Fpi Assignment Essay Example for Free

Fpi Assignment Essay Summary The report is regarding to the knowledge of analyzing the accounting data of a listed company, using the various accounting information that provided to identify and examine the competitiveness and efficiency of the listed company. Besides, in order to examine the reliability of the data provided, analysis of the balance sheet and income statement is required. The financial information can be obtained from the annual reports of Harbour-Link Group Berhad. In addition, the report is required to include the top-down approach which consists of Economic analysis, Industry analysis and Fundamental analysis to analyze the listed company in the point of view for investors. Table of Content 1. Introduction 1. Objectives 2. Analysis of the statement of financial position, the statement of financial performance and cash flow statement. 1. Financial Analysis ratio: Asset efficiency ratio Capital Structure ratio Liquidity Ratio Profitability Ratio Share Price 3. Economic Analysis 4. Industry Analysis . Conclusion 6. Findings 7. References Introduction In this report, Harbour-Link Group Berhad is chosen among the listed companies. Harbour-Link Group Berhad is an investment holding company which provides shipping, forwarding and transportation, plant and machinery hiring, and engineering contract services primarily in Malaysia and Singapore. Harbour-Link Group Berhad was founded in the year of 1975 and it is based in Bintulu, Sarawak, Malaysia. It was officially listed on Bursa Malaysia Securities Berhad in the year of 2004. Today, Harbour-Link Group’s success lies in its strong foundation of expertise in the industry and its ability to established the company as a reputable brand-name within the shipping, sea freight forwarding and transportation industries. Objectives 1. To identify the sources of funds, Balance Sheet and profit or loss of the Harbour-Link Group Berhad. 2. To analyze accounting data of Harbour-Link Group Berhad to examine its financial performance using Financial Performance Indicators (ratio analysis) 3. To analyze the economy status, competitors within the same industries and evaluate the operating efficiencies of the listed company. 4. To examine the competitiveness and efficiency of the listed company by using the various accounting information provided. Financial Analysis Financial analysis ratios are used to examine the financial performance of a company in which it will be reflected in the ratios calculated. (Giles et al, 1994, p. 371) Asset efficiency Ratios Asset turnover ratio From the data calculated, the asset turnover ratio for the financial year of 2008, 2009 and 2010 are 109. 9%, 92. 12% and 79. 65%. This indicates that the Harbour-Link Group Berhad is not doing well in the sales of the products or services because the asset turnover ratio is decreasing from year to year. Debtor turnover (in days) Debtor turnover is the debtor collection period of a company. Harbour-Link Group Berhad had a debtor turnover of 73 days in the year of 2008. In the year of 2009, the debtor t urnover is 77 days. However, its debtor turnover is decreased to 71 days. This reflects that the possibility of default risk for the debtors is decreasing. In fact, this is a good thing in a company. Inventory Turnover Inventory turnover measures how many times the company can sell through its inventory for each year. In the year of 2008, Harbour-Link Group has an inventory turnover of 163 times. The turnover increased to 212 times in the financial year of 2009 but the inventory turnover decreased to 127 times in the year of 2010. This reflects that the company can sell better in the year of 2009 but it dropped tremendously in the year of 2010. Capital structure Ratio Debt to equity ratio The debt to equity ratio of Harbour-link Group Berhad is decreasing from the year of 2008 to 2010 by 2%. This is caused by the reducing of total liabilities and the increasing of the total equity. Time interest earned The times-interest-earned ratio allows a lender to evaluate the company’s ability to meet its debt obligation. It is a ratio of the earning before interest and tax over the interest expenses. The time interest earned has a slightly increased from the year of 2008 to year 2009 but it has a greater decrease in ratio amount from the year of 2009 to year 2010. This means that in the year of 2010, Harbour-Link Group Berhad have lesser earnings are available to meet the interest payments and this makes the company to be more vulnerable to the increases in the interest rates. Liquidity Ratios Liquidity ratio is the ratio that is used to examine the liquidity of a company. It includes: Current Ratio Current ratio is the ratio of current assets to current liabilities. Harbour-link Group Berhad has it current ratio decreasing from the year of 2008 to 2010. Its current ratios are 1. 90, 1. 76 and 1. 57 respectively. The ratio is decreased by 14% and 19%. The data is calculated as shown in the findings. Liquid Ratio Liquid ratio is the ratio of (current assets-inventory) to (current liabilities-bank overdraft). Harbour-Link Group Berhad has borrowings so there is bank overdraft existed and that’s why it is classifies as a debt financing organization. The company has a higher liquid ratio of 2. 34 in the year of 2010 compared to the year of 2008 and 2009 which is 1. 88 and 1. 75 respectively. The liquid ratio of the 3 financial years exceeded 1 and this indicates that the current assets are greater than the current liabilities. Higher liquid ratio reflects better performance of the company. Net working Capital Net working capital is the difference between current assets and the current liabilities. In the three financial years, Harbour-Link Group Berhad has the highest net working capital of RM 51. 4 million in the year of 2008. The figure of net working capital for Harbour-link Group Berhad decreased in the year of 2009 and 2010 by 0. 43% and 12. 32% respectively. This shows that there is a drastic drop in the net working capital of year 2010. Profitability Ratios EBIT to total funds ratio EBIT to total funds ratio of Harbour-Link Group Berhad is decreasing in the range of 22% from the financial year of 2008 to 2009 and 21. 4% from the financial year of 2009 to 2010. The total funds consist of shareholders’ funds and borrowings. According to the annual report, Harbour-Link Group Berhad is practicing debt-financing to raise funds because there is borrowing existed. Return on Equity (ROE) Harbour-link Group shows a decrease in net income from year 2008 to 2010. This situation leads to the decrease in the return on equity (ROE) of 5%. In the financial year of 2010, it has the ROE of 0. 08 which indicates that for every RM1 of the capital that the shareholder invested into, they will get 8% of return. Return on Assets The return on assets measures the productivity of assets in terms of the level of profits each dollar of assets generates. (Karen D. H, 2004, p. 131) The return on assets of the Harbour-Link Group Berhad is decreasing from the financial year of 2008 to 2010. It decreased from 8% of year 2008 to 7% in the year of 2009 and then 5% in the year of 2010. This implies that the productivity of the company’s assets is not doing well in terms of profits that the assets generated. Net Profit Margin The net profit margin is the ratio of net profit after tax to the total revenues. In the financial year of 2008 and 2009, Harbour-Link Group Berhad has the net profit margin figure of 8%. It indicates that the company has a net income of RM0. 08 for each RM1 of sales. However, the net profit margin for the year of 2010 decreased by 2% which is only 6% in the financial year. This shows that for every RM1 of sales made by the company in year 2010, the net income is only RM0. 6 which is RM0. 02 lower than the previous year. Share Price Price to Earnings Ratio (P/E) Price to Earning ratio is calculated by using the share price of the year 2010 over the earnings per share. The market price of Harbour-Link Group Berhad was amounted to RM 0. 72 in the year of 2010. From the annual report of the financial year of 2010, the earning per share is R M 0. 11. By using the formulae, the price to earning per share of 2010 is calculated as shown in the table with a figure of RM 6. 825. Current Economic Analysis Roots of Global financial crisis Global financial crisis are usually caused by bad regulation of the banking sectors, failure of fiscal and monetary policy implemented and so forth. In the year of 2008, Financial crisis began with the declared of bankruptcy of Lehman Brothers Holdings Inc. which is the fourth largest investment bank in United States. It was a severe ongoing world financial problem that began in U. S in the year of 2008. This recession has entirely hitting on the fragile global economy with the tremendous devastation in countries all around the world. The U. S government was trying to point the finger of the financial crisis to the rating agencies, who knew about the great risk that was coming but kept giving high reliability ratings to companies that did not deserve them and thus investors invested in the wrong companies. The cause of the bankruptcy of Lehman Brothers Holdings Inc was the accumulation of debt and the increasing of loan defaults. Why it evolved into a world crisis The news on bankruptcy of Lehman Brothers Company led to the drastic fall in the share price all over the world. The company had billions of dollars losses incurred in the mortgage market of United States. (BBC NEWS, 16th Sept 2008) In Lehman Brothers’ case and the other investment banks, the problem was provoked by 2 major factors which are the very high level of leverage ratio and the dependence on short-term debt financing. Commercial banks cannot leverage their equity more than 15 to 1 as they are regulated but for Lehman Brothers Company, it had a leverage ratio of more than 30 to 1. According to the table 1, Lehman Brothers had only $3. 30 of equity for every $100 of loans. With this ratio, it makes the company to be insolvent. Conversely, the instability arose from the leverage problem was aggravated by the strong reliance on the short term debt. Based on table 1(Lehman Brothers Liabilities and shareholder’s equity), at the beginning of the crisis, the company financed greater than 50% of the assets. Reliance on short term debt financing is profitable indeed when it comes to a low interest rate market environment. However, when the company faced rumors of the insolvency problem, the short term lenders will start to have doubt on the company’s performance and therefore, they will start to withdraw their funds from the company for self interest protection. This scenario will lead to a shortage of liquidity for the borrower and thus the company tends to default. After the crisis began, Lehman Brothers did try to decrease its leverage and reduce its dependence on the short term borrowing but it was too late for them to amend the situation and therefore, bankruptcy occurred. The bankruptcy of Lehman’s brother forced the reassessment of risk in the market by looking at the price of the credit default trades. Impact on Malaysia and world economies The crisis started in the year of 2008 had a great hit on Malaysia and world economies. It causes the gas price had a drastic drop, decreasing of the value of real estates, the increasing of unemployment rate, Federal debt crisis and inflation. There is a global explosion in commodities price. The price of crude oil was remaining at high levels for few years till the end of 2008, the crude oil price dropped from the peak in July 2008 of US$145 to US$30. 28 per barrel in December 2008. (Forbes, 2008) According to the findings in table 2, the unemployment rate of Malaysia increased by 3. 13% from the year of 2008 to 2009 and 12. 12% from the year of 2009 to 2010. Malaysian future economic At first, Malaysia was aiming to have 9% of average annual Growth Domestic Product (GDP) until 2020. Suddenly, according to the Economic Planning Unit, the government noted that the number is absurd then they changed and told that Malaysia was capable to achieve 5. 4% of Growth Domestic Product (GDP) annually over the next 10 years to achieve the objective of becoming a high income economy by 2020, which is the vision 2020 (East Asia Forum, 2009). These seem that Malaysia’s economic future is uncertainty. It keeps changing. Besides, Malaysia’s government has a close relationship with its private businesses. Because of the relationship with some business groups have ostensibly led to the emergence of political cronies with unlimited access to public resources. Not only the relationship that mention above but also the experience of neighbouring Indonesia shows that it is a dangerous trend that could negatively affect economic development in the future. In this matter, changes in political leadership led to unstable political environment. Although it does not directly effect on Malaysia, it threatens he influx of refugees caused damage regional stability and social stability. Malaysias maritime economy can be defined as the production and manner of use of the range of goods and services that are linked to the maritime sector (Abdul Aziz Abdul Rahman, 1997). It covers the activities that are resource based, including fisheries, oil and gas, marine biotechnology and those that are service based such a s shipping ports, shipbuilding and repair and the myriad range of ancillary maritime services (Maritime Institute of Malaysia,2005). Malaysias main concern is the future of marine economy of the future of Malaysian trade, because the countrys foreign and domestic trade, or even almost totally dependent on sea transport facilities. From this we can know that it will have a very bright prospect in maritime economy. If Malaysia is to achieve the goals of industrialization, productivity-driven growth and enhancing competitiveness will depend on how the maritime sector is managed. The maritime sector has a main role to play in enhancing productivity-driven growth. An important element that will affect efforts to sustain international competitiveness is productivity. But, for longer term, Malaysia will need to maintain its international competitiveness, since there is rising competition from other emerging markets for Foreign Direct Investments (FDIs) and for the transfer of modern technologies. Environmental issues are also important for Malaysia in the longer term as deforestation and global climate change may destabilize the countrys agriculture, which still plays an important role in the national economy. What is the most important is the political will effect a change to system-centred thinking in planning the future of the economy. So, a stable political environment is very important to Malaysia. If the political environment of Malaysia is good, it will have a bright future of economy. Solutions to the Global Financial Crisis or crises in general. Banks and financial institutions can cause a downswing of an economy because of their ignorance of the business cycle. Besides, bankers are greedy with the fat bonuses that they will gain if they get the highest market shares results. When the economy is doing well, they expect that there will be no recession problem is going to occur and therefore they will give loans to their customers without considering their customers’ affordability to repay the loans. Once their customers cannot afford to repay the loans, recession will occurs. To overcome these crisis problems, several steps can be used. Government and bankers often intervene to smooth the peaks and valleys of the economic cycle. There are two objectives that the government and bankers can do to prevent serious downswing of an economy. 1) Speedy intervention to prevent a self-perpetuating downward spiral, which means protecting depositors at minimal long term cost to the taxpayer. For example, the Federal reserve may restrict the money supply in good times to slow the expansion phase of the economic cycle, or deficit spend and cut interest rates to ease the recessionary phase of an economic cycle. 2) Ensure so far as possible that future booms are less exaggerated. This has implications for the form of any rescue package, and for the system of financial oversight that is put in place. The growth of consumer credits will increase the consumption of the consumer. The increase in the consumption will increase the aggregate demand of the country whereby AD equals to C + I + G + (X-M). Mc Taggart et al, 2007 p. 766). When the AD is increasing, it means that GDP is also increasing. This shows that the consumer credits provided will also be increased and therefore people will keep on borrowing money from the banks for consumption. This situation actually can amplify the business cycle and extend the upswing of the economy. Industry analysis The domestic and the world economy were in a downturn in the year of 2009. All the industry was affected and they are making an effort to maintain their previous performance and growth momentum. In the year of 2009, Harbour-Link Group Berhad suffered revenue declined by 5. 9% to RM 327. 6 million. The revenue decreased again by 5. 76% to RM 308. 7 million compare to the previous year due to lower selling prices and softer consumer demand. One of the Company competitors, Swee Joo Berhad was also suffered by achieved a turnover of RM 346. 7 million which is 9. 9% lower than the previous financial period. The lower turnover was also impacted by the recovery state for the economy. Swee Joo Berhad has a reduce in current ratio from 0. 648 to 0. 278 which seems to be lower than that of the Harbour-Link Group Berhad and therefore Harbour-link seems to have a better current ratio. Swee Joo Berhad has a negative figure for its Earnings before interest and tax of -11. 32 million and -176. 82 million in the year of 2009 and 2010. This is a huge loss for the company. It shows that Harbour-Link has a better performance than its major competitor, Swee Joo Berhad. Although the economy showed signs of recovery, but most of the economists hold that the sustained global recovery is still vague. This situation greatly influenced the consumers spending behavior. According to the Edge, Harbour-Link Unit obtained the secured contracts of RM75. 2 to supply gantry cranes for the Bintulu Port Sdn Bhd. The contracts were expected to be done in the year of 2012 and it’s also expected to escalate the future revenue and earnings positively for Harbour-Link Group Berhad. (The Edge, 11 April 2011) There are several ways for the companies to perform better during this hard period. However, the suppliers are also important causes which will affect the company performance. Although Harbour-Link Group Berhad suffered lower revenue during the year, however, it obtained quite a number of big projects with a favorable amount of contracts worth which is believed to boost the revenues for the future of the company itself. This scenario will assist Harbour-Link Group Berhad to create a stronger visibility and allow it to be well positioned for the economic recovery. Findings [pic] Table 1 shows Lehman Brothers Liabilities and Shareholders’ Equity Source: Lehman Annual Reports |Year |Unemployment Rate |Percentage Change | |2006 |3. 60 | | |2007 |3. 50 |-2. 78% | |2008 |3. 20 |-8. 7% | |2009 |3. 30 |3. 13% | |2010 |3. 50 |12. 12% | Table 2 shows the unemployment rate in Malaysia Source: CIA World Factbook Conclusion In conclusion, although the Harbour-Link Group Berhad has a downturn in its overall performances in the financial year of 2009 and 2010 as the results shown in the findings, but it has a better performance than its main competitor, Swee Joo Berhad in the shipping industries. The Harbour-Link Group Berhad is overall well organized in its financial statements as shown in the annual reports and it can be categorized as a profitable and successful listed company in Malaysia. On the perspective of investors, Harbour-link is counted as a good investment company and therefore investors are advised to consider Harbour-link Group Berhad as one of their investment company because the company has a good expectation to have a huge increase in its future economic benefits. The future economy of Malaysia is expected to have a good return and therefore this ensure that Harbour-Link Group Berhad is a wise investment for the future benefits. References Abdul Aziz Abdul Rahman, 1997, The Maritime Economy of Malaysia, Pelanduk Publication BBC News, 16 September 2008, http://news. bbc. co. uk/2/hi/business/7615931. stm Bursa Malaysia 2010- Equities, Bursa Malaysia Berhad, viewed on 26 April 2011 http://www. bursamalaysia. com/website/bm/market_information/prices/ East Asia Forum, Malaysia’s Economic Future, view on 1 May 2011, http://www. eastasiaforum. org/2009/11/24/malaysias-economic-future/ Encyclopedia of the Nations, Malaysia- Future Trends, viewed on 2 May 2011, http://www. nationsencyclopedia. com/economies/Asia-and-the-Pacific/Malaysia-FUTURE-TRENDS. html Forbes 2008- Crude Oil Prices 1861 – 2009, Forbes. com 2010, viewed on28 April 2011, http://www. forbes. com/2008/05/13/oil-prices-1861-today-real-vs-nominal_flash2. html Giles, R Capel, J 1994, Finance and accounting, 3rd Edition, MacMillan, London Harbour-Link Group Berhad 2011, harbour. com. my; Total Logistics EPCC Provider N. V 20092010, Harbour-Link Group Berhad, viewed on 22 April 2011, http://www. harbour. om. my/ Karen D. Halpern, 2004, Understanding Finance: Money, Capital and investments, Pearson, New Jersey. Maritime Institute of Malaysia, Malaysia and Port Competitiveness, 2005 Mc Taggart et al, 2007, Macroeconomics, 5th Edition, Pearson, Australia The Edge Financial Daily, 11 April 2011 viewed on 24 April 2011. http://www. theedgemalaysia. com/ The Star Online 2011- Market watch, Star Publica tions (M) Berhad, viewed on 24 April 2011, http://biz. thestar. com. my/marketwatch/charts/l. asp? code=2062~HARBOURp1=0. 99p2=0. 985p3=0. 99p4=0. 985p5=0. 99p6=0p7=0. 00p8=915p9=0. 532

MTV Affecting The Youth :: essays research papers

The Pop Culture Assault Music TV channels, broadcasting variety of programs ranging from ordinary music videos through charts, various shows to cartoons are the symptom of our times. No matter if it's MTV or VIVA, they sell very similar stuff, often cheap and shallow. The pop culture and consumption grasped the most powerful device that is television. It is used as a tool for spreading out information, ideas and appeals. Oftentimes they are silly and ridiculous; nevertheless they have enormous influence on people who watch it. Image has become the most widespread form of expressing ideas and for communication. Colorful and quickly changing pictures surely affect human personality; it influences the way we behave, dress and exist. Young people tend do be and look like their VJ's from the TV screen. They wear in certain way; they cut their hair, pierce or tattoo their bodies, just because of their TV idols doing that. TV hosts become the role models to follow; they are gurus and authorities on almost every field of human life from fashion to ethics and morality. They sell some patterns of behavior that other people can consider weird or outrageous. Their ideas can be good and honorable as well as freak and dumb. TV creates an ideal of a 'perfect' woman and man with all the paraphernalia and pressure connected with it. Many young women (as they appear to be more susceptible to that tension) put themselves on diet; wear strange clothes etc. just to fit in the 'official' picture. People buy 'proper' brands of outfit, cosmetics and even food, they become the slaves of fashion, fashion that often is nothing but garbage glittering and shining on the surface but empty and dull inside. Tracks from the top of the charts, however stupid or unmusical-like they are, can be safe to be sold in millions of copies all over the world. Here comes another phenomena, music that used to be of an artistic and cultural value, tends to be no longer so.

Recession in American economy Essay

The economic meaning of the term recession is, â€Å"A period of economic decline in a Country, characterized by reduced trade and industrial activity, production decline and increased levels of unemployment. It normally lasts between one and two quarters consecutively†, (Tremblay; 2007). In the US, incidences of recession have occurred since 1854. This paper, seeks address the reasons for recession in the US, with reference to the principles of consumer behavior and the firm as a whole. Observers were not expecting an incidence of recession this time round. Most observers have been persuaded to expect moderate economic growth rates in the US, of about 2 to 3 percent and a moderate inflation of around 2 percent (George. S, 2008). This is due to the fact that the US economy has proved to be the most resilient in the world. They however (the observers), have good reasons to back their predictions; 1. They have placed their hopes on relatively stimulative monetary policy to keep consumption and investment spending up and expect the worst of the housing decline to be over. 2. With stock prices making new highs, some point out that presidential and stock market cycles are favorable to higher stock prices since investing during 27 months before a US presidential election has proved in the past to be more Profitable than investing during 21 months after elections. In the October 16th issue of Headwinds, 2007 for the US economy, it is explained that macro-economic conditions make it a matter of months before the US economy and the dollar begun to experience some downward pressure (recession). This is probably the time for this recession. The US is the country with the highest gross domestic product (GDP) in the world, with a GDP of $13 trillion . This has however reduced in the recent past. Employment levels have also declined. Production levels have gone down owing to cut-throat competition from emerging world producers like China and other Asian Countries. An attempt by the households to save more from a given income led to the decrease in actual amount they succeeded to save-paradox of thrift, (Lachman, 2008). Different reasons can however be put forward to explain the causes of this recession; 1) The outgoing administration’s short term reaction that they gave the economy before the 2004 and 2006 elections through a combination of large tax cuts and large increase in military spending. This ended up being a waste as billions of dollars were spent on a futile war (Trembley, 2007) 2) Record budgetary and current account deficits have severely neutralized the federal monetary policy attitude, because interest rates cannot be reduced substantially for fear of a collapse of the US dollar from the federal budgetary deficits as they are being reigned on. (Lachman, 2008) 3) With all this taking place at the same time that the construction industry is in disarray and housing prices have tapered off or are declining. Be that as it may, it is important to note that home ownership is more widespread than stock ownership; slightly more than two thirds of Americans own their homes, while less than half own equities. The objective of the households is to maximize utility. By spending more on home ownership than on stocks, utility is attained quickly and it is within the consumers budget space (Ingdahl, 2008). 4) This rules the question of how long the American consumer will keep up the high pace of spending in such a context. During the years of the housing boom, consumer spending was driven by the accumulation of wealth and record consumer indebtedness, most of it in the form of mortgages as the price of houses increased. Now that the reverse is occurring and banks and other loaners are reclaiming property for unpaid debts, a retrenchment in consumer spending cannot be ruled out (Trembley, 2007). 5) Protectionist push from the Democrat controlled congress, risks putting in jeopardy the flow of capital of about $2 billion a day that the US economy is borrowing from abroad (mainly from China and Japan). Trade frictions between the US and China could force banks to raise interest rates and not lower them. In any case, the banks would not lower the interest rates as expected to make up for the housing crisis (Trembley, 2007). 6) Collapse of one and possibly several major financial institutions under the pressure of bad loans and record foreclosures (take possession of somebody’s property usually because they have not paid back an agreed part of the loan). Particularly at risk is the sum $2. 5 trillion mountain debt concentrated in sub primes and loans. One major sub prime lender, (New Century Financial) filed for bankruptcy protection. Others are likely to follow suite because 2007 was the year when a large number of sub prime real estate locus had to be renegotiated at higher interest rates. Foreclosures rate is bound to shoot upwards. This will culminate in the next few years into a financial hurricane (Trembley, 2007). 7) The seventh and final reason is a geopolitical factor. The outgoing US administration has created some tension between the US and some countries in the Middle East. The Middle East, is the world’s largest oil producing region. In the coming years, the world economy will have to adjust to a peak in oil production and higher prices after the current lull. Geoplitical mistakes made by the outgoing administration have turned the richest oil producing region into a hot war zone making the US economic situation disastrous (Lachman,2008). The above listed reasons shed some light on why the US economy could be undergoing some kind of recession. They however do not provide a conclusive explanation or reasons as to why the American economy could be in recession. Unlike other forecasts, one can only tell when recession started and ended after it has ended. The determination of recession is left to the National Bureau of Research (Campbell. R. M & Stanley. L. B, 2005). However, it is possible to tell whether or not the economy is in recession by looking at past cases of recession. The great depression was the worst economic slump ever in the U. S history. It began in 1929 and lasted for close to a decade. Just like a recession, many factors led to the great depression; however, the main cause for the great depression was a combination of the greatly unequal distribution of wealth throughout the 1920’s and the extensive stock market speculation that took place during the latter part of the same decade. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U. S and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920’s kept the stock market artificially high, but eventually lead to large market crashes, (Gusmorino, 1996). Almost eighty years later, the U. S might be facing the same situation though not as severe as it was then. Wealth disparities are all over the world today. Although the worst cases are not experienced in America, cases of unequal distribution of wealth are still in America. As mentioned earlier, the American household does not invest much on stocks but in acquisition of homes. Speculations in the stock market are relatively high though not as high as it was then. It is not easy to conclude that the American economy is in recession. Whether or not there is a recession, depends on both on actual economic activity and economic analysis in the future. The facts as they are right now, show that the American economy is in recession. REFERENCES. Campbell, R. M. & Stanley, L. B. (2005). Economics: Principles, Problems, and Policies. New York: McGraw-Hill Professional. Gusmorino, P. A. (1996). Main causes of the Great Depression. Washington: Planet Press George, S. (2008). The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means. Chicago: Public Affairs. Furchgott, D. (2007). The Great Recession of 2008. New York: An over view of the US economy, (22) 9:31-35 Ingdahl, W. (2008). Global Financial Markets Want an Immediate, Bold, and Coordinated Policy Response. New York: London Press Lachman, D. (2008). What can global policymakers learn from the Swedish financial crisis of the early 1990s? Washington: US economic crisis, (31) 11:67-90. Trembley, R. (2007). A Slowdown or a Recession in the U. S. in 2008? Carlifonia: Global financial crisis, (14)6:101-143.

Eating Disorders Disease or Choice - 2953 Words

EATING DISORDERS: DISEASE OR CHOICE? Barbie is known as one of the most common toys that young girls play with in their adolescent years. These growing girls, look up to Barbie and see her has a role model of perfection. Barbie has a perfect mansion, car, clothes, boyfriend, job and life overall. But most of all, she has the â€Å"perfect† body. This is the woman that most girls desire to be like when they grow up. They want to be perfect, just like Barbie. This desire for perfection is one of the main causes of eating disorders for both men and women around the world. While there are many different organizations and treatment establishments, the aid required in overcoming an eating disorder is very expensive. Many insurance companies†¦show more content†¦A recent survey done through NEDA found that as many as 500,000 teens across America have had an eating disorder (â€Å"Factors† 1). People with eating disorders are at high risk for depression, suicide and substance abuse. Medical issues caused by these disorders can lead to sudden death (â€Å"Factors† 1). Insurance companies say that the treatment is too costly to cover; the cost being an estimated $30,000 a month, and the average treatment time is about 3 to 6 months (Womble 1). Eating disorders are described as a mental illness and treatment for mental illnesses can be very costly (Womble 1). This is why most Americans rely on the support of their health care provider to allow them to get the medical care that they require. While every disorder and person is extremely different, The Federal Employees Health Benefits Plan falsely believes that they are able to determine when a patient is in need of medical treatment for their eating disorder through the use of a benchmark plan (Kulkarni 1). This plan allows insurance companies to determine whether or not treatment is necessary for the patient and provides for a very efficient way to select the people who are in the direst need of medical help (Kulkarni 1). This way, the insurance companies spend the least amount of time and money the y can, dealing with people with eating disorders. This indicatesShow MoreRelatedEating Disorders And Body Image Issues1655 Words   |  7 PagesEating disorders: noun. A group of psychological ailments characterized by intense fear of becoming obese, distorted body image, and prolonged food refusal (anorexia nervosa) and/or binge eating followed by purging through induced vomiting, heavy exercise, or use of laxatives (bulimia nervosa).These ailments are not pretty. In this society, where only the fit and thin bodies are accepted and appreciated, eating disorders are more common than they should be. 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Advertisements do not show the long term effects that can happen to an individual when they start abusing alcohol; such as the need for blood transfusions or having seizures. They only show the scene where people seem to be having more fun with an alcoholic beverage in their hand. Advertisements also play a role in the food choices youngRead MoreUnit 21 - Nutrition1119 Words   |  5 Pagesindividual. Factors such as medical disorders, personal preference, lifestyle and cultural factors. MEDICAL DISORDERS There are many underlying health conditions that result in an individual having to alternate their dietary intake. It’s always important that an individual eats healthy, but because of not being able to eat certain foods because of medical disorders eating balanced and even healthy becomes more complicated. 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Additionally, it can support the use of ineffective but potentially harmful treatments by a group of disproportionately empowered medical professionals and industries, that are incentivized to maximize their profit. Obesity exists in the context of a society that moralizes eating habits and stigmatizesRead MoreEating Disorders Essays1284 Words   |  6 Pages Eating disorders are a group of conditions characterized by severe disturbances in eating behavior with either an extreme reduction or an extreme increase of food intake, which negatively affects the individuals mental and physical health. There are two main types of eating disorders – anorexia nervosa and bulimia nervosa. There is a third category of eating disorders ca lled â€Å"eating disorders not otherwise specified†. Binge eating disorder is categorized under this. Eating disorders mainly appearRead MoreEating Disorders And Body Image1613 Words   |  7 Pages Eating disorders and body image Cenia Xu Father Michael Mcgivney Catholic Academy Effects of Eating disorders have on teenagers Every day, teenagers are surrounded by different messages from different sources that impact the way they feel about the way they look. For some, poor body image is a sign of a serious problem: an eating disorder. Eating disorders are not just about food.The eating disorders containRead MoreCauses And Treatments Of Binge Eating Disorder922 Words   |  4 Pagessound fun to you? Life is difficult without having an eating disorder. Growing up eating everything I could get my hands on caused health problems for me now that I am older. Binge eating and anorexia are serious eating disorders that cause physical, behavioral, and psychological problems. The most common disorder is binge eating. Binge eating disorder (BED) is consuming large quantities of food in a short period of time. People find that over eating is a comfort zone for them. The problems AmericansRead MoreThe National Eating Disorders Association1186 Words   |  5 PagesEating disorders are very much a real, life-threatening illness. According to the National Eating Disorders Association, there is a common misconception that these types of illnesses are just phases and that they don’t take a significant toll on the person’s emotional and physical health. Their research also shows that 20 million women and 10 million men in the US will have a significant eating disorder at some point in their lifetime. Those are just the cases that get reported. You may be wondering