Selecting an Online MBA Degree Program

No matter what job you go for, the job industry wants you to have more and more education under your belt. While many would love to go back to school to advance their education, many are hesitant about an online MBA degree program. There are at least five reasons we think that you could benefit from this. As stated above, if you don't have the higher degree, they aren't ready to hire you.
For that reason, many will pay for your education. They want you to get your degree quickly and with the hectic lifestyle, an online MBA degree program might be beneficial due to busy schedules. The quicker you can get your degree, the more the company might pay if they do pay for your education.
Reason number three that we say you should check out the online degree is because not everyone has time for on campus classes. Schools don't take too much into consideration your schedule. Now, you can work around your schedule. You do the homework in your time.
With this, it's a lot easier to keep the job you have which is one great reason that many people choose an online MBA degree program. They have a job that won't let them take all that much time off and this allows you to keep that job.
The number one reason though that people give us for choosing this type of degree is because the tuition cost is usually less. You aren't paying for the fees of the school.

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Getting an MBA Degree Through Distance Learning

The concept of distance learning has been around for ages in the history of mankind. However, in recent times as we move in the information age, it has become the more accepted norm in society. Making the best use of various means and tools like the internet and audio-video conferencing, has helped students correspond with tutors or teachers more effectively. Definitely with numerous tools available for individuals, distance learning programs have gained immense popularity in the past few years. The growth in the ratio of MBAs awarded in recent years is definitely one of the few examples that show the impact of the increase in online learning programs.
Today there are number of institutes offering multiple online education courses through different universities. Among all these distance learning courses, the MBA is the most popular and in coming years expected to gain more recognition. This learning course degree has managed to grab the highest number students as compared to other courses. For those who still think the MBA through distance learning is mediocre to a regular MBA course, then they must change their perception.
If you are one of those who are looking for higher career achievement can now select to boost your career by opting for online MBA program. These days most of the distance learning MBA courses is available online and so as an individual you have no reason to delay pursuing your MBA just because you are busy with your work. Besides this, talking about the major benefit of distance learning MBA degree course is - you do not require completing your course in a water-tight study schedule. You can apply for am MBA degree by following either of the two approaches-one can be by applying for a part time distance learning course and the other by applying full time learning course. While in the previous one you require to attend weekend classes but in latter one there are no such requirements. However, when you are planning to choose your MBA program, it is important that you select an MBA program from an accredited university or institute/school with a good track evidence and reputation. This small step and alertness can help you in avoiding any trap by degree mills or degree scams who want to defraud your money without giving you the degree that actually have any significance. Besides this, you must select the school that offers you a tuition rate you can afford, fit your style of learning best and give you the most flexible scheduling options.
Today MBA online degree have become increasingly popular and very acceptable to many employers. In fact many companies have started providing support in term of scholarships for their potential employees in order to enhance their management skills through online learning MBA program. The career opportunities open to MBA graduates are very genuine and should be taken into serious thought as you make decision regarding your future.

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Affordable Online Degree Programs

The economic downturn has led many parents nationwide to realize their careers are not recession-proof. As a result, many families are forced to adjust their lifestyles by obtaining secondary incomes, reorganizing their budgets or making mid-life career changes.
The recession has led many parents to "go back to school to learn more methods for dealing with the bad economy," Chandra Muller, a sociology professor at the University of Texas at Austin, told the Daily Texan. However, Muller added, rising tuition at traditional universities has many students - particularly continuing students who have family responsibilities - seeking more convenient alternatives, such as those offered by online universities.
The cost of a four-year degree program at a public institution has risen 6.5 percent over the past year, according to the College Board. Consequently, parents who are already paying or preparing to pay for their children's higher education need to find less expensive options to fund their own educational pursuits.
Kenneth Pegues, for example, chose to pursue an associates degree in occupational safety online at Odessa College in Odessa, Texas after an accident left him unable to continue working at his restaurant job.
Although Pegues's family is currently struggling to keep him in school and stay afloat financially, he hopes his pursuit of his first degree will "set a precedent for his family" and inspire his children to go to college, he told the Odessa American.
Many parents seeking an advanced degree are also choosing to gain their education through online programs, including Nevonna Davis, who works in the accounting department at the Veterans Administration in Miami.
A single mother of a four year-old boy, Davis "decided to enroll in Kaplan University online classes" in order to "have more time with her son," she told CBS4.
Single parents such as Davis who are seeking convenient and relatively inexpensive options to continue their education, such as online degree programs, may benefit from financial aid opportunities. For example, Denny's Single Parent Student Scholarship provides $1,500 awards to mothers and fathers who are the sole providers for their children wishing to obtain college degrees.

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Pursuing an MBA Business Degree Economics

The recent downturn in the economy has many people playing armchair quarterback over decisions made by the Federal Reserve during the last few years. These guys are supposed to be geniuses when it comes to economics, right? It doesn't take a rocket scientist to recognize that there may have been errors in judgment regarding interest rates and home financing. Don't even think about being considered for such a high ranking position until you have an MBA Business Economics Degree.
An MBA Business Economics Degree goes beyond basic economics. The person in charge of making decisions regarding one of the strongest economies in the world will be required to have knowledge and expertise in the following areas: monetary policy, advanced economic theories like macro and micro economics, international markets and foreign trading, an understanding of leading economic indicators, - just to name a few. This person would need to be able to analyze economic issues quickly and accurately, as well as be able to assess and consider alternative economic policies to help achieve stability in a tumultuous economy.
Still want to pursue your dream of chairing the Federal Reserve? Then you definitely want to start looking at schools that have serious MBA Business Economics programs. There are several institutions of higher learning that offer such a degree program. In addition to accounting and finance coursework, they should offer courses that cover trade and finance theory, past and current trade issues, international economic organizations and their agreements and impacts on the world economy, econometrics and statistics.
The program should also offer hands-on experiences which will allow you to experience real world obstacles and challenges in the world of business and finance. It should provide opportunities for you to work with companies that will teach about corporate mergers and acquisitions, supply chain management and product development. By the time you are finished obtaining your degree, you will have knowledge and expertise in all of these areas, along with managerial skills and a firm knowledge and understanding of business ethics and economic practices and theory.
If you decide you want to focus on a particular area of economics, look for MBA programs that offer areas of specialized interest, such as the study of poverty economics, which deals with the effect that poverty has on overall economic stability or economic crime investigation and management, which prepares graduates to deal with economic fraud and corporate crime. These types of specialized programs make an MBA graduate highly marketable.
If the Federal Reserve is not high on your priority list once you have finished obtaining the MBA business economics degree, start looking in areas such as economics research in both the government and private sectors. Most advanced degree holders will find themselves in high demand for upper management positions in both the government and private sectors, as well as with non-profit organizations. A person may also decide to pursue an academic career by becoming an Economics Professor at a university.
MBA Business economics graduates are ahead of the curve in terms of earning potential too, with starting salaries around 75,000 per year, depending on the area of study.
When all is said and done, obtaining an advanced degree can definitely help your career, especially if you really do aspire to helping set economic policy on a federal or global level. An MBA Business Economics degree will set you on the right path by giving you knowledge and expertise regarding economic practices, theories and issues that can have a great impact on a corporation's bottom line. Maybe your expertise will eventually put you in line for Bernanke's seat as Chairman of the Federal Reserve. After all, knowledge is power.

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Indicators of an Economic Recession

Questions that arise between economists regarding recessions often involve current politics and media performance, but are often more general - what policy implications do recessions have? are there other economic problems associated with recessions? is there a difference between a recession and a depression; if so, where do we draw the line? what global trends can be seen to cause, and perhaps even prevent, recessions - and most importantly: how do we predict recessions and prevent serious economic harm to families and businesses during a recession.
Generally, a recession is defined, in the field of formal, neoclassical microeconomics to be a reduction, in terms of GDP, of a countries production for two or more clearly defined periods (generally, quarters). In the United States, however, the private group of economists organized under the "National Bureau of Economic Research" officially defines when a recession starts and finishes.
Many, particularly those with degrees or research experience in the field of finance - that is, financial analysts, advisors, researchers and those closely involved with the stock market - suggest that recessions can be entirely predicted by the performance of the stock market. This is often strongly correlated with those who believe in the Efficient Market Theory - the economic theory that all prices in a market should be absolutely perfectly "right," because if they're not, a sufficient number of rational agents will bid their prices up until they are. In this case, analysts say that recessions are predicted by falls in general stock market performance (as, investors predict that future profits will be lower than the once predicted, and that prediction is the factored in to the price). Often, they suggest watching market indexes such as the Dow Jones Industrial Average, or Standard and Poor's 500 index.
This indicator correlates strongly, however, a dozen or so of the largest falls in the stock market over the last 50 years have shown absolutely nothing that appears to be a recession shortly after; certainly nothing formally declared contractionary. Furthermore, economic research in to the subject overwhelmingly concludes that stock market collapses occur well after the recession has already begun in many (if not most) cases - clearly an indicator that predicts something which already happened, isn't much of a useful indicator at all.
Participants in the previously mentioned Efficient Market Theory are likely to be strongly supportive of the Inverted Yield Curve theory as well. When an analyst researches a set of bonds or term investments (such as term deposits, T-bills, etc.), a number of different rates, for different time periods is reported - for example, at our current dismal rates, 1 year Canadian GICs are paying approximately 1.15 per cent interest, while 5 year GICs rank in at 2.2 per cent. According to inverted yield curve theory, if the yield curve - that is, the interest rates plotted against the length of the investment - becomes negative, (longer bonds pay less interest than shorter bonds, holding all other factors constant) then a recession is ahead. The theory here, is that people are less likely to want money during a recession, as fiscal supply shrinks, and consumers are more risk averse avoiding borrowing more money. Again, this suggests that the market itself is clearly aware of when a recession is forthcoming.

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Islamic Banking

Let us look at the key differences in presentation of financial statements between conventional an Islamic banking.
Statement of Financial Position (Balance Sheet)
In conventional accounting, the balance sheet has these few components, namely assets, liabilities and owners' equity. In Islamic banking, there is one additional component called "equity of unrestricted investment account holders".
In conventional banking, an asset is defined as an item with future economic benefit attached to it regardless whether there is legal control by the reporting bank. For Islamic banking, however, an item can be taken as an asset only when the Islamic bank has legal right to hold, use or dispose of the item.
The other unique feature is the "equity of unrestricted investment account holders". This additional component is to satisfy the set of customers who invest on the basis of mudarabah which calls for any losses to be borne by the investors (the customers themselves). It is therefore, important to disclose sufficient information to demonstrate the measures taken by the bank to ensure that the interests of this set of customers are considered as part of the strategy of the bank. In conventional banking, they will be treated as liabilities instead.
There are 2 forms of mudarabah contracts:-
Mudarabah Mutlaqah - This is the "unrestricted" mudarabah contract whereby the capital provider/owner allows total freedom to the bank to use the capital for its projects without conditions, specifications, restrictions or limits. The bank is free to enter into any trade agreements, whether normal or deferred or leasing basis, using the owners' capital. This form of mudarabah is typically used in replacement of the conventional fixed deposit product for retail customers.
1. Mudarabah Muqqayadah - This is the "restricted" mudarabah contract.
Statement of Changes in Restricted Investments and Their Equivalent
This is the statement to report the use of mudarabah muqqayadah investments whereby the bank is to undertake to use the funds for specific investments. This pool of fund must be separated from other funds as the returns from this fund will be shared among this particular group of investors.
Apart from the returns or losses for the group of restricted investors, the statement should also report profits or losses before deducting the investment manager's share of investment profits/losses. The bank's share of compensation as the investment agent is also known as mudarib.
Statement of Sources and Uses of Zakat and Charity Fund
This is required only when the bank established a zakat and charity fund whereby the bank acts as a fiduciary of that fund. The bank is responsible for collection and distribution of all or part of zakat and charity funds.

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The Economic and Social Consequences of Money Laundering

It can be easy to understand the impact of money laundering on the initial victims - those who lost funds as a result of the predicate crime - but there can be an even deeper, more lasting effect on society as a whole.
While some fear that Anti-Money Laundering (AML) efforts can have a damaging effect on commerce, especially in developing nations, let us take a look at a number of ways money laundering hurts us all. We'll focus on emerging nations as the impact there can be magnified to extreme proportions.
The first, and most obvious, impact is the increase in corruption and crime. In many jurisdictions that are havens for successful laundering one often finds lax concern on the part of government and / or regulators - few predicate crimes, little or no reporting, enforcement, penalties or provisions to confiscate illicit funds, etc. Those conditions can then foster bribery of government and bank officials, lawyers, accountants and others. Once that beachhead is established, it is not long before bribery turns eyes away from other, even violent, crime.
The second impact (valid in any jurisdiction) is on legitimate businesses. Where a launderer uses a front company to hide his illegal funds, it is possible, even probable, that the operations of the front company may be subsidized. This can enable the front company to sell products at or below cost, driving their legitimate competition out and opening the door for expansion by the front company. As the front company grows, it provides a greater opportunity for the launderer to move even more illicit funds. In a developing country, it would not take long for the criminal / launderer to gain control of an entire industry.
However, it must be emphasized that the launderer does not share the same objectives of legitimate business owners, who strive to maximize their returns through the profitable, ongoing operations of their enterprises. The launderer's primary concern is not his return, but the successful cloaking of the origin and ownership of the funds he controls.
It is in this disregard for normal business practices that leads to another area of concern - economic distortion. Launderers often invest their money in assets or activities that are not economically beneficial to the countries where the funds are located. For example, right now, in a world where real estate prices have dropped sharply in the last few years due to the mortgage bubble bursting and other global pressures, property prices in Nairobi, Kenya are soaring - increasing 2-3 times in the last 5 years. With lax money laundering laws and a 500-mile shared border with Somalia, it is easy to guess where much of the Somali piracy ransom money has gone. This has taken home ownership right out of the hands of many hard-working Kenyans.
Such distortions can, in turn, lead to governments misinterpreting economic data. Without seeing the true economic trends of their country, leadership is prone to make decisions that are not in the best interest of their country.
When conditions change in one of these locales, a launderer will get his money out as quickly as possible, often with little or no regard to any losses they may sustain. In an economy that has been driven or sustained by laundered money, the ripple effects throughout the community when this "flight capital" suddenly disappears can reach tsunamic proportions. When the flight capital goes, values plummet, loans default, and banks collapse. Investigations and lawsuits ensue. The country's reputation is tarnished at best. Legitimate investment goes elsewhere. There are other risks as well, but those are reserved for the more serious students of money laundering and for another day.

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CPT Question Papers

A lot of practical training is required in the professional course for becoming a Charted Accountant or a CA. The papers of professional competence exam and the final exam has questions that are of practical importance.
The candidates who wish to sit for CA examination should perfect and become expert of their field and not just the one that is used while working. The CA Question Papers are a must at Professional and Competence Exam/Integrated Professional Competence Exam and Final Exam.

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For entry, one has to crack the CPT that is the Common Proficiency Test. Students after finishing their 10 + 2 can enter the profession of a CA through this entrance test.
The questions in CPT Question Papers are objective type with multiple choices.
The Question Papers cover the subjects Accounting/Mercantile Law/General Economics/Quantitative Aptitude of Common Proficiency Test. Besides, it also includes questions from Chartered Accountants/Subject experts working in various Colleges/Universities/Public/Students pursuing Chartered Accountancy Course, etc. These were originally invited from these experts of the subject.
One of the options is the right answer.
Fill in the blanks are there with 4 alternate answers given from which to choose from.
Questions in the form of small paragraphs containing 3 to 4 lines each, followed by a question having 4 probable answer.
In Fundamentals of Accounting, Mathematics and Statistics The Numericals are there with 4 different answer out of which one is correct.
Case studies are also the part of CA Question Papers. They appear in simple words and contains multiple concepts in it. The case study is generally a practical situation taken from day to day corporate life. The candidate has to understand and answer it. Case study is basically given so as to check the analytical/logical ability and intelligence.
The ICAI or the Institute of Chartered Accountants of India has been set up and governed by an Act, that is called The Chartered Accountants Act, 1949. This Act has been taken out in order to govern the profession of Chattered Accountancy. It is also the second largest accounting body, globally.
It has changed quite a lot since according to the change that took place in the Indian economy.

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Vocational Training

Vocational training not only ensures that you are technically qualified at the end of the course, but is also a means of career advancement. The main object is to prepare you for a particular trade or occupation through technical or job specific training.

Vocational Training: Courses
Due to rapid development in science, technology and business practices, you have many options to choose from, such as:
Art and design: Computer animation, computer aided design, video game design and web design
Automotive Courses: Aviation technology, diesel mechanic and marine mechanic
Business: Administrative assistance, accounting, bookkeeping and E-business

Who Can Opt for Vocational Training?
After completing twelve years of school, you might be clear about what you wish to do in life. In traditional courses, you are taught a wide array of courses, most of which may not directly related to your set goal. Unlike regular courses, vocational courses will teach you only that part of the trade that you will directly use in your future profession. Such schools give you plenty of hands-on training, so that you get some experience of your profession. So, if you are sure what type of job you want to do, go for vocational training. Choose the course that suits your interest, skills and circumstances the best.
Choosing a Suitable Training Institute
You have both online and campus options for vocational training. If you are already in a job, you should opt for an online school. In an online training school, you do not need to physically visit the school. Since you can complete the course from your home, you can easily manage it while continuing with your present job. Here are some tips to help you choose the best training institute:
Do some research on the internet and also talk to friends who have done such courses.
The institute should have accreditation that is recognized by the industry. This will ensure that the course is reliable.
They should have a good track record in terms of finding employment for aspirants.

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Overheads

In accounting, overheads refer to indirect costs that are charged to production and other functions or departments. Indirect costs are those that are not fully attributable to a product, service or department. They apply to materials, wages/labour and expenses. As such, it follows that there are indirect materials, indirect wages and indirect expenses for different functions departments that relate to those categories.

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== Production overhead ==
Production overheads are also known as factory overheads. These cover indirect costs that are incurred during the completion of a product or provision of a service. Factory overheads include materials that are too negligible in terms of charges or quantity for cost tracing. For example, if you are using 8 screws that cost 50 cents per screw, that amount might be immaterial in relation to other charges associated with the product manufactured.
The commissions or wages of non-productive workers are also part of production overhead. However, if a supervisor does not actually work on the product, he is productive if his salary/wages are directly traceable to a product, service or department. Indirect expenses are another dimension of production overheads. == Administrative overhead ==
In producing a product, an entity will have expenses related to administrative personnel and processing costs-such as stationery. Salaries of office staff and insurance for the business premises are additional overheads that relate to administration.
== Distribution overhead ==
A product or service must reach clients and there are charges attached to packaging and delivering the goods. Distribution overheads deal with aspects of the completed product and do not include transport fees to other plants before the product is finished. Transport costs, containers or boxes for shipment, wages for drivers, warehousing and insurance for stock are some examples of distribution overheads.
== Selling overhead ==
Businesses need to advertise their product or service and maintain their clientele. Indirect costs incurred in doing this constitute selling overhead. Material costs for this function include flyers, brochures and website fees. Labour charges include salaries, commissions and wages for salesmen, clerks and customer service representatives. Expenses including advertising, market research and rent/insurance for showrooms.
Production overhead forms part of production costs. However, overheads in other areas constitute costs that are separate from production costs but included in the TC. TC = Prime Cost + Production overhead + Other overheads

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Accountancy Services

Accountancy is used to communicate financial information on businesses and other users such as managers and shareholders. This type of information is usually in the form of financial statements. These financial statements will display in money terms the economic resources which are under the control of the management.

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Accountancy is a branch of mathematical science, and is extremely useful when uncovering the causes of any failure and success in business. There are three divisions of accountancy that are applied to businesses and these are book-keeping auditing and accounting.
The AICPA (American Institute of Certified Public Accountants) has defined accounting as "The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."
It was shown that people from that time would use various accounting methods to record their number of herds and the growth of their crops. Since then accounting has evolved, and over the years accounting has improved immensely as businesses advanced.
Many early accounts were mainly to enable the memory of the businessperson and the audience for the account was the record keeper and the proprietor alone. There were many crude methods of accounting which proved inadequate for the problems which were created by a business entity that involved multiple investors. To address these problems, double-entry book-keeping emerged in northern Italy in the 14th century, at a time when trading ventures started to require more capital than a single individual could invest.
Accounting today is known as "the language of business "as it has become the vehicle for relaying financial information about a business entity to many different groups of people.
Management accounting is used to focus on people inside a business entity, and is employed to provide information to auditors, owner-managers, managers, and employees. Primarily it is concerned with providing a basis for making operating or management decisions.
Financial accounting provides information to people outside the business entity such as creditors, potential shareholders, financial analysts government agencies, and banks or vendors. The presentation of financial accounts is very structured owing to the different needs and requirements of these different users, and also governed by many more rules than management accounting.

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The Origin Of Accounting Theory

If it is to be comprehensible and reliable, accounting must be used in accordance with specific rules and regulations. It would be chaos of Babylonian proportions if each person used his own grammar and vocabulary - nobody would understand anybody else. Likewise, it is essential that accounting is used according to generally accepted rules.
The first prerequisite is that accounting should agree or conform with the basic truths according to which our economic system functions; the current economic and business practices and the applicable law as embodied in legislative regulations or common law. Consequently, it is important that uniformity is maintained in accounting practice; in other words, a specific set of circumstances, wherever it may be encountered must be dealt with by everyone in exactly the same way within the accounting process.
Accounting theory creates a framework that ensures that accounting practice complies with the requirements of conformity and uniformity. This theory is embodied in a set of principles, policies, methods, procedures and conventions. The continuously increasing scope and complexity of our economic system requires a corresponding process of adaptation in accounting in order that the relevant information regarding economic activities may be recorded. It is essential that everyone involved in accounting should understand this process of adaptation; moreover, a prerequisite for such understanding is a grasp of not only the theory of accounting, but also the structure of that theory.
Accounting theory is based on a set of basic economic truths that are of a dual nature. First, accounting theory is based on propositions generally accepted in the economic order of a particular society. For example, consider the concept of personal ownership: a general accepted tenet of our society is the exclusive right of every person to own things - they are his personal property and no one else's. This concept is a basic economic truth.
Second, the basic economic truths have characteristics similar to those of natural laws in the sense that specific causes generate specific consequences. If, for example, someone derives greater value from a transaction than what was put into the transaction, his net worth - his wealth - will have increased by the surplus amount. This, too, is a basic economic truth. These economic truths are formulated as concepts and postulates. A postulate is a generally accepted hypothesis or supposition of a specific condition or phenomenon, which serves as a basis for the formulation of principles.
In the development of accounting theory, concepts and postulates serve as formulations of the basic truths or propositions upon which the theory is based. They do not attempt to prescribe the working of the accounting process, but simply the foundation upon which the structure of accountancy is based.

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Basic Tips to Understand Economic Crisis

According to Leopoldo Abadía (The NINJA crisis and other misteries, Espasa Calpe, 2009), what basically happened was:
1. 2001.Internet bubble explosion.
2. US Federal Reserve reduces the price of money from 6,5% to 1% in only two years
3. These measures boost a real estate market that was just beginning to take off.
5. For a number of years, interest rates in international financial markets have been exceptionally low
6. So, Banks noticed their business was becoming smaller:They where lending Johnny at a low interest rate, but although they were not paying him nearly nothing for the little money he had in the bank, margins were still decreasing.
7. So, someone in the bank industry in America, thought banks had to skip such situation by doing two things: Give away loans at a higher risk, compensating that with a higher interest rate, and balance the low margins by achieving volume.
They where eager to lend money nearly to everyone, if the interest rate was higher to allow them make money on repayments, and needed hundreds of thousands of people to give away high risk-low interest rate loans.
Understood? Fine.We have almost covered half of the issue.
8. So, they gave away mortgages to NINJAS (No Income, No Job, no Assets), at a higher interest (the risk was also higher), take advantage of the real estate boom , and in a glorious decision, grant the NINJA an amount of money that clearly surpassed the value of the house, because - you know - Johnnies house is going to be valued much higher just in a couple of years, so what is the risk?
9. These mortgages where called subprime (a prime one would be that with no risk of repayment). On top of that, it was almost sure that if Jonny, our NINJA, would eventually loose his job, will find another one no problem.The American economy was going really well. And Johnny was quite happy.He had a loan that paid a brand new house in excess, so he also changed his car and go holidaying with the family.
10. Banks were so happily granting loans, that soon became short of money, so they went out to their foreign colleages to lend some money from them.
So, the money that Jonny got from the bank, might well come from Francois, in the south of France.What Francois still does not understand is that his whole life savings might be at risk. Besides, there is something called the Basilea Rules that basically establish that banks cannot lend money to a total amount below their assets.
11. And they also invented something new: They would get all of their mortgages and loans - the primes, the subprimes and others - and wrap them up in a nice package called MBS (Mortgage backed securities).So, where yesterday the bank had one thousand loose mortgages and loans, today everything was nicely organized in ten boxes with one hundred mortgages and loans each, where you can find the good and the bad, all together.
12. And Johnny´s bank manages to sell those packages at a nice price, so that gets money in and re-balance its accounts.
But the question is...And who bought that? Well, the bank created sister companies called conduits that where basically trusts, thus not having the obligation of consolidating accounts with the mother society. As a result, Johnny,s bank with a brand new shiny face and the trust corporation beginning to have a problem, but...who cares?
13. By the way, conduitsalso get the money to buy those nice packages via loans with other banks.The snow ball effect is beginning to roll.
14. Up to now, and hoping you did not get lost in the article, there is something really important to remember: This edgy situation is only sustainable if NINJAS keep repaying their mortgages, and that the real estate market in the US stills keeping a growing pace...
15. BUT: In the beginning of 2007 prices of north America houses dropped dramatically.Most of the NINJAS realized they where paying for their houses over the real value,and automatically no financial institution wanted to buy more "mortgage packages", and those banks that were ready to sell more, could not find a buyer.
So, Banks have no money now, we have gone into a terrific credit crunch , the real estate industry is in its deepest downturn, and hopefully, three years after that, the sun is again showing behind the mountains.
All the best,
Gabriel Fernandez-Alava.
Besides, there are this Basilea Rules that basically establish that a bank cannot lend money below the value of its assets.

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Quantum Economics

A central banking system allowed issuing of capital and underwriting of low interest rate loans to countries around the world is possible in the new economic environment of Market Globalization, Great Capitalization and Rising Productivity when all these new developments are capitalized by the most developed countries by imposing new economic regulations and requirements to the rest of the world to enhance the less developed and developing markets' "security" and make these "markets" play under the same rules, but first, these financial, business and other economic regulations must be implemented by the most developed countries and markets themselves (as explained in Quantum Economics-Philosophy of the Economy's articles). The central bank lending system is to finance not just less developed and developing countries and markets but also any market which present projects complying with the general policies of Global development such as environmental protection, renewable energies, etc.
First, political division in a Cold war World, isolation and political struggles, remoteness and socialization created sometimes great instability and interruptions of international relations to the extend of disrupting paybacks of international loans.
Second, closed and independent market structures such as the Communist of Eastern Block countries and China, or the constantly changing market structures of South America, Asia and Africa shifting left or right provoked constant inflations and other economics turbulences as many of these less developed and undeveloped markets had very diverse system of economics consequently effected the needed "security" for the lending institutions therefore the interest rates were to be set high enough to offset the estimated risk.
Which new economic developments in the world are making low rates lending possible?
Obviously, the ongoing market globalization and rising productivity are setting a prejudice in the ways of global development where new possibilities of central bank financing with "controlled" deficit matrix and "very low" interest rates are possible to be the new economic tools for such global development that could allow "quantum" leaps from underdevelopment onto high tech environmentally friendly development; The new "Quantum Economics-Philosophy of the Economy" is not only "production" related (tighten to) as the Marx's systems are but it (Quantum Economics-Philosophy of the Economy" is related (tighten to) the equity of (limited and controlled deficit) social and infrastructural expenses, the return on the invested capital and the value of intellectual properties.
What is "quantum leap" in "Quantum Economics-Philosophy of the Economy?"
Quantum leap is a possible jump in economic development based on "artificial (externally)" financed projects for practically financing and loan servicing environmentally friendly projects on a Global scale. Quantum leap is financed by a capital issuing central banking system more like the World Bank and IMF on a very low interest rate, because of the enhanced "security" in a new Global marketplace.

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Careers in Economic Field

If you are interested in studying in the Economics field, there are a wide variety of career choices available to you. Generally speaking, most people with an Economics degree is whatever minor they choose, go for a Bachelor's degree, although a Master's degree will always ensure that you start out higher to the top of the companies food chain, and earn more annual income.
Career choices in the field of Economics can include Economic Consulting with research companies or consulting firms, where you would advise the company on business strategies and help to prepare economic evidence for court cases. Another destination that many Economic graduates find is law school. In the field of Economic law, you would have the chance to influence many decisions based on the economy, and would be able to contribute to many firms and government agencies. And, speaking of government agencies, there is always the choice of working directly with the government through non-profit organizations. The government, local, state, and national, hire Economists to aid with the statistic and analysis portion of business.
A look at the potential annual earnings for majors in Economics shows that, with a bachelor's degree, for instance if you decided to pursue your degree in Economics with a concentration in Finance, the annual salary that you could expect in your first year would be around $45,000, whereas a degree simply in marketing would earn you only $36,000 annually. The low end of the earnings for an Economy major, reported in 2005 was $24,000 for a bachelor's degree, while those with a Master's degree earned $37,000 starting annually. The Federal Government's annual salary for economists with a Master's degree in 2005 was $89,441. Overall, Economists are expected to earn a significantly higher income whether they are working with the government or with a private company, simply because the need much outweighs the supply.
Economists are normally employed within larger cities, however some do work overseas for varies companies, either government or private international operations. World Bank, International Monetary Fund, and the United Nations all employ economists from all over the world to work in their facilities.
If you are considering a career in the Economics field, there are a few minor requisites to keep in mind. Those interested in Economics will normally be able to pay great attention to details. This is highly important because you will spend much time on precise data analysis. You must be able to present findings on your studies in a clear manner, both orally and written, so good communication skills are of the utmost priority.
A Master's degree or a PH.D is normally required for many private companies and most government agencies. Although a bachelor's degree will get you in the door to your Economics career, it's best to obtain at least a master's degree if you plan to start in a top position. You will also need at least a master's degree if you plan to teach Economics. Instructors and professors of Economics are among the highest paid career choices, outside of the Federal Government, so if you want to help others to obtain their goal in reaching an Economics degree, a master's degree will be required. The educational requirements and courses that you will need will, of course, vary depending on the college or institution that you attend. Basically, for a master's degree, you will need courses such as advanced economic theory, econometrics, labor economics, and international economics courses. Undergraduate courses will include microeconomics, macroeconomics, and econometrics, and the history of economic thought. The entry-level jobs for the Federal Government require a bachelor's degree with a minimum of 21 semester hours of economics and at least 3 hours of statistics, accounting, and/or calculus.
Economists are a growing number, and will continue to be needed in our society, so if you have an interest, and have the necessary thinking, analysis, and data skills, a career in the Economics field would be a wonderful choice.

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