Problems In Education And Society Essays - Educational Psychology

Problems in Education and Society According to "A Nation at Risk", the American education system has declined due to a "rising tide of mediocrity" in our schools. States such as New York have responded to the findings and recommendations of the report by implementing such strategies as the "Regents Action Plan" and the "New Compact for Learning". In the early 1980's, President Regan ordered a national commission to study our education system. The findings of this commission were that, compared with other industrialized nations, our education system is grossly inadequate in meeting the ezdards of education that many other countries have developed. At one time, America was the world leader in technology, service, and industry, but overconfidence based on a historical belief in our superiority has caused our nation to fall behind the rapidly growing competitive market in the world with regard to education. The report in some respects is an unfair comparison of our education system, which does not have a national ezdard for goals, curriculum, or regulations, with other countries that do, but the findings nevertheless reflect the need for change. Our education system at this time is regulated by states which implement their own curriculum, set their own goals and have their own requirements for teacher preparation. Combined with this is the fact that we have lowered our expectations in these areas, thus we are not providing an equal or quality education to all students across the country. The commission findings generated recommendations to improve the content of education and raise the ezdards of student achievement, particularly in testing, increase the time spent on education and provide incentives to encourage more individuals to enter the field of education as well as improving teacher preparation. N.Y. State responded to these recommendations by first implementing the Regents Action Plan; an eight year plan designed to raise the ezdards of education. This plan changed the requirements for graduation by raising the number of credits needed for graduation, raising the number of required core curriculum classes such as social studies, and introduced technology and computer science. The plan also introduced the Regents Minimum Competency Tests, which requires a student to pass tests in five major categories; math, science, reading, writing, and two areas of social studies. Although the plan achieved many of its goals in raising ezdards of education in N.Y. State, the general consensus is that we need to continue to improve our education system rather than being satisfied with the achievements we have made thus far. Therefore, N.Y. adopted "The New Compact for Learning". This plan is based on the principles that all children can learn. The focus of education should be on results and teachers should aim for mastery, not minimum competency. Education should be provided for all children and authority with accountability should be given to educators and success should be rewarded with necessary changes being made to reduce failures. This plan calls for curriculum to be devised in order to meet the needs of students so that they will be fully functional in society upon graduation, rather than just being able to graduate. Districts within the state have been given the authority to devise their own curriculum, but are held accountable by the state so that each district meets the states goals that have been established. Teachers are encouraged to challenge students to reach their full potential, rather than minimum competency. In this regard, tracking of students is being eliminated so that all students will be challenged, rather than just those who are gifted. Similarly, success should be rewarded with recognition and incentives to further encourage progress for districts, teachers and students while others who are not as accomplished are provided remedial training or resources in order to help them achieve success. It is difficult to determine whether our country on the whole has responded to the concerns that "A Nation at Risk" presented. Clearly though, N.Y. State has taken measures over the last ten years to improve its own education system. In many respects the state has accomplished much of what it set out to do, but the need to continue to improve is still present. Certainly, if America is determined to regain its superiority in

IN THE HOUR BEFORE MIDNIGHT essays

IN THE HOUR BEFORE MIDNIGHT essays THE MAIN CHARACTER OF THIS NOVEL HAS A MULTI-CHALLENGE LIFE LIKE MANY PEOPLE.STACEY WYATT WAS A MAN RUNNING FROM WHAT HE KNEW TO BE REAL AND WHAT HE DIDN'T WANT TO FACE.STACEY MET A MAN WHO COULD MANIPULATE PEOPLE INTO BELEIVING HE WAS SOMETHING THEY WANTED HIM TO BE.MANY OF US TODAY HAVE A FAITH IN A CERTAIN PERSON OR PEOPLE JUST BECAUSE WE WANT TO BELIEVE IN A COMMON GOOD OR THAT WHAT WE ARE RAISED TO BELIEVE IS TRUE.EVERYONE WANTS TO FEEL SECURE IN THEIR BELIEFS AND STACEY IS NO DIFFERENT.THIS ESSAY DISPLAYS HOW HE COME INTO KNOWLEDGE OF HIS FRIENDS TALENT TO CONTORT ONE'S BELIEFS TO GRATIFY THEIR OWN FEELINGS OR FAITHS IN MAN. IT TOOK ABOUT FIVE YEARS FOR STACEY TO GROW HIS BELIEF IN THE COMMON GOOD OF MAN AND ABOUT THREE DAYS FOR HIM TO LOSE IT, OR REALISE THAT THE BELIEF WAS NOTHING MORE THAN HOPE.ONCE THE FALSE HOPE WAS GONE HE WAS AWAKE TO MAN'S TRUE EVIL AND CRUEL INTENTIONS TO GET WHAT SOMEONE WANTS FOR THEMSELVES FOR PERSONAL GAIN.STACEY COULD NOT REALISE THIS OF COURSE UNTIL HE HAD SOMETHING PROFOUND HAPPEN IN HIS LIFE.HE SPENT TIME IN A VERY SMALL AND SECURE HOLDING GROUND IN EGYPT.HE WAS LOCKED UP FOR ILLEGAL TRANSPORT OF DRUGS AND LAUNDERED MONEY.HE WOULD LATER FIND OUT THAT BEHIND IT ALL WAS ONE OF HIS GOOD FRIENDS WHO HE THOUGHT WAS HELPING HIM ALL ALONG.THROUGHOUT THE TIMES IN HIS LIFE WHEN HE NEEDED TO FEEL THAT SOMEONE WAS A HELPING GUIDE OR MENTOR. IN LIFE MAN MUST CREATE INSTANCES WHERE HIS BELIEFS AND HOPES ARE SATISFIED.THIS IS DONE EITHER TO CREATE A SECURITY BLANKET TO HIDE BEHIND OR TO FULFILL A FALSE SENSE OF HOPE. THIS NOVEL GIVES A LESSON THAT NOT EVERYTHING IS AS IT SEEMS ALWAYS.LIFE IS FILLED WITH CHALLENGES AND STRIFE.THERE ARE MANY WAYS TO OVERCOME THESE PROBLEMS BUT ONE OF THE LEAST KNOWN IS CURTAINED BY FALSE KINDNESS AND MANIPULATIVE PERSONS. ...

FAQ About Singapores Location and History

FAQ About Singapores Location and History Where is Singapore? Singapore is at the southern tip of the Malay Peninsula in Southeast Asia. It encompasses one main island, called Singapore Island or Pulau Ujong, and sixty-two smaller islands. Singapore is separated from Malaysia by the Straits of Johor, a narrow body of water. Two routes connect Singapore to Malaysia: the Johor-Singapore Causeway (completed in 1923), and the Malaysia-Singapore Second Link (opened in 1998). Singapore also shares maritime boundaries with Indonesia to the south and east. What is Singapore? Singapore, which is officially called the Republic of Singapore, is a city-state with over 3 million citizens. Although it covers only 710 square kilometers (274 square miles) in area, Singapore is a wealthy independent nation with a parliamentary form of government. Interestingly, when Singapore gained its independence from the British in 1963, it merged with neighboring Malaysia. Many observers both inside and outside of Singapore doubted that it would be a viable state on its own. However, the other states in the Malay Federation insisted on passing laws that favored ethnic Malay people over minority groups. Singapore, however, is majority Chinese with a Malay minority. As a result, race riots rocked Singapore in 1964, and the following year the Malaysian parliament expelled Singapore from the federation. Why Did the British Leave Singapore in 1963? Singapore was founded as a British colonial port in 1819; the British used it as a foothold in order to challenge Dutch domination of the Spice Islands (Indonesia). The British East India Company administered the island along with Penang and Malacca. Singapore became a Crown colony in 1867, when the British East India Company collapsed after the Indian Revolt. Singapore was separated bureaucratically from India and made into a directly-ruled British colony. This would continue until the Japanese seized Singapore in 1942, as part of their Southern Expansion drive during World War II.   The Battle of Singapore was one of the most grueling in that phase of the Second World War. After the war, Japan withdrew and returned control of Singapore to the British. However, Great Britain was impoverished, and much of London lay in ruins from German bombardment and rocket attacks. The British had few resources and not much interest to bestow on a small, far-off colony such as Singapore. On the island, a growing nationalist movement called for self-rule. Gradually, Singapore moved away from British rule. In 1955, Singapore became a nominally self-governing member of the British Commonwealth. By 1959, the local government controlled all internal matters except for security and policing; Britain also continued to run Singapores foreign policy. In 1963, Singapore merged with Malaysia and became completely independent from the British Empire. Why is Chewing Gum Banned in Singapore? In 1992, the government of Singapore banned chewing gum. This move was a reaction to littering - used gum left on sidewalks and under park benches, for example - as well as vandalism. Gum chewers occasionally stuck their gum on elevator buttons or on the sensors of commuter train doors, causing messes and malfunctions. Singapore has a uniquely strict government, as well as a reputation for being clean and green (eco-friendly). Therefore, the government simply banned all chewing gum. The ban was loosened slightly in 2004 when Singapore negotiated a free-trade agreement with the United States, allowing for tightly-controlled imports of nicotine gum to help smokers quit. However, the prohibition on ordinary chewing gum was reaffirmed in 2010. Those caught chewing gum receive a modest fine, equivalent to a littering fine. Anyone caught smuggling gum into Singapore can be sentenced to up to a year in jail and a $5,500 US fine. Contrary to rumor, nobody has been caned in Singapore for chewing or selling gum.

A marketing research proposal for Tesco 1041 Essay

A marketing research proposal for Tesco 1041 - Essay Example The study incorporates data collected using both primary and secondary techniques of research, which leads to valid conclusion in respect of the objectives of the research work. Tesco is one of the largest retailing brands of the world. The company currently operates in the 12 nations located in Asia, Europe and North America. In terms of profits, Tesco is the third largest retailer of the world (Rogers, Ghauri and George, 2005). In terms of revenues however, the company is the second largest following Wall Mart. Morrison, Sainsbury and ASDA are the primary competitors of Tesco. Tesco sells more than 40,000 food brands in addition to clothing (Humby and Hunt, 2003). It also sells a number of non food retail items such as electronics, cooking appliances, luxury and a number of daily use products. Additionally Tesco is also seen to provide services such as DVD rentals, financing, telecommunication and internet services in a number of regions of operations. Despite its wide range of operations, Tesco is known for its well established distribution network and sound ability to manage its resources effectively. Tesco is already well recognized in many nations of Europe and North America (Dawson, 2006). Despite the dominant position the company holds in the retail marketing sector, Tesco is seen to expand internationally by eying the emerging markets. The international expansion of the company not only entails it into sterner competition but also simultaneously facilitates earning higher profits. Most of the international ventures of Tesco have remained successful where as some have encountered major failures. In order to expand internationally in a more effective manner, Tesco requires to think more strategically and develop plans on the basis of accurate research (Baskaran, 2012). Tesco in the recent times has been considering entering into the markets

Can Professional Code of Ethics Be the Backbone of Management and Research Paper

Can Professional Code of Ethics Be the Backbone of Management and Leadership's Decision Making in Business - Research Paper Example h one side of ethicists arguing that the right thing to do is always determined by the verdict of moral principles, while the opposite side remains adamant on their stance that an ethical decision is subject to the intricacy of the situation, and therefore is dependant upon the individual’s subjective opinion rather than s certain set of principles. Philosophers refer to ethics as being the ‘science of conduct’, and that ethics comprise of all those basic foundational values and ground rules according to which we live our lives. This paper will open with a general discussion of ethics in the business world and move on to explain how this management discipline came into existence. Furthermore, the expedient tool of ‘professional codes of ethics’ is analyzed with regards to the decision making process, and finally the paper culminates with an in-depth analysis of the pros and cons of the codes of ethics in the decision making process (Ferrel et al., 200 9, 4). Different people can relate to the concept in different ways, and therefore it has come down to having various different subjective meanings, but generally it is referred to as the knowledge of what is right or wrong in the workplace environment and then doing what is right. Wallace and Pekel claim that it critical to pay considerate attention to business ethics at times occurrence of fundamental changes- times which are faced by most of the businesses today, whether profit or non-profit. In these certain precarious situations, the values in a business which were taken for granted previously are questioned, leading to the dismissal of many of the values, and therefore there remains no clear or definite set of values which would act as a compass in guiding the leaders to steer the business according to what is right or wrong. Thus attention to the concept of ethics in the workplace sensitizes the leaders as well as the workers to how they are expected to cope up with moments change. Most importantly,

Impact of ICT Innovations at NG-CDF

Impact of ICT Innovations at NG-CDF The Board acquired internet from two ISPs (internet service providers), Safaricom and Accesskenya, providing availability of reliable redundant global connectivity. Connectivity therefore has allowed access to internal systems such as email, ERP (Enterprise resource planning) and website at ease. Learning through research on the internet has improved. The Local Area Network (LAN) and Wireless LAN has provided interconnectivity within the office. Resources can be shared among users and computers with minimum movement of staff. Wireless LAN on the other hand has also encouraged BYOD (bring your own device) culture in the organization and improve staff mobility. Recently the Board implemented MPLS (Multiprotocol Label Switching) to regional offices providing access to internet and telephony services at a minimum cost. MPLS is a multipoint connectivity system that allows regions and HQ to communicate to each other like they are in one office. The regional offices can now be reached by a telephone extension. Connectivity through MPLS has also allowed the implementation of SIP telephone services whereby a pilot line is given which in turn allows for configuration of 999 parallel lines hence direct lines. The firewall protects the organization from internal and external threats. These threats come in form of spam messages, phishing sites and viruses. Threats penetrate networks using services or ports that may be or may not be used in the organization. The firewall therefore assists in filtering out those services that may allow threats into the network. In addition, internet bandwidth is a limited resource and therefore need to be controlled, services that consume a lot of bandwidth are then disabled so that users can have a fair usage of internet without affecting their duties. The firewall also allows for scheduling and QOS to prioritize certain services at a certain time. Kaspersky central Management allows the system administrator to monitor threats to the organization systems in form of computer viruses. The central management is an all in one portal where admins can perform certain tasks remotely from a server e.g. install, manage and license Kaspersky remotely, push updates remotely, manage devices, enable or disable e.g. USB To secure the server room CCTV is installed to monitor physical access and intrusion of unauthorized staff members thereby improving on data security and management. The CCTV system allows for live picture and playback options and to save/export a video for future reviews The Board has a registered domain name, cdf.go.ke and subsequently each staff member is assigned an email address. The email system, running on the latest version is accessible 24/7 anywhere anytime through a computer or supported mobile devices. Guidelines and manuals to access the mail portal have been developed by the department to help staff members adapt to the system easily. The Board has installed Spiceworks helpdesk system which is an open source helpdesk system that allows the department to have a bona fide support ticket-tracking system and generate reports of the same to gauge their performance. Users raise tickets by email, telephone call or through the Spiceworks portal, the ICT department then are able to view and prioritize them accordingly. Once the case is solved, the ticket is closed. The bulk SMS system is web based system which the Board uses to disseminate important information through short messages to staff members within the shortest time possible. Within the system, targeted groups and individual contacts have been preloaded to the system; these groups are All Staff, FAMs, directors, HQ Staff etc. The board has seen improvement in communicating matters relating to the board or staff on time without the need for lengthy and slow means of communication; this has improved the accuracy of the information passed and avoided speculations on sensitive Board matters. The system provides information to the Boards customers using USSD (Unstructured Supplementary Service Data) is a Global System for Mobile (GSM) communication technology that is used to send text between a mobile phone and an application program in the network. Information available is allocations and disbursements for each constituency from FY 2013/2014 to date. The USSD is integrated to the bulk sms system so that results can be sent to the end user. The user queries by dialing *483*6# from their mobile phone, then select the constituency by a quick search, they will then choose whether they need allocations or disbursement information. Once confirmed, the results are then sent through SMS to the users phone via the bulk sms system implemented by the board. 100% of individual offices have been connected by a telephone extension, 70% of staff have an extension on their desks. The Board maintains a PBX which interconnects these extensions and the regional office extensions. Staff can communicate within offices on 10th floor, 5th floor and regional offices conveniently and for free. Trunk calls (external calls) can also be made and received by the board via providers like Orange Telkom and Safaricom. Orange provides the landlines while Safaricom provides a SIP line which emulates a mobile number with 1000 lines which can then be configured as direct lines. The SIP trunk therefore allows for multiple calls to be made without engaging or congesting the lines. A unique number is assigned, for the Board, this is 0709894, and the last 3 digits have then been assigned to a specific extension Number for example 0709894000 is configured on the extension at the reception as a pilot line, any other extension has also an incoming route creating a direct line scenario. Web portals are websites that maintain personalized information in a database in the background. Unlike any website, portals allow authorized users access to specific information meant for them specifically. They are even allowed to customize information they want to be displayed in their portal (space). The Boards web portal is integrated portal in that, the fund account managers can create their own websites within the portal by logging in to the system. The public can therefore access information on any constituency from one website www.ngcdf.go.ke by a click of a button. CDFMIS stores, organizes and makes access to project and financial information easy. It not only stores all the information relating to current and past years projects, but also stores the approved budgets for these years, details on inflows and outflows of funds. The CDFMIS Projects database is composed of four different functional aspects, each corresponding to a set of tasks the constituency must carry out as a part of its mission, these include project Information, bursaries Information, budget and Finance Information and Complaints Information. Data and Applications Software are stored in servers at the computer center located at CDF Headquarters in Nairobi. Operations data are entered at the various user locations at the Constituencies and Head office. Interconnectivity of the system is through Wide Area Network between the constituencies and the Servers; and through Local Area Network between the Servers and Head Office workstations. CDFMIS is operated the basis of on-line real-time; that is to say that updates occur immediately a transaction is completed; thus making information as current as the last transaction. Access to the system will be done via the internet/intranet through use of a web browser (Internet Explorer, Mozilla Firefox, etc.). Unique user-names and passwords are given by System Administrator. Microsoft Dynamics SL is a financial/accounting system used by the Boards Finance and Accounts Department. Microsoft Dynamics SL is one of Microsofts enterprise resource planning (ERP) software products for project-driven small- and medium-sized enterprises. It is part of the Microsoft Dynamics product family. The functionality includes finance, project accounting, manufacturing, field services, supply chain management, analytics, and electronic commerce. The major module used by the Board is the finance module.

Mortgage

The American consumer has now gotten himself into trouble by simply living beyond his means. This is nothing new in America as only 2% of those who are set to retire at age 65, have enough in their savings and investments to have the same standard of living that they once knew when they were younger. (Saft 2007 pg. C3) Credit card debt is skyrocketing and people can see no light at the end of the tunnel except for filing bankruptcy. What has been in the news recently and has shown how careless the American consumer can be is the number of foreclosures from supreme mortgages have gone through the roof and is to the degree that the fall out will likely result, and has already resulted in, effecting other sectors in the United States economy. There has been reported some relief as the Federal Reserve, on September 18th, announced that interest rates would be cut. This is only a short term resolution and the  ¼ % that it will likely be cut, will not bring enough relief to the millions of Americans who bought a more expensive home than they could afford. (Stempel, 2007) The predatory practices of lenders across the country have added to this as well. Sub prime mortgages deal with mortgages that were given to people with less than perfect credit scores who do not have to show to the same extent, financial proof that they can afford to pay the loan that they are applying for in order to buy their dream house. The fall out has occurred and will continue to occur as millions of people are in danger of losing their homes. The existence of the sub prime mortgage is important to note as well. Even at a conservative interest rate, a 30 year fixed mortgage, a lender will make on average, close to $200,000 on a $100,000 loan. (Rudd, 2007) Those that have the money to lend, will make a great deal of money in their return. The demand is high for homes as it is an important aspect of the American dream to own a home. However, many Americans suffer from poor credit scores as a result of past bills which had not been paid or past loans which had not been honored. As a result, this hurts the individual’s credit score; the most important piece of information that will help a lender to decide if giving a loan to the individual will constitute a risk to the lender. The lender is in the business of lending money and does not want to be in the necessary position to repossess one’s home. An individual with a low credit score and who was not able to prove that they had the necessary income to support their monthly mortgage payment, was denied the loan. This was for the protection of the lender as well as the borrorrer. These were the self imposed rules with the lending industry followed. Now, things have changed. There is so much money to be made in the lending market when good loans are made, that lenders are now playing on the lust that Americans have to own a home. This is not a lust to just own a home, but rather to own the largest and grandest home possible. The individual will not correctly study his budget to see the amount of a mortgage which he would afford and thinks with his heart and not his wallet. Also, the existence adjustable rate mortgages of ARMS; mortgages which are advantageous to the individual when the interest rate is low but which will rise, sometimes exponentially when the Federal Reserve raises the interest rate in order to stabilize the economy. In recent months, the interest rate has increased and therefore, mortgages which commanded an $800 a month payment, can now easily exceed $1100, depending on the initial interest rate which the individual was able to secure. (Seiders 2007 pg. 3) As a result, those individuals who have figured too closely, their budget and never really were in the position to buy a $200,000 home, default on their loan. Two missed payments and the foreclosure process begins. Full payment of the missed months, along with interest and penalty rates is what is needed for the individual to become up to date on his loan. For millions of people this decade, that has never come to fruition and not only are their homes lost, their credit is ruined for the next 7-10 years to such an extent that even the most predatory lender would shy away from giving that individual a loan in the immediate future. Needless to say, this effects those individuals who have no lost their homes, to a dizzying degree. However, there are other effects to the different sectors of the economy and the employees of these branches of the American work force who themselves, are not having a problem paying their mortgage and who though that they would never personally be effected from the sub prime mortgage if they were only smart enough to stay away from such predatory lenders. Such is not the case as so much of our economy is interchangeable and depends upon the success of the other. The fallout from the sub prime mortgage details such interdependence. One way in which the fallout from the sub prime market has affected the economy is in the stock market. There have been a number of very large companies which had either been forced to lay off thousands of workers, or have simply filed for bankruptcy. On June 20, 2007, Merrill Lynch seized more than $800 million in assets from two famous hedge funds that were previously involved in sub prime loans. (Saft, 2007 pg 4)   Now, these funds are worthless on paper and their assets have now been depleted. American Home Mortgage Investment Corporation announced that it had suffered a billion dollar loss and that a proposed $4.9 billion deal with Radian Group, would no longer come to fruition. (* Myers, 2007) Also, just last month, Countrywide, the largest American lender, accounted that it was being forced to cut 12,000 jobs from its payroll as a result of the sub prime mortgage fall out. It was reported that a staggering 19% of the total number of loans fell under the sub prime category. (Myers, 2007) It should therefore be no surprise to Countrywide, as well as those who follow the mortgage industry, when they hear of such steep job cuts. This was one of the hardest blows to the American economy and effects the economy in three main areas. The first effect is the fact that 12,000 people lost their jobs. Some individuals, for example, John Bryne, had been employed at Countrywide for over twenty years and now has lost a job and many companies will see him as too old to be hired. â€Å"I do not know what I am going to do. I was planning to retire with Countrywide. I will try to start over and on my own. However, I do not know if I will be able to find people who I can trust to repay their loan. It is a tough situation.† (Saft, 2007 pg.4) 12,000 people, along with the others who worked for lenders who are now out of business, have suffered the same fate. This is the result of individuals who have taken out a loan that they never should have had in the first place. When a mortgage is foreclosed upon, it is not only the individual who losses. The lender looses tens of thousands of dollars, sometimes hundreds of thousands of dollars, on the life of the loan. Also, lenders who have what the Federal Reserve regards as too many defaulted loans, and that lender can be shut down and find themselves out of business. Another negative aspect to the loss of 12,000 jobs from Countrywide, as well as the other lost jobs in the lending institution is the effect that it has on the stock market. The stock market and the study of it is a very complex thing. Many times, a business can meet its quarter estimates and enjoy a steady profit; its P/E ratio is superior to others in that field and yet their stock price continues to struggle and millions of dollars in investor’s money, is lost. All of the above mentioned factors are important factors in deciding if this is a stock which one should invest in. However, the Dow, NASDAQ and S &P are indexes which, to some degree, is based upon speculation and perception. On July 19, 2007 the Dow hit a record high of 14,000. By August 15th, the Dow had fallen below 13,000 and as a result, billions of dollars was lost. (wwwcbsmarketwatch.com) Such a decrease has happened before but such is rare. â€Å"The current losses in the stock market cannot be considered a self imposed correction. It is a direct result from the mortgage crisis.† (Rudd, 2007) The news of the sub prime mortgage meltdown has resulted in the average investor taking out millions of dollars of his own money. When there is an extended period of high levels of selling, this will lead to a bear market in which an extended bear market will often times lead to a recession. The current American economy is not there yet and the news that the Federal Reserve will cut interest rates will stem the tide of such things coming to reality. However, such negative news only hurts the economy as a whole and the major indexes can expect to take a major hit in the short as well as long term. This results in a depletion of billions of dollars of individuals’ hard earned money. A third way in which the sub prime mortgage fall out effects people who themselves are not in danger of defaulting on their loan, is the ways in which foreclosures affect the property values of the homes within a neighborhood. For many individuals, their home will be the most expensive investment that they will ever make in their lifetime. When home owners feel that their property values are decreasing, often times, this will increase the rapidity in which they will seek to move. A decrease of 10% or even 5%   in the individual’s property value is often times, enough of a stimuli to incite the individual to move. Those who cannot move or who cannot find a buyer for their homes, are stuck with the loss. How does this happen? There are many factors which appraisers take into effect when deciding a home’s value. One of the important factors is the % of vacant ( foreclosed)   homes in the neighborhood. Prospective new home buyers will be steered away from such neighborhoods as it is a sign of an economically depressed neighborhood and the possibility of their own home’s value increasing, is minimal. An average American will move at least 3 times in their life. That means, that there is a 66% chance that their home will be seen and used as an investment as well as a home in which to live. A home bought at $100,000 with even the remotest possibility of one day being valued at less than the purchase price, is often times enough of a reason not to buy that home and to generally steer clear of that neighborhood entirely or to rent for a longer period of time. This last aspect is detrimental to the city as the loss of property taxes hits the budget hard and impedes the services which the city is able to provide. The effect that the sub prime mortgage fall out has is mental as well as monetary. Many potential home buyers, those with superior credit, are simply postponing any purchases and is prompted to simply wait out the storm. â€Å"Showings are down, contracts written are down and sellers are just as backed away as buyers are. This from Lou Barnes, a partner in mortgage banking   with Boulder West Financial in Bouler, Colorado. Barnes continues to comment: â€Å"I think the psychological damage is worse than the financial damage which is already bad enough. Even for buyers who have plenty of cash can easily afford higher mortgage rates, the sudden change in the financing environment reduces the desire to buy a house unless you really have to.† (Donn 2007 pg. 3) This idea goes back to the concept that a home purchase is seen as an investment as much as a domicile. The self imposed prevention of potential buyers who have superior credit scores to buy homes, hurts the local economy and the businesses in the area. The negative effects of the housing fall out are intertwined, one depending upon the other. Another way the sub prime mortgage affects the economy is in the fallout. Sub prime mortgages, in a utopian world, would give individuals a second change at improving their credit scores and disallowing their credit mistakes of the past, from preventing them from one day buying a house. Many times, credit problems occur when an individual is in college. Generally, the maturity needed to fully appreciate the concepts of long term results to their immediate actions are void in their mindset. Money is tight and credit cards are readily available. As a result, many credit cards are charged to their limit until eventually the bill goes to collections and is reported to the credit bureau. Hopefully, that individual, upon graduating from college and being removed from the situation for a couple of years, matures to the degree that such occurrences would never again happen. However, without the existence of a sub prime mortgage, that individual would not be allowed to buy a home for years; until his or her credit score was improved to the new guidelines of a 660 FICO score from a previous 620 guideline. (Saft, 2007 pg. 2) Those who bought their home at the beginning of the year and who had less than perfect credit with incomes on the brink of the cut off point for their mortgage, could not have bought a home any later. The same young couple who goes to buy a house six months from now when the new guidelines are put in place in order to help avoid another fall out, will be forced to rent for another year or two before they can receive clearance for a loan. One of the most lasting as well as immediate effects upon the mortgage industry and those who depend upon it, are the lending practices. Economist Mark Doms states: â€Å"The sharp rise in delinquency rates on sub prime residential mortgages has raised concerns about credit underwriting practices and economic distress among borrowers and has drawn the attention of policy makers at the Fed and elsewhere.† (Doms 2007 pg. 3) This observation can equate to an effect upon possibly millions of Americans who were planning to buy a home in the next calendar year. This, as Mark Doms states, will have lasting effects. â€Å"Two of the potential channels through which house price appreciation may affect the sub prime delinquency rate that we suggest, are the incentive to protect home equity associated with recent appreciation in house prices on the demand for housing.† (Donn, 2007 pg. 3) Such observations will most likely come to fruition in the immediate future as it will be observed that the complete fall out from the sub prime mortgage crisis is yet to be fully realized. John Moutlon, former CEO of American   Mortgage Group stated the situation the best when he said: â€Å"It feels like this is just the tip of the iceberg and no one knows how it will shake out. We are trying to anticipate guideline changes.† (Myers, 2007) These are the real effects of the sub prime mortgage fallout; in the ways that it affects the average American man and woman. As an example, the story of two families highlights the real results of the mortgage meltdown. The real story of the sub prime mortgage is the effect that it has on the economy when these loans, on a wide scale, default and millions of individuals are affected. The Laird Family in Central Illinois was a new couple just starting out. Both parents worked but had modest jobs as the job market was not very strong in their area. The father, John was 25 and the mother Marie, was 23. They had a two year old child and were renting for the past 3 years together. Both had credit scores near 600 and their mortgage from a home that they were wanting to buy, would constitute 30% of their total monthly income. The price of the home was $140,000 with a $673 monthly mortgage payment. (Berry, 2007 pg C4) Their credit scores was not high and as a result, they were forced to pay a higher interest rate. However, they were sure that such a payment could be reached. They bought their home in May of 2007, just weeks before the mortgage meltdown. â€Å"I cant believe the timing. I am so fortunate. We both have poor credit scores and I doubt that we’d be able to secure a mortgage that was not sub prime† (Berry 2007 pg. C4) states John Laird. Their story was an American success story. However, those who came after John and who found themselves in similar situations, were not so lucky. In Oakland, California where the median home price is more than $400,000, homes are hard come by for those who are not very rich and who either have great credit or can put down a sizable down payment. This was not the case for Hector Esperanza. He earned a nice living at the age of 30 but the time when he first came to America as a legal citizen, were not so smooth. He ran up one unpaid bill after another and routinely had bill collectors calling him. In the last 3 years, he cleaned up his act and remained current on all of his bills. He then wants to buy a house for what is in comparison, a low purchase price of $228,000. His credit score was 615; right on the cusp of the old requirements but now, as a result of the mortgage meltdown in which lenders are now very nervous to approve such high risk loans, Hector was denied. His monthly payments would only constitute 25% of his monthly income. However, with the advent of stricter lending policies, Hector was seen as too much of a high risk. The sad state of affairs is that Hector is no longer the exception. The housing market is revolved around timing. No where has this become truer than in today’s current housing market. However, â€Å"prospective buyers are not interested in the appreciation in value that their homes could bring. Now, they are only wanting the chance to buy a home at all.† (Stempel, 2007) As a result, there have come from this current situation, some real and sobering numbers which affect millions of people. When viewing these statistics, it would behoove the lending industry to realize that this equates into many individuals who are severely affected. The forecast for the 2007 Housing market is bearish at best. It is expected that: there will be a decrease of 23% in single family home purchases. 22% decrease in the number of new homes being built and 44% of building companies reporting that their business has been affected in an adverse way and that 78% of the largest building companies have bee affected by the sub prime mortgage meltdown.   13% decline in the real Residential Fixed investment as well as a modest slippage in the real value of residential remodeling. (Christie, 2007) However, the full brunt of the sub prime mortgage meltdown, sadly, is yet to be realized. The worst may be on its way The current sub prime mortgage crisis is an example of how the few can ruin it for the many. Not everyone who has less than perfect credit would become a risk when buying a home. Everyone makes mistakes and those who have credit scores that are on the brink of the cut off, should be given the opportunity to own their own home. However, when lenders give $200,000 mortgage loans to individuals who have credit scores less than 550 and who clearly cannot afford the monthly payments, it ruins the entire housing market and hurts the potential and legitimate home buyers from owning a small piece of the American dream. Those people are now forced to rent. Less money is going to the city through taxes and a higher level of frustration is prevalent among millions of potential, first time home buyers who simply came to the table a few months too late. The sub prime market is relatively new and barely even existed just ten short years ago. The existence of the sub prime mortgage is a testament to the financial beliefs of the average American. Immediate gratification is what is popular and in buying the largest house, not because such extravagance is really needed but as a show of status is the motivation behind such purchases. The median home price in San Francisco is a staggering $1.1 million. (Donn 2007)   The buyers of these home can be divided up into two distinct groups;   those who can easily afford such prices and those who will go bankrupt in the attempt to do so. For the latter group, up until recently, have had no problem finding lenders who are hungry for their business. The fall out has come and personal responsibility, both for the individual as well as the lender has finally come full circle and forced the members of Congress, the construction industry, real estate agents and prospective buyers have been forced to take notice. As it was stated earlier, many feel as though this is the tip of the iceberg and future problems are only around the corner. The fact that the Federal reserve on September 19th, 2007, announced that they were going to cut interest rates provides some solace to the current mortgage crisis. Only time will tell if it will be too little and too late and what permanent changes will come out of this crisis in responsible lending practices. WORKS CITED Berry, J Predatory Loan Practice Lead to Mortgage Fallout. Chicago Tribune Business September 1, 2007 Christie, Les Subprime Blame Game www.cnnmoney.com Aired April 20, 2007 Doan, Mark. Home Prices and Subprime Mortgage Delinquencies. The Federal Reserve Bank of San Francisco www.frbsf.org Downloaded September 18, 2007 Myers, J Subprime and Shockwaves Bloomberg TV Aired July 19, 2007 Robb, G. Fraud in Subprime Loans www.cbsmarketwatch.com Retrieved September 17, 2007 Saft, J. Subprime Mortgage rap tars Good Consumers, Economy.   www.reuters.com Downloaded September 17, 2007 Seiders, D. Fed   Surveys Subprime Mortgage Effects. www.nbnnews.com/eyeonecon/issues/2007 Downloaded September 15, 2007 Stempel, J. Countrywide Plunges on Downgrade. Bankrupcy feared. Reuters August 15, 2007    Fed Cuts Interest Rate http://www.wbbm780.com/pages/962665.php?contentType=4&contentId=931793 Downloaded Septe Mortgage Though experts recognize that the mortgage relief bill is not thorough, recognize that it remains the best latest attempt to address the current housing crisis facing the nation. A crisis that has continued to dominate the United States presidential debates as well as make it increasingly difficult for the homeowners to repay their loans. To understand the depth of the crisis and the latest efforts to correct the situation, it is important to look at what mortgagee is and how it operates. Mortgage is simply the use of ones property to be security to a house loan. A mortgage transfers the legal rights of ownership to the pledged property to the lender in case the payments are not made as per the agreed terms. Such a loan is made in the understanding that the security shall revert back to the owner once the terms of have been fulfilled. To most people, mortgage is associated with real estates. It is a contract that involves a number of legal participants among them landowners who is referred to as the mortgagee and the borrower who is the mortgagor. Another term that comes into play in the mention of mortgage is foreclosure. Foreclosure simply refers to a situation where a lender terminates the contract after the failure of the mortgagor to stand by the agreement terms. This is usually in the direction of a court order. In foreclosure, a bank or any other financial institution that extends credit facilities repossesses a property if the homeowner is unable to comply with mortgage requirements (Carmen & Rogoff 12). Currently there exists a subprime mortgage crisis in the United States. This is a crisis that can be evidenced by a liquidity problem existing in banks after a high default rate in mortgages leading to foreclosures. The current mortgage crisis is seen to have largely been caused by subprime lending which simply is the act of advancing loans to individuals whose creditworthiness is uncertain or wanting due to a low income. It is this subprime lending that contributed to the bulk of the total foreclosures in 2007, over 43%,despite the fact subprime lending were only 6.8% of all lending in that year (Stokes & Mechem). The current economic recession in the united state has tarnished Bush’s presidency with most tracing a link to the hefty spending in the war. Bush insists that the slump is a s result of the mortgage crisis. That aside, he has received immense criticism for how he has handled the crisis and for not coming up with any concrete plans to ease the situation. He is also accused of standing by the big corporations instead of helping the low income group deeply embroiled in the crisis. This is a result of his stand in opposing the mortgage relief bill, a bill that has recorded considerable gains in the house. Though the bill has its flaws, it is seen as a reprieve to millions of homeowners who continually face the risk of foreclosure. The mortgage relief bill is aimed at providing tax reprieve to homebuilders. The local governments will be funded to rehabilitate deserted homes. Those that oppose the bill claim it is wrong spirited and will set a bad precedence of forcing â€Å"one neighbor to pay for the mistakes of another† (Anderson) Bush is opposed to the bill referring to it as a â€Å"bail out†. Some Republicans see it as forcing the 95% of homeowners that did it right to pay for the 5% that got it wrong. It is important to note though that the bill will pave way for a possible road to recovery and will go along way in preventing a further economic slump. Economists warn that if the situation is not arrested in time, it would degenerate to the worst debacle for the housing and the banking industries. It is apparent that the nation is reeling from the effect of a mortgage crisis that has been caused by increase in foreclosures as a result of subprime lending. Though the government is yet to come up with a comprehensive plan to arrest the situation, the mortgage relief act is seen as a step towards the right direction and might go a long way in easing the pressure off the homeowners and builders through a tax break. Works Cited Aleis Stokes &  John Mechem. Delinquencies and Foreclosures Increase in Latest MBA National Delinquency Survey. Mortgage Bankers Association, 12/6/2007. Retrieved on 13th May 2008 from http://www.mbaa.org/NewsandMedia/PressCenter/58758.htm Scott Anderson. Bush administration opposes Democrats' mortgage relief bill. CNN.com Edition. Sat April 26, 2008. Retrieved on 13th May 2008 from http://www.cnn.com/2008/POLITICS/04/26/house.mortgage/ Carmen M. Reinhart and Kenneth S. Rogoff . Is the 2007 U.S. Sub-Prime Financial Crisis So Different? An International Historical Comparison.. Analysis of Harvard economists. February 5, 2008, 12 ; ;