Abstract A look at the purpose of student loans as a government institution and how this benefits students. It also analyzes the damage defaulting on such loans has to the students' future. The writer looks at the history of the implementation of students loans by the government and how this concept has evolved.
From the Paper "Although a student loan can be the beginning of a promising and lucrative career, defaulting on that loan can sadly become a weight on one's shoulders that is not easily removed. Defaulting on a student loan may cause consequences that follow a person for many years to come.
The figure for student loan default now stands at 6.9 percent, the lowest on record in the history of the government program. Ten years ago, it topped 20 percent and the entire program was in danger of being discontinued. To a large degree, the failure was attributed to for-profit vocational schools that encouraged students to obtain loans for courses of study that had little chance of bettering the students' potential for employment. Changes in policy helped do away with this type of misuse of the student loan program, and the growing strength of the economy helped to rescue it from cancellation (The Washington Post)."
Abstract The possible default of Russia on her debt has precipitated a crisis around the world, and coming at the same time as the Asian crisis, this may be a devastating second-tier of financial woe with effects far from Moscow.
From the Paper "INTRODUCTION
The possible default of Russia on her debt has precipitated a crisis around the world, and coming at the same time as the Asian crisis, this may be a devastating second-tier of financial woe with effects far from Moscow. The Russian crisis has already affected investment in certain hedge funds and has frightened a number of analysts who realize what more could happen if the crisis is not resolved. Many Americans see Russia as far away and not related to American interests since the downfall of the Soviet threat, but this is not the case. The Russian crisis has already had an effect on the American economy and may have an even greater one. This may or may not be an argument for bailing Russia out, but it is certainly cause for some concern."
Abstract This paper is a discussion, and analysis of the fiscal crisis currently facing Argentina. The author details some of the causes of the current crisis, including defaulting on the debt, the devaluation of the country's peso and political corruption. The affects of the crisis on the region's stability, Argentina's trade relationships with Europe and the United States are also discussed. The turmoil within the country itself is discussed in detail, and the author also offers some creative solutions to the crisis.
From the Paper "Despite criticism from some nations like Spain, who is heavily affected by Argentina's crisis, the International Monetary Fund (IMF) has so far refused to give any more aid to the country. However, many people blame the IMF for loaning "massive" amounts to Argentina earlier in their crisis, along with conditions requiring the country to tighten its fiscal policies. Now, Argentina is unable to repay these outstanding loans. Some of the over 130 million in debt was defaulted on in December, and "Critics say the IMF-imposed reforms have failed to work because they don't take into account the local situation. They argue that the insistence on debt repayment is what's brought Argentina to the brink of collapse" (Editors)"
Abstract This paper details facts on the health debate in predominantly third world countries. It discusses the Nestle formula case and how marketing has made breast-feeding into something to be thought about by many mothers. It shows how before breast-feeding was the default choice of nutrition, formula has taken a large portion of the market share. Pros and cons of each choice is presented.
From the Paper "Breast-feeding advocates around the world state that 1.5 million babies die each year from improper substitution of breast-feeding. That's a death every 21 seconds. Since the 1970"s, an international battle has raged over the marketing exploits of the baby food industry. With Nestle controlling 40% of the multi-billion dollar worldwide baby milk industry, they have been the most visible target of boycotts and legislation. However, after almost 30 years in the news, it seems that neither side has made any real progress. Nestle claims it adheres to international code and provides a very necessary product; breast-feeding advocates shout bloody murder and continue their campaign. How can this debate be resolved""
From the Paper "This research explores positive aspects of the collection of delinquent student loans in the USA. The research will set forth the context in which delinquent-loan collection has emerged and the scope of the delinquency problem and then discuss the financial benefits of a well-managed collection project.
"In fiscal year 1995, the U.S. Department of Education held about $8.5 billion in delinquent federally guaranteed student loans (Dockter, 1998, p. 4). In fiscal 1996, the federal government paid to private-sector lenders $2.662 million in loan-default guarantees on Federal Family Education Loans (FFEL), a 16% increase from the previous year, bringing the 10-year cumulative total of student loan defaults, or receivables, to about $28.9 million. By comparison, only $15.2 million in FFEL..."
The development of a model for prediction of the rate on a 90-day U.S. Treasury bill and 90-day certificate of deposit, using Keynesian and loanable funds approaches. Tables & Charts.
1,575 words (approx. 6.3 pages), 0 sources, 2000, $ 55.95
Abstract Models are developed to predict two interest rates. The default-free money market security for which a model will be developed to predict the interest rate is the 90-day United States Treasury Bill. The capital market security which is characterized by some degree of risk for which a model will be developed to predict the interest rate is a 90-day certificate of deposit issued by a financial institution.
From the Paper "Interest Rate Prediction
Introduction
Models are developed to predict two interest rates. The default-free money market security for which a model will be developed to predict the interest rate is the 90-day United States Treasury Bill. The capital market security which is characterized by some degree of risk for which a model will be developed to predict the interest rate is a 90-day certificate of deposit issued by a financial institution.
Keynes held that the rate of interest is determined, instead, by the intersection of the supply of money and the demand for money. Instead of time preference, which is involved in the classical economic theory of interest, the Keynesian theory of interest is concerned with liquidity preference. The liquidity preference..."
This paper examines the mortgage loan market: Racial and ethnic issues, discrimination, loan alternatives, interest rate comparisons, market environments and default rates. Tables.
2,700 words (approx. 10.8 pages), 15 sources, 1995, $ 95.95
From the Paper "This research examines the mortgage loan market. Facets of the market examined include (1) comparison of loan.type alternatives available in the contemporary market, (2) interest rate comparisons in relation to selected loan.type alternatives, and, (3) current and projected mortgage loan market environments.
Comparison of Loan.Type Alternatives Available in the Contemporary Market
Adjustable rate mortgages (ARMs) are one of the most popular loan.types available in the contemporary mortgage loan market. ARMs are especially ..."
Abstract This paper discusses the Asian crisis whereby many were unable to recover from the mounting debt and major banks, and businesses began defaulting on their loans leading to a myriad of bankruptcies and financial collapse of the Asian economy. The author looks at whether the Asian miracle was destined to collapse denuding what was once a roaring economy. This paper explores the Asian "miracle", the embryonic stages of the crisis, the impact of debt and corruption, and the role of the International Monetary Fund (IMF) to bring upright a sinking economy.
From the Paper "The "miracle" in the 1980s and the early 1990s in Asia frequently refers to the unprecedented economic growth that Thailand, Japan, South Korea, Malaysia, and Indonesia enjoyed. Extraordinary for two reasons, first the unimaginable economic growth or expansion over several years of over 8%. Second, all of this took place with very little unemployment and a nearly immeasurable wealth gap. That is, the rich did not become exponentially wealthier than the middle class or poor sectors."
Tags: economy, thailand, japan, financial, asia, imf, international, monetary, fund
Abstract This paper discusses how the International Monetary Fund (IMF) developed the economic policies of Argentina in the 1990?s, at which time the lending policies seemed to be ideal for the nation. It examines how since this time, many economic experts have discovered many inherent flaws in these policies, which indicate the need for change. It analyzes how with Argentina's recent default and subsequent economic demise, the IMF has been forced to reconsider its current lending policies. It shows that while Argentina may serve as a model case to urge the IMF to adopt a policy that requires less conditions and more ownership by national policymakers, as long as the IMF has an interest in human conditions, its approach to lending will still have to be made according to economic rather than political criteria.
From the Paper "Under its lending policy, the IMF required Argentina to initiate a Structural Adjustment Program (SAP), which aimed to promote the balanced expansion of world trade through the stability of exchange rates, preventative measures against competitive devaluations, and efficient correction of payments problems (Graham, 2002).
Basically, the IMF ordered Argentina to increase exports and minimize imports. By increasing exports, a member state brings in external capital, which can be used to repay its debt (Mussa, 2002, p. 312). To do this, Argentina needed to attract foreign companies for exports. The IMF required that the nation eliminate any political legislation that would prevent foreign investment, such as labor unions and minimum wage laws."
Abstract This paper analyzes the concept of junk bonds. It looks at the inherent risk of junk bonds, what factors determine whether a bond will be labeled a junk bond or an investment-grade bond, why they must offer higher returns to entice customers, and their viability on the investment front. The paper concludes with an overall positive, but cautious, assessment of junk bonds.
From the Paper "The stock markets are the financial hubs of a country where businesses thrive on the value of their reputation and financial prowess. It is also a place where the investors are often duped by companies that try to create artificial value for themselves. Junk bonds are a consequence of this trend of many companies, which try to attract value to their bonds through false propaganda and enticing dividends. Similarly, the price of a share of even reputed companies depends on a variety of factors and hence, one cannot expect a steady price for a stock no matter how strong the credibility of the company is. This inherent unpredictability in the stock markets required for some kind of official standardization of the bonds so that investors could be forewarned about the performance and risk factors of a particular bond."
Abstract The paper defines various types of foreclosures: judicial, non-judicial, and strict. It examines reasons why people default and shows foreclosed properties as a high return with risks for the investor, such as the high cost of repairs.
From the Paper "Buying Foreclosed Properties
1. Introduction
1 a. Reasons why people default
There are many reasons why people default on home loans, but the most common reason is that they cannot pay the mortgage anymore due to a reversal of fortune, most typically ..."
Examines the correlation between predatory lending of sub-prime loans and foreclosure and their prominence in minority communities and low-income neighborhoods.
Abstract This paper begins by defining important terms from the mortgage industry. It defines the elements that make up predatory lending practices. The paper details the difference between prime loans and sub-prime and how a potential borrower would fall into either category. The paper briefly defines the term foreclosure for context purposes and briefly discusses the aftermath of foreclosure as an aspect of economic impact. The paper offers data from the Home Mortgage Disclosure Act, also referred to as "HMDA" and statistics to prove the correlation between predatory lending and the rate of foreclosure. The paper explores how predatory lending has, as a result of the rise in the rate of foreclosure, affected communities across the country. This influence can be seen in community growth and re-urbanization of these particular neighborhoods. Finally, this paper discusses what is being done at local community levels but also focuses on how state and federal governments are looking to improve the home-buying process to combat the practice of predatory lending. It also discusses how mortgage companies, such as Countrywide Home Loans, are attempting to not only battle predatory lending but also make the dream of home ownership a reality to the under-served populations of the United States during the life of the loan.
Paper Outline:
Introduction
Definitions
Statistics and Data
Economic Impact of Predatory Lending
Public Response to Economic Impact
Conclusion
From the Paper "A variety of loan terms and lending practices have been described as predatory or abusive, especially when employed in high-cost or subprime loans. Some of these practices, particularly loan terms such as prepayment penalties are used in the subprime market and this does not seem to scare the borrower away. The use of such terms and practices is highly inappropriate. For example, debt-to-income ratio above 40-45 percent is considered normal practice with prime loan but is entirely inappropriate for subprime loans. Fifty percent for housing costs may be okay for a family with high-income but could cause potential disaster for that of a lower income. Predatory lenders look to stretch the debt-to-income ratio to a point where, it is not considered responsible lending (Smith 3)."
Abstract This paper explains that, in looking at a cross section of any campus whether it is a university, college (private), junior college or a two-year trade school, most students in the lower end of the economic strata and require extremely tight budgeting to finance their education. The author points out that, despite the vast amounts of grant monies, scholarships, student-loans available and other sources of income, education financing is becoming an even greater problem because most of institutions are being forced to raise costs to the student body because of their own budgetary shortfalls. The paper stresses that the student loan programs at first glance appear to be a relief for the tightly budgeted student; however, there are some pitfalls to these programs that can do more harms than good for the over extended student.
Table of Contents
Today's University, College, Junior College and Trade School Student
The University and Private Four Year College Student
The Student Loan Trap
Student Loan Default Due to the Failure to Budget
From the Paper "The problem as found by the Inspector General of the GSA was that the requirements for proofs by the Education Department were nearly non-existent. For example, in many cases there was no death certificate at all, in its place the Education Department accepted newspaper obituary notices, mostly forged was all that was required. Where permanent disability claims were concerned Social Security records proved that over 35,000 were quite able bodied and working making enough money to easily repay their indebtedness."
Abstract This paper explains that the trading policies of Merrill Lynch depend on the integrated management of its client-driven accurate positions, together with the associated hedging and financing; moreover, several trading habits make Merrill Lynch susceptible to market, credit, liquidity, process and other threats, which are practical and need exhaustive controls and supervision. The author points out that where suitable, credit risk alleviation methods comprise of the prerogative to need start-up collateral or margin, the privilege to cease transaction or get guarantees in case any untoward incidents happen, the prerogative to ask for the guarantee in the event when some exposure ceilings are crossed and the purchase of credit default safeguards. The paper stresses that, to respond in a better fashion to credit risk management, Merrill Lynch needs guarantees mainly from U.S. government and agencies securities, on several derivative business deals.
From the Paper "Liabilities in favor of other brokers and dealers linked to outstanding dealings are booked at the amount for which the securities were purchased, and the deal is squared off on the receipt of the securities from other brokers or dealers. As regards long-standing securities failed-to-receive, Merrill Lynch might buy the basic security in the market and look for payback for losses from the counterparty. Merrill Lynch has time-tested policies and measures for extenuating credit risk on principal dealings, inclusive of appraisal and setting up ceiling for credit exposure, maintaining collateral, and persistently evaluating the creditworthiness of counterparties."
This in-depth paper analyzes the significance in assessing and rating a particular country's assets and liabilities as well as its overall impact on the global economy.
Abstract The writer of the well-researched paper examines the history of sovereign ratings which have been around since approximately 1979. This paper details the importance of sovereign ratings, which basically assess the financial worth of an individual country. This paper analyzes the methods in which countries are rated, which include calculating the financial history, current assets and liabilities of a particular country. Sovereign ratings are significant when calculating whether or not a particular country can repay its debt, or whether the country in question will choose to default on its debt, to the lending country. This paper delves into the relevance of these ratings, when dealing with international trade and currency. This paper explores the various risks involved in lending money to sovereign nations. This paper examines the methodologies that are generally used by rating agencies, such as Standard and Poor's and Moody's. The writer discusses the various shortcomings that are associated with sovereign ratings, while discussing why certain countries, such as Korea and Malaysia do not have good ratings. This paper also supplies two tables relevant to this particular topic, including a sovereign credit rating, listed by country.
Table of Contents:
Literature Review
Introduction
History of Sovereign Ratings
Methodologies Used by Rating Agencies
Shortcomings
Conclusion
Works Cited
From the Paper "While sovereign ratings are seen to be very important, more recent history is still suggestive of the fact that lending to sovereigns remains very risky. A survey taken by Standard & Poor's that dealt with 72 governments and looked at the debt based on outstanding foreign and domestic currency indicated that 30 of these had defaulted at least one time on either foreign or domestic currency debt since 1970. None of these sovereigns had any type of sovereign rating by a rating agency that was recognized internationally before they defaulted but nine of them have been rated subsequently by Standard & Poor's and Moody's. The frequency of default for many of these countries has been relatively high and this has been something that has caused a lot of stress and concerns for individuals in those sovereign countries that are simply trying to conduct good business today without being held back by the past."
