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Financial Crisis and Greediness
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Financial Crisis and Greediness
Spitefulness and irregularities in the Lending segment principally contributed to financial crisis and the current global downturn making it unfortunate to realize that undependable actions have become the root for economic growth and expansion. The global financial crisis has affected both people right from the top rich billionaires to the regular individuals although time bomb in the financial crisis and probably what was experienced was just a detonator but not the main problem as may be expected. Several countries and financial institutions leadership failed to recognize that the issue was really great thus leading to application of a band aid on a major wound such that at the onset of the credit crunch, the responsible institutions assumed that everything was fine. This writing clears the air on the causes of financial crisis and particularly the part played by the banking sector.
Significant number of people lost their houses due to mortgages that were in default and it was shocking to see the central banks permitting prolific lending to unrated individuals. The individual borrowers could not afford or service the loans that they were receiving. There was a lot of politics in this crisis since it was through the political actions and influence and the financial institutions that the crisis occurred. US is actually the biggest economy in the world and has created the dollar as a planetary currency thus giving it opportunity to stir most economies globally and therefore most petroleum producing countries that deposited their huge sum of money in the USA banks prompted them to lend to the needy people.
Surplus funds led to cheap loaning and borrowing encouraged individuals especially the middle and low income earners to borrow and this stretched the income earned by these classes of people thus leading to payment default. It was undeniable that the financial institutions and banks have their own crises because they could not regulate themselves and therefore institutions were driven by urge to create more money from the surplus that they had. Financial institutions should have followed the set rules of borrowing and lending without overlooking any of the rules and it was indeed uncaring and greed that guided the institutions towards the global financial crisis (Hillinger Web).
The Financial crisis was mainly contributed by the contemptible, unsecured and unrated housing loans given by banks to their clients and this was exceptionally evident when they refused to take responsibility of their unsecured house loan by packaging them into a collateralized debt obligations and selling them to other agencies. The agencies did replica of what banks did by passing the loans to other agencies thus spreading them as assets globally without thinking of possible outcomes making one to feel that there must have been a huge and dangerous assumption made by the banks and the agencies (Jovovic 67-72).
Interest rates worryingly went down accompanied with an immense increase in house loan made it easy to acquire house and build their own homes thus appreciably leading to increase in land prices. Building and construction activities were everywhere thus creating more jobs and wonderful income in the real estate business and the low mortgage interest saw several banks greedily competing for clients thus motivating people to borrow even more than they could actually be allowed to under normal legal circumstances (Mittnik et al 258-265).
Fascinatingly certain families borrowed to service the old loans and remain with the surplus for vacation or acquisition of more assets and investments such as investing in a second house and the central of the economic crisis began when the loans went to the rates below the prime rates of banks. Unprofessionally, the banks never bothered to analyze the financial credentials of the borrowers specially their ability to repay the loans and they did not further provide the borrowers with sufficient information about the loans particularly when they gradually raised the interest rates. Insufficient information and the rise of interest rates made some borrowers incapable of servicing the mortgage thus leading to series of default cases which led to bursting of a bubble that the mortgage hedge fund as well as some institutions was in real troubles (Goczek 30-35).
Hitches spread to the other agencies where loans had been transferred by banks and on some investment banks thus triggering huge financial institutions such as Citigroup and Merrill Lynch to announce write down. The low interest rates were worsened by the reduction of the federal funds rate which translated into lower mortgage rates causing the banks to borrow at lower rates hence charging lower interest on mortgages. Banks thought that with the skyrocketing of land prices, they could probably seize the houses in case of any default and sale them handsomely without analyzing the ability of borrowers to repay their loans (Goczek 30-35).
The most important issue was the number of borrowers instead of the characters and ability of the clients to repay loans because they simply wanted more money without even thinking of possibilities of bad debt by focusing on profit opportunity. Apart from publications by many economists on the possibility of unsustainable nature, no action was taken to curb the low interest rates and the US government intervention wreaked havoc on the financial systems particularly the regulation of the financial industry largely contributed to financial crisis (Mittnik et al 258-265).
Financial crisis conceivably could not have been wide ranging as it was if the government could have come up with effective, efficient and proactive rules governing the financial institutions. Capitalism and inherent greed can be blamed to have caused the financial crisis by sickening the housing market and allowing pool of dangerous investments although the Federal Reserve could have taken control of the rising situation. Provision of cheap home mortgages was solely done by the government interventions with an intention of making home mortgages more available to the needy and it was backed by both democrats and republicans unanimously without focusing on the future effects (Jovovic 67-72).
Government brain-teased banks with spiteful enticements and unmerited intercession to offer mortgage to less creditworthy individuals and this greatly plunged the banks into undeniable risk of bankruptcy perhaps they could have not involved themselves in this unnecessary, risky and reckless behavior. Perceptibly, the allowable coercive support of credit policies by the government in home mortgages have led to moral hazard and greatly contributed to the financial crisis. Sponsorship of corrupted loaning standards in home loans was pooled by substantial political monetary incentives to encourage the bad loans led to a skyrocketing default rates on subprime mortgages (Hillinger Web).
Banks and other financial institutions would have snubbed the government proposals by avoiding the shadow banking system since issuing of poor quality loan is inconsistent with the lending principles. This unfortunate financial crisis could possibly been avoided by the stern observance to the guidelines put in place. Consequently, ravenousness and imprudence within the Banking sector is blamed for the financial crisis that hit many great firms locally and globally such as the AIG and the General Motors.
Works Cited
Goczek, Lukasz. “Federal Policy Responses to the 2007-2009 Us Credit Crunch.” Equilibrium 6.3 (2011): 27-42. ProQuest. Web. 3 July 2013. <http://search.proquest.com/business/Docview/1318039265?Accountid=45049>.
Hillinger, Claude. “The Crisis and Beyond: Thinking Outside the Box.” Economics 4.23 (2010): 0_1,1-61A. ProQuest. Web. 3 July 2013. earch.proquest.com/Docview/757449055?Accountid=45049
Jovovic, Radislav. “Global Financial Crisis: Role of International Institutional Framework, and Lessons for Transitional Countries.” Montenegrin Journal of Economics 8.3 (2012): 65-73. ProQuest. Web. 3 July 2013. <http://search.proquest.com/Docview/1329186977?Accountid=45049>.
Mittnik, Stefan, et al. “Financial Market Meltdown and a Need for New Financial Regulations.” METU Studies in Development 36.1 (2009): 253-69. ProQuest.Web. 3 July 2013. <http://search.proquest.com/Docview/89155174?Accountid=45049>.
1910 Hidalgo County Jail
1910 Hidalgo County Jail
Hutson Gallagher prepared the nomination for the Museum of South Texas History. NPS approved P1 2-23-18
The 1910 Hidalgo County Jail is part of the Museum of South Texas History campus in downtown Edinburg across the courthouse square.
An integrated hyphen connects the jail with a two-story addition that houses the museum archives. the connection renders the two buildings a single resource for nomination purposes.
The 1976 Archive Addition is a 4700 sq foot windowless building connected to the jail’s north elevation. Exterior walls are stucco and painted white with stringcourses along the upper wall.
The Hidalgo County Jail, built in 1910, is a brick masonry Mission Revival-style building finished with a textured, white stucco. The two-story jail has a rectangular plan that features a projecting open-sided square tower on the southwest corner with a pyramidal roof sheathed in red clay tile.
The south half of the building has a flat roof and crenelated parapet. Raised stucco stringcourses at the roof line help unify the building’s exterior. The stucco is also used to express the window sills and the arched entrance.
All windows are wood double-hung mortise and tenon construction. Most of the current windows are replicas based on historic photographs, however some original window elements remain.
Restoration projects that began in the late-1960s returned the building to its original appearance.
The 1976 addition, however, altered the building’s north elevation fenestration and the previously exterior wall now faces the interior two-story hyphen.
First floor rooms were originally arranged for sheriff’s department use and jailer’s quarters but reconfigured to create a hallway that connects to the hyphen.
The second floor retains the original footprint with a large room that previously held a free-standing iron cell block, two small jail cells, and the “hanging room” in the tower.
An iron gallows door, staircase, and cell door are original to the jail and reflect its historic use.
The 1910 jail retains good architectural and historical integrity thanks to sensitive restoration projects. Although the archive addition is a sizable modern building, it is set back from the historic building and its plain wall surfaces do not detract from the original jail design.
In 1909, the Hidalgo County Seat moved to a new townsite now-called Edinburg.
Citizens approved a $75,000 bond to build a new county courthouse and jail.
Completed in 1910, the Hidalgo County jail functioned in that capacity for just 12 years when county commissioners called for a larger facility to replace it.
Between 1922 and 1964, the building was a civic center, City Hall, police station, and fire station and additions were made to the historic building to accommodate these various functions. In the late-1960s, local preservationists secured a permanent lease and began restoring the building to its original appearance. In 1970, the “Old Hidalgo County Jail” opened to the public as a museum.
The 1910 Hidalgo County Jail is an architecturally significant local example of an early 20th century Mission Revival civic building. Its design is attributed to noted Texas architects Henry T. Phelps and Atlee Ayres, who were then at the beginning of their long, successful careers.
The Jail, and its counterpart the 1909 Hidalgo County Courthouse (demolished), are two of the few known Mission Revival civic buildings constructed in Texas. Mission Revival originated in California in the 1880s as a style based loosely on that region’s early Spanish Colonial ecclesiastical and adobe residential architecture and was a popular style in South Texas between 1900 and 1920.
The nominated building is only one of two known jails built in that style in the state and is the only one that survives. Its expresses Mission Revival style in relatively few suggestive details: plain expanses stucco exterior walls, a three-story corner “bell” tower, arched entrance, and red clay tile roof.
The 1910 Hidalgo County Jail is nominated to the National Register of Historic Places at the local level of significance under Criterion A in the area of Government and Criterion C in the area of Architecture.
The jail no longer retains integrity from later periods of its civic use. Therefore, the period of significance is 1910-1922 which represents the years it functioned as a jail.
In dual federalism the federal government and state governments share equal powers and exercise the powers in different juris
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In dual federalism the federal government and state governments share equal powers and exercise the powers in different jurisdictions (Ablavsky, 2018). On the other hand, in a cooperative federalism the federal and state governments share equal powers an exercise the powers within the same sphere. Secondly, in dual federalism some of the powers of the state governments are equal to those of the federal government whereas, in a cooperative federalism, the powers of the state governments may be less than those of the federal government (Ablavsky, 2018). Thirdly, in dual federalism, the US Constitution gives powers limited powers to the federal government leaving the rest of the powers to be exercised by the state governments; thus, reducing workload for the federal government, and making the exercise of power more efficient (Ablavsky, 2018). Additionally, in dual federalism, state governments are empowered to make their own state laws without the interference by the central government. On the other hand, state governments are denied the independent power and all laws must be made through the intervention of both central and state governments. Lastly, dual federalism motivates radical ideologies whereas, in cooperate federalism there is an associated risk of disputes between the ruling parties of the state governments and the central government (Ablavsky, 2018).
Dual federalism is a superior way of governments working together because although the powers are equally shared by the federal and state governments, the states are allowed to amend their own laws independently, and only make those which are aligned with the central government laws (Ablavsky, 2018). By doing so, the risk of conflicts between the federal government and state governments is very minimal, unlike in cooperative federalism were states are denied independence for amending their laws. Furthermore, the power and responsibility of both federal and state governments is equally shared which results in enhanced efficiency through division of power. The desire for efficiency can be appreciated when the job of any government to be a difficult one; such that, a government is responsible for enforcing its own laws, providing services like education and health, maintaining security, ensuring civil rights and ensuring social welfare. Dual federalism makes it easier from the federal government to have its responsibilities shared with the state governments which have power to ensure the responsibilities are met (Ablavsky, 2018). As a result, the federal and state governments are able to easily work together without conflict. Also, dual federation is able to ensure that all the powers are divided into a more accurate sphere of power and responsibility by creating a complex system. Recalling the role of federalism in providing rules to the other governments, it can be seen that dual federalism is able to provide good coordination between all the governments. Coordination in cooperative federalism may not be as good as in dual federalism because states are not allowed to exercise their powers freely, and they are forced to rely on partnership with the central government (Ablavsky, 2018). This denies the states freedom for power exercise although they have an equal power as the central government. Also, when the state governments provide services to the local people, they will not have state government responsibility over them; thus, creating a loss of efficiency (Ablavsky, 2018). On the other hand, in dual federalism, the states are able to provide services like education and health care which may be not be efficiently provided by the central government on a much larger scale. Thus, this kind of federalism is a better way to work together as it is able to bring efficiency through cooperation of both governments.
Las Vegas has an unusually high crime rate in the recent years compared to the previous years. In 2013, the Nevada Attorney General’s Office reported an estimated 28 murders in the past year alone; this is up from one murder for every 200,000 residents in 2010 (James, 2018). The crime rates are expected to continue on this trend and many people have considered moving away from Las Vegas due to safety concerns. Various factors that have contributed to the increased crime rate in Las Vegas include drug trafficking, prostitution, and gambling (James, 2018). The emergence of gangs not only from within the city itself, but also from Los Angeles and other states as well has also contributed to increased crime rate in the city. Gangs have attracted young people with drug trafficking and are a major cause for the higher-than-predicted crime rates in Las Vegas (James, 2018). The gang violence has led to a lockdown on several randomly dangerous locations such as shopping malls and gas stations; thus, making them unsafe for people living in the community. Statistics from the FBI paint a picture of overall crime in the city; from 2013 to 2021, crime rate has risen 7% as well as with violent crime, which has increased by 61%. The reported rape rate for the same time period was 13.5%, this is up from an average of 5% in previous years (James, 2018). There are relatively few studies known to have been conducted on why crime rates in Las Vegas have escalated so much and what factors contribute to it, and the major reason for this surge in crime can be attributed to drug trafficking.
To: Madam Jacky Rosen,
The senator of Nevada state
RE: Reasons why it is critical to work immediately to solve the issue of increased crime rate in Las Vegas.
The Las Vegas metropolitan area is one of the most dangerous cities in the country as far as drug trafficking is concerned. The proximity to the Mexican border and a nearby international airport has made Las Vegas an ideal point of entry into the United States for drugs and illegal aliens, which is only one major reason why drug trafficking persists in this city (Shafiq et al., 2022). Additionally, the massive expansion of the casino industry in Las Vegas since 1990s has also contributed to elevated crime rates caused by organized crime rings that deal with prostitution, gambling and illicit drug sales. In fact, it is estimated that at least half of all crimes in Las Vegas are linked to drug trafficking, many associated with interstate criminal gangs like La Cosa Nostra, Sureños and Norteños (Shafiq et al., 2022). The increased crime rate in the city has resulted in a number of severe effects which include reduced safety for the community members, disrupted social order, chaos and mistrust amongst the members living in the community, economic costs on the people and the government at large, as well as reduced quality of life amongst others. Considering the severe effects of increased crime rate in Las Vegas, it is crucial to immediately address the issue and develop strategic solutions for the problem.
First of all, crime prevention is the initial step of exercising justice; thus, it is important to work immediately to solve the problem (Shafiq et al., 2022). Delayed intervention by the state government of Nevada will be unjust for the people of Las Vegas, since the government has the important responsibility of curbing the crime rate, and maintaining safety for the community. Immediate intervention will also help to enhance quality of life of the citizens because they will not exposed to the threat of the dangerous crime activities. Thus, there needs to be an increased level of resources and effective commitment by the state government, law enforcement agencies in Las Vegas and their respective leaders to address crime rate in the city (Shafiq et al., 2022).
The state government has a responsibility of maintaining order within its jurisdiction and it is crucial for the local officials to work with the residents so that they can prevent crime from occurring. Instead of penalizing the criminals, more attention should be placed on finding out why people commit crimes in the first place and how to stop people from being lured into this criminal network. The law enforcement agencies must also ensure that they do not compromise evidence when resolving crimes because it may encourage even more crime in the city.
Also, early intervention will help reduce the costs associated with the criminal justice system as well as the social costs which are incurred through ensuring that the community members are not psychologically affected by the crime (Shafiq et al., 2022). If people do not feel safe in the community, then they are more likely to stay away from law enforcement agencies, which will translate into cost savings on policing services and other related costs. Also, early rehabilitation of criminals through a treatment program for first-time offenders will also contribute to prevent further recidivism. This also helps reduce costs on the people because it will help to prevent them from being re-arrested after being released from jail.
Lastly, early interventions for crime prevention will not only reduce crime activities and victimization but also enhance sustainable development of the city, and the whole of Nevada (Safiq et al., 2022). It is crucial for the state government to provide stable funding through allocating more resources to the police, judiciary and prison sectors. The local police need the state government support to maintain law and order in the city. If there is a high crime rate in Las Vegas, then it will have negative effects on economic development of the city and thus this will further reduce quality of life for residents and also increase costs to business operations within the city. Also, individuals are more likely to leave their homes in order to stay away from dangerous criminal activities (Shafiq et al., 2022). They are also more likely to struggle with emotional stress when they are living in fear of becoming victims of crime. Also, with regards to early crime prevention, it is imperative for the state government to focus on building an effective crime reduction program that is capable of reducing the number of crimes occurring within the city. The program must also be able to effectively mitigate the ongoing issue of homelessness and poverty that has risen in Las Vegas due to high rate of poverty within in Nevada. This can be achieved through adequate provision of social programs and services (Shafiq et al., 2022).
All these reasons explain why it is critical to ensure immediate interventions that would help to prevent crime and reduce its rate in Las Vegas. Delayed interventions will not help to achieve quality outcomes as compared to earlier interventions; thus, it is important to consider this issue as an emergency problem that requires urgent solution. Otherwise, the state will worsen, and the crime activities would grow to not only affect Las Vegas, but Nevada State as a whole.
References
Ablavsky, G. (2018). Empire states: The coming of dual Federalism. Yale LJ, 128, 1792. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/ylr128§ion=40James, N. (2018). Recent violent crime trends in the United States. Congressional Research Service, 45236. https://sgp.fas.org/crs/misc/R45236.pdfKincaid, J. (2019). The Three Shades of American Federalism. 50 Shades of Federalism. http://50shadesoffederalism.com/case-studies/the-three-shades-of-american-federalism/Shafiq, N. B., & Ali, D. H. A. (2022). The Economic Determinants of Crime Rate in 7 Selected Countries: A Panel Data Analysis Approach. Asian Journal of Empirical Research, 12(1), 44-53. https://archive.aessweb.com/index.php/5004/article/view/4439