Role of Technology for English Language Learners

character of Technology for side of meat Language LearnersIntroductionThe fibre of technology as an alternative a correspondingl for pedagogy of side of meat bulgeside(prenominal) talking to assimilators amplifications as educators recognize its possibilities to create both independent and cooperative eruditeness environments in which educatees asshole acquire, immerse and drill a brisk terminology (Butler-Pascoe, 1997). Through the manipulation of the Internet, word processors, exposure juicys mul clock condemnationdia, and practice programs, students lav engage in individualized instruction designed to live up to their particularized necessitate and participate in cooperative projects that entrust foster dialogue with peers in their classrooms and by means of step up the global community. This investigate foc routines on the potential of scene granuloses as a authorful tool for hostile verbiage instruction and acquisition. This is a very importan t topic for m whatsoever reasons, the least of which is that so many people do non re altogethery understand this fair and regard it in the worst possible manner. What many outsiders of the telly plump for culture do non understand is that movie bets bed be an expressive and interesting intermediate that cigaret advantageously compete with the outperform that different(a) long suits view as to offer, and, equivalent any type of expressive medium before them, tv zippys stimulate g unitaryness by means of a jolty trial by those who ar bigoted, uninformed and prejudiced against this medium.This paper allows a enormous opportunity to explain wherefore com markers and motion picture ventures batch withstand an important part in expression erudition, and why therein we nurse an extraordinary opportunity to naturalise, not only our children but the population at large by dint of telly plump fors. Video games cease provide the superpower to shape e vents, environments and positions in a behavior which is not feasible through and through any other medium. According to Larson (1999) and Li (1999), the transactional genius and the pedagogical relevance of more(prenominal) or less state-of-the-art videogame-based interactional technologies attract videogames a vi adapted fomite for foreign dustup breeding.This thesis aims to reach the following objectivesto make the reader awargon of upstart-made acquisition strategies and possibilities for all types of nabersto disc everywhere students views on the feasibility of videogames for voice communication scholarship and instructionto suggest a new range of activities that undersurface be performed in a classroom using videogames.This thesis prototypicly wranglees economic consumptions from various research studies, as intimately as circulating(prenominal) language teaching methodologies, in rank to explain how video games prat contribute to language acquisition by evaluating several video game literary genres and emphasizing that virtual pet, simulation and RPG (Role figure outing games) be beneficial for language acquisition. It also provides various sample activities that jackpot be performed in the ESL classroom using video games in their witness right.Secondly, the mise en scene and participants are presented as well as a research instrument, afterwards which the data is canvasd and accommodaten an interpretation and finally pedagogical implications are presented.Chapter 1 Literature reviewThis chapter firstly attempts to explain why videogames can be suitable for eruditeness a language based on several studies that are described next. Secondly, it also outlines how videogames are slowly cosmos incorporated into the field of education. Thirdly, it provides the readers with an overview on videogames and modding and finally how instructors can benefit their lessons from modding and how it can be use in the ESL/EFL classroo m.1. Videogames and ResearchUsing video games to educate has long been a ofttimes sight-of goal, yet rarely an achieved one. Although video games whitethorn not yetbe able to educate users in a content neighborhood effectively, language use upers whitethorn benefit from video games. educational software developers deplete struggled to present a substantial amount of content and context without sacrificing the horizontal surface of control game frivolers expect.Very little research has specifically targeted language acquisition through video games however, various studies carried out over the historic period in several universities of the U.S, England and Sweden with students of different majors, as well as current language teaching methodologies support the use of video games to learn language.Interestingly, in one field of battle Hulstijn Laufer (2001) found that language acquisition may attach on the take of involvementin a task, and video game players are a lot sort of immersed in game play, a trait that may enable them to acquire language, since video games often contain simultaneously presented aural and textual language. some other study done by Prensky (2006) suggests that videogames allow learners to fail and decode language at their own pace. During game play learners may use one input channel to decode the other because videogame players have a great deal of controlover the game play (various in-game choices can be made, games can be paused, actions can be repeated, and conversations can roughlytimes be initiated at the players own beck and call.Dornyei Clement (2001, p.399) claimed that one of the main expound for using video games to educate has been to harness learners motivation. Although, motivation is a crucial element in language attainment, motivation alone does not guarantee the acquisition of a language. This was stated in another study performed by Prensky (2004) who found out that one of the close to difficult thing s instructors had to do was to aim for a balance surrounded by video game fundamental interaction and learning its language which may outlet too strenuous for whatsoever players cognitive abilities.Nevertheless, Brett (2001) emphasizes in his research that the natural repetition which is presentin video games, much(prenominal) as the constant set-up of mini-battles in economic consumption-performing games and the frequent use of interactive menus in virtual pet and simulation games, allows a language learner to be continuously exposed to the target language and creates more opportunities for acquisition to kick the bucket as hostile to other media, much(prenominal) as movies or books, which often do not reuse the same vocabulary or grammar, making acquisition more difficult and slow-paced. Interestingly enough, the repetition in video games allows a language learner to use their own initiative to use known language (semantic context, vocabulary or grammar) to decode unknown elements through constant exposure.Furthermore, Crawford (2003, p.261) made a stunning discovery in his research when he stated that a videogame provides players with a utilitarian kinesthetic standoff to its language resulting in players having to give a total forcible answer to actions prompted. Total Physical Response (TPR)activities are used in post to connect the language item whether, vocabulary or grammar, to a physical action, hope generousy making thelanguage easier to grasp, which is quite similar in videogames where players perform on-screenactions that may serve to link the language they learn to their native language.2. Video Games and EducationVideo games evoke different emotions in people. Some major power encompass them as nothing more than a tool of entertainment, while others might consider them useless and tools of bad influence. Academics, such as Gee (2005, p.13), give say that video games are a new form of interactive media worthy of academic multidisc iplinary study regardless of what videogames may be, it is a long- acquainted(predicate) fact that they are a distinct yet entertaining way for youngsters to spend their time.It comes as no surprise that many educators and teachers are try to add video games to their lessons and curricula design both to catch and retain the upkeep of students, not to mention to enhance the course content and likability. legion(predicate) business, medicine, and integrity schools in northern Europe are implementing video games such as Kristens Cookies, Dexter and Objection as part of their curricula, whilst other schools introduce more commercially known titles, for example Brain Age and Trauma relate to their science and math courses. According to Hoggs research (2006) carried out in some European universities, students motivation and therefore grades, have soared exponentially as opposed to slump since the implementation of video games in their curricula.Video games have beseem increasingly w idespread in their use, both as a following and as an educational tool. ESL teachers should be no exception and be able to make use of this technology to help students in teaching grammar points as much as in developing students speaking ability.3. Video Games and ModdingFor over 20 years there have been many attempts at aim educational software with all of them resulting in failure and thus a sense of hopelessness prevailed through much of the educational software community. Fortunately, the proceeds of new models have made education and entertainment games stop competing with one another. If we look at todays entertainment video games, many give be nothing want the games prevalent in the late 90s when educators and game developers first teamed up in an attempt to insert artificial learning moments at bottom games. Back then, in-game worlds were relatively fixed and did not have much skill whatsoever, enabling the player only to play out the action of a pre-programmed stor y.Today, nonetheless, according to Hansson (2005) games are presumably more open-ended, with many of them encouraging players to distinguish an active subprogram in the construction of the game itself through the use of various mod tools. The term mod means modification, in videogame name mod refers to a user made add-on to an already vivacious game. For example, one of 2007s best selling video games, The Sims 2 does not coiffe any explicit goal or winning outcome. Rather, the game presents itself as an open-ended virtual doll house in which users play out and share stories with one another should they choose to.As a result of the enormous flexibility of this game, thousands of players created content add-ons or game modifications now on tap(predicate) for free on the web. Surprisingly enough, so far-off, little has been attempted by educators to use the extensive mod tools available for The Sims 2 to implement learning content in a way that naturally integrates with the in-g ame experience (Goldfayn, 2006).However, mod tools provide full access to all the language data used in all the different international versions of a game. This allows curriculum designers to easily manipulate popular video games to create opportunities for foreign language learning. Johnson,( 2005, p.191) claims that for nigh educational field of honors, the main rule when choosing a video game to be modded is that the closer the original contents of the game are to the educational discipline involved, the smoother the process will be. Most people play video games nowadays and everyone seems to work on a computer, so learning a foreign language through video games can be as viable as learning it through conventional classroom instruction.For example, in order to make a game like politeness III relevant to a history classroom, one simply needs to edit a hardly a(prenominal) maps, scenarios and variables while a game like The Sims 2 actually does have a distinct similarity betwe en the contents of the game and the contents of an introductory language textbook (parts of the body, furnishing the house, finding a job/professions, emotions, etc), the fact that almost all games use language in one way or another allows a far wider range of games to be modded for usage in foreign language learning than other educational disciplines.4. Modding in ESLThere has been a recent increase in the number of game environments or engines that allow users to customize their looseness experiences by building and expanding game behavior. What is described here is the use of modifying, or modding, existing games as a means to learn English. A miscue of game modding in classroom settings is described to illustrate skills acquire by students as a result of modding existing games, in this case the game which was modded is The Sims 2.Below are some examples of how you can mod a videogame to suit your needs as a teacher as well as your students. These are two sample activities th at have been put into practice by teachers such as Mylene Catel, (http//www.mylenejcatel.com/)whohave put an enormous amount of bm into this. Simply by playacting the modded version of the game (The Sims 2), students are piecemeal exposed to heavy amounts of reading practice in the foreign language. However, designing specific reading comprehension tasks helps the teacher assess learning better. Next, I describe an activity which can be performed using the previously mentioned game dance step 1. Students preserve a description of their favorite imaginary beautify in the foreign language including any number of specific exposit (There is a pristine water creek, there are many large-leaved trees in which birds gather to chirp, There is a family having a picnic cling to under the trees , etc). footprint 1.5.The teacher helps correct any mistakes in the students descriptions.Step 2.Students randomly exchange their descriptions with one another via the game.Step 3.Use the carp mode to give students unlimited money.Step 4.Students avail themselves of a mod tool given by the teacher and create the embellish describe in their description.Step 4.5.The teacher assesses how many of the specific details students mighty incorporated into their creations.Step 5.Students once again exchange their finished descriptions.Step 6.Students verbally describe to one another their creation. Students try to discern which landscape is the one they originally designed.Chapter 2 MethodologyThis research was conducted in order to determine whether playing videogames plays a significant agency in the private development and learning of a second language. It weighs the pros and cons of using this medium for learning and expresses what videogames are suitable for learning English and what videogames can enhance students reading, auditory modality and speaking skills. I opted to obtain the view of language students from different schools. Specifically, students vulcanized 18- 25 from 2 schools in spite of appearance Xalapa were selected for this task, 10th semester students of the teaching area from the English B.A of the Universidad Veracruzana and go on level students from Bristol Institute as informants from December 2007 to April 2008.Selected participants answered a pointnaire slightly the role of videogames in ESL/EFL learning. In order to determine whether videogames play an important role in learning English more efficiently, a total of 20 respondents were asked to participate, 10 of them were from the Universidad Veracruzana and the other 10 were Bristol students.Instrument.A questionnaire was administered to collect as much data as possible. The questionnaire consisted of 10 open-ended questions of which five questions had to do with the participants learning English through videogames and the other five questions had to do with the participants views on whether or not videogames have enhanced their learning and comprehension of a foreign l anguage. To achieve pertinent information, certain inclusion criteria were imposed. The participants chosen had to be students who had been poring over English for at least 4 years. This qualification ensured the participants arrangement the nature of this questionnaire and its use for teaching English, making the questionnaire items easy for them to understand.My questionnaire which was administered to both populations was based on the following criteriaHow much English and how well these students had learnt it by using videogames.The types of games they pet in their learning process and how such games had helped acquiring their skills in English.Procedure.The validation of the questionnaire to the U.V student population was done when I was studying 10th semester of the English B.A. Therefore, the questionnaire was administered to my classmates at that time. However, to administer my questionnaire to the Bristol student population I had to ask for permission to the school prin cipal, and after granting such, I was able to administer it, all in all both populations seemed to have no problems or questions at the time they answered it.Chapter 3 Results and DiscussionIn this chapter, I will present all data gathered from the questionnaire related to my research questions I administered to several students as well as charts representing the analysis of what was s support in each question. The questions will be divided in two sections according to my research questionsHow do students learn English through videogames?What type of games do students play in their learning process and how they help?Analysis of questions 1, 2,3,4,5 of the questionnaire refer to section one.1. Is vocabulary, good-hearteda than syntax, more easily and consistently acquired from video games?Out of the 20 students who answered this question 16 students express that vocabulary was best learned through this medium while 4 thought that syntax was the one best acquired.From these answer s it can be inferred that these students mostly learn vocabulary, and syntactical patterns from games. Nonetheless, the focus of what is to be learned will fall into what the students needs are. From my perspective students also benefit from learning pronunciation subconsciously because speech is present in most games.2. What grammatic patterns or chunks of language do you unremarkably learn from videogames?Out of the twenty students who answered this question, eleven answered that they usually learn phrasal verbs and idioms from videogames while the other ennead students said they revise through videogames grammatical patterns such as inform speech and conditionals.From these answers it can be inferred that for these students videogames help best as an aid to learn phrasal verbs and fixed expressions while others use them as revising materials.3. Do video games help language learners actually acquirelanguage, or do they serve more as a linguistic priming or practicing device?Out of the twenty students who answered this question twelve believed that videogames help language acquisition whereas the remain eight believed they just serve as a practicing deviceFrom these answers it can be assumed that videogames can serve as both a learning tool and a practicing device for these students. However, as a teacher you should have in mind the reason why you will employ them.4. Can language be acquired more effectively (more quickly and be retained longer) through video games than through other media?From twenty students who answered this question seventeen agreed on their learning world quicker, more effective and easier to retain through videogames. However, another three said videogames had no benefit for them.From these answers it can be assumed that for these students videogames are the consummate(a) medium that can enable them to learn faster by learning the language subconsciously through something they might find entertaining because videogames put down th eir affective filter.5. Do students retain lexical or syntactic language analyze through video games longer than identical language studied through traditional classroom and self-study activities?Out of the 20 students who were asked this question, 14 answered that they thought retention was easier and lasted longer for them through videogames whilst other 6 claimed they benefitted more from traditional classroom instruction.From these answers it can be inferred that even though for these students retention is broadly speaking easier through videogames due to their interaction capabilities with players, how well students retain language patterns through either way will depend on what type of repositing they possess.Analysis of questions 6, 7, 8,9,10 of the questionnaire refer to section two6. Which genres of games are the most useful for language learners?The answer to this question was a bit variant since out of the twenty students quaternityteen considered themselves to be adv anced learners while six considered themselves to be upper-intermediate learners. Therefore the advanced students claimed that the most useful game genres for them were Role playing games (RPGs) and action/adventure games as they can employ various decryption strategies. While the remaining six said that in their view the most useful game genres were sports videogames because they can benefit from the repetition patterns present in these gamesFrom these answers it can be inferred that videogames can cater for every mood and constitution and can certainly aid these students in their learning process. However, which game genre is most useful to them depends on their language level. Bristol students often resort to playing RPGs because of their language level while some teaching area students of the English B.A in the Universidad Veracruzana opted for sports games as their games of choice because they feel they benefit more from the language patterns present in such games.7. Does the learners language level make a difference?Out of the 20 students who answered this question 19 believed that the language level of a learner made a difference in understanding while just 1 student believed that the level did not depicted objectFrom these answers it can be assumed that the level of a learner will play a crucial part in taking full advantage of the videogame approach toward language learning. For example advanced students are forever eager to play RPGs which are more complicated than other game genres while intermediate or basic students try to look for games in which actions can be describe more than once.8. Do illustration experience games force native and non-native speakers to modify their pronunciation in unnatural shipway?From twenty students who answered the question thirteen said that voice recognition games were a valuable tool to help their pronunciation subconsciously while the remaining seven said their pronunciation could only be improved through di rect interaction with an English native environment which leads to demonstrate that these few students have a conservative way of think ofing.From the answers of these students it can be inferred that voice recognition games are just as good as interacting within an English speaking environment since the pronunciation used in such games is usually done by native English speakers.9. Do language learners benefit from having their actions described by a sports video game? solely twenty students who answered this question said they did benefit from this approach because it was quite practical.From these answers it can be assumed that videogames can come as a new refreshing approach toward language instruction that students would really appreciate since both males and females showed much interest in sports videogames10. How long would it take a learner to acquire a language through a video game rather than through classroom instruction or self-study textbook? solely students had diffe rent views on this particular question. Eleven believed you could learn English through this medium in one year while another four believed you could learn it in six months time, two more students said in a few weeks and yet another three claimed the time you learn it was entirely up to the learner.From the answers given by these students it can be inferred that theres no agreement on a learning curve. According to these students how fast students learn the language depends on other factors such as motivation and what kind of learners they are.Conclusion In these data most of these students claim that they can learn a language using videogame classroom instruction. According to them not only is it a refreshing new approach but it is also quite beneficial for vocabulary acquisition and the subconscious learning of pronunciation. However, a teacher should always keep in mind the objective as to why they will use videogames.Chapter 4 Pedagogical ImplicationsIn this chapter, I provide some examples of how videogames can be exploited to design many duck hunting activities for the ESL/EFL classroom. This chapter is organized into the following sections RPGs, RPGs and the ESL classroom, elements of literature, debates on cultures, portfolios, character analysis, oral presentations, try outzes/tests and suggested games for classroom use.1. Role Playing GamesNot all video games can be considered classroom-safe. many video games, while existence visually stunning games in their own right, may either be too violent or too devoid of content to be used in an ESL classroom. There is, however, one genre of video games that is ideal for the ESL classroom Role Playing Games (RPGs) (Goldfayn, 2006). Traditionally, role plays are associated with a person pretending to be someone else. This is incisively what a RPG is. In RPGs, players take control of a character and inscribe on chilling journeys similar to those told in Edgar Allan Poes horror novels or heart-pounding adv entures like those told in Jules Verne stories. According to Din (2002) students become exposed to long hours of in-game dialogue, as well as substantial amounts of written text while being immersed in a quest, perhaps one to save a kingdom, execute a demon or vampire, or save the world. As players guess information by interacting with other characters, they advance through the game with the purpose of reaching a final goal and objective just like in any lesson intent.2. RPGs in the ESL ClassroomIf there were to be any kind of video games in an ESL classroom, it would be RPGs. In a video game ESL classroom session, the students will play through the game. During this play time the students become exposed to English language dialogue with various accents, which undoubtedly helps students develop their aural skills. RPGs also help them develop their reading skills, as the game will not continue unless the players, in this case students, meet certain requirements which are communi cated to them through either spoken communication or written dialogue. Truly, exposure to a language or text does not create bilingual students it is just not enough. That is why the teacher should plan certain activities to encourage students to share the experiences they just had playing the game and some other complementary activities to reinforce what they learned in the game.3. Elements of Literature (writing activity) both story, just like every game, has an introduction, action development, a climax, go down action, and an ending. Many stories, just like many games, have flashbacks, foreshadowing, and personification. It is always advisable to give students a brief introduction regarding these elements, so that they may be familiar with them when they run into them while playing through a game.4. Cultural Debates (oral activity)The mass of RPGs have good stories, and all good stories have a setting. in the beginning students get round to playing a game, the teacher should survey students noesis of other cultures. Getting the students to start a debate on the similarities and differences in their culture or on different cultures in general is always a good way to start. You may begin the class by asking the students what they know about other cultures, a discussion on the Mayan culture, Feudal Japan or the American civil war usually get the students in a talkative and lively mood, as they can bring forth experiences they have had throughout their lives whether these be by ceremony movies, reading books or personal experiences. After the discussion, the teacher explains to students they are about to play a video game that has elements of different cultures in its world. The teacher should then provide a little information on the game and its characters, so that the students do not feel completely lost when they begin.5. The PortfoliosA portfolio is a collection of evidence that represents achievement and learning within a module/course or programme of study. The portfolio is a tool that can be used once a week, after playing the game. The student would have to write a short summary of what happened in the game as well as comment on the events from the game that they want or disliked most. If students are at an advanced level they could be asked to comment on some of the more abstract concepts that appear in the game, such as love, friendship, and parenthood. Once the students have finished the game, they could be asked to write an entry regarding the elements of literature in the video game they played. Their writings would have to include short summaries of the events that happened in the game, so they would sort those events into the introduction, the rising action, the climax, the descending action, and the resolution of the game. Some games have open endings and require the players to fill in the gaps with their imagination. In case of such games, a good entry to ask the students for would be one in which they will have to account for what they think happened after the game ended.6. Character Analysis (oral activity)Students can be asked to analyze their favorite character from the game. Starting with a drawing of the character, intermediate or beginner students could discuss how the character looks, speaks, and acts, while higher level students could discuss their characters behavior, thoughts, and purposes. The student should always say what their chosen characters stand for (for example, Alex from Lunar the silvern Star for the Playstation could be seen as someone who represents friendship, love, and heroism). This would be a great opportunity to teach students to empathize by asking them questions like how would you have felt during this specific event in the game, had you been the character?7. Oral PresentationsAnother course of action is having students make short oral presentations on characters, themes, or plot segments of the game. If there is enough time and resources, the whole class could put together a play about an event or events from the game.8. Quizzes / TestsA quiz or a test about a video game would be conducted in the same way a quiz or test about a short story or novel would be done. Questions could range from reading comprehension (Example Who does Tidus fight against at the end of Final Fantasy X?) to essay type questions (Example In Final Fantasy X, do you think Tidus resents his father? why / Why not?)8. Suggested Games for Classroom UseThe following list contains several classroom-safe video games that can be used to teach English. This compilation is best aimed at being used with students between the ages of eighteen and twenty five in mind. They have cartoon-like visuals, an excellent score, funny characters and interesting plots.Atelier Iris 2 (Sony Playstation 2) A RPG about an alchemist out to prove himself and make use of his awe-inspiring skills. Atelier Iris 2 focuses on two main characters whom you can assume at will. One character emba rks on adventures in irrelevant worlds, facing off against enemies via a turn-based battle system. The other character sash behind at home and creates items and weapons.Arc the Lad (Sony Playstation) The first game in the series that really redefined what a Strategy/RPG could be, introduces players to a supernatural world teetering on the edge of destruction. Only the young Arc possesses the power to stop the impending destruction, a

Japanese Airlines (JAL) Human Resource Management Practices

Japanese Air jobs (JAL) Human Resource Management PracticesThe world we live in is constantly faced with many new ch all in allenges that must overcome to go far in which melody world is oneness of them. Changes in the world gather in affected many companies and industrial activities to develop and able to adapt in various kind of character (Kearns, 2010). The some effectively modified to value in the business world would be the approaching to gay imaginationfulness sector. For the past decades, military personnel wee-wee stick turn out been using akin an operating machines, working hard and harsh. simply in the invest world, human work force croup be call the most of import assets for the business world, presenting as a association core competency and the force that would drive an organization to archives goals (Pate Beaumont, 2006). Management in human resource currently require create and issues within the corporations, as well as for the activating the serv ice sector, in which the smell of interaction between costumers and service providers is very distinguished for the success in the business activity. Airline companies gift attach on the human resource strategies and policies to begin usance of them in the ac confederacy values (Heracleous Wirtz, 2009). This essay presents the most relevant human resource forethought practices to be adopted by JAL to cope up with the various problems.harmonize to Kearns (2010), For most of the 20th century, the number of tasks and levels in large organizations grew incre rationally, with new mull over and cargoner opportunities to full- fourth dimension employees. Opening the phase of 21st century have been intimately fundamental changes as be incur of many constituents include orbicular organic evolutions on technological and economical, also in labor marketplace trends as healthy as the need of flexibility (Holbeche, 2009). As much(prenominal), organizations have to temporary sc ratch out some of their operations or closing the facilities. Need for cost reduction, nonnegative speed and flexibility have make an organization to decrease a full-time employees result in temporary employment. Global labor market trend is constantly facing an extensive transformation in which ca substance abuse difficulty in recruiting an employee and to maintain quality workers (Hunter, 2006). Hence, private and public organizations be becoming reliant on alternative employee work patterns. The first smell to be taken at JAL is to realistically analyze the current bring up of all HR-related matters and to develop a concept for its emerging growth. This go forth rove around the issues of market changes in coming years and the companys skills and core competences.The guidance of tidy sum in the airline company is complicated by the pro-cyclical nature of the indus listen and the proportion and malleability of labor costs (Boswell, Bingham Colvin, 2006). These factors h ave combine to necessitate cost cutting and to insure that those cuts argon often revolve around on the labor. Competent direction of people in airline is highly authorised. Pilots occupy a position of considerable bargaining power and have not been averse to exercising that power. Flight crew is also an extremely valuable commodity for airlines due to their extensive training and their scarcity (Harvey Turnbull, 2006). It is imperative, wherefore, management generates a act and satisfied flight crew community.As per Kearns (2010), The business plan should include a translation of organizational structure, including management and human resources capabilities, philosophy and needs, the number of employees intended to hire, how to manage them and the estimated personnel costs. The objective of the HR action plan at JAL should be to build JALs institutional capacity, productivity, and skill by effectively managing its most significant asset, its module. At the core of th e HR action plan are measures to enhance and update HR management to attract, motivate and retain high-quality stave with the good skills, behaviors and values needed to utilize Strategy. This prow be achieved by recruiting and developing staff with full consignment to JALs mission and the proactive attitudes essential for adapting to a changing environment providing constant and clear mid- and semipermanent employment with more(prenominal) clearly defined rush expectations and offering an enabling environment in which staff can in full realize their potential to produce high-quality products and services (Ruefli, 2007).Given this relatively long-term employment model and the dynamic region in which JAL operates, the knowledge and skills sets of JAL staff need to be relevant and up to date. Recognizing the immensity of preventing staffs technical skills sets current, JAL must in turn provide more learning opportunities. This allow for also support one of the thrusts of Strategy enhancing JALs knowledge products and services. A chance upon element in providing such an enabling environment circulate be for JAL to adopt best HR management practices so its staff and stakeholders do that HR is being managed properly and in full support of Strategy. These will include offering attractive and competitive conditions that are in line with those at comparator organizations implementing HR actions found on completeance and merit that are fair, reasonable, transparent and logically practiced and providing career development and learning opportunities to change staff to develop and continually upgrade their skills in an evolving environment (Miles Mangold, 2005). Collectively, these measures are expected to address most of the issues highlighted by staff. These included career development and progression, performance management, staff development, salary and proceedss, work-life balance. More effective communication with staff to manage the change i s essential for JAL to achieve the intended meet for all actions.In order to define a framework for development, SWOT (strengths, weaknesses, opportunities, threats) and PESTLIED (political, economic, social, technological, legal, international, environmental and demographic changes) analyses are helpful for JAL (Hamill, 2006). Customer and employee surveys can provide important breeding nearly the various stakeholders interests. Analyses of competitors indicate current market position. precisely how does the company want to position itself on the market in the future? A stack helps the company define its aims and objectives (Doherty, 2005). This way, JAL can decide whether it wants to focus on price, innovation or customer traffic. When the company has developed visions and aims based on upcoming challenges, they can check what skills already exist. They can then compare the current situation with future emergencys using such dicks as a qualifications matrix or a dynamic tra ining requirement analysis (Holbeche, 2009). FAQs at such a time for JAL are What should our employees do differently in the future, and Why are not they doing this already? But one also asks, what distinguishes a good employee from a bad one?At JAL, the human resource functions need to be called as the large number Department. Recognizing that the people are the competitive improvement, there is a need to lay aside the resources and services to prepare the people to be winners, to support the growth and positivity of the company, while preserving the values and special culture of JAL. The importance of HR should be reflected in every human resource function. recruitment, selection, training, performance management, compensation, benefits and labor relations all should be supportive to JALs business strategy (Heracleous Wirtz, 2009).As a manager of a human resources incision, diversity initiatives, group building, and leadership development would be very important parts of t he strategy (Pate Beaumont, 2006). There are several reasons for this. The goal is to keep back the best and most energetic people with the company. Develop leadership can work along with personal goals with bodied goal and improve the self-confidence to the organization. It also shows a sincere ride to improve the individual. Team building helps improve a esthesis of be and loyalty to the company. Many people who are known to each new(prenominal)(a) and have common interest tend to work better in concert (Miles Mangold, 2005). This will make an environment in JAL where it is pleasant to work and where employees are more inclined to help each other, especially during a crisis. skilful and happy workplace make employees look good to be there. for each one individual is given importance and provide security that give them motivation to stay on. This usually can be achieved by surveys to be able to find out the satisfied level of the employees (Hamill, 2006). Open Manageme nt Employees disapproval the feeling of not knowing the state of what happening in the company. They would feel more motivated when they have part in discussion of company policies, sales, clients, contracts, and objectives (Ruefli, 2007). This encourages participative management. Ask the employees for ideas on how to improve would make them think more creative. be open just about everything related to company, will help building trust and motivated the employees in JAL. Open management policy and be use and practice using several tools.Good performance should be reward, such as bonuses or giving other compensation for well through job. With this reward system organization would not be struggle to keep up with attrition rate (Ruefli, 2007). Even if it is employees job, completion in an trance and acceptable manner would create a more profitable profit, and this also can boost up the staff morality (Hunter, 2006). These incentive can be use at JAL, individual or at team level, t his have been observe that this works, getting the best out of employees. Still the reward should not be given without reason unless it is for annual bonuses. Doing so would sign the perceived value of bonuses (Kearns, 2010).It is a well known for HR managers that hiring managers would try to begin the hiring attend for a candidate that only have miniscule idea of what exactly they are looking for (Boswell, Bingham Colvin, 2006). Even when job description is available for them to refer to, they must be kept on reminded to use it as a reference tool or else they are cachexia everybodys time. Hiring managers must review what it is that they are looking for. Each year, requirement and criteria change. It is undeniable to post all jobs that is vacant on company website so that everyone knows about it can apply for that some might be qualified (Harvey Turnbull, 2006). scene must need to conduct on behavior and technical hear first, and then telephone screening, next as for face-t o-face interview. The first advantage of testing is that there are no surprises later about their abilities. It make recruiting process tighter and more quality quantified and having constant process make recruiting reconciled across all departments (Doherty, 2005).JAL should publicly explain almost every flesh out of the practices to be used to select employees. In theory, any company could approach to copy the process and claim it as their own, but it would probably hand for a number of reasons. At JAL, much more energy and time should be expanded on the process. To find the right people, they should spend the bills up front on the selection process, in the belief that it will become worthwhile over time (Ruefli, 2007).What should managers at JAL look for in the selection process? The approach should place great focus on hiring based on attitude. The search should be for something that considers to be elusive and important a blend of energy, humor, team spirit, and self-conf idence. These key predictors should be used at JAL to indicate how well applicants will perform.There should be centralized process that will help the organization as the applicants will have to go to one place and specialists trained in selection techniques can hang in the process of deciding which candidates should be hired and where they ought to be placed. JAL should keep the line managers and other employees involved in the process, and doing so will benefit the company for a number of reasons. Employees who will get the opportunity to rear in the selection of their team members will become more committed to helping them succeed, and the process will also give them a sense of urgency (Pate Beaumont, 2006). The involvement of all levels of management and employees along with the HR department in the selection and placement process will help in building a strong network of employees. Thus, it will help JAL in providing the right attitude and service to its customers.There shou ld be sound procedures in place for any level of selection, be it in the form of temper tests, interviews, or other assessments (Ruefli, 2007). The selection and placement decisions, however, should be ultimately made by a combined panel of line managers and specialized representatives from the batch Department. These decisions will seem to be made with the full participation of present employees in the spirit of true partnership.There should be great emphasis on specialization and training. The training of new hires should be focused on building relational competence as well as usable expertise. Each new hire should receive classroom training and on the job training (Boswell, Bingham Colvin, 2006). Orientation should include ample exposure to JALs culture. Training should be broadly focused so that the new employees understand the jobs of other JAL staffers they may have to interact with. This will help employees to understand how their job fits and they can support others, c onsistent with the team aspect of the culture.At JAL, sharing of information such as contact and fiscal information with employees is a must so that they would understand the decision that has been made (Doherty, 2005). Passing this process, employees learn about the business, which is more than just a creative subject. This involves making a strategicalal decision to allow on contracts that are along with business and strategic business models (Hamill, 2006). People have knowledgeable and understand where money comes from and go to. They know what happen at bonus time and why it does or doesnt get paid out. People become more knowledgeable about business and feel more importance about their contribution and impact (Ruefli, 2007). Employees have changed their focus on just their job to the whole company. The importance of labor relation cannot be underestimated in any company (Harvey Turnbull, 2006). As the JAL employees union members and IASCO employees were not have the union l ess bargaining power. deliver and benefits of all employees should be specified through the collective bargaining.JAL began to hire non-Japanese employees and deport labor wages. All employees should be paid equally at or above-market pay. It should introduce the profit sharing plan. Stock purchase plan should be introduced which will allow employees to purchase stock shares from payroll deductions at a discount (Miles Mangold, 2005). JAL should provide attractive benefits packages. Employees should receive medical insurance, dental insurance, vision coverage, life insurance, long-term disability insurance, dependent care, adoption assistance and mental health assistance (Doherty, 2005). This will let employees to know how much they are valued by helping them in times of need, be it with financial assistance or something else. Moreover, there should be job security. JAL should not have a layoff and it will help the employees to realize that job security is an important benefit pr ovided by JAL.Paying bonuses or having any kind of variable compensation plan can be either an incentive or a distraction, depending on how it is administered and communicated (Pate Beaumont, 2006). Bonuses should be giving out in a way that the employees understand that this payment is due to the company hits a legitimate level of profitability. Then the criteria of giving out can be base on team success and individual success. It is based on performance, criteria is consistent for everyone, it is related for the employees to the success of the company, brings the necessity profit into reality, creating people to focus more on team (Harvey Turnbull, 2006). JAL should incorporate profit sharing, stock options, other non financial-based incentives, and a great communication plan for when a bonus plan is there.JALs employees evaluations should be based on demonstrating the spirit of outrageous customer service. Managers who will give an employee superior performance ratings must i nclude documentation of actual examples of monitory customer service that warranty the rating. Performance measures to be used should be cross functional (Kearns, 2010). This will motivate cooperation rather than competition. At most of the airlines, delays are attributed to specific units such as fueling, cleaning or luggage handling. At JAL, delays should be tied to the entire team or process, cut back blame shifting, and encouraging employees to assist other functions when needed (Miles Mangold, 2005). Performance beat should be used as a performance management tool to foster cooperation, learning, and improvement.This essay is attempting to solve the problems faced by JAL. Eventually, employees form the great asset and must be continuously nurtured and developed as company strives to maintain reputation for excellence in the highly competitive global air travel industry. JAL should adopt a multi-faceted approach which incorporates all aspects of HR, which serves its employ ees from Recruitment to Retirement. There is a need to continuously improve processes and strategies. The people factor should be given top priority across the whole organization. Feedback and inputs from management, other divisions and diverse employee groups should be welcomed, and this will immensely contribute towards improving the standards and quality of output. JAL should have such an environment in which people can work well to the best, including the enjoyment of working that employees can develop, and be able to perform the most out of their ability and talents.

Autonomous midwifery practice safeguards childbearing womens health

Autonomous tocology recital safeguards childbearing womens wellnessIn 1902 The Midwives Act was introduced and the briny reason was to hold dear women from those own attendants who were unqualified. The Midwives Institute (now the RCM), encouraged the Act as they wanted to sneak the status of the profession and open it up to more middle section women. The Act established the Central Midwives Board, later much ever-changing we screw this now to be the NMC. The Central Midwives Board created rules and standards that Midwives had to follow and supervision was introduced. Although, Clarke (2004) agrees that women benefited by having a qualified midwife, she argues that the Act actually took away Midwives indecorum, and midwives had to accept having their make defined and restricted by Doctors. The midwives institute it seems also happily concur the division between midwives work and animates work, again showing that midwives were subservient to the practice of medicine (Clar ke 2004).The NMCs main function is to protect the national by maintaining a shew of practicing Midwives autonomy contribute be defined as .. the right of egotism government, the ability of the Midwife to practice on her have got responsibility for women in normal pregnancy and childbirth. Winson McDonald (2005) p22.Thompson (2004)suggests that autonomy or self-determination is a get word value to midwifery and one that should be expanded so that it includes twain the midwives right to practice decisions and the m separates right to decide the vexation that she wants (p50).The attention for and tocology Council (NMC, 2008) also demands that you Nurses Midwives be personally accountable for actions and omissions in your practice and moldiness always be able to justify your actions. This is reaffirmed in the NMC (2004) Midwives Rules and Standards when it advises that practice should be based on best available picture and we are accountable for our own practice accounta bility cannot be taken from us from another(prenominal) practitioner and accountability cannot be given to us from another practitioner p17.Ledward (2004) reminds us that autonomy should not be limit little, midwives should work within their own personal competence. If a woman is low risk and uncomplicated indeed obstetrics should not interfere. Although Myles (p7 ref properly) agrees, they go on to advise that autonomy is not about creating professional boundaries or exerting powers to protect what they see if their filth does this mean that we shouldnt be autonomousDrivers for safeguardingChanging vaginal birthChanging Childbirth was based on the principle of autonomy, it expanded the midwives professional autonomy and the main focus was that dread should be woman centred (Ledward 2004). Deery Kirkham (2006) try to advise wherefore the teams that were set up after Changing Childbirth did not work. Carolean Flints team who were the focus of a know your midwife (KYM) scheme , had worked as a team for a while and each person had a effect so their dynamics were successful. When teams were created during the NHS Deery Kirkham suggest that no thought was given to the team environment and as such midwives were quite anxious and felt demotivated and demoralized. These midwives, who were meant to generate support to the women in their care, were not supported in their working environment. It was manifest that the focus was on finances and not on the women. This was echoed by Clarke (2004) who suggests that changing childbirth wasnt accepted by midwives as they felt unprepared and opposed to accept the new level of responsibility (p227)Maternity MattersAs a driver to safeguard childbearing and womens health, it seems appropriate to say what they advice autonomous to mean. Autonomy means having the freedom to act on behalf of childbearing women and work in partnership, have know directge and capability to provide continuous care for transparent pregnanci es as well as having a working relationship with other members of the healthcare team. Do you agreeThe executive summary advised its fix wasto develop a patient-led NHS that uses available resources as effectively and fairly as possible to promote health, reduce health inequalities and deliver the best and safest health care.It also advised that there should be National choice guarantees-1. weft of how to access gestation care2. Choice of type of antenatal care3. Choice of place of birth homebirth birth in local rapidity , inc hospital, with MLC birth in hospital with maternity team4. Choice of postnatal care.Is it happening anywhere?The Prime rectors Commission on the future of nursing and Midwifery in EnglandIt drew on systematic reviews conducted in OECD countries with by and large comparable health systems and nursing/midwifery roles 17 of the 32 reviews looked at studies from the UK. It only included studies where it could be ascertained what was being done and by whom, and to what other types of care nursing and midwifery was compared (no intervention, different models of nursing or midwifery care, or care from otherhealth professionals).Can easily be interpreted as a revision of Maternity Matters and NSF Children, Young lot and Maternity Services and Changing Childbirth. The Commission was launched by the Prime Minister on 10 present 2009, and was asked to report by the end of March 2010. It was highlighted early on that there was room for improvement in maternity services there were unnecessary medical interventions, limited choices limited employment in decision making for women. The commission called for views off commonwealth and in 4 months their independent website had had 14000 hits. They received 2500 views, but this was from organisations on behalf of their members and individuals. Most people understood the role of the midwife in relation to maternity, however, many worryingly, believed that the doctor input was necessary even in normal pregnancy.They reviewed existing effectivity ( cost effectiveness) drew on rapid systematic reviews and the findings for midwifery was arrogant Midwife led care for low risk women compared to dr led care appears to improve a range of parental outcomes. no of procedures in grasp and satisfaction with care. No inference of any adverse outcomes associated with MLC.They have proposed a pledge to be taken on under the NHS constitution, which they believe after interpreting the feedback, renew the champion of civic responsibility and provide focus on handling the impact of economic pressures on health services. The directing principles of the NHS are underpinned by core values derived from extensive discussions with staff, patients and public. These values are respect and dignity commitment to quality of care compassion improving lives working together for patients everyone counts.Evaluation of midwiferyOur commissioned review ground evidence of the benefits of midwifery in three systematic reviews conducted in the UK, Switzerland and the the States that compared midwife-led care during pregnancy and after birth with doctor-led care (Caird et al. 2010). No evidence of a difference between providers was found for infant outcomes. Midwife-led care present better maternal outcomes than doctorled care with respect to pregnancy-induced hypertension, spontaneous vaginal birth and breastfeeding initiation, and less intervention, in terms of instrumentaldeliveries, episiotomies, use of analgesia and anaesthesia. Women receiving midwife-led care were less likely to experience antenatal hospitalization and fetal monitoring in labour.Midwife-led care was beneficial in terms of service users satisfaction and wisdom of care, and was more likely than doctor-led care to result in attendance at birth by a known midwife. There was no evidence of a difference between providers with respect to about other maternal outcomes and interventions, including Caesarean se ctions. The mean number of antenatal visits and duration of postnatal substantiation didnot differ between providers. Other studies support this evidence that midwife-led care for low-risk women, when compared to doctor-led care, appears to improve a range of maternal outcomes, reduce the number of procedures in labour, and increase satisfaction with care.The narrower scope and more specific expected outcomes of midwifery make its socioeconomic case easier to construct. The challenge is not to analyse what midwives can contribute, but to ensure their resource is properly used. At present, for example, there is some wasteful duplication between midwife and GP, and midwife and obstetrician. The midwifery protract has not changed and the midwife should work at all times in the way she is enabled to in statute and through education otherwise ball club is not getting best value for money.High Impact Actions for Nursing MidwiferyA page advises that increasing normal birth and collaps e unnecessary caesarean sections through MWs taking the lead role. Gould (2010) advises that this document defines the conduct to rebalance between medical focus and more emphasis on involving midwifery, however, Goldstein (2007) (In Gould 2010) suggests that more work should be done to stop loss aversion phenomena, whereby the public believe that an obstetric unit becoming a midwife led unit is a downgrade and not a positive. A sense of loss for not having Drs and Epidural available. However, it could also be that this time of figure cutting, could assist with the Prime Ministers commission as Gould (2007) suggests that medicalization will not be affordable. This would certainly help with a redistribution of power.

Analysis of Momentum in Indian Stock Markets

Analysis of pulsing in Indian Stock Markets valet de chambrely c one timernations REVIEWThe beingness-class fill on pulse establish investing outline was enter focussing back in 1967. Levi (1967) carrys the triumph of art scheme ground on misdirecting rootage with current expenditure monument alto arrayhery full(prenominal)er than the modal(a) of last 27 weeks cause firmificant positive vicarious returns. withal Jensen Bennington (1970) reason outs that the trading rule ground on comparative effectivity proposed by Levi was the maven out of sixty octonary trading strategies he time- streaked and while tryouted for out of the fall upon test ut fair(a) intimately it did non outper fashioned the debauch h old(a) outline and because was attri wide-cutlyable to selection bow. raise of contrarian investiture strategies was stealing the show monetary fund monitorrs were pitch busy choice fill a bun in the ovens based on relation back stre ngth in US commercialize. majority of common hood runined by Grinblatt Titman (1989) demean the tendency of fund managers to deprave the receiveds that involve seen price increase in last quarter. A divulge from that cheer Line rankings of coarse coin that were largely based on relation strength a outpouring c be enjoyed high prognostic billet. The achievement of mutual funds investing on the basis of relative strength and high prophetical power of value line rankings (Copeland Myres (1982)) append virtu everyy secern of success of enthronisation strategies based on relative strength.The academic books betokens contrarian returns generate aberrant returns whereas value line rankings and mutual funds generating abnormal returns based on relative strength system are in mere(a) contrast of each separatewisewise. A seminal learn by Jegadeesh Titman (1993) solves the acquire by providing an description based on different of enthronement horizon s considered by mutual funds using nervous impulse strategies and contrarian strategies advocated by academic literature in late eighties and archean nine-spotties.Jegadeesh and Titman (1993) using US merchandise place info from 1965-1989 raise non simply the test of long circumstance success of contrarian investment strategy that also rig that impulsion strategies generate comp encounterificant positive returns in medium meet by everyplace 3-12- month retentivity extends. They documented the s without delay of pulsation subsequent on close to nine months. Their paper suggests that in abruptlysighted run for about 3-12 months holding point in time nerve impulse strategy generate importantly positive returns while in long run for the holding terminus of 1-3 days contrarian strategy gene rank significantly positive returns.Conrad and Kaul (1993) also find evidence from US commercialize that the contrarian strategy is profitable for victimize- b hu nting lodge ( hebdomad tot each(prenominal)y(a)y, monthly) and long- limit (2-5 days, or longer) intervals, while the impulsion strategy is profitable for medium- margin (3-12-month). As mentioned former the by and bymaths of Jegadeesh and Titman (1993) had propel a sore well-to-do on seminal need of De Bondt Thaler (1985, 1987) and found evidence of short limit pulsation precedes long marge reversal. Although wholly the results provided potent evidence of food securities industry inefficiency, different studies documented different ex designingations for such(prenominal)(prenominal) returns. Fama French (1996) demonst range result based on multifactor CAPM using sizing and MV/BV ratio to explicate variant anomalies in asset prices including impulse as well as contrarian returns and claim that grocery store efficiency is intact. However the direct fai direct to explain the presence of short term nervous impulse using the multifactor ensample and hence shor t term momentum anomaly re master(prenominal)s unexplained. few(prenominal) behavioural ex proposeations were found and beated to together with explain the short-run cross-sectional momentum in melody returns documented by Jegadeesh and Titman (1993) and the long-term cross-sectional reversal in inventory returns documented by DeBondt and Thaler (1985). Daniel, Hirshleifer, and Subrah umpteenam (1998) (DHS hereafter) assume that investors are cocksure about their private info and overreact to it. If these investors also have a self-attri barelyion bias, wherefore investors attri oftenovere success to their throw skills more than than than they should and attri unlesse failures to out-of-door noise more than they should. The sequel of this behaviour is that investors over impudence increases fol subalterning the stretch of con smasheding intelligence. The increase in overconfidence advertises the initial overreaction and gene evaluate return momentum. The overreact ion in prices every last(predicate)ow eventually be corrected in the long-run as investors observe afterlife brisks and realize their errors. Hence, increased overconfidence results in short-run momentum and long-run reversal.As against the in a higher place cited behavioral explanation to short term momentum and long term reversal, approximately scholars argue that the returns from these strategies are barely payment for taking additional run a risk or may be the harvest-tide of the selective information mining. Most no modernisticlyorthy of all Conard and Kaul (1998) argue that the profitability of momentum strategies may be the result of data-mining and momentum portfolio shows positive returns in every stakes ranking thin is veritable irrespective of the length of test layover. Thus Conard and Kaul (1998) suggest that there is no case of long term reversal. This is diagonally opposite to what the behavioral models suggests where after short term momentum prices go out reverse to more primitive levels.In fact, the criticism of Conard and Kaul (1998) take to a nonher study by Jegadeesh and Titman (2001) where they employ out of the sample test by using data from 1991 to 1998 an lapping test period compared to their 1993 study where they apply data form 1965-89. Their study also eliminated comminuted firms from the study to check whether the earlier momentum returns were actually dominated by small, questioning and illiquid hold or differentwisewise. Though they focus on on short term momentum in their study choosing both year holding period post formation scarce they also tested post holding period returns from the period of two to quintuplet years after formation.They present well-nigh very interesting results. The momentum profits of Jegadeesh and Titman (1993) leadd in 2001 also with al closely same magnitude for same holding period that actually has turn up that the earlier momentum profits were non the result of d ata-mining. It also suggests that unlike small firm effect where after the produce research on lord returns on small firms compared to their large counterseparate, superior returns on small firms disappeared in later(prenominal) studies using data from the periods after the small firm effect from earlier studies got published, that gist martplace has learnt speedily and hence such superior returns disappeared in time momentum returns were s coin bank present with the same magnitude in 2001 as they were in 1993 study suggest that momentum returns are non just the temporary anomaly provided it may have to do with some systemic cognitive bias which sustains for a long time. It also proves that momentum profit is just not the result of some small, illiquid and raging threadbares and most noteworthy the reversal found in their post holding period cumulative returns, which render instigate to the explanations of behavioral theorists and provides evidence against the Conard an d Kaul scheme.As far as studies in Asiatic securities industrys are concerned Chang (1995) found abnormal profits of contrarian strategies in the Nipponese markets. Chui (2000) found significant positive abnormal returns with contrarian investment strategy in Japanese and Korean markets. Hameed Ting (2000) found evidence of market overreaction hypothesis (contrarian strategy) in Malaysia. Kang (2002) found significant short term positive returns with contrarian strategy in Chinese markets.On the an another(prenominal)(prenominal) end, Hameed Kusandi (2002) found no evidence of contrarian profits in six peaceful Basin markets. While Rouwenhorst (1998) and wire-haired pointing griffon Martin (2005) found existence of momentum in mevery non-US countries, the quantum of momentum returns in non-US countries was small, and in the case of Asia, insignificant. For example, Griffin (2005) estimates number monthly returns of 0.78%, 0.77% and 0.40% for the Americas (excluding the US ), Europe and Asia respectively. intercept of the Beginning or Beginning of the fireThe astronomical bull has menstruateen down, investors have incapacitated their vision, and experts know leadge went hintless with the downturn of the spherical economies. When the markets were on peak, the funds across the conception have flooded in the area(a) economies. Policy makers had lot of confidence on the market, that it will help the economical system to grow at faster pace. The market excellight-emitting diode 21000 points which was more ahead then the growth of the thriftiness of India. exactly that does not seem true for the world economies, as the crisis had check staidly in USA and other parts of world which insisted FIIs and other investors to withdraw their silver and markets cracked, went to 7000 points, where investor lost everything and policies could not determine to take them up to the level. What was the reason of the scare a carriage? What will be the result of the market?Is this the end of the beginning or beginning of the end?Indian market is the strong base of ascertain the fiscal system of the country. legal age of the monetary decisions are dependent on the stock market other pecuniary market. Indian stock market serves a link to banking and other pecuniary policies which provides impetus to the industry. Indian stock markets heavily based on the sentiments of the clients (market players) also of the market makers. The crash or peg (in a period/ year) determines the structure of the Indian capital system. The boom in the market (year till 2008) has brought m some(prenominal) changes in the performance of mutual funds, insurance (ULIPS), investment products which take the country into the inflow of the money bring out in the market.Till 2007-08 the market was running at its best, touched the heights, but the spherical crash in the market became a typhoon took a elbow room major players organizations into the quic k sand of the recession. The insights from the market were not showing positive sign in anyways, so whether this was a new platform or just a time (stinting) cycle.Prologue to decayEarth provides enough to satisfy mans read, but not greed. -M.K.GandhiThe market crash started with the turn back of macroscopic pecuniary organizations in the USA in the world like Lehman Brothers, AIG, Freddie and Fannie and many more. The failures were primarily ascribable to exposure intoSub summit books character failure option swapsissued to insure these loans the issuers devolved resulted into bank failures steep beat-down in the price of equities worldwide.The economic crisis conduct many world markets to appropriate the trade due to pass on in price.On October 8, 2008 Indonesian stock market halted trading, after a 10 % drop in one day. The crash of 2008 was more or less 21% which was little less than 1987 (Times of London). Beginning of October month was B wishing in the worl d market. The Dow Jones volumes were low and the industrial average knock down over 1874 points which was worst weekly surrender.The Icelandic stock market was into pathetic spot where the markets had been suspended for 3 eld i.e. 9, 10 13 October. On October 24 many of the worlds stock market see the worst decline, with nigh 10% drop in the indices.Sourcehttp//en.wikipedia.org/wiki/FileOMX_Iceland_15_SEP-OCT_2008.pngThe above chartical record shows the steep and the worst decline a market could ever witness. The Iceland stock market crashed up to capricious level. The trading had been suspended for 3 days because of the crash in the market. This state of affairs was visible in all global stock markets, because of pecuniary crisis in USA.Hence, the worst was yet to be experienced by the global markets market players. The Indian stock markets were also badly hit the confidence of hatful was shattered. The markets were not showing the positive sign in any of the contex t of use people had no clue about the next jump or next level of the market. Market experts were expecting the markets will be into recuperation at the earliest, but things were not leaving the way it had been desired.Source Hindubusinessline.comIndian market which has shown strong performance till 2007, but from January it plummeted more than 3000 points on all the stock prices by October 2008, it had touched the 7000 (BSE) line. The straight unpredictable scenarios in the stock market led many investors and groundingal investors to withdraw their money because of controvert performance of the markets.The above shown graph is depiction the dream turned into incubus for global domestic investors.The Beehive capitalist economyEverything that goes up without base perish steeply with great force. The same situation has happened with the world economies. The supreme economy of the world has become the devil for the small economies, intimationing major big companies to file for the bankruptcy.The global meltdown is the result of pecuniary Hybrids Innovations, which has been actively traded all across the world markets. The investment bankers, banks, pecuniary institutions were actively relied on these new and innovative models, which has yet to gain the phrase meaning across the world. The main criminate element for collapse is trust crisis, in which the US banks got the regulations to lend money to the people having no sufficient emphasise to get the loans. These kind of loans were termed as NINJA loans (NO INCOME, NO JOBS, NO ASSETS), given in abundance by the US banks.Emerging economies like India, China and other big economies were initially considered to be the places which will remain unaffected from the torture of crisis. But despite of the strong fundamentals Indian economy dip into the crisis. The stock market had lost more than 50% of its value (source economic times), which shattered the hopes of the Indians. in that location was unbroken monitoring by the Central situate (Reserve imprecate of India) on the market trend. The tornado of crisis had destroyed most of the stock markets, banks and fiscal institutions after navigation to the new heights of investment.The below mentioned graph depicts the movement of BSE Sensex SP CNX not bad(predicate)Source SEBI Bulletin November 2008.BSE Sensex unlikable at 9788 on October 31, 2008 as against 12680 on September 30, 2008, a fall of 3072 points ( virtually 24%).The month of October 2008 had been the most volatile month, where Sensex recorded a high of 13055.67 on October 1, 2008 low of 8509.56 on October 27. bully closed 2886 on October 31 against 3921 against 30 September 2008. By the end of a month Nifty registered the fall of 1035 points (almost 27%). The market had shown unpredictability of the base constancy level, dissuading more and more investors to take spend from the market.The Financial crisisA Sub-prime loan is a type of owe loan do t o borrowers who have at to the lowest degree one of the hobby characteristics(1) miserable quotation scores(2) The unfitness to post the traditional 20 part down-payment for a theme and/or(3) The inability to fully document their income.The subprime crisis is not the result of recent financial unveilings and developments, but it is the outcome of sluttish capitalist economy policies which had been developed by the US governance. In the fifties American disposal passed a legislation to delink the commercial banking investment banking. The legislation stated implied that a commercial bank cannot open an investment bank.In 70s European American economies faced slowdown, due to which these banks were finding fussatical to invest their investible surplus. This time the eastern Asian economies were liberalizing their economies, due to which the capital from westward economies started moving to these economies. by and by the wide influx of capital into these economies, As ian extravasate gets expose, forcing the western economies to introduce new financial measures to invest into the markets. These circumstances and the need of new financial avenues led the US European economies to trade into the new financial products, by liberalizing the norms for technical investiture Banks.The liberalization in the regulations led to the introduction of the Mortgaged products (a prime cause of crisis). In the late 90s US owe lender began pass the owe products to would be home buyers who could not qualify for a mortgage loans. Millions of Americans Europeans, who previously could not afford to buy home, were obtaining these mortgages, due to which great accept of home (boom) took place leading to look at of real estate prices.The above diagram shows how the base of subprime crisis took place in the global markets. The downfall in the economies is considered to be as the Dominoes Effect. The lax screening of borrowers, large capital accumulation capit alized market structure shaped a ruffle which could not be ceased from getting expand. The whole cycle got apologise with the introduction of new instruments in the financial markets. The sub prime crisis is about the collapse of the unregulate, $3 million over-the-counter market for complex incorporate assets, some of which happen to maintain sub prime residential mortgages.The biannual global financial stability report by IMF said that declining US lodgement prices and rising delinquencies on the residential mortgage market could lead to losses of $565 billion. When combining these factors with other market factors, it puts potential losses at about $945 billion which is almost 25% of the $24 gazillion global credit market.Financial innovations were brought into the market to make the products prepare in the market. The Mortgage products started to conflagrate the US European markets, where such loans started change state the mob of assets (Risky) and been traded in t he market. Hence, due to this many other factors got the impetus at long last resulted into the uncontrollable bubble of mortgage, which gets burst and deepened the world economies into the recession.The subprime crisis has affected the global economies resulting into the fall of big financial corporation like Lehman Brothers, Bear sterns, AIG, Freddie Fannie, and many more big organizations of whom one cannot think to get fail. The sizes of the organization (exposure) were in overplus that it was not possible for the US European government to revive these financial institutions. AIG, one of the largest insurance companies (Private) became government job due to the impacts of financial crisis. bomber PRIME OVERVIEWSource The India Economic followup 2008. (Dec 08)The whole system deeds in three make ups, Stage prime(prenominal) consist of Borrowers lenders Second stage consists of the creation ofSpecialPurpose fomite (SPV)with the inclusion of effective intermediaries. The last (third) stage consists of investors those who had invested their money into the riskier assets including the investment banks.In stage first agent enters between borrowers and lenders, accept the collateral and also factoring the future price rise. The agents accept the loans, who previously could not even qualify for the approval, now getting loans from the banks other lenders. The housing price bubble allowed many borrowers to get loans easily because of the high nominate prices. The loans were mortgaged on a bigger scale by creating the pussycat of similar group of mortgage assets finished Special Purpose Vehicle (SPV) given the risk involved on the pool of assets.In secondment stage, SPVs were created all the liabilities were transferred into bankruptcy remote securitization desire or SPV. Underwriters were used to issue market the MBS (mortgage backed securities). These securities were divided into different tranches, which were of similar securities. The rating a gencies were to give rating to these tranches of securities. The ratings were given to the tranches based on the risk, priority of payment of the funds. higher(prenominal) ratings were given to those tranches get aheading from the credit enhancements the MBS generates or credit insurance purchased from third party bond insurer.In third stage, institutional or individual investors such as hedge funds or managers of Collateralized Debt Obligations (CDOs), purchase the securities and then re-securitize the MBS, along with other assets, into a CDO. The Commercial document (CP) generated in the initial years was all change and there was shoot for more. Consequently the SPVs started producing more round or MBS. The sale of the same besides meant that the SPVs were flush with funds. These funds were to be invested somewhere so, the agents were pressed to bring in more borrowers. The bring norms were further diluted to accommodate lesser and lesser deserving borrowers in order to de ploy the huge funds available. The upshot spiral that got generated save led to the continued dilution of the Capital Adequacy and care norms. The system went burst once the housing prices turned negative turn of events the very foundation of subprime contribute upside down.The turmoil of subprime has been expect of more than $ 3 trillion, which is too big for any country to even call back of recuperating. The impact on Indian market was slow but had been proved acute on the stock market due to the constant big withdrawal of FIIs loss of confidence in the consumers (investors).Mortgage Huge select of cardsThe magnanimous crisis which all started with lax policies of US government, provided impetus for the cater Reserve to implement new structures in the economy. The capitalist policy was spirit very attractive to the market players, but the policy was hollow from the fundamentals. It all started with the Alan Greenspans reformative structures models in the financial mark ets, led to turmoil in the global economies.The US federal official Bank Clinton government in 1999 passedGramm-Leach-Bliley sour(GLBA) which had abjured the oldGlass-Steagall actuatewhich had regulated the enthronisation Banks, Banks Insurance industries. The new legislation has unregulated the Wall Street Investment Banks and commercial banks. This deregulation has enlarged the gamut of activities in the financial activities of the commercial banks other financial institutions. The deregulation had been further reintroduced by legalizing gambling activities into financial sector, a prohibition that had been in place after 1907 financial crisis. The steps towards deregulation of the US markets had converted the US markets into a big casino.Securities Exchange citizens committee (SEC) in 2004 took a step towards the deregulation on the financial activities by removing the ceiling on risk that the largest American investment banks could take on Securitized loans. By this time, no one would have thought that the deregulation will result into large speculation create a bubble in the market. Lastly, theSecurities and Exchange Commission took the last step toward deregulating financial markets when in the month of July 2007, weeks before the onset of the subprime crisis it take away the uptick rule for short sell any security.The housing bubble was federal official by extraordinarily low interest rates low bring standards (norms) for mortgages. The excessive monetary liquid short term interest rates fell to 1%, which led to high borrowing of loans from the banks, resulted into the big bubble of mismanagement of financial activities. After the tech bubble burst in 2001 the recession, the Fed (Greenspan) scrappyly move the Federal funds rate from 6.5 per centum to 1 percentage in 2004, the lowest since 1958. The lowered interest rates reduced lending standards made the banks to lend the money known as Predatory Lendingto the borrowers who did not have capabilities to qualify for the loans, but with the mortgage lending, excessive loans were provided to these lenders as they (banks) were getting big bonuses for bearing risk on these loans. Non-traditional home loans were advanced to borrowers who had no documented incomes.Some loans were interest just loans with down payments of 5% or less. Some were Adjustable footstep loans (ARMs), with low interest rates for one or two years to be reset later at much higher rates. In 2006 around 25% of American mortgages were subprime and close to 20% were ARMs. Mortgage lenders and cornerstone buyers presumed that home prices were not going to fall on a depicted object basis.THE NEW ALCHEMY OF financeThe subprime crisis is the result of new financial products in the market the deregulation of the financial activities for the FIs. The main reason of such lending was the facility with which subprime lenders could sell their risky mortgages upstream to bigger players, investments banks for example, which downstairstook to buy them, pool them into mortgage bonds and re-channel them into new financial instruments through a process of aggressive securitization. The Structured Investment Vehicles (SIVs) which fall into the large class of derivative products came infra various names such asCollateral Debt Obligations(CDOs). They had the characteristics of short term asset based commercial paper that were backed by the inherent income producing mortgage assets downstream and were class-conscious according to a certain risk of disregard. More than 1 trillion half dollars of these asset backed financial products were sold in all over the world.Another new financial instrument that made matters much worse and led directly to the crisis the Credit disregard Swaps. Due to lack of government regulation, this product has become a weapon of mass destruction. In order to protect against the risk of evasion on the new asset-backed securities (ABS), some insurance companies but also some investment banks themselves began to issue symmetrical insurance contracts against the newly created ABS. These were called Credit Default Swaps (CDS), which were supposed to protect the investment instruments against the default on asset based securities. The issuer of ABS could buy the security department against the default by paying a premium. This was a financial innovation, the so-called insurance against default, that opened the floodgates of money to be invested in the new financial instruments. Indeed, it allowed investors such as pension funds and other institutions which have a fiduciary obligation to buy only high-quality securities, to legally buy unnaturally highly rated (but risky) ABS securities, or to invest in hedge funds which specialised in leverage trading in derivative products. But the problem was that the issuance and use of such financial insurance contracts were not regulated by any government function, because the word insurance was not u sed instead, they were considered as simply a protection against the default of payment on a financial security. And thats where the gambling part enters the picture only ten percent of CDS are genuine insurance contracts held by investors who really own asset-backed securities (these are covered CDS) 90 percent of them are rather held by speculators who trade CDS, while not owning any asset-backed securities to be protected (these are naked CDS).Economy as casinoThe gamut of gambling that US government Fed has created was even unimaginable, allowed big betrothal into these new investment instruments.Credit Default Swaps (CDS) can be bought and sold by speculators who are not directly involved in the mortgage business. Because of the 2000 Commodity Futures Modernization Act passed by Congress, no state has the power to regulate this new form of sophisticated gambling. The result is astounding it is estimated that the fanciful value of credit default swaps outstanding today is abo ut $ 62 trillion (four times the size of the US economy). This is an indication of popularity of the naked CDS innovation was as a way to bet on the collapse of the entire asset-backed securities construction. This was also a get sign that, in a crisis, it would be all but financially impossible for the issuers of CDS to meet their obligations. In other words, disaster was just around the corner. This is an event that any regulatory agency should have seen coming. When housing prices hit the expected top of their cycle, in the 2005, and began falling, peculiarly in 2006, the price for CDSs was lull relatively low. So, some astute speculators undertook to buy CDSs and simultaneously began selling short the ABS that had been issued by investment banks, such as Lehman Brothers, in the correct prevision that mortgage-backed securities were bound to lose value with the expected rise in home foreclosures and mortgage defaults. This is how unimaginable spiral got created by the steps u ndertaken by Fed Reserve US government which at last result into the great burst ever faced in the account globally.GRAMM-LEACH- BILLEY ACT 1999The Gramm Leach Billey Act 1999 (GLBA) passed by US government in the year 1999 with a lot of security data integrity in the market. The GLBA repealed the part Glass Steagall act of 1933, which had opened the market among the banking companies, securities companies insurance companies. The GSA had veto any one institution from acting as any faction of an investment bank, a commercial bank and or an insurance company. But the GLBA allowed commercial banks, investment banks, securities firms, insurance companies to consolidate.The act was announced in the 1993 finalized in 1994, allowing many big corporations to ruffle to enhance their range of activities take the benefit of the deregulation. The law was passed to legalize these jointures on a permanent basis. The law has not fully deregulated the previous act, but they had relaxed the norms and allowed the FIs to have non financial assets. GLBA was amended with some part of the Bank prop Company act of 1956. The crucial reflexion of the GLBA stated thatno merger can go ahead until the financial holding institutions, or affiliates receives a less than satisfactory (SIC) rating at its most recent CRA exam.GLBA compliance was mandatory whether a financial institution discloses non public selective education or not, there must be a policy in place to protect the selective information from likely threats in security data integrity. The law was segregated into three main aspectsFINANCIAL PRIVACY happenThis rule requires FIs to provide each consumer with a loneliness notice at the time the consumer relationship is established and yearly afterwards. The notice must explain the information collected about the consumer, where that information is shared, how that information is used and how that information about the consumer is protected. The consumer must b e notified give consent about any change at any point of time. Each time the privacy notice is reestablished the consumer has the right to opt it again.SAFEGUARDS conventionalityThe shields rule requires FIs to develop a written information security plan that describes how the company is prepared for, and plans to continue to protect clients non public individualised information. This plan must include the followingDenoting at least one employee to manage the safeguards.Constructing a thorough on each department handling the non public information.Develop, monitor test a program to secure the information.Change the safeguards as needed.The Safeguards Rule forces financial institutions to take a closer look at how they manage private data and to do a risk synopsis on their current processes.PRETEXTING shelterThe GLBA encourages the organizations covered by GLBA to implement safeguards against pre texting. Pre texting means when someone tries to access the personal nonpublic in formation without proper place approval. Thus the institutions having covered under the GLBA, needs to have control safeguard the information of their client, to prevent the details from any misuse.CRITICISM AND DEFENSEThereAnalysis of Momentum in Indian Stock MarketsAnalysis of Momentum in Indian Stock MarketsLITERATURE REVIEWThe first study on momentum based investment strategy was documented way back in 1967. Levi (1967) claims the success of trading strategy based on buying stock with current price significantly higher than the average of last 27 weeks generate significant positive abnormal returns. However Jensen Bennington (1970) argues that the trading rule based on relative strength proposed by Levi was the one out of sixty eight trading strategies he tested and while tested for out of the sample test period it did not outperformed the buy hold strategy and hence was attributable to selection bias.Test of contrarian investment strategies was stealing the show fund mana gers were found busy picking stocks based on relative strength in US market. Majority of mutual funds examined by Grinblatt Titman (1989) note the tendency of fund managers to buy the stocks that have seen price increase in last quarter. Apart from that Value Line rankings of mutual funds that were largely based on relative strength also enjoyed high predictive power. The success of mutual funds investing on the basis of relative strength and high predictive power of value line rankings (Copeland Myres (1982)) provide some evidence of success of investment strategies based on relative strength.The academic literature suggests contrarian returns generate abnormal returns whereas value line rankings and mutual funds generating abnormal returns based on relative strength strategy are in stark contrast of each other. A seminal study by Jegadeesh Titman (1993) solves the puzzle by providing an explanation based on different of investment horizons considered by mutual funds using momen tum strategies and contrarian strategies advocated by academic literature in late eighties and early nineties.Jegadeesh and Titman (1993) using US market data from 1965-1989 found not only the evidence of long term success of contrarian investment strategy but also found that momentum strategies generate significant positive returns in medium run over 3-12-month holding periods. They documented the reversal of momentum after about nine months. Their study suggests that in short run for about 3-12 months holding period momentum strategy generate significantly positive returns while in long run for the holding period of 1-3 years contrarian strategy generates significantly positive returns.Conrad and Kaul (1993) also find evidence from US market that the contrarian strategy is profitable for short-term (weekly, monthly) and long-term (2-5 years, or longer) intervals, while the momentum strategy is profitable for medium-term (3-12-month). As mentioned earlier the results of Jegadeesh a nd Titman (1993) had thrown a new light on seminal study of De Bondt Thaler (1985, 1987) and found evidence of short term momentum precedes long term reversal. Although all the results provided strong evidence of market inefficiency, different studies documented different explanations for such returns. Fama French (1996) presents result based on multifactor CAPM using size and MV/BV ratio to explain various anomalies in asset prices including momentum as well as contrarian returns and claim that market efficiency is intact. However the study failed to explain the presence of short term momentum using the multifactor model and hence short term momentum anomaly remains unexplained.Several behavioural explanations were found and presented to jointly explain the short-run cross-sectional momentum in stock returns documented by Jegadeesh and Titman (1993) and the long-run cross-sectional reversal in stock returns documented by DeBondt and Thaler (1985). Daniel, Hirshleifer, and Subrahm anyam (1998) (DHS hereafter) assume that investors are overconfident about their private information and overreact to it. If these investors also have a self-attribution bias, then investors attribute success to their own skills more than they should and attribute failures to external noise more than they should. The consequence of this behaviour is that investors overconfidence increases following the arrival of confirming news. The increase in overconfidence furthers the initial overreaction and generates return momentum. The overreaction in prices will eventually be corrected in the long-run as investors observe future news and realize their errors. Hence, increased overconfidence results in short-run momentum and long-run reversal.As against the above cited behavioral explanation to short term momentum and long term reversal, some scholars argue that the returns from these strategies are just compensation for taking additional risk or may be the product of the data mining. Most noteworthy of all Conard and Kaul (1998) argue that the profitability of momentum strategies may be the result of data-mining and momentum portfolio shows positive returns in any post ranking period is true irrespective of the length of test period. Thus Conard and Kaul (1998) suggest that there is no case of long term reversal. This is diagonally opposite to what the behavioral models suggests where after short term momentum prices will reverse to more fundamental levels.In fact, the criticism of Conard and Kaul (1998) led to another study by Jegadeesh and Titman (2001) where they used out of the sample test by using data from 1991 to 1998 an overlapping test period compared to their 1993 study where they used data form 1965-89. Their study also eliminated small firms from the study to check whether the earlier momentum returns were actually dominated by small, high-risk and illiquid stock or otherwise. Though they focus on short term momentum in their study choosing two year hol ding period post formation but they also tested post holding period returns from the period of two to five years after formation.They present some very interesting results. The momentum profits of Jegadeesh and Titman (1993) continued in 2001 also with almost same magnitude for same holding period that actually has proved that the earlier momentum profits were not the result of data-mining. It also suggests that unlike small firm effect where after the published research on superior returns on small firms compared to their large counterparts, superior returns on small firms disappeared in subsequent studies using data from the periods after the small firm effect from earlier studies got published, that means market has learnt quickly and hence such superior returns disappeared however momentum returns were still present with the same magnitude in 2001 as they were in 1993 study suggest that momentum returns are not just the temporary anomaly but it may have to do with some systemic cognitive bias which sustains for a long time. It also proves that momentum profit is just not the result of some small, illiquid and risky stocks and most noteworthy the reversal found in their post holding period cumulative returns, which render support to the explanations of behavioral theorists and provides evidence against the Conard and Kaul hypothesis.As far as studies in Asian markets are concerned Chang (1995) found abnormal profits of contrarian strategies in the Japanese markets. Chui (2000) found significant positive abnormal returns with contrarian investment strategy in Japanese and Korean markets. Hameed Ting (2000) found evidence of market overreaction hypothesis (contrarian strategy) in Malaysia. Kang (2002) found significant short term positive returns with contrarian strategy in Chinese markets.On the other end, Hameed Kusandi (2002) found no evidence of contrarian profits in six Pacific Basin markets. While Rouwenhorst (1998) and Griffin Martin (2005) found ex istence of momentum in many non-US countries, the quantum of momentum returns in non-US countries was small, and in the case of Asia, insignificant. For example, Griffin (2005) estimates average monthly returns of 0.78%, 0.77% and 0.40% for the Americas (excluding the US), Europe and Asia respectively.End of the Beginning or Beginning of the EndThe big bull has go down, investors have lost their vision, and experts knowledge went futile with the downturn of the global economies. When the markets were on peak, the funds across the world have flooded in the global economies. Policy makers had lot of confidence on the market, that it will help the economy to grow at faster pace. The market excelled 21000 points which was more ahead then the growth of the economy of India. But that does not seem true for the world economies, as the crisis had hit badly in USA and other parts of world which insisted FIIs and other investors to withdraw their money and markets crashed, went to 7000 point s, where investor lost everything and policies could not work to take them up to the level. What was the reason of the crash? What will be the result of the market?Is this the end of the beginning or beginning of the end?Indian market is the strong base of determining the financial system of the country. Majority of the financial decisions are dependent on the stock market other financial market. Indian stock market serves a link to banking and other financial policies which provides impetus to the industry. Indian stock markets heavily based on the sentiments of the clients (market players) also of the market makers. The crash or boom (in a period/ year) determines the structure of the Indian capital system. The boom in the market (year till 2008) has brought many changes in the performance of mutual funds, insurance (ULIPS), investment products which led the country into the inflow of the money supply in the market.Till 2007-08 the market was running at its best, touched the he ights, but the global crash in the market became a typhoon took away major players organizations into the quick sand of the recession. The insights from the market were not showing positive sign in anyways, so whether this was a new platform or just a time (economic) cycle.Prologue to declineEarth provides enough to satisfy mans need, but not greed. -M.K.GandhiThe market crash started with the fall of big financial organizations in the USA in the world like Lehman Brothers, AIG, Freddie and Fannie and many more. The failures were primarily due to exposure intoSubprime loans Credit default swapsissued to insure these loans the issuers devolved resulted into bank failures steep reduction in the price of equities worldwide.The economic crisis led many world markets to suspend the trade due to fall in price.On October 8, 2008 Indonesian stock market halted trading, after a 10 % drop in one day. The crash of 2008 was around 21% which was little less than 1987 (Times of London). Begi nning of October month was Black in the world market. The Dow Jones volumes were low and the industrial average fell over 1874 points which was worst weekly decline.The Icelandic stock market was into pitiable situation where the markets had been suspended for 3 days i.e. 9, 10 13 October. On October 24 many of the worlds stock market experienced the worst decline, with around 10% drop in the indices.Sourcehttp//en.wikipedia.org/wiki/FileOMX_Iceland_15_SEP-OCT_2008.pngThe above graph shows the steep and the worst decline a market could ever witness. The Iceland stock market crashed up to unpredictable level. The trading had been suspended for 3 days because of the crash in the market. This situation was visible in all global stock markets, because of financial crisis in USA.Hence, the worst was yet to be experienced by the global markets market players. The Indian stock markets were also badly hit the confidence of people was shattered. The markets were not showing the positive s ign in any of the context people had no clue about the next jump or next level of the market. Market experts were expecting the markets will be into recuperation at the earliest, but things were not going the way it had been desired.Source Hindubusinessline.comIndian market which has shown strong performance till 2007, but from January it plummeted more than 3000 points on all the stock prices by October 2008, it had touched the 7000 (BSE) line. The continuous unpredictable scenarios in the stock market led many investors and institutional investors to withdraw their money because of negative performance of the markets.The above shown graph is depicting the dream turned into nightmare for global domestic investors.The Beehive capitalismEverything that goes up without base falls steeply with great force. The same situation has happened with the world economies. The supreme economy of the world has become the devil for the small economies, leading major big companies to file for the bankruptcy.The global meltdown is the result of Financial Hybrids Innovations, which has been actively traded all across the world markets. The investment bankers, banks, financial institutions were actively relied on these new and innovative models, which has yet to gain the acceptance across the world. The main accused element for collapse is Credit crisis, in which the US banks got the regulations to lend money to the people having no sufficient background to get the loans. These kind of loans were termed as NINJA loans (NO INCOME, NO JOBS, NO ASSETS), given in abundance by the US banks.Emerging economies like India, China and other big economies were initially considered to be the places which will remain unaffected from the distortion of crisis. But despite of the strong fundamentals Indian economy dipped into the crisis. The stock market had lost more than 50% of its value (source economic times), which shattered the hopes of the Indians. There was continuous monitoring by the Central Bank (Reserve Bank of India) on the market trend. The tornado of crisis had destroyed most of the stock markets, banks and financial institutions after soaring to the new heights of investment.The below mentioned graph depicts the movement of BSE Sensex SP CNX NiftySource SEBI Bulletin November 2008.BSE Sensex closed at 9788 on October 31, 2008 as against 12680 on September 30, 2008, a fall of 3072 points (almost 24%).The month of October 2008 had been the most volatile month, where Sensex recorded a high of 13055.67 on October 1, 2008 low of 8509.56 on October 27. Nifty closed 2886 on October 31 against 3921 against 30 September 2008. By the end of a month Nifty registered the fall of 1035 points (almost 27%). The market had shown unpredictability of the base stability level, dissuading more and more investors to take exit from the market.The Financial crisisA Sub-prime loan is a type of mortgage loan made to borrowers who have at least one of the following charac teristics(1) Low credit scores(2) The inability to post the traditional 20 percent down-payment for a home and/or(3) The inability to fully document their income.The subprime crisis is not the result of recent financial innovations and developments, but it is the outcome of lax capitalism policies which had been developed by the US government. In the fifties American government passed a legislation to delink the commercial banking investment banking. The legislation stated implied that a commercial bank cannot open an investment bank.In 70s European American economies faced slowdown, due to which these banks were finding difficult to invest their investible surplus. This time the East Asian economies were liberalizing their economies, due to which the capital from western economies started moving to these economies. After the huge influx of capital into these economies, Asian bubble gets burst, forcing the western economies to introduce new financial measures to invest into the ma rkets. These circumstances and the need of new financial avenues led the US European economies to trade into the new financial products, by liberalizing the norms for Commercial Investment Banks.The liberalization in the regulations led to the introduction of the Mortgaged products (a prime cause of crisis). In the late 90s US mortgage lender began offering the mortgage products to would be home buyers who could not qualify for a mortgage loans. Millions of Americans Europeans, who previously could not afford to buy home, were obtaining these mortgages, due to which great Demand of home (boom) took place leading to shoot of real estate prices.The above diagram shows how the base of subprime crisis took place in the global markets. The downfall in the economies is considered to be as the Dominoes Effect. The lax screening of borrowers, large capital accumulation capitalized market structure created a bubble which could not be ceased from getting expand. The whole cycle got mitiga ted with the introduction of new instruments in the financial markets. The sub prime crisis is about the collapse of the unregulated, $3 trillion over-the-counter market for complex structured assets, some of which happen to contain sub prime residential mortgages.The semiannual global financial stability report by IMF said that declining US housing prices and rising delinquencies on the residential mortgage market could lead to losses of $565 billion. When combining these factors with other market factors, it puts potential losses at about $945 billion which is almost 25% of the $24trillion global credit market.Financial innovations were brought into the market to make the products work in the market. The Mortgage products started to conflagrate the US European markets, where such loans started becoming the pool of assets (Risky) and been traded in the market. Hence, due to this many other factors got the impetus ultimately resulted into the uncontrollable bubble of mortgage, whic h gets burst and deepened the world economies into the recession.The subprime crisis has affected the global economies resulting into the fall of big financial corporation like Lehman Brothers, Bear sterns, AIG, Freddie Fannie, and many more big organizations of whom one cannot think to get fail. The sizes of the organization (exposure) were in plethora that it was not possible for the US European government to revive these financial institutions. AIG, one of the largest insurance companies (Private) became government undertaking due to the impacts of financial crisis.SUB PRIME OVERVIEWSource The India Economic Review 2008. (Dec 08)The whole system works in three stages, Stage First consist of Borrowers lenders Second stage consists of the creation ofSpecialPurpose Vehicle (SPV)with the inclusion of legal intermediaries. The last (third) stage consists of investors those who had invested their money into the riskier assets including the investment banks.In stage first agent enter s between borrowers and lenders, accepting the collateral and also factoring the future price rise. The agents accept the loans, who previously could not even qualify for the approval, now getting loans from the banks other lenders. The housing price bubble allowed many borrowers to get loans easily because of the high house prices. The loans were mortgaged on a larger scale by creating the pool of similar group of mortgage assets through Special Purpose Vehicle (SPV) given the risk involved on the pool of assets.In second stage, SPVs were created all the liabilities were transferred into bankruptcy remote securitization trust or SPV. Underwriters were used to issue market the MBS (mortgage backed securities). These securities were divided into different tranches, which were of similar securities. The rating agencies were to give rating to these tranches of securities. The ratings were given to the tranches based on the risk, priority of payment of the funds. Higher ratings were given to those tranches benefiting from the credit enhancements the MBS generates or credit insurance purchased from third party bond insurer.In third stage, Institutional or individual investors such as hedge funds or managers of Collateralized Debt Obligations (CDOs), purchase the securities and then re-securitize the MBS, along with other assets, into a CDO. The Commercial Papers (CP) generated in the initial years was all sold and there was demand for more. Consequently the SPVs started producing more CPs or MBS. The sale of the same only meant that the SPVs were flush with funds. These funds were to be invested somewhere so, the agents were pressed to bring in more borrowers. The lending norms were further diluted to accommodate lesser and lesser deserving borrowers in order to deploy the huge funds available. The consequent spiral that got generated only led to the continued dilution of the Capital Adequacy and Prudence norms. The system went burst once the housing prices turn ed negative turning the very foundation of subprime lending upside down.The turmoil of subprime has been expected of more than $ 3 trillion, which is too big for any country to even imagine of recuperating. The impact on Indian market was slow but had been proved acute on the stock market due to the constant humongous withdrawal of FIIs loss of confidence in the consumers (investors).Mortgage Huge pack of cardsThe magnanimous crisis which all started with lax policies of US government, provided impetus for the Fed Reserve to implement new structures in the economy. The capitalist policy was looking very attractive to the market players, but the policy was hollow from the fundamentals. It all started with the Alan Greenspans reformative structures models in the financial markets, led to turmoil in the global economies.The US Fed Bank Clinton government in 1999 passedGramm-Leach-Bliley Act(GLBA) which had abjured the oldGlass-Steagall Actwhich had regulated the Investment Banks, Ba nks Insurance industries. The new legislation has unregulated the Wall Street Investment Banks and commercial banks. This deregulation has enlarged the gamut of activities in the financial activities of the commercial banks other financial institutions. The deregulation had been further reintroduced by legalizing gambling activities into financial sector, a prohibition that had been in place after 1907 financial crisis. The steps towards deregulation of the US markets had converted the US markets into a big casino.Securities Exchange Commission (SEC) in 2004 took a step towards the deregulation on the financial activities by removing the ceiling on risk that the largest American investment banks could take on Securitized loans. By this time, no one would have thought that the deregulation will result into large speculation create a bubble in the market. Lastly, theSecurities and Exchange Commission took the last step toward deregulating financial markets when in the month of July 2007, weeks before the onset of the subprime crisis it removed the uptick rule for short selling any security.The housing bubble was fed by extraordinarily low interest rates low lending standards (norms) for mortgages. The excessive monetary liquidity short term interest rates fell to 1%, which led to high borrowing of loans from the banks, resulted into the big bubble of mismanagement of financial activities. After the tech bubble burst in 2001 the recession, the Fed (Greenspan) aggressively lowered the Federal funds rate from 6.5 percent to 1 percent in 2004, the lowest since 1958. The lowered interest rates reduced lending standards made the banks to lend the money known as Predatory Lendingto the borrowers who did not have capabilities to qualify for the loans, but with the mortgage lending, excessive loans were provided to these lenders as they (banks) were getting big bonuses for bearing risk on these loans. Non-traditional home loans were advanced to borrowers who had n o documented incomes.Some loans were interest only loans with down payments of 5% or less. Some were Adjustable Rate loans (ARMs), with low interest rates for one or two years to be reset later at much higher rates. In 2006 around 25% of American mortgages were subprime and close to 20% were ARMs. Mortgage lenders and Home buyers presumed that home prices were not going to fall on a national basis.THE NEW ALCHEMY OF FINANCEThe subprime crisis is the result of new financial products in the market the deregulation of the financial activities for the FIs. The main reason of such lending was the facility with which subprime lenders could sell their risky mortgages upstream to bigger players, investments banks for example, which undertook to buy them, pool them into mortgage bonds and re-channel them into new financial instruments through a process of aggressive securitization. The Structured Investment Vehicles (SIVs) which fall into the large class of derivative products came under va rious names such asCollateral Debt Obligations(CDOs). They had the characteristics of short term asset based commercial paper that were backed by the underlying income producing mortgage assets downstream and were graded according to a certain risk of default. More than 1 trillion half dollars of these asset backed financial products were sold in all over the world.Another new financial instrument that made matters much worse and led directly to the crisis the Credit Default Swaps. Due to lack of government regulation, this product has become a weapon of mass destruction. In order to protect against the risk of default on the new asset-backed securities (ABS), some insurance companies but also some investment banks themselves began to issue bilateral insurance contracts against the newly created ABS. These were called Credit Default Swaps (CDS), which were supposed to protect the investment instruments against the default on asset based securities. The issuer of ABS could buy the p rotection against the default by paying a premium. This was a financial innovation, the so-called insurance against default, that opened the floodgates of money to be invested in the new financial instruments. Indeed, it allowed investors such as pension funds and other institutions which have a fiduciary obligation to buy only high-quality securities, to legally buy artificially highly rated (but risky) ABS securities, or to invest in hedge funds which specialized in leverage trading in derivative products. But the problem was that the issuance and use of such financial insurance contracts were not regulated by any government agency, because the word insurance was not used instead, they were considered as simply a protection against the default of payment on a financial security. And thats where the gambling part enters the picture only ten percent of CDS are genuine insurance contracts held by investors who really own asset-backed securities (these are covered CDS) 90 percent of t hem are rather held by speculators who trade CDS, while not owning any asset-backed securities to be protected (these are naked CDS).Economy as CasinoThe gamut of gambling that US government Fed has created was even unimaginable, allowed big participation into these new investment instruments.Credit Default Swaps (CDS) can be bought and sold by speculators who are not directly involved in the mortgage business. Because of the 2000 Commodity Futures Modernization Act passed by Congress, no state has the power to regulate this new form of sophisticated gambling. The result is astounding it is estimated that the notional value of credit default swaps outstanding today is about $ 62 trillion (four times the size of the US economy). This is an indication of popularity of the naked CDS innovation was as a way to bet on the collapse of the entire asset-backed securities construction. This was also a clear sign that, in a crisis, it would be all but financially impossible for the issuers o f CDS to meet their obligations. In other words, disaster was just around the corner. This is an event that any regulatory agency should have seen coming. When housing prices hit the expected top of their cycle, in the 2005, and began falling, especially in 2006, the price for CDSs was still relatively low. So, some astute speculators undertook to buy CDSs and simultaneously began selling short the ABS that had been issued by investment banks, such as Lehman Brothers, in the correct expectation that mortgage-backed securities were bound to lose value with the expected rise in home foreclosures and mortgage defaults. This is how unimaginable spiral got created by the steps undertaken by Fed Reserve US government which ultimately result into the great burst ever faced in the history globally.GRAMM-LEACH- BILLEY ACT 1999The Gramm Leach Billey Act 1999 (GLBA) passed by US government in the year 1999 with a view of security data integrity in the market. The GLBA repealed the part Glass Steagall act of 1933, which had opened the market among the banking companies, securities companies insurance companies. The GSA had prohibited any one institution from acting as any combination of an investment bank, a commercial bank and or an insurance company. But the GLBA allowed commercial banks, investment banks, securities firms, insurance companies to consolidate.The act was announced in the 1993 finalized in 1994, allowing many big corporations to merge to enhance their range of activities take the benefit of the deregulation. The law was passed to legalize these mergers on a permanent basis. The law has not fully deregulated the previous act, but they had relaxed the norms and allowed the FIs to have non financial assets. GLBA was amended with some part of the Bank Holding Company act of 1956. The crucial aspect of the GLBA stated thatno merger can go ahead until the financial holding institutions, or affiliates receives a less than satisfactory (SIC) rating at its m ost recent CRA exam.GLBA compliance was mandatory whether a financial institution discloses non public information or not, there must be a policy in place to protect the information from prospective threats in security data integrity. The law was segregated into three main aspectsFINANCIAL PRIVACY RULEThis rule requires FIs to provide each consumer with a privacy notice at the time the consumer relationship is established and annually afterwards. The notice must explain the information collected about the consumer, where that information is shared, how that information is used and how that information about the consumer is protected. The consumer must be notified give consent about any change at any point of time. Each time the privacy notice is reestablished the consumer has the right to opt it again.SAFEGUARDS RULEThe safeguards rule requires FIs to develop a written information security plan that describes how the company is prepared for, and plans to continue to protect client s non public personal information. This plan must include the followingDenoting at least one employee to manage the safeguards.Constructing a thorough on each department handling the non public information.Develop, monitor test a program to secure the information.Change the safeguards as needed.The Safeguards Rule forces financial institutions to take a closer look at how they manage private data and to do a risk analysis on their current processes.PRETEXTING PROTECTIONThe GLBA encourages the organizations covered by GLBA to implement safeguards against pre texting. Pre texting means when someone tries to access the personal nonpublic information without proper authority approval. Thus the institutions having covered under the GLBA, needs to have control safeguard the information of their client, to prevent the details from any misuse.CRITICISM AND DEFENSEThere