Regal Entertainment Group Weaknesses

Regal’s substantial lease and debt obligations could impair our financial condition. Regal has substantial lease and debt obligations. As of December 31, 2009, they had total debt obligations of $1,997. 1 million. As of December 31, 2009, Regal had total contractual cash obligations of approximately $6,330. 3 million. If Regal is unable to meet their lease and debt service obligations, they could be forced to restructure or refinance their obligations and seek additional equity financing or sell assets Our theatres operate in a competitive environment. The motion picture exhibition industry is fragmented and highly competitive with no significant barriers to entry. Moviegoers are generally not brand conscious and usually choose a theatre based on its location, the films showing there and its amenities. Generally, stadium seating found in modern megaplex theatres is preferred by patrons over slopefloored multiplex theatres, which were the predominant theatre-type built prior to 1996. Although, as of December 31, 2009, approximately 80% of Regal’s screens were located in theatres featuring stadium seating, we still serve many markets with sloped-floored multiplex theatres. These theatres may be more vulnerable to competition than their modern megaplex theatres. Regal depends on motion picture production and performance. Regal’s ability to operate successfully depends upon the availability, diversity and appeal of motion pictures, our ability to license motion pictures and the performance of such motion pictures in our markets. We license first-run motion pictures, the success of which has increasingly depended on the marketing efforts of the major motion picture studios. Poor performance of, or any disruption in the production of these motion pictures (including by reason of a strike or lack of adequate financing), or a reduction in the marketing efforts of the major motion picture studios, could hurt their business. Development of digital technology may increase our capital expenses. The industry is in the process of converting film-based media to electronic-based media. There are a variety of constituencies associated with this anticipated change, which may significantly impact industry participants, including content providers, distributors, equipment providers and exhibitors. An increase in the use of alternative film delivery methods may drive down movie theatre attendance and reduce ticket prices. Regal also competes with other movie delivery vehicles, including cable television, downloads via the Internet, in-home video and DVD, satellite and pay-per-view services. Traditionally, when motion picture distributors licensed their products to the domestic exhibition industry, they refrained from licensing their motion pictures to these other delivery vehicles during the theatrical release window. A material contraction of the current theatrical release window could significantly dilute the consumer appeal of the in-theatre motion picture offering, which could have a material adverse effect on Regal. Regal depends on their relationships with film distributors. The film distribution business is highly concentrated, with ten major film distributors accounting for approximately 95% of our admissions revenues during fiscal 2009. Regal depends on maintaining good relations with these distributors. No assurance of a supply of motion pictures. Regal cannot assure ourselves of a supply of motion pictures by entering into long-term arrangements with major distributors, but must compete for our licenses on a film-by-film and theatre-by-theatre basis. A prolonged economic downturn could materially affect our business by reducing consumer spending on movie attendance. Regal depends on consumers voluntarily spending discretionary funds on leisure activities. Motion picture theatre attendance may be affected by prolonged negative trends in the general economy that adversely affect consumer spending. A prolonged reduction in consumer confidence or disposable income in general may affect the demand for motion pictures or severely impact the motion picture production industry, which, in turn, could adversely affect Regal’s operations.

Quotation Analysis Essay

â€Å"Adolescence is a period of rapid changes. Between the ages of 12 and 17, for example, a parent ages as much as 20 years.† The words in this quote, by an unknown author, invite the reader to take a deeper, more insightful glance into how teenagers set out on a youthful rebellion to grow up too fast and get away from their problems. The words also invite the reader to take a deeper more insightful glance into how parents begin to age as they raise teenagers. Through literature, the author uses the point of view of the adolescent and their guardian to express how they feel as the adolescent ascents into their teenage years and starts developing their own opinions. An unknown author portrays meaning through the quote which relates to the actions of adolescents as they move through the teenage stage of their life. As teenagers grow up, they face changes in their personal, social, and educational lives. First, they start to act like they are as old as time itself which is normal but can be taken too far. By doing things on their own without anyone’s help, they also start to become very independent which is only good most of the time until it starts to get out of hand. Teenagers may also start to think they are too old for certain activities or items. They begin to act as if they are too good for some items or activities which can appear as snobbish to those who are around them. Appearing as snobbish can be a turn off, which causes friendships to be lost and relationships to be broken. This will lead to isolation from others to avoid being heart-broken or hurt. Adolescents usually can isolate themselves for a few weeks or about a month, but sometimes the non-contact with friends or family members can get to their heads making them angry or emotionally disturbed. Yelling, screaming, disobeying, slamming doors all can be the outcome of isolation even to those who you love and cherish. Parents understand that their children can have their bad days but if it continues to be on a daily basis they fear that their child’s emotional state will lead them on the wrong path. The theme of the quote is that you should enjoy your life as a teenager with your parent’s guidance. Life is full of ups and downs and we have to make the most of them while we’re still young and energetic. Enjoying your childhood will have a big impact on how you are as a person as you get older. Making a lot of friends, trying new things, and just having fun can increase your mood but also how you feel as a person. Teenagers mustn’t forget that while having fun it’s also important to spend time with your family. As you get older, you will always be treated like a baby till your gray-haired. It might seem annoying at first but it just is a reminder that in your parent’s eyes, you will always be a child. Your parents won’t always be around to comfort you and take care of you, so don’t take their love for granted and treat them badly. Parents are at an age where they may not be up to date with the modern American customs since they might come from another place. The kids are so used American customs since most were born here and the parent just use methods to teach their children how they were taught when they were young. Parents think they are giving us another way to living but they don’t realize that some of their own customs are pretty ridiculous and embarrass their children. At this time children just don’t understand that these customs are part of you and you hurt your parents by being so embarrassed. Your guardian already has problems of their own and they don’t need their children to make them feel even more horrible. Parents will be begin to feel stressed, will feel older than they actually are, and might even start to gain gray hairs. You should treat your parents with the dignity and respect they deserve while also abiding by their customs and rules. An unknown author uses words that personally relate to the Broadway musical â€Å"13†. At a certain point in their life, a teenager is ready to make their own decisions , which is similar to the decisions made by a young man in the Broadway musical â€Å"13†. The main character in the play, Evan Goldman, feels like he has to impress all the people around him and ignore how he really feels. When moving through the teenage stage of your life, you will feel like you have to impress other people to fit in or make certain impressions on certain people. To impress these people teenagers could even resort to doing criminal acts when they know it can’t be right. Peer pressure from other teens is one of the main reasons others are led astray. Goldman also feels like a teenager doesn’t have any privileges to do the fun things in life until they grow much older. Adolescents always want to experience things such as getting their driver’s license or bungee jumpi ng but they have to realize that to experience the exciting things in life, you have to be very patient. Don’t try to rush through the important stages by acting as if you are a grown man/woman when you have great privileges awaiting you. The parents in the Broadway musical â€Å"13† are so busy worrying about their children and how they act, by the end of the musical the parents are all old and incapable of taking care of their children. While their children are getting into problems between friends, the parents can only stand aside and watch since they have other problems to deal with and their child won’t even tell them what’s going on. Unfortunately in the end the parents end up not being able to help their child leaving them to deal with it themselves whether in a good or bad way. However, without the parent’s guidance the children still settled their problems in a good non-violent way so the parents don’t have to worry anymore. An unknown author presents the point of view of the child through the explanation of what the child thinks about their parents and how they think certain situations should be dealt with. Life is about responsibilities and teens want to show their parents how responsible they are. Most adolescents feel like their parents treat them like they are still 5 years old and don’t realize that their baby has grown up into a teenager. They just want to have the privileges of a mature teenager but also be treated like one. Parents also insist on telling their adolescent what to do but it can also be unnecessary because the child already knows how and what to do. Children just want to learn from experience or try what they think is right without our parent’s comments. Teenagers sometimes just want to have a simple conversation but other times being left alone can also be great. They have their moments where they just want to sit down and think about certain things without having to explain their private thoughts to someone you won’t think will understand. Parents can be the most difficult to explain to if something has happened and you just need advice. Most of the time, they cannot relate to the experience or sometimes just don’t understand. This will make teens skeptical about telling their parents anything. From the parent’s point of view, the children need to just wake up and smell the cappuccino. Life is full of problems and obstacles but the only way you can overcome them is with the guidance of your parents. If you try to deal with your problems alone, you’ll only end up hurting yourself in the end. A parent’s goal in life is for their child to be successful and happy so if they’re not happy, the parent isn’t happy. Parent’s also wish their children would understand why they make certain decisions. It’s not that they want to ruin our lives, they just want to protect us. Besides, things happen a certain way for a certain reason. Our parents just want to take care of us and make sure we have a good future. An unknown author use words to personally relate to experiences in my life. Everything has to go exactly right and it has to go my way. I won’t lie, I dislike it when my father doesn’t listen to my opinion even though it matters. If we are debating on whether or not I can go on an overnight trip with my school, it would be nice if you would listen to my reasons of why I want to go and how I could benefit from it. I’m not saying you have to agree with my opinion but listening to it can influence your decision. He thinks that something will happen on the trip and is very overprotective. I listen to what you have to say and it will probably influence on how I think about the matter. Even when I ask my parents to help me with my decisions, they always tell me â€Å"whichever one suits you best†. I can never make my own decisions on certain matters and sometimes that can either be a good or bad thing. It’s good because once someone tells me what they think I can develop my own opinion off of that but it’s bad since sometimes certain people can cause me to make a bad decision that could affect how I feel about certain topics. By the end of the day, I can’t stop thinking about what has happened in the past and what will happen in the future. Usually people come to me about their problems, but sometimes I already have my own problems to deal with so I don’t need to be involved in any more. The fact of the matter is that everyone has a way they want things to be done but it won’t always go your way. Throughout the past years, teenagers have no respect for themselves and others. Respect can open and close many doors, however, this is one trait lacking in the teenagers of today. I see teenagers on the street cursing, fighting, and carrying themselves like their parents/guardians haven’t taught them anything since day one. I know your parents spent a lot of time teaching you what’s right and what’s wrong so why let it all go to waste. Teens think they are grown and know what’s right so they rebel against their parents but what they don’t know is that your parent’s have completed school and have a job to support you. Until you have a job and a degree to prove your successful, you can’t call yourself grown. What I have also noticed is that adolescents begin to skip school and ignored their education. Doing this could affect what high school or college they make it into. If teens are as grown as they act, they would accept their priorit ies and act like a mature young adult. Adolescence can be a difficult period, however the way it is handled will define who we are and who we will become as men and women of the future. The words in this quote by an unknown author, invite the reader to take a deeper, more insightful glance into how teenagers set out on a youthful rebellion to grow up too fast and get away from their problems. Teenagers just need to stop, take in all the love/ friendship surrounding them, and also just enjoy and make the most of their life.

Recycling Essay Example | Topics and Well Written Essays - 750 words - 1

Recycling - Essay Example Whether recycling as the scheme, is more efficient in environmental conservation is an issue that require further study, and this paper explores how the United States government can make sure the recycling process becomes more efficient. The government, as part of ensuring a more efficient recycling process need to consider all packaging processes and increase campaign awareness among consumers to enact change. At the present, Americans continue to bury millions of products they consider as waste in landfills and which, however, can be remanufactured. Further, as cities become more efficient in terms of recycling measures, the government needs to do away with the landfills that pose a danger to health and the environment. Recycling in essence requires appropriate civic behavior and people need to take personal responsibility to make recycling more efficient. Recycling at the moment, may account for only one-third of the wastes not dumped in the landfills. This is because many people are not participating in recycling everything and the responsible authority such as the municipalities who, clear the bins are not meeting the objective required for an efficient recycling process (Briscoe 43). The government need to engage in the process of establishing new markets or processes suitable for remanufacturing the wide range of plastic materials that end up in the bins or the landfills. Further, as Griff (4) posits in his article the government needs to tighten regulations where, more emphasis is focused on the manufacturers recycling waste rather focusing attention only to consumer waste. While recycling presents a noble idea in terms of conserving the environment, it should not be viewed as a reward for consumption. People should participate in recycling waste by looking at the wider picture of contributing to a sustainable future. A trend among American consumers involves a mentality where individuals do one thing and views that, as making a contribution to conservi ng the environment. For example, a consumer may recycle a plastic soda and views that single act to contribute in solving global warming (Kohn 20). Recycling is a continuous process and every time consumers engage in recycling used products, they contribute to minimizing environmental degradation. In terms of improving efficiency, the government needs to view recycling of wastes as an alternative among other measures appropriate in enhancing the recycling process. In this sense, the government needs to consider switching to other measures that assist in environmental conservation. Other than recycling waste, there are many other pollutants that impact negatively and at higher magnitude compared to the plastic waste. In order to implement a more efficient environmental protection program. The government needs to switch to other efficient measures such as the use of renewable resources and energy and consuming locally grown food (Cooper 73). On another note, a reasonable measure that the United States governments needs to take to improve recycling efficiency involves shifting the responsibility to the producer. This entail a government policy approach where, the responsibilit

Literature Review on Usability Testing on Academic Electronic Medical Coursework

Literature Review on Usability Testing on Academic Electronic Medical Record Systems - Coursework Example This can be disastrous for patients to the extent of causing avoidable deaths. Users of electronic medical systems are practitioners in the medical field and users of academic medical record systems are those who are being prepared through learning to become qualified and full users of electronic medical records systems. As a result, earlier application usability testing on academic medical records stands to eliminate or minimize errors associated with usability of electronic medical record systems. Implementing usability testing on academic medical records systems creates an environment whereby the health care services practitioners understand electronic medical systems earlier and are adequately prepared for the challenge (s) before them. Academic electronic medical records systems do not have much coverage as relate to usability testing but there is an abundance of literature on usability of electronic medical records systems. An academic application of electronic medical records system is very important in enhancing the knowledge and skills of the medical student for the actual task ahead. Amidst all of the debate revolving around product functions, features, and which product is appropriate for which practice setting, one very important aspect that require to be examined is usability. Usability of a product depends on the combination of its functionality, features, visual appeal as well as the usefulness (Emanuel, et al., 2008). A product must be oriented to the context it applies, and it must take into account the characteristics of its users. Generally, electronic medical records are used for handling medical information vital for patient care and enhance the efficiency as well as accessibility of that information. The same purpose is maintained in academic electronic medical records systems only that it will incorporate those training to become actual users in the future. The importance of testing for usability of academic medical records (EMR) system S tudies on the importance of testing usability of an EMR system, involves examining the role of usability testing as concerns evaluation of an EMR system, identification issues with usability by both beginners and more experienced system users, and effect on efficiency and satisfaction of its users (Corrao, Robinson, Swiernik, & Naeim, 2010). Academic practitioner literatures are confronted with both failed and successful implementations of EMR system. Setting up of EMR systems is always accompanied by technical, economic, organizational and cultural challenges. These studies conclude that apart from reviewing content and features of an EMR system, usability testing has the potential of improving chances of an EMR design being integrated with current workflow and process of business in a clear, transparent and efficient manner. In these studies 90% and above of issues and recommendations for rectification identified by beginners have been found to be credible. However, an interesting finding is that a majority of the users experienced in using previously implemented systems that have not been subject to amplified usability testing, had a higher level of dissatisfaction with efficiency as well as overall functionality but higher general satisfaction than expected. This underscores the importance of testing usability in academic EMR systems. Literature on academic EMR sys

Labour Turnover and Customer Service in Restaurants Essay

Labour Turnover and Customer Service in Restaurants - Essay Example As the discussion stresses restaurant, hotel and leisure industry is very much dependent on their employees for keeping their customer satisfied. This is a service industry where the intangibility, inseparability and heterogeneity of the service make it very challenging for the service provider to maintain consistency and increase the level of satisfaction received by the consumers.This discussion outlines that the labour turnover in the service industry is high. The high rate of turnover is result of various factors like lack of opportunities and growth, low income level and other reasons. The employees are the face of the service providing company. High employee turnover rate also indicates towards the management problems and internal issues of the organisation. Organisation is questioned for not able to retain its employees.  In this situation, it becomes very challenging for the human resource management professionals or business owner to ensure the stability of employees. Ther e are various strategies that a company adopts to attract and retain employees and maintain their image in the job market. Restaurant companies offer different types of monetary and non monetary benefits to its employees. The monetary benefits are incentives, bonus, stock options and others cash components.  The non monetary benefits include insurance, heath benefits, maternity and paternity leaves, education sponsorship, education assistance etc.

E-Commerce Application Development Essay Example | Topics and Well Written Essays - 1750 words

E-Commerce Application Development - Essay Example There are five types of e-business models that form the basic structure on which websites are based. These five models are vanity, billboard, advertising, subscription and storefront. Many sites also combine these basic models. All sites incur cost of development and maintenance, though they may not be deriving direct revenue from it. The five models of e-commerce have unique characteristics. The Vanity model, as the name suggests, cater typically to individuals who start it as an outlet for expression, to share a hobby, promote a cause such as an environmental or social agenda, etc. The site then acts like an online forum, to bring people together. A very good example for such a site is greenpeace.org. The site brings together people who are conscious about the degradation of the environment and helps raise a voice against issues such as climate change, endangered species, deforestation etc. The revenue models for such Vanity sites build up through advertisements of related organisations, services and products. In the case of Greenpeace, the site is maintained mainly through donations. The costs of vanity sites are either born by the individual or by philanthropic institutions such as associations, universities or may be businesses. This e-commerce model is designed to work like a billboard. Also called the brochure or information sites, Billboard models derive economic benefit indirectly through referred sales and reduced cost. The sites creates product awareness through the online medium, however, the actual buying and selling takes place off-line. Netizens surf and view the sites and the model functions in the same way as a billboard on a highway. The success of the site is measured according to the hits or viewership it gets. The site influences people to buy the product. The perfect real world example of this model is billboard.com. The site gives you music news, reviews, articles, information about live shows and more. You can listen to music, and download free music. The site also ranks music and ranks the best songs for any genre. The revenue model, what is apparent from the site, are advertisements related to the music world. For example you can buy Billboard magazine from the site. The Advertising model, in e-commerce, is similar to the model followed by radio, television and the print medium, among other things. The programme and the content are totally funded by the advertiser's money and the 'viewership' of the site decides the advertisement rate and volume. Surveys conducted by the websites can establish the 'viewership' of the sites and the advertising rates are decided likewise. The various forms of advertising for e-commerce are banners, sponsorships, ezine ads and other promotion methods. The Subscription model, though very well established in the 'real' world, has not become so prominent in the e-world. Consumers have not yet accepted the culture of subscriptions on the web. The subscription models, on the web, target particular niches of individuals with specific needs. These sites are often specialized with expert content and timely information. The subscriptions fund the development and

Nursing Children and Childbearing Families Essay - 2

Nursing Children and Childbearing Families - Essay Example Health conditions like protein energy malnutrition, iron deficiency anemia, recurrent infections and multivitamin deficiencies can also occur. Consumption of illicit drugs, smoking and alcohol abuse during pregnancy leads to development of growth retardation and fetal anomalies in the baby. Children are often neglected when parents are indulged in these activities. They also follow the foot prints of their parents and resort to illicit drug abuse, smoking and alcohol abuse. Stressful relationship between family members, especially between parents causes emotional and psychological turmoil to the child. The parents, who are engaged in their personal stress are unable to take care of their children resulting in poor nutrition and poor health. These children also do not receive timely medical attention. Stress during pregnancy can lead to premature death, premature rupture of membranes, postnatal feeding problems and intrauterine growth retardation. Single parent is as such a stressful condition to the parent and the child and can result in decreased care and monitoring of the child leading to poor nutrition. Single mothers do not have any support to take care of the baby after birth (Atrash, 2006). Question 2.

Willingness to Pay Essay Example | Topics and Well Written Essays - 250 words

Willingness to Pay - Essay Example On the other hand, for a park or a green space to remain in good and attractive condition, regular maintenance, and improvements are mandatory. Costs are incurred in order for these services to be effectively provided to the public, hence necessary to charge the public a relatively small sums of money in order to meet the costs. Nevertheless, it is important to consult the public about the amount they are willing to pay for the services, amenity, or a resource hence the term â€Å"willingness to pay†. A good example of willingness to pay scenario is the residents of Boulder Colo in USA. The people of this area were willing to pay up to $234 per home in order to keep a five and a half acres of land preserved for public usage (Americantrials, 2014). This land had not been developed for long hence the community decided to be contributing the large sums of money in order for them to be using it as a park. Their decision could however be termed as highly brilliant since presence of this land as a park made the value of the surrounding properties to dramatically hike in price. Other recreational benefits that were accrued from the existence of the park included travelling costs incurred while visiting the park. Within a period of four years (1995-1999), the property price premiums were summing up to $140.2 million. There was also a net entertaining value of over $7.6 million (Americantrials, 2014). In conclusion, provision of opportunities for physical activities such as establishment of recreational areas like parks or provision of service may have so much economic benefit to the local government, private developers, and the to the residents of that the neighboring areas. Facilities like parks; availability of quality water among others raises the value of the properties and homes in the nearby area. Moreover, the cost incurred in maintaining such recreational facilities and resources is by far much lower than

American History to 1877 Assignment Example | Topics and Well Written Essays - 500 words

American History to 1877 - Assignment Example l Army in the Battle of Brooklyn, the British Government requested to meet the Congress representatives to negotiate for a bloodless resolution to the armed hostilities. This opened the possibility of a peaceful compromise. The colonials were willing enough to send a delegation, which included Benjamin Franklin and John Adams, and talk the matter out with the British imperial army led by Admiral, Lord Richard Howe (The History Place, n.d.). For five years negotiations were ongoing even as the war continued, but the opportunity dissolved when the colonials refused to renounce the Declaration of Independence. The unyielding attitude of both parties finally resulted to the termination of a possible compromise upon American victory in 1781 (Lanning, 2008, p. 246). (2) Union policy over slavery changed throughout the course of the war because of internal rifts between the Northern and Southern states, which were in a tight competition for political power. First, the Southern states wanted slaves to be counted in the census so as to have more representatives in Congress than the North, but this was vetoed by the North. The result was a compromise that each slave was only worth three-fifths of a white Southerner. Second, the South wanted to expand slavery into the newly acquired territories from the Mexican War but Northern states were strongly against this move. Finally, Northern states were angered by the Supreme Court decision to free a slave named Dred Scott, who was brought to a free state by his owner (Oracle ThinkQuest, n.d). These rifts sowed the seeds of the civil war. Abrahalm Lincoln, whose own inconsistent decisions on the slavery issue contributed to the changing policies of the Union, depended on the progression of these rifts befo re he finally conceded to how slavery contradicted the constitutional mandate that â€Å"all men are born equal† and declared war (Taylor, 2008; Public Broadcasting Service, n.d.). (3) America made a lot of transformations from

Organizational Structure and Culture Essay Example for Free

Organizational Structure and Culture Essay Authority structure within organizations is important for the oversight of delegated processes and expected outcomes. Without structure, chaos would impede support, communications, and vision development. Organizational designs vary according to the need of the organization to operate efficiently, to achieve goals, and to support the associates within the organization. The organizational structure style design helps lead the organization in successful endeavors (Sullivan Decker, 2009). Organizational History The history of an organization contributes to the design of the formal organizational structure.  The medical center has a tumultuous history. A new modern building was constructed in 2000 to replace an older structure. The local physicians had no input into the decision or design of the new facility. The organizational structure during that time was a strict parallel design. The physicians reported to the chief medical officer and the Board of Trustees. The physicians jointly decided not to support the new local hospital; the organization began to collapse. The medical center eventually fell into bankruptcy because of the lack of physician support, poor financial management, and unscrupulous use of organizational monies. The court system retained a reconstruction organization in an attempt to rebuild the local hospital. During the time of bankruptcy the parallel organizational structure remained in place, but with less authority of the medical governance branch. The main focus of the organizational structure was financial survival of the organization. An immediate change was needed for the improvement of the dangerously low morale of the health care associates The once country owned, bankrupted not-for-profit-hospital was bought and sold twice before stabilization began to be a possibility. A corporation purchased the hospital and changed it to a for-profit organization. There was very little resistance to the change because the organization had been surviving in chaos. According to Kurt Lewin’s three stage theory of change, the first phase, the unfreezing phase, is an important phase of change. Change is getting ready to happen during this phase. The health care associates of the medical center had been getting ready for change for a few years. The unfreezing phase requires the development of motivation. Motivation was the chance to prosper in a successful business venture while delivering quality care to the community (Kurt Lewin, 2012). Generational Culture The generational culture of the organization had a positive effect on the change. There was a common goal developed, the success of the organization. The generational similarities outnumber the generational differences. According Anick (2008), â€Å"The top reason for happiness in the workplace is the sense of feeling valued† (Table 2. Elements on which members of each generation are mostly similar). The traditional, baby boomers, generation X, and generation Y became involved in the decision making as the new organization structure formed. They shared ideas and offered suggestions for patient care improvement. Informal leaders began to emerge. During the refreezing phase, the stabilization became the norm. The differences in the generational culture became more apparent. More processes, greater accountability, and new required use of technology caused a feeling of less worth for the older generation of health care providers. The younger nurses seemed to adapt more quickly to new systems and techniques. Older nurses began to believe they were less important to the process. The informal leader roles changed. A new information system was installed and education was initiated. This led to more attention on the differences of the generational cultures. Much of the required education was completed on the computer. E-mail is essential for communication within the organization. Some of the traditional generation began to feel left behind. At the end of the first year, many of the health care providers who had survived the previous chaos succumbed to the new advancements and left the organization. Current Organizational Design The current organizational structure of the medical center is a matrix design. The upper administration consists of a chief nursing officer, chief financial officer, and an assistant administrator. This group reports directly to the chief executive officer. The chief executive officer reports to the Board of Trustees. The medical center consists of two distinct campuses, four on-site clinics, and one clinic located off campus. The upper administration is responsible for the organization. The matrix esign is complex and requires good interpersonal skills for dual managers. Each nursing unit has a nurse manager. The nurse managers report to the chief nursing officer regarding any patient care issues. The nurse managers of the behavioral health campus also report to the behavioral health program director for organizational issues. The physicians are under the organizational umbrella for operational regulations but report to the chief medical officer regarding medical patient care. The resource manager has a dual reporting line to the chief nursing officer and the chief financial officer. The matrix requires frequent communication between the dual authorities. Non-management views the frequent meetings as meetings about meetings (Sullivan Decker, 2009) Formal lines of reporting are evident within the organization. The nurse managers report to the chief nursing officer. Managers of departments involving financial business of the hospital report to the chief financial officer. Ancillary and support services report to the assistant administrator. The compliance officer, the pharmacy director and the behavioral health program director report directly to the chief executive officer. The formal lines of reporting are used for recognition of associates, disciplinary offenses, and arbitration of challenges between departments. Patient-Centered Care Environment The organization is creating an environment for client-centered care by the development of a nursing leadership council consisting of direct care providers. The council membership includes seven registered nurses from nursing units with day and night shift representation. The nursing council interviews associates and patients, observes processes, and reports findings to the council. Changes in nursing processes are approved through the nursing council with final approval by the chief nursing officer. The council members were selected using predetermined criteria. The informal leaders of individual departments were chosen for their job performances and their proven leadership skills. The shared governance gives ownership of patient care to the frontline caregivers (Hess, 2004). Organizational Communication Various communication methods are used within the organization. Formal, time sensitive communications are delivered face-to-face or by technology. E-mail and web conferencing are the most frequent used methods for upper administration. Both methods allow quick responses between the communicators. Upper-level management processes the information and decides the best delivery method to the next lower-level management, depending on the subject matter and the expected time frames. Middle management associates attend leadership meetings every two weeks. Management communicates organizational status through these meetings. Plans for future projects are discussed during the leadership meetings. Middle management has e-mail accounts and receives electronic communications on changes. Middle management holds departmental meetings at least monthly to distribute information to the direct care providers. Upper-level management holds open meetings for the direct care providers each quarter. The meetings focus on current organizational trends and plans. Direct care providers ask questions and make suggestions for improvement during the open meetings. Communication boards are placed in strategic areas through the work areas. Information is placed on the communication boards and updated weekly. Questions frequently come from the information from the boards. Conclusion The organizational structure can be descriptive of the culture of the organization. A ridged authoritarian organizational structure defines an organization that does not allow the frontline workers to participate in decisions that affect the organization. The matrix organizational design requires open communication between the leaders of the organization. Added shared governance from the frontline creates more awareness is put on the quality and delivery of the product. Organizational structures vary and are representative of the leadership within.

Information Filtering System Based on Clustering Approach

Information Filtering System Based on Clustering Approach A PRIVATE NEIGHBOURHOOD BASED INFORMATION FILTERING SYSTEM BASED ON CLUSTERING APPROACH ABSTRACT The quantity of web information has been increased day by day due to fast development of internet. Now-a-days people make their decision based on the available information from the internet. But the problem is how the people successfully choose or filter the useful information from the enormous amount of information. This problem is referred as information overload. Recommendation System is a supportive tool to resolve the information overload problem. It is part of information filtering system used to recommend the user based on their own interest, neighborhood similarity and past history. Collaborative Filtering is one of the popular techniques widely used recommendation system. Every recommendation system should ensure privacy for both user’s neighbour and their data. To overcome the scalability and model reconstruction problem, a power graph based private neighborhood recommendation system is proposed to ensure the user’s privacy. First, the compressed network is constructed and then the feature set is extracted from the compressed network using transformed data. The data is transformed using hybrid transformation fuses principal component analysis and rotation transformation to protect users privacy with accurate recommendations. Finally the item to be recommended is predicted which achieve better performance than the existing technique. MovieLens Dataset is used to evaluate this method. INTRODUCTION Recommendation System is one of the information filtering system which provides valuable information to the users by filtering the information according to user’s interest. Traditional approaches of recommendation systems are collaborative filtering, content based filtering and hybrid Approach. Content Based Filtering (CBF) approach predicts the recommendation based on the rating given by the user for the similar items in past history. Collaborative Filtering (CF) recommends the user based on rating of that item by similar users. Hybrid approach combines both the approaches. All the approaches have their own advantage and disadvantage. CF mainly classified as memory based CF and model based CF. Memory based CF first calculate the similarities between the requested user and all other user to find the neighbors then calculate the prediction based on identified neighbors rating pattern. Model based method first built a model based on the preference of the user. Main aim of the recommender system is to minimize the prediction error. The main issues in CF recommender system are scalability, sparsity and privacy. Scalability: Large number of users and items in the network led to the increase in the computational complexity of the system. In E-commerce, scalability plays a important issue because it contain huge number of users. Sparsity: All the users dont show their interest to rate all the items they interact private, which will lead to data sparseness in the system. This will not give exact recommendation to the seekers. Cold Start: Lack of information for new items and users in recommendation system will leads to unpredictable items in the system. Privacy: Users may provide false information inorder to protect their personal information. This leads to inaccurate recommendation. The proposed work mainly focuses on two fundamental issues in CF namely scalability and privacy. The first challenge is how to improve the scalability of CF, because these systems should search the entire user for finding the neighbors. The second problem is how to protect the individual users privacy while prediction. Both an issues lead to poor performance of the system. So the important challenge is to handle both a situation properly for better performance. LITERATURE SURVEY Recommendation system helps the people to get exact information based on neighbors’ pattern. Remarkable growth in e-commerce site makes the online vendors to develop their sales and profits. They use this technique which suggests product to users’ by their neighbors’ preference about the item. Scalability issue in RS mainly due to enormous growth in users tends to decline in accuracy of prediction on recommendation. Clustering approach reduces scalability problem by grouping the similar users. Recommender System may demand the users’ to expose their ratings to recommendation server to give a proper recommendation. But exposing the rating may allow the recommenders to learn the private information about users. Revealing rating may also direct to do violent behavior by several competitive companies’. CLUSTERING IN RECOMMENDER SYSTEM Several different clustering methods are adapted to reduce the scalability problem in RS. A new cluster based matrix tri-factorization is proposed to cluster the user and item simultaneously to get a better recommendation in model based CF. But when the new user enter the system it is necessary to rebuilt the whole model again for other user [].In [0] a cluster based binary tree is built by splitting the dataset and the recommendation is predicted based on the average rating of cluster. Later [] a combined k-means bisecting clustering is performed to overcome the scalability problem while preprocessing and pseudo prediction is adapted. But performance is not much better. Community based clustering model based CF is proposed [] to predict the recommendation but it underperform on outliers. Multilevel clustering is adapted to extract the subgraph which is clustered and propagated to reduce scalability which improved the performance than existing approach. But it will be more complicate d when the aspect of the network increases. Therefore it is necessary to group the data in all the aspects to reduce the scalability. PRIVACY PRESERVING RECOMMENDER SYSTEM In CF, neighbors are identified by collecting the information for the entire user. Thus the server maintain user preference, purchase, usage data etc which may contain identifiable information may violate the privacy. There are several techniques to protect the user’s sensitive information []. Initial method to ensure the privacy protection in CF was proposed by canny (2002a, 2002b), mainly focus on aggregation. In this method sensitive data are aggregated with some common distribution. In cryptographic approach, Individual user data can be protected using homomorphic encryption to avoid exposing of individual data but it requires high computational cost [5]. In perturbation approach, users mask their data before storing it in a central server. The central server collects the disguised data instead of original data to provide predictions with decent accuracy [18]. In [2] a randomized response techniques (RRT) is proposed to preserve users’ privacy by generating naive Ba yesian classifier (NBC) based private recommendations. Another technique, data obfuscation was used to implement privacy preserving collaborative filtering algorithm [16]. In this technique, sensitive data are obfuscated through additive or multiplicative noise in order to protect individual privacy before allowing for analysis. The actual data can be revealed in this technique by applying reverse engineering process [7]. Sensitive information is either concealed or eliminated for the purpose of analyzing the data to extract the knowledge in anonymization technique. The major fault of this technique is some distinctive data may lead to the re-identification of data [1]. In proposed work, a scalable privacy preserving recommendation system is proposed. First the user to user network is constructed from the user preference then compressed network is formed based on the power graph approach. Then feature set extracted from the compressed network based on transformed rating to ensure the privacy during prediction. Finally the linear prediction model is adopted instead of similarity prediction to improve the accuracy besides reduces the complexity. OBJECTIVE To protect the individual’s neighbour information while prediction based on clustering approach this reduces complexity of model reconstruction. To protect the individual data using data transformation technique. PROBLEM FORMULATION A cluster based approach is proposed to protect the individual neighborhood privacy and hybrid data transformation technique is proposed to protect the individual data with accurate recommendation using feature extraction based linear regression prediction. MODULES Data Transformation Experiment is performed using MovieLens Public (MLP) dataset which is the standard dataset to show the better performance of the proposed method. MovieLens dataset is collected by the GroupLens Research Project at the University of Minnesota. This data set consists of three different files of three different sizes 10M, 1M and 10K which mainly contain ratings of different movies provided by the users. To evaluate the proposed method 1M size dataset is used which contains 6040 users, 1 million ratings and 3900 items. The rating values are on five star scales, with five stars being the best and one star being the least. Data collected consist of four attributes separated with double colon as the delimiter [userid :: itemid ::rating :: Timestamp]. To evaluate the proposed work userid, itemid, rating is extracted from the dataset and then extracted data is converted into user x item matrix with dimension (6040 x 3952).Unrated items are filled with value zero to overcome computation comple xity. Data Transformation A hybrid data transformation technique which fuses Principal Component Analysis (PCA) and Rotation Transformation (RT) is proposed to transform the data in order to protect the user’s data. The input to the PCA technique is the rating matrix. This technique first finds the principal components and then rotates these components which cannot be reverted easily. Rotation transformation will be efficient by identifying the appropriate range of angle such that to satisfy the least privacy requirement. Optimum privacy threshold is determined from range of angle which leads to good privacy protection effect. To determine the range of angles, sequence rotation should be performed on vectors with successive angles. For each pair of attributes, pairwise optimum privacy threshold is assigned by multiplying the privacy threshold and the privacy angle which should be maximum. To determine the privacy angle, calculate the variance of each attribute. For each pair of attribute, minimum varia nce will be considered as privacy angle. After determining pairwise optimum privacy threshold, select the range of angles to transform the pair of attribute. While choosing the range of angle make sure that it satisfying the following constraint which is mentioned in Eqn(1) Var(Pi-Pi) ≠¥PoptEqn(1) An angle is randomly chosen from the interval to rotate each and every pair of principal component. After rotating the principal component, it is multiplied with normalized data in order to obtain the transformed data. The Transformed value of the original data for the data is shown in Table 2. Private Neighborhood Network Construction Original network is compressed using power graph analysis. Power graph analysis is a representation of complex network which represent the graph into power graph without loss of information. Graph can be clustered to construct a power graph using modular decomposition method in which modules represents the nodes with same neighbour. Power graph cluster both, the nodes and edges to obtain the most compressed network. Power graph analysis is widely used several biological networks such as protein-protein interactionnetworks, domain-peptide binding motifs,Gene regulatory network and Homology/Paralogy networks. Matrix R can be used to represent the social relationship between the users. If any two users rate the same item then there will be a relationship between them. Thus the user-user network is represented as where U is the set of users represented as nodes and is the set of relationship denoted as edges, and then a power graph is a graph defined on the power set of nodes which are connected by power edges. The concepts of power graphs are as follow: if there is a power edge between two power nodes, then nodes in one power nodes are connected to all the nodes in the second power node. In same way if all the nodes are connected to each other which is represented as power node with self loop. Based on power graph analysis this module involves two steps, power node identification and power edge search. Power nodes are recognized using hierarchical clustering based on jaccard index. The greedy search is performed to identify the power edge. Feature Set Extraction After construction of private network, feature set of each user is extracted by categorizing the users into cold start user, powerful user, and malicious user. Cold start is a user who rate exactly twenty items. Powerful user is user who rate more than thirty five items and malicious user who rate less than twenty five items but the difference between any ratings of a particular item and the standard deviation of that item is greater than one. For the constructed compressed network following features are extracted for each category of the users to predict the rating of unrated item. Feature set of particular user includes features of directly connected power node and Friend Of A Friend (FOAF) in the other power nodes. Each category is measured according to number of particular category of user present in the power node and their joint probability of that particular category. Bayes theorem is used to calculate the most probable rating each category of user. The following Table shows t he feature set measured for each user. Table 5.2 Feature Set of User X Linear Regression prediction From the above extracted features a linear predictive model is constructed which is user for predicting particular item. Then top predicted items are given as recommendation to user. The model takes the following form as in Equation. (5.6) (5.6) where ÃŽ ± represents the slope of the dependent variables, X represent the feature vectors and represents the error vector which is assumed to be zero. In linear regression, the value to be predicted is commonly computed from the best fitting line which reduces error in prediction. PERFORMANCE ANALYSIS: The proposed method is preserves both the individual neighbors privacy and data privacy. It also reduces the scalability issues and give accurate recommendation when compared to the previous work (privacy preserving information filtering system). MAE obtained is compared with the proposed method in previous Chapter TRPC as in Table 5.7. Figure shows that MAE is reduced to 0.62 because of coupling of clustering approach with data transformation to handle large volume of data. CONCLUSION The power graph analysis helps to overcome the scalability problem by compressing the original network and results better recommendation to users. The existing methods apply power graph analysis to various domains for analyzing complex networks in a simpler way. And at the same time it also preserves the communities’ information. Therefore, in proposed work this type of clustering approach is used to preserve the neighbours information which also results better prediction. The efficiency of the proposed methodology is evaluated with the experimental results using MovieLens dataset. It performs better compared data transformation and clustering approach. This type of cluster based collaborative filtering recommendation helps to reduce the edges in the original network without loss of any information.

Pesticides In Ground Water and Drinking Water :: Drinking Water Quality

What is a pesticide?A pesticide is a chemical substance used to kill pests, especially insects. A pesticide is also refered to as a biocide. Most pesticides are applied in spray form but occasionaly you will see pesticides that are in powder or pellet form. Pesticides are used on a variety of things, anything from crops like corn, barley, and wheat, to plants like petunias, marigolds, and rhodadendrons, which are usually found in small gardens greenhouses, and even in your backyard. What is ground water? Water is the life blood of every living creature on earth. Approximately 70 percent of the earth's surface is covered with water. Through the wonders of nature, water can take on many different forms. It is easy to understand the significance water plays in our lives but it may be difficult to understand the water that exists below the earth's surface. This water is called groundwater. Groundwater is usually held in porous soil or rock materials, much the same way water is held in a sponge. The source for much of the world's drinking water is ground water. When pesticdes are sprayed on crops, where do the pesticides go after they are applied to the crops? They soak into the ground where the roots can pick up the pesticide.That further proves my point that pesticides soak into the ground. Pesticides in ground watrer seems to be a continual problem with people now days, because they think that the pesticides dont soak into the ground water. They believe that when a pesticide is sprayed on a plant the leaves are what pick up the pesticide but thats false, the roots pick up the pesticides which proves that the pesticides have to soak at least a few feet into the ground.

Data Link Control (internet) :: essays research papers

Society has become based solely on the ability to move large amounts of information across vast distances quickly. The natural evolution of computers and this need for ultra-fast communications has caused a global network of interconnected computers to develop. This global network allows a person to send E-mail across the world in mere fractions of a second, and enables even the common person to access information world-wide. With the new advancements in technology there must be a set of â€Å"rules† or better known as protocols that must be established and utilized at all times. In this short ten page paper I will be demonstrating the advancements in these protocols and there uses today. To properly show the significant advancement, it will be best to show why Data Link Control was established. In the early 1970’s, the U.S. Defense Advanced Research Projects Agency (DARPA) started a research program interlinking computer to share information. While sending information from one site to the other many problems arose with loosing data (Society). To decrease the amount of corrupted data being transmitted, protocols were established. These protocols were a drawn out process that was very slow but was able to transfer data all across the world. By 1986, the US National Science Foundation Started the NSFNET which today provides one of the biggest backbones for the internet. This supercomputer was able to send packets on its 45 MBps trunk to different locations. Once this was in place the internet was born with TCP/IP Protocols of TCP/IP protocol suite became available in the 1980's. . By 1991-93 Home computers were starting to take advantage of the vast amount of information that is available. By this time the OSI protocol was created and by the end of 1991 the internet has grown to include 5,000 networks in three countries, serving over 700,000 host computers used by over 4,000,000 people. This was all possible due to strict sets of protocols that were followed (Society). By the mid to late 1990’s society was using 56K modems in the residential areas and companies were purchasing faster dedicated connections. At this period of time flow control, error control, and High-level Data link Control (HDLC) were being implem ented. The control of the data being processed is referred to as flow control. Flow control was needed to be established to regulate the speed of data being transmitted. Regulating the speed of the transmission evens out the data so that very little errors will occur.

Free Essays - Themes and Voices in Mary Shelleys Frankenstein :: Frankenstein essays

Themes and Voices in Frankenstein There are many different narrative voices that take place in the novel Frankenstein. These narrative voices not only help the reader appeal to different characters, but they develop characters personality as well. The monster's character evolves in many ways throughout the novel, depending on the point of view it's coming from. When the monster himself speaks (first person) the reader tends to feel sympathy as well as pity, towards him. He is loving and gentle at the beginning of his life, childlike in his curiosity and experiences, but after several harsh encounters with humans, he becomes bitter. Thus seeking revenge on his creator for making him so hideous and rendering him permanently lonely because of his ugliness. He doesn't come across nearly as horrific as he is believed to be in the eyes of Frankenstein. All the monster wanted was to love and to be loved in return and instead he was the true outcast of society. The monster shows a unique ability to analyze humanity because, though he's not a human himself, he has the intelligence of one. He explains, "I heard about the slothful Asiatics; of the stupendous genius and mental activity of the Grecians; of the wars and wonderfu l virtue of the early Romans--of their subsequent degenerating--of the decline of that mighty empire; of chivalry, Christianity, and kings." This synopsis of culture in a nutshell shows the monster's ability to put humanity in perspective. Yet this education only furthers the monster's realization that he is disconnected from the humans he admires. The reader's take on the monster however changes dramatically when Victor is the narrator. Frankenstein's creation becomes a wretched and terrible villain of the story when it is told through him (third person). For example Victor's disgust and hatred for the monster is evident right from the first time he sees him, as he says "A flash of lightning illuminated the object and discovered its shape plainly to me; its gigantic stature, and the deformity of its aspect, more hideous than belongs to humanity, instantly informed me that it was the wretch, the filthy demon to whom I had given life." When the story is told through Victor it is all about what the monster is doing to him and how heartless the creature is.

Medea Essay

In Euripides’ play â€Å"Medea† the main character is a powerful, but controversial woman – Medea herself. Reading the story some people might be confused with the actions that the protagonist decides to take. She is violent, vindictive, bloody and seemingly crazy. By looking at actions alone, Medea would certainly be considered evil. However, the author creates a character decidedly more complex. We can see it through the background story of the character and development of the play’s plot.That is why I think the full presentation of the character in the work makes people react more sympathetically towards the character. As the Nurse at the beginning of the story tells, Medea gave up everything she had to be with Jason. She left her family, and even killed her own brother to be able to run away with him. Medea, who has been dishonestly betrayed by her husband, uses revenge to punish him for his deeds and to seek the rewards which it offers to  ones prid e.The reader begins to feel pity for the main character and even excuse her actions. That is a result of identification with Medea, as a cheated spouse. In any kind of relationship during life, people expect fidelity, so they clearly understand why she wanted revenge. Medea’s other main reason why she took such a bloody revenge on Jason, was the fact that, she was under a spell, that Athena cast on her. Thus her actions are not completely under her control. The love spell is so strong, that the protagonist decided to kill even her own kids.She wanted him to feel the mutual pain, she went through after the betrayal. At the end the story Jason stays without descendants or wife, and on a foreign land, what makes him unable to improve his social status. At this point of the story the reader understand, that Medea is not completely mentally healthy, so they don’t judge her as harshly, as an absolutely conscious person. At the end I would like to mention about the other reas on, why Medea decided to kill her children. Her main purpose was to look out for what was â€Å"best for her kids†.She thought it would be better to kill her children then to leave them for her enemies that they would soon have to face, after her exile. Medea suspected that they might get killed out of revenge for what she did to the princess and the king. The reader starts to sympathize her, because of the tough decision she had to confront as a loving and carrying mother. For some people Medea might be seen as a cruel and evil character. However, I certainly can state that the reader tend to sympathize her more, by looking at the whole character, instead of only judging her by the actions.The character was under a very powerful love spell and moreover, she had been betrayed by her beloved what might led her to put those drastic plans into actions. Furthermore, Medea was trying to do the best she could for the children, despite of the tragic ending that was either way about to happen. All those circumstances definitely led her to an emotional instability and also to choose the bloody path of revenge. Probably she would have never done all this without provocation.

Siddhartha and The Alchemist comparison essay

Every individual’s life is a journey. There are different stages in life that one goes through and by experiencing these different stages of life one becomes wiser. In the novel, Siddhartha and The Alchemist the protagonist Siddhartha and Santiago both go through man different stages in life which made them grow, learn and transform into wiser people. Both protagonists go on a journey which is eventually the same but the purpose of journey is different. Similarly, both protagonist struggles through their journey to become a wiser people. However, the end result for both protagonists was the same which is discovering themselves. Both the father discourages them for leaving their house and going on their journey.Siddhartha the protagonist in Siddhartha is the son of the respected and wealthiest Brahmin. However he is not happy even though he has everything he could ever ask for. Siddhartha realized that he made everyone else happy but that he himself wasn’t. He also got t he feeling that he had already learned the best of what his teachers had to teach but it still wasn’t enough. He still wasn’t satisfied. â€Å"Tomorrow morning, my friend Siddhartha is going to join the Samanas. He is going to become Samana† (Hesse, 9). . Samanas are monks who go around begging for food and they are known for their spirituality.Siddhartha thinks of joining the Samanas as he wanted to become spiritually knowledgeable and get rid of the â€Å"self†, which is a sense of greed and jealousy. But before he could go join Samanas he has to go ask his father’s permission to let him go. When Siddhartha goes to see his father to ask for permission his father was unhappy with Siddhartha’s decision because he wanted Siddhartha to stay home, take care of the house as well as take over the Brahmins position. But however, Siddhartha was not willing to take no for an answer and said â€Å"I will stand here and wait, you will grow tired Sidd hartha, I will grow tired, you will fall asleep Siddhartha, I will not fall asleep, you will die Siddhartha, I will die† (Hesse, 11) which shows his passionate desire for enlightenment.The father and son disagreement is also in Alchemist but it is less intense than the disagreement between Siddhartha and his father. Santiago is a young boy who decided that he did not want to become a priest but a shepherd. His father  tries to explain Santiago to think again about his decision of traveling by saying â€Å"Among us, the only ones who travels are the Shepherds† â€Å"well then I’ll be a shepherd† (Coelho, 9). While going against what was wanted of his parents, his father showed acceptance of his decision to become a shepherd by giving him three ancient Spanish gold coins. Santiago’s life as a shepherd and his journey started from that day.Santiago was comfortable with being a shepherd. He knew how to be a shepherd; he trusted the sheep and the sheep trusted him too. But being a shepherd did not truly make Santiago happy. One day Santiago was taking shelter with his sheep’s under the old church. He has the same dream every time he falls asleep under the sycamore tree that grows out of the ruin of the church. Santiago was so driven by the reoccurring of the same dream and eventually Santiago sold his flock of sheep and embarked on his great journey to the pyramids. Throughout the novel, each protagonist showed their strong will to go on journey even if it meant going against their family.The Protagonist in both novels faces obstacles along their journey but these obstacles made them stronger and wiser. On his journey to get answers for his question and reach Nirvana. Siddhartha struggles, starves, get burned and sacrifices his easy life and chooses this hard path just in order to gain Nirvana (enlightenment). As he leaves home to become Samana, he realizes that the path he has chosen is not the right one.† It was th e self, the character and to rid myself of the self, to conquer it, but I could not conquer it. I could only deceive it†¦..I am Siddhartha; and about nothing in the world do I know less than about myself, about Siddhartha† (Hesse, 38).Siddhartha struggles not knowing what to do, where to go and who he was. Siddhartha was trapped in a cycle of losing and regaining his self. â€Å"You have observed well, you have seen everything. You have seen Siddhartha, the son of Brahmin. Who left his home to become a Samana and who has been Samana for three years. But now, I have left that path and came into this city, and the first one I met, even before I had entered the city, was you. To say this, I have come to you, oh Kamala! You are the first woman whom Siddhartha is not addressing with his eyes turned to the ground. Never again will I love my eyes when I meet a beautiful women† (Hesse, 53).Things suddenly changes after meeting Kamala. Siddhartha starts getting involved in the things that he was once against which are pleasure and money. He struggles and works  hard in-order to impress Kamala. In the same way, Santiago faces numerous obstacles along his journey as well. On his journey when Santiago arrives in tangier, he meets a boy who is his age who speaks Spanish and offered to help him get to the pyramids. When they were about to leave the bar owner grabs Santiago and tells him something. â€Å"The boy push the owner aside and pulls Santiago outside with him† and tells him that â€Å"the owner wanted Santiago’s money† (Coelho, 37). But the owner of the bar was trying to warn Santiago about his new friend. Santiago ends up getting tricked and losing all his money.He later realize the bar owner was trying help him. After that incident he ends up working at a crystal shop in order to earn money for his trip. Another obstacle he faces is when there was a battle going on in the desert. Some armies blocked him and the alchemist fr om going. The alchemist told the armies that Santiago is someone† who understand the force of nature† (Coelho, 163). By listening to what alchemist said. The armies put Santiago on test. If he fails they would kill him. Both protagonists go through a lot of obstacles on their journey. Having the ability to succeed to your personal legend, and find self-discovery allows people to open their minds and see the world for what it really is and how everything has a purpose in life.On his path to self-discovery, Siddhartha, had to confront many challenges, such as leaving his family, friends, and loved ones as he kept going on his journey. Siddhartha overcame these problems through introspection and help from others Siddhartha couldn’t figure out how he could find Nirvana (enlightenment). He understood it when his son left him to follow his own dreams. â€Å"His face resembles that of another person, whom he had once known and loved and even feared. It resembles the fac e of his father, the Brahmin. He remember how once, as a youth, he had compelled his father to let him go and join the ascetics, how he had taken leave of him, how he had gone and never returned†¦Ã¢â‚¬ ¦.had not his father died long time ago, alone, without having seen his son again?† (Hesse, 131).He realizes that he wouldn’t have been able to stop his son just; like how his father wasn’t able to stop from leaving. Santiago’s dream was to make it to the pyramids, but the adventure that he found himself on in order to get to those pyramids taught him more than he ever thought. â€Å"He thought many roads he have travelled, and of the strange way god have chosen to show him  his treasure. If he hasn’t believed in the significance of recurrent dreams, he would not have met the gypsy women, the king, the thief or†¦Ã¢â‚¬  (Coelho, 165). He learns many things on the way to find his treasure. Therefore, his journey becomes successful as he fi nds treasure.While staying with the crystal shop owner he learns that â€Å"every blessing ignored becomes a curse† (Hesse, 58). And also learns that it is necessary to adopt different methods in order to succeed in life. Siddhartha and Santiago come across things that came in their heart which made them wiser. Throughout the novel, each protagonist shows that their life is a journey, not a destination, and that the real treasure is in the journey itself. They showed strong determination which resulted in success of their journey. Each protagonist faces numerous obstacles which made them grow wiser and they discover their true selves.

The Host Chapter 44: Healed

â€Å"Wanda†¦Ã¢â‚¬  â€Å"We don't have time. I'd do it myself, but I can't get the angle right. There's no other way.† â€Å"I don't think I can†¦ do it.† â€Å"For Jamie, even?† I pushed the good side of my face as hard as I could against the headrest of the passenger seat and closed my eyes. Jared was holding the rough fist-sized stone I'd found. He'd been weighing it in his hand for five minutes. â€Å"You just have to get the first few layers of skin off. Just hide the scar, that's all. C'mon, Jared, we have to hurry. Jamie†¦Ã¢â‚¬  Tell him I said to do it now. And make it a good one. â€Å"Mel says do it now. And make sure you do it hard enough. Get it all the first time.† Silence. â€Å"Do it, Jared!† He took a deep breath, a gasp. I felt the air move and squeezed my eyes tighter. It made a squishing sound and a thud-that was the first thing I noticed-and then the shock of the blow wore off, and I felt it, too. â€Å"Ungh,† I groaned. I hadn't meant to make any sound. I knew that would make it worse for him. But so much was involuntary with this body. Tears sprang up in my eyes, and I coughed to hide a sob. My head rang, vibrated in aftershock. â€Å"Wanda? Mel? I'm sorry!† His arms wrapped around us, pulled us into his chest. â€Å"‘S okay,† I whimpered. â€Å"We're okay. Did you get it all?† His hand touched my chin, turned my head. â€Å"Ahh,† he gasped, sickened. â€Å"I took half your face off. I'm so sorry.† â€Å"No, that's good. That's good. Let's go.† â€Å"Right.† His voice was still weak, but he leaned me back into my seat, settling me carefully, and then the car rumbled beneath us. Ice-cold air blew in my face, shocking me, stinging my raw cheek. I'd forgotten what air-conditioning felt like. I opened my eyes. We were driving down a smooth wash-smoother than it should have been, carefully altered to be this way. It snaked away from us, coiling around the brush. I couldn't see very far ahead. I pulled the visor down and flipped open the mirror. In the shadowy moonlight, my face was black and white. Black all across the right side, oozing down my chin, dripping across my neck, and seeping into the collar of my new, clean shirt. My stomach heaved. â€Å"Good job,† I whispered. â€Å"How much pain are you in?† â€Å"Not much,† I lied. â€Å"Anyway, it won't hurt much longer. How far are we from Tucson?† Just then, we reached pavement. Funny how the sight of it made my heart race in panic. Jared stopped, keeping the car hidden in the brush. He got out and removed the tarps and chains from the bumper, putting them in the trunk. He got back in and eased the car forward, checking carefully to make sure the highway was empty. He reached for the headlights. â€Å"Wait,† I whispered. I couldn't speak louder. I felt so exposed here. â€Å"Let me drive.† He looked at me. â€Å"It can't look like I walked to the hospital like this. Too many questions. I have to drive. You hide in the back and tell me where to go. Is there something you can hide under?† â€Å"Okay,† he said slowly. He put the car into reverse and pulled it back into the deeper brush. â€Å"Okay. I'll hide. But if you take us somewhere I don't tell you to go†¦Ã¢â‚¬  Oh! Melanie was stung by his doubt, as was I. My voice was flat. â€Å"Shoot me.† He didn't answer. He got out, leaving the engine running. I slid across the cup holders into his seat. I heard the trunk slam. Jared climbed into the backseat, a thick plaid blanket under his arm. â€Å"Turn right at the road,† he said. The car was an automatic, but it had been a long time and I was unsure behind the wheel. I moved ahead carefully, pleased to find that I remembered how to drive. The highway was still empty. I pulled out onto the road, my heart reacting to the open space again. â€Å"Lights,† Jared said. His voice came from low on the bench. I searched till I found the switch, then flicked them on. They seemed horribly bright. We weren't far from Tucson -I could see a yellowish glow of color against the sky. The lights of the city ahead. â€Å"You could drive a little faster.† â€Å"I'm right at the limit,† I protested. He paused for a second. â€Å"Souls don't speed?† I laughed. The sound was only a tad hysterical. â€Å"We obey all laws, traffic laws included.† The lights became more than a glow-they turned into individual points of brightness. Green signs informed me of my exit options. † Take Ina Road.† I followed his instructions. He kept his voice low, though, enclosed as we were, we could both have shouted. It was hard to be in this unfamiliar city. To see houses and apartments and stores with signs lit up. To know I was surrounded, outnumbered. I imagined what it must feel like for Jared. His voice was remarkably calm. But he'd done this before, many times. Other cars were on the road now. When their lights washed my windshield, I cringed in terror. Don't fall apart now, Wanda. You have to be strong for Jamie. This won't work if you can't do that. I can. I can do it. I concentrated on Jamie, and my hands were steadier on the wheel. Jared directed me through the mostly sleeping city. The Healing facility was just a small place. It must have been a medical building once-doctors' offices, rather than an actual hospital. The lights were bright through most of the windows, through the glass front. I could see a woman behind a greeting desk. She didn't look up at my headlights. I drove to the darkest corner of the parking lot. I slid my arms through the straps of the backpack. It wasn't new, but it was in good shape. Perfect. There was just one more thing to do. â€Å"Quick, give me the knife.† â€Å"Wanda†¦ I know you love Jamie, but I really don't think you could use it. You're not a fighter.† â€Å"Not for them, Jared. I need a wound.† He gasped. â€Å"You have a wound. That's enough!† â€Å"I need one like Jamie's. I don't know enough about Healing. I have to see exactly what to do. I would have done it before, but I wasn't sure I'd be able to drive.† â€Å"No. Not again.† â€Å"Give it to me now. Someone will notice if I don't go inside soon.† Jared thought it through quickly. He was the best, as Jeb had said, because he could see what had to be done and do it fast. I heard the steely sound of the knife coming out of the sheath. â€Å"Be very careful. Not too deep.† â€Å"You want to do it?† He inhaled sharply. â€Å"No.† â€Å"Okay.† I took the ugly knife. It had a heavy handle and was very sharp; it came to a tapered point at the tip. I didn't let myself think about it. I didn't want to give myself a chance to be a coward. The arm, not the leg-that's all I paused to decide. My knees were scarred. I didn't want to have to hide that, too. I held my left arm out; my hand was shaking. I braced it against the door and then twisted my head so that I could bite down on the headrest. I held the knife's handle awkwardly but tightly in my right hand. I pressed the point against the skin of my forearm so I wouldn't miss. Then I closed my eyes. Jared was breathing too hard. I had to be fast or he would stop me. Just pretend it's a shovel opening the ground, I told myself. I jammed the knife into my arm. The headrest muffled my scream, but it was still too loud. The knife fell from my hand-jerking sickeningly out from the muscle-and then clunked against the floor. â€Å"Wanda!† Jared rasped. I couldn't answer yet. I tried to choke back the other screams I felt coming. I'd been right not to do this before driving. â€Å"Let me see!† â€Å"Stay there,† I gasped. â€Å"Don't move.† I heard the blanket rustling behind me despite my warning. I pulled my left arm against my body and yanked the door open with my right hand. Jared's hand brushed my back as I half fell out the door. It wasn't a restraint. It was comfort. â€Å"I'll be right back,† I coughed out, and then I kicked the door shut behind me. I stumbled across the lot, fighting nausea and panic. They seemed to balance each other out-one keeping the other from taking control of my body. The pain wasn't too bad-or rather, I couldn't feel it as much anymore. I was going into shock. Too many kinds of pain, too close together. Hot liquid rolled down my fingers and dripped to the pavement. I wondered if I could move those fingers. I was afraid to try. The woman behind the reception desk-middle-aged, with dark chocolate skin and a few silver threads in her black hair-jumped to her feet when I lurched through the automatic doors. â€Å"Oh, no! Oh, dear!† She grabbed a microphone, and her next words echoed from the ceiling, magnified. â€Å"Healer Knits! I need you in reception! This is an emergency!† â€Å"No.† I tried to speak calmly, but I swayed in place. â€Å"I'm okay. Just an accident.† She put the microphone down and hurried around to where I stood swaying. Her arm went around my waist. â€Å"Oh, honey, what happened to you?† â€Å"So careless,† I muttered. â€Å"I was hiking†¦ I fell down the rocks. I was†¦ cleaning up after dinner. A knife was in my hand†¦Ã¢â‚¬  My hesitations seemed like part of the shock to her. She didn't look at me with suspicion-or humor, the way Ian sometimes did when I lied. Only concern. â€Å"You poor dear! What's your name?† â€Å"Glass Spires,† I told her, using the rather generic name of a herd member from my time with the Bears. â€Å"Okay, Glass Spires. Here comes the Healer. You'll be fine in just a moment.† I didn't feel panicked at all anymore. The kindly woman patted my back. So gentle, so caring. She would never harm me. The Healer was a young woman. Her hair, skin, and eyes were all a similar shade of light brown. It made her unusual looking-monochromatic. She wore tan scrubs that only added to that impression. â€Å"Wow,† she said. â€Å"I'm Healer Knits Fire. I'll get you fixed up directly. What happened?† I told my story again as the two women led me down a hallway and then through the very first door. They had me lie down on the paper-covered bed. The room was familiar. I'd been in only one place like this, but Melanie's childhood was full of such memories. The short row of double cabinets, the sink where the Healer was washing her hands, the bright, clean white walls†¦ â€Å"First things first,† Knits Fire said cheerfully. She pulled a cabinet open. I tried to focus my eyes, knowing this was important. The cabinet was full of rows and rows of stacked white cylinders. She took one down, reaching for it without searching; she knew what she wanted. The small container had a label, but I couldn't read it. â€Å"A little no pain should help, don't you think?† I saw the label again as she twisted the lid off. Two short words. No Pain? Was that what it said? â€Å"Open your mouth, Glass Spires.† I obeyed. She took a small, thin square-it looked like tissue paper-and laid it on my tongue. It dissolved at once. There was no flavor. I swallowed automatically. â€Å"Better?† the Healer asked. And it was. Already. My my head was clear-I could concentrate without difficulty. The pain had melted away with the tiny square. Disappeared. I blinked, shocked. â€Å"Yes.† â€Å"I know you feel fine now, but please don't move. Your injuries are not treated yet.† â€Å"Of course.† â€Å"Cerulean, could you get us some water? Her mouth seems dry.† â€Å"At once, Healer Knits.† The older woman left the room. The Healer turned back to her cabinets, opening a different one this time. This, too, was filled with white containers. â€Å"Here we are.† She pulled one from the top of a stack, then took another from the other side. Almost as if she were trying to help me fulfill my mission, she listed the names as she reached for them. â€Å"Clean-inside and out†¦ Heal†¦ Seal†¦ And where is†¦ ah, Smooth. Don't want a scar on that pretty face, do we?† â€Å"Ah†¦ no.† â€Å"Don't worry. You'll be perfect again.† â€Å"Thank you.† â€Å"You're very welcome.† She leaned over me with another white cylinder. The top of this one came off with a pop, and there was an aerosol spray nozzle underneath. She sprayed my forearm first, coating the wound with clear, odorless mist. â€Å"Healing must be a fulfilling profession.† My voice sounded just right. Interested, but not unduly so. â€Å"I haven't been in a Healing facility since insertion. This is very interesting.† â€Å"Yes, I like it.† She started spraying my face. â€Å"What are you doing now?† She smiled. I guessed that I was not the first curious soul. â€Å"This is Clean. It will make sure nothing foreign stays in the wound. It kills off any of the microbes that might infect the wound.† â€Å"Clean,† I repeated to myself. â€Å"And the Inside Clean, just in case anything has snuck into your system. Inhale this, please.† She had a different white cylinder in her hand, a thinner bottle with a pump rather than an aerosol top. She puffed a cloud of mist into the air above my face. I sucked in a breath. The mist tasted like mint. â€Å"And this is Heal,† Knits Fire continued, twisting the cap off the next canister, revealing a small pouring spout. â€Å"It encourages your tissues to rejoin, to grow the way they should.† She dribbled a tiny bit of the clear liquid into the wide cut on my arm, then she pushed the edges of the wound together. I could feel her touch, but there was no pain. â€Å"I'll seal this up before I move on.† She opened another container, this one a pliable tube, and then squeezed out a line of thick, clear jelly onto her finger. â€Å"Like glue,† she told me. â€Å"It holds everything together and lets the Heal do its job.† She wiped it over my arm in one swift pass. â€Å"Okay, you can move that now. Your arm is fine.† I held it up to look. A faint pink line was visible under the shiny gel. The blood was still wet on my arm, but there was no source anymore. As I watched, the Healer cleaned my skin with one quick pass of a damp towel. â€Å"Turn your face this way, please. Hmm, you must have hit those rocks just exactly wrong. What a mess.† â€Å"Yes. It was a bad fall.† â€Å"Well, thank goodness you were able to drive yourself here.† She was lightly dripping Heal onto my cheek, smearing it with the tips of her fingers. â€Å"Ah, I love to watch it work. Looks much better already. Okay†¦ around the edges.† She smiled to herself. â€Å"Maybe one more coat. I want this to be erased.† She worked for a minute longer. â€Å"Very nice.† â€Å"Here's some water,† the older woman said as she came through the door. â€Å"Thank you, Cerulean.† â€Å"Let me know if you need anything more. I'll be up front.† â€Å"Thanks.† Cerulean left. I wondered if she was from the Flower Planet. Blue flowers were rare-one might take a name from that. â€Å"You can sit now. How do you feel?† I pulled myself up. â€Å"Perfect.† It was true. I hadn't felt so healthy in a long time. The sharp shift from pain to ease made the sensation more powerful. â€Å"That's just how it should be. Okay, let's dust on a little Smooth.† She twisted the last cylinder's top and shook an iridescent powder into her hand. She patted it into my cheek, then patted another handful onto my arm. â€Å"You'll always have a small line on your arm,† she said apologetically. â€Å"Like your neck. A deep wound†¦Ã¢â‚¬  She shrugged. Absentmindedly, she brushed the hair back from my neck and examined the scar. â€Å"This was nicely done. Who was your Healer?† â€Å"Um†¦ Faces Sunward,† I said, pulling the name from one of my old students. â€Å"I was in†¦ Eureka, Montana. I didn't like the cold. I moved south.† So many lies. I felt a twist of anxiety in my stomach. â€Å"I started out in Maine,† she said, not noticing anything amiss in my voice. As she spoke, she cleaned the blood from my neck. â€Å"It was too cold for me, too. What's your Calling?† â€Å"Um†¦ I serve food. In a Mexican restaurant in†¦ Phoenix. I like spicy food.† â€Å"Me, too.† She wasn't looking at me funny. She was wiping my cheek now. â€Å"Very nice. No worries, Glass Spires. Your face looks great.† â€Å"Thank you, Healer.† â€Å"Of course. Would you like some water?† â€Å"Yes, please.† I kept a grip on myself. It wouldn't do to bolt the glass down the way I wanted to. I wasn't able to stop myself from finishing it all, though. It tasted too good. â€Å"Would you like more?† â€Å"I†¦ yes, that would be nice. Thank you.† â€Å"I'll be right back.† The second she was out the door, I slid off the mattress. The paper crackled, freezing me in place. She didn't dart back in. I had only seconds. It had taken Cerulean a few minutes to get the water. Maybe it would take the Healer just as long. Maybe the cool, pure water was far away from this room. Maybe. I ripped the pack off my shoulders and wrenched the drawstrings open. I started with the second cabinet. There was the stacked column of Heal. I grabbed the whole column and let it clatter quietly into the bottom of my pack. What would I say if she caught me? What lie could I tell? I took the two kinds of Clean next, from the first cabinet. There was a second stack behind the first of each, and I took half of those, too. Then the No Pain, both stacks of that. I was about to turn back for the Seal, when the label of the next row of cylinders caught my attention. Cool. For fevers? There were no instructions, just the label. I took the stack. Nothing here would hurt a human body. I was sure of that. I grabbed all the Seal and two cans of Smooth. I couldn't press my luck any further. I closed the cabinets quietly and threw my arms through the straps of the pack. I leaned against the mattress, making another crackle. I tried to look relaxed. She didn't come back. I checked the clock. It had been one minute. How far away was the water? Two minutes. Three minutes. Had my lies been as obvious to her as they were to me? Sweat started to dew up on my forehead. I wiped it away quickly. What if she brought back a Seeker? I thought of the small pill in my pocket, and my hands shook. I could do it, though. For Jamie. I heard quiet footsteps then, two sets, coming down the hall.

Securitisation

Outline the advantages and disadvantages of the securitisation of bank loans 1. 1 Introduction â€Å"The recent turmoil in credit markets has highlighted how securitisation has changed in only a few years from being a relatively niche market in the euro area to being a major force behind capital market developments†. This growth in securitisation reflects the increased pace of financial innovation in the financial markets.It is rational to say that this global trend of the growth in securitisation is a result of the advantages that are derived by the different parties engaged in the transaction. Securitisation has become an important tool for many companies and a key part of the global capital markets. However, while securitisation has benefited the financial system as a whole through enhancing its ability in performing its various functions, it has concurrently changed the underlying economics of the banking system, which brought consequences as those experienced in the 2007 financial crisis.Whether the gains exceed the losses is a debatable issue in itself as some intellectuals believe that securitisation has â€Å"contributed to the development of a far more flexible, efficient, and resilient financial system than existed just a quarter-century ago†, while others believe the opposite. The significance of securitisation has led to there has been talks by influential bodies about how securitisation can be regulated or changed as to maximise the benefits and minimize the costs.In this essay, to answer the above question I will define securitisation, explain its mechanics and nature and lastly discuss its advantages and disadvantages for the different parties engaged in it and the financial system as a whole. The scope of this essay is secondary securitisation, so the above will be discussed specifically to this type and not primary and tertiary. 1. 2 Definition of key terms Securitisation in general is the â€Å"creation and issuance of debt secu rities, or bonds, whose payments of principal and interest derive from cash flows generated by separate pools of assets†.There 2 types of securities that can be issued. When the securitised assets are mortgages, the securities issued are known as Mortgage -Backed Securities (MBS) and where it is other assets which are non-mortgage loans then Asset-backed securities (ABS) are issued. In the latter type, assets included are such as consumer loans, credit card receivables and car loans. These securities are marketable financial instruments, and tradable. In every securitisation transaction the capital markets are displacing the banks regardless of its type, whether primary secondary or tertiary, i. . disintermediation. Secondary securitisation is Asset Backed. Bank of England defines this type as â€Å"a transaction or scheme whereby the credit risk of an asset or a pool of assets such is transferred to an external undertaking (the securitisation special purpose vehicle or struc ture), which then transfers this credit risk onwards to investors in fixed-income securities known as asset backed securities issued by that undertaking. The investors in the securities may be either external investors or the institution that originated the underlying assets†.Another way to look at this process is through Professor Llewellyn definition which explicitly high lightens the benefits. He defines secondary securitisation as ‘the conversion of cash flows from a portfolio of assets into negotiable instruments or assignable debts which are sold to investors, are secured on the underlying assets and carry a variety of credit enhancement†. To clearly outline the pros and cons of the participants in the process, one needs to understand their roles as shown below in figure 1. Figure 1 1. 3 How it worksWhen a bank transforms a portfolio of loans that it is currently holding on the balance sheet into tradable securities issued by a bankruptcy-remote special purpo se vehicle it follows a basic procedure as seen in the diagram. A number of customers borrow from the bank. They all have to payback regular interest and principal payments to the bank as agreed upon on the contract. Starting from the originator in this case the bank, it pools together a number of these loans (assets) and constructs a portfolio of which it sells to the special purpose vehicle SPV.The SPV usually acquires the underlying assets from the originator in what is known as a true sale. It is critical that the transfer of assets from the originator to the SPV is legally viewed as a â€Å"true sale†. This is because it gives the investors rights over the specific assets of the originator, such that the investors are not affected by the performance, or bankruptcy of the originator. This would obviously necessitate that the investors, or the SPV which is a conduit on behalf of the investors, has legally acquired the assets.If it is not a true sale the investor will be vu lnerable to claims against the asset originator in this case the bank. The SPV then issues asset – backed securities to investors which investors can them trade in the financial capital markets. Investors then buy these securities and the SPV receives the regular interest and principal payments from the borrowers through the originator or servicer (if the bank does not retain the servicing function) who charge a certain fee. The SPV pays the originator for the portfolio in a lump sum rather than a stream of payments spread over time.It is important to acknowledge that the bank continues to maintain the relationship with the customer and it does not have a duty to inform this about this process. The credit quality of the securities issued by the SPV is rated by a rating agency before being sold to investors. Also another important participant though missing in figure 1:1, is a credit enhancer. This is either internally or externally done and it might take the form of â€Å"ov er – securitisation (placing a higher value of loan in the portfolio than the value of the sale), a third party guarantee or a guarantee from the seller†.This has the effect of limiting the risk to investors. The underwriter is usually an investment bank that serves as an intermediary between the issuer (SPV or the trust) and investors. The swap counterparty as seen in the diagram is normally involved to hedge the interest rate and currency risks on the pool and the trustee ensures that the money is transferred from the servicer to the SPV and that investors are paid in accordance with the promised priority. A crucial aspect of securitisation is the isolation of assets. After a true sale, the assets (collateral) are held by the SPV or equivalent.This protects the seller (originator) from the risk of the assets and investor from the risks of the bank, because even if the bank goes bankrupt, the payments on the assets will continue to be made, so investors still receive t he interest and principal payments. An SPV might be a completely independent entity or a subsidiary of the bank itself. In the crisis it was more of the latter. However, for it to be a subsidiary it will only work if the SPV is bankruptcy remote, as explained earlier. This is where under company law the SPV is immune to the bankruptcy of the ank. This makes their risk entirely different and this is how credit risk isolation and shifting is possible. Also an SPV might become a Structured Investment Vehicle. Often the SPV has a higher credit rating (most secure a AAA rating) than the originator. The SPV performing the asset-backed securitization(s) also usually has a backup liquidity facility in place provided by a stand-by commitment from a syndicate (group) of banks. This facility protects the investors who purchase the commercial paper issued by the SPV as the assets are being purchased and pooled.If for some reason the SPV cannot attract the same or new investors to roll over the commercial paper or there is insufficient cash flow generated by the pool to pay off maturing commercial paper then the SPV draws on the backup liquidity facility to pay off the investors and the bank group then become the owners of the assets held by the SPV (to either wait for the cash flow to improve or to liquidate the portfolio). Credit enhancements are required in order to receive higher debt ratings and thus improve marketability and financing costs.The credit enhancement of a securitization can be achieved by dividing it into tranches and allowing some tranches be exposed first to any loss from defaulting / under-performing individual asset or group of assets first. In this manner, these front-line tranches almost function like an equity piece such that the investors in the other tranches (Mezzanine tranches) are satisfied first before the lower tranches. These lower-rated (first loss) tranches usually receive a higher yield (due to their higher risk position) when the secur ity is first structured in order to attract investors when first brought to market. . Advantages of secondary securitisation There are different aspects to the benefits of securitisation, the benefits derived by the issuer (bank) and those derived by the investor and the financial system as a whole. 2. 1 The issuer Secondary securitisation benefits the banks by helping them generate more funds but also by allowing them to manage their assets and liabilities, risk and also capital. * A source of funding Securitisation enables banks to change the illiquid portfolio of loans into liquid tradable securities. It makes loans marketable.So the banks get funds immediately from selling the portfolio to the SPV. Also there being a secondary market for these securities in itself increases the attractiveness of investors to buy the securities meaning more funds. The funding source is also widened because as the risk are specific, asset –backed securities often appeal to investors who wou ld not normally make funds available to banks by themselves. This source of funding may also be cheaper for the bank. This is because banks do not need to increase their interest rates to ‘attract marginal deposits to fund their loan book’.Also because the banks transfer the asset to the SPV they do not need to hold capital against the loans (assets) which is a cost, making this type of funding cheaper. Ultimately this means that it can offer lower interest rates to borrowers, which could have the effect of increasing the quantity of loans demanded. This cheapness is not always possible; it only depends on the nature of the risks of the portfolio after and before securitisation. * Asset and liability management The fact that securitisation allows banks to shift the assets from their balance sheet allows them to change their asset composition on the sheet within a given total.They can change the structure of their assets and ‘reduce exposure to a particular loan ca tegory’ by securitizing those loans which also helps in managing risks. It also provides the balance sheet with flexibility and facilitates diversification of the loan portfolio. * Risk management As the definition implies, securitisation allows banks to transfer and shift credit risk from their balance sheet to those who are willing and more able to absorb them. Hence this allows banks to manage their risk and limit their risks by selling those loans.The transfer of risk allows banks to not hold any capital against the risks, so as earlier said reduces the cost of banking. It also allows them to manage interest rate risk. * Capital Management Due to the increasing competitive pressures, they cannot earn a sufficient return on the assets to service their capital base well. Securitisation saves them capital as explained earlier. * Other Banks can earn additional income by charging fees on originating loans that it does not intend to keep on its balance sheet.Also banks still g et to maintain their relationship with their customers and reduce the overall cost of intermediation by concentrating on their comparative advantages (originating loans). 2. 2 The investor * It gives investors the opportunity to earn a higher rate of return (on a risk-adjusted basis). Also the high liquidity of securities means that investors can trade them for cash at their own convenience. * Asset backed securities allows the isolation of credit risk from the originator.This could benefit investors in that they are not exposed to the banks risks of which could increase the credit rating of the underlying assets themselves. * Investors also get the opportunity to invest in a specific pool of high quality assets: Due to the stringent requirements for corporations (for example) to attain high ratings, there is a dearth of highly rated entities that exist. Securitizations, however, allow for the creation of large quantities of AAA, AA or A rated bonds, and risk averse institutional in vestors, or investors that are required to invest in only highly rated assets, have access to a larger pool of investment options. Investors can gain portfolio diversification as they tend to invest in securities that may be uncorrelated  to their other bonds and securities. 2. 3 The Financial System In general securitisation, being part of innovation has benefits for the financial system and the economy as a whole by contribution to the basic functions of the financial system: risk-transference, pricing of risk, liquidity-enhancement, credit-generation and financial intermediation, insurance, asset and liability management, an efficient allocation of financial resources, and the funding of financial institutions.Securitisation as a technique means that loans are assed more frequently and hence to current terms as when they are just on a bank’s balance sheet. In a way this allows the risks prices to be adjusted accordingly. Also another important direct contribution is the ability that it offers banks to lend more to the economy by knowing that it can sell the loans. This has its drawbacks which will be discussed later, but while it is possible, it helps the real economy as governments encourage more lending for the betterment of the real economy.In addition, securitisation allows different parties to concentrate on their comparative advantages such as banks being originators. It is in this ways that securitisation increases the efficiency of the financial system which is a social benefit to its people. The Bank for international settlements summarises this in ‘â€Å"the development of credit risk transfer [CRT] has a potentially important impact on the functioning of the financial system. It provides opportunity for more effective risk management, promises the relaxation of some constraints on credit availability, and allows more efficient allocation of risk to a wider range of entities.The pricing information provided by new CRT markets is al so leading to enhanced transparency and liquidity in credit markets. † 3. Disadvantages of secondary securitisation 3. 1 The issuer * The first transaction has to be significant and it can be costly also. There are compliance costs and reduced control by the originator of the assets sold to the SPV. * Though it the securitisation structure looks fairly simple, just like other CRS (credit shifting instruments), they are very complex in nature, to the extent that banks and other institutions did not fully understand the risks which they were taking and exposing themselves to.As seen in the crisis, the risk were not always shifted, sometimes they were just transferred, from credit risk to a liquidity risk and finally to a funding risk , which was evident in the crisis when Interbank Market almost dried up and there was no securities trading. This is what contributed to the financial crisis as while every bank was diversifying into this business, they financial system became less diverse. * If banks do this in large amounts, they could become dependent on the securities market which proved to have it consequences, when trading ceased. As the wealthy reader summarised; â€Å"Without risks, bank went crazy. Credit scores didn't matter, â€Å"liar loans† were common†. This proved to back fire for the banks themselves because they were also investing in securities issued by other banks and it led to huge losses for the banks. 3. 2 The investors Securitisation exposes investors to a number of risks such as * Credit/default risk when maintenance obligations on the underlying collateral are not sufficiently met as detailed in its prospectus. A key indicator of a particular security’s default risk is its credit rating. Different tranches within the ABS are rated differently, with senior classes of most issues receiving the highest rating, and subordinated classes receiving correspondingly lower credit ratings’ . However, the crisis has ex posed a potential flaw in the securitisation process; ‘loan originators retain no residual risk for the loans they make, but collect substantial fees on loan issuance and securitization, which doesn't encourage improvement of underwriting standards’. Prepayment/reinvestment/early amortisation: The majority of revolving ABS is subject to some degree of early amortization risk. The risk stems from specific early amortization events or payout events that cause the security to be paid off prematurely. Typically, payout events include insufficient payments from the underlying borrowers, insufficient excess Fixed Income Sectors: Asset-Backed Securities spread, a rise in the default rate on the underlying loans above a specified level, a decrease in credit enhancements below a specific level, and bankruptcy on the part of the sponsor or servicer. Currency interest rate fluctuations: Like all fixed income securities, the prices of fixed rate ABS move in response to changes in i nterest rates but floating rate securities are affected more. * Moral hazard: Investors usually rely on the deal manager to price the securitizations’ underlying assets. If the manager earns fees based on performance, there may be a temptation to mark up the prices of the portfolio assets. ‘Conflicts of interest can also arise with senior note holders when the manager has a claim on the deal's excess spread’ * There is also a risk that the payments will be late from the servicer. . 3 The financial system The consequences of securitisation that were experienced in the crisis were expensive as Sir Howard Davies inferred â€Å"[CDOs] are the most toxic element of the financial markets today† . Securitisation and Collateralised Debt Obligations (CDOs) are described as two major instruments at the centre of the financial market turmoil. European banks also took on board significant securitisation programmes. . They contributed highly to the global financial cri sis which has had massive costs to the tax payers, governments and central banks.An important aspect of securitisation is that it has changed the traditional model of banking and hence underlying economics of banking. With securitization banks accept deposits, originate loans, utilizes it comparative advantages, as it did traditionally. However with securitisation is does not accept risk, does not hold it on its balance sheet and therefore needs no capital backing and insurance, things which it traditionally did. This change of model have had severe implication for the financial system as banks stopped acting like banks, and it was clear that they did not quite understand the implications.Another big effect is the effect that this had had on the financial system stability of which in itself is an ambiguous issue. 4. Conclusion There has been a division in the overall effects of securitisation to the global economy and financial system. While influential people like Warren Buffet reg ard it as a lethal weapon, others think the opposite. Regardless of the costs there are substantial benefits for the system. It is now evident that when a securitisation gets beyond the critical device of market participants, however, it is capable of destroying value.The potential harm is greater in globally interconnected markets. Hence it would be beneficial for the whole system if regulators, supervisors and all participants learn the flaws of securitisation from the crisis and improve the process to form one which ensures that the benefits are derived at the minimum costs, or no costs. As Professor David Llewellyn states; â€Å"the baby (of securitisation) should not be drowned in the bathwater (of regulation)†. Bibliography * Llyewellyn. , T, David. , 2000,. Securitisation a technique for asset and liability management * Casu, B. , Girardone. , Molyneux P. 2006. Introduction to banking. Essex: Pearson Education Limited. * ECB financial stability review. , 2008. , securi tisation in the Euro area. Available at http://www. afi. es/EO/securitisation%20in%20the%20euro%20area. pdf [ Accessed 5/4/11] * http://www. banque-credit. org/EN/banks/advantage-securitisation. html[Accessed on 19/04/11] * Lederman, J. , 1990. , The Handbook of Asset-Backed Securities * Tarun, S. , Securitisation: Understanding the Risks and Rewards . Available at http://www. qfinance. com/contentFiles/QF02/gjbkw9a0/17/0/securitisation-understanding-the-risks-and-rewards. df [Accessed :01/05/11] * Llewellyn, T, D. , 2009. , the global banking crisis and the post crisis banking and regulatory scenario . 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