments rather than in one or two products. A Mutual Fund can effectively spread its investments across various sectors of the economy and amongst several products. Risk diversification is the Key. Secondly where to invest and where not to, is a specialized business. One may not have the expertise, time and resources of a well-managed fund.ADVANTAGES OF A MUTUAL FUND1. Professional ManagementQualified professionals manage money, but they are not alone.They have a research team that continuously analyses the performance and prospects of companies. They also select suitable investments to achieve the objectives of the scheme, so you see that it is a continuous process that takes time and expertise that will add value to investment. These fund managers are in a better position to manage investments and get higher returns.2. DiversificationThe clich, dont put all eggs in one basket really applies to the concept of intelligent investing. Diversification lowers risk of loss by spreading money across various industries. It is a rare occasion when all stocks decline at the resembling time and in the same proportion. Sector funds will spread investment across only one industry and it would not be wise for portfolio to be skewed towards these types of funds for obvious reasons.3. Choice of SchemesMutual funds offer a variety of schemes that will suit investors needs over a lifetime. When they enter a new academic degree in life, all needed to do is sit down with inve stment advisor who will help to rearrange portfolio to suit altered lifestyle.4. AffordabilityA small investor may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes that allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. One can invest with a minimum of Rs. 500 in a Systematic Investment Plan on a regular basis.5. Tax BenefitsInvestments held by investors for a period of 12 months or more destine for Capital gains and will be taxed accordingly (10% of the amount by which the investment appreciated, or 20% after factoring in the benefit of cost indexation, whichever is lower). These investments also get the benefit of indexation.6. LiquidityWith open-end funds, you can redeem all or part of investment any time you wish and receive the current value of the shares or the NAV related price. Funds are mor e liquid than most investments in shares, deposits and bonds and the process is standardized, fashioning it quick and efficient so that you can get cash in hand as soon as possible.7. Rupee Cost AveragingThrough using this concept of investing the same amount regularly, mutual funds give investor the advantage of getting the average unit price over the long-term. This reduces risk and also allows you to discipline self by actually investing every month or quarterly and not making sporadic investments.8. The Transparency of Mutual FundsThe performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare one to the other. Once you are part of a mutual fund scheme, you are provided with regular updates, for example daily NAVs, as well as information on the specific investments made and the fund managers strategy and outlook of the scheme.9. Easy To AdministerMutual funds units in modern times are not issued in the form of ce rtificates, with a minimum denomination rather they are issued as account statement switch a expertness to hold units in fraction upto 4 decimal points.10. Highly RegulatedThe governing of mutual funds by SEBI ensures that the fund activities are carried out in the best interest of the investors.DISADVANTAGES OF MUTUAL FUNDSThe following are some of the reasons which are deterrent to mutual fund investment * Costs despite Negative Returns Investors must pay sales charges, annual fees, and other expenses regardless of how the fund performs. And, depending on the timing of their investment, investors may also have to pay taxes on any capital gains dispersal they receive even if the fund went on to perform poorly after they bought shares. * Lack of Control Investors typically cannot ascertain the exact make-up of a funds portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades. * Price Uncertainty with an individual stock, you can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stocks price changes from hour to hour or even second to second.By contrast, with a mutual fund, the price at which you grease ones palms or redeem shares will typically depend on the funds NAV, which the fund might not calculate until many hours after youve place your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.Some mutual fund schemes with the point of attractiveness to investors -Comparison of best performing mutual funds with index Equity schemesEquity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of thes e schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns.These can be further classified into three types1. Diversified Equity schemesThe aim of diversified equity funds is to provide the investor with capital appreciation over a medium to long period (generally 2 5 years). The fund invests in equity shares of companies from a diverse array of industries and balances (or tries to) the portfolio so as to prevent any adverse impact on returns due to a downturn in one or two sectors.2. Equity Linked Saving Schemes (ELSS)These schemes generally offer tax rebates to the investor under section 88 of the Income Tax law. These schemes generally diversify the equity risk by investing in a wider array of stocks across sectors. ELSS is usually considered a variant of diversified equity scheme but with a tax friendly offer3. Sectoral Fund/ Industry Specific schemesIndustry Specific Schemes invest only in the industries specified in the offer document . The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc.These are ideal for investors who have already decided to invest in particular sector or segment. Sectoral Funds tend to have a very high risk-reward ratio and investors should be careful of putting all their eggs in one basket.CONCLUSIONIn the current scenario, investing is very important and investing in stock markets is a major challenge ever for professionals. The young people should start investing earlier so that they can reap the benefits of investing in future. People should keep their eye open and keep updating themselves about various investment avenues so that they can get safe returns.BIBILIOGRAPHY1. Anjan Chakrabarti and Harsh Rungta, 2000, Mutual Funds Industry in India An in-depth look into the problems of credibility, Risk and Brand ,The ICFAI Journal of Applied Finance, Vol.6, No.2, April, 27-45.2. Bhalla V.K., Investment Management, S.Chand & Company Ltd., ordinal Edition, 20043. Bodie, Kane, Marcus Security Analysis and Portfolio Management, 5th edition Tata Mc Graw hill publications.4. Customer Orientation in Designing Mutual Fund Products, -An Analytical burn up to Indian Market Preferences, Dr Tapan K Panda, Faculty Member, Indian Institute of Management, Lucknow.5. FISHER AND JORDEN (2000) Security analysis and portfolio management, Prentice hall.6. L.M.BHOLE (2005) Financial institutions and market, Tata Mcgraw hill.7. Preparatory Books For AMFI Exam NJ Investment India Pvt. Ltd. Edition June 098. Review Of Marketing Research, Volume 5 K. Naresh Malhotra9. V.A.AVADHANI (2006) Security analysis and portfolio management, Himalaya publishing house. 6thEdition.