Effects of Derivatives

Effects of Derivatives Abstract Banks and other financial institutions have progressively understood the need to measure and manage the credit risk they are exposed to. Derivatives, therefore have ascended in retort to the surge in demand of financial institutions to create vehicle tools for hedging and shifting credit risks. Derivatives over the years have become a valuable financial tools with system-wide benefits. However as innovative as the derivatives have been, they carry inside themselves so many threats that in the hand of inexperienced market participants, destabilize the whole economic system. Inside such a Pandora box were the instruments that would participate in amplifying the 2008 financial crisis. This paper postulates that derivatives may have contributed to the 2008 crisis. Derivative contracts are probabilistic bets on future events, as defined on Investopedia they are securities with a price that are dependent upon or derived from one or more underlying assets. Many people argue that derivatives reduce systemic problems, in that participants who cannot bear certain risks are able to transfer them to stronger hands. These people believe that derivatives act to stabilize the economy, facilitate trade, and eliminate bumps for individual participants (Buffett, 2016). We have now reached the stage where those who work in finance, and many who work outside finance, need to understand how derivatives work, how they are used, and how they are priced (Hull, 2015). For this reason, derivatives are at the center of everything. However, in 2008 the world witnessed a financial and economic hurricane that left massive financial and economic damages. It was universally recognized as the worst economic crash since the Great Depression. The old saying has it that success has a hundred fathers, but failure is an orphan (Davies, 2016). In this situation, it was the opposite as this failure had a long list of guilty men. While some argued that the changes in the law are the cause of the crisis, others pointed out the role derivatives played via the crash in the value of subprime mortgage-backed securities. The main thesis of this paper is that, while derivatives contributed a lot for the financial market would we be better off them? After a discussion of the positive effects of derivatives (their ability in refining the management of risk), the paper will analyze the negative aspects of them (enhancing risk-taking, evading taxes and creating financial crises). And we finish by looking at how derivatives fueled the financial crisis. Derivatives are instruments that derive their performance from some other instruments or assets. In contrary to the spot market, derivative markets require less capital and usually are more liquid.   Higher liquidity means more efficiency such that prices change more rapidly in response to new information, which is a good thing (Chance, 2008). There are different types of derivatives that an individual can use to protect himself against volatile time. Derivatives confer to the financial market different types of benefits such as risk management, price discovery, enhancement of liquidity. Fundamentally they are instruments that permit the transfer of risk from a seller to a buyer. Exporters, exposed to foreign exchange risk, can reduce their risk using derivatives (forward, futures, and options) (Viral Richardson, 2009). Derivatives can be viewed as insurance; one party gives up something in order for the other party to accept the risk. Some say that derivatives are nothing mo re than gambling (Peery, 2012). But derivatives can be compared more to insurance than be called gambling. In insurance, we have an insurer collecting the premiums where in derivatives, we have speculators receiving fees for speculation. Without speculators, hedging risk is impossible. Another benefit is price discovery; derivatives provide information to the market about the expectations of people on the future spot price. The ABX indices (i.e., a portfolio of collateralized debt obligations (CDOs) of subprime mortgages) which were one of the first instruments to provide information to the marketplace on the deteriorating subprime securitization market (Viral Richardson, 2009). Moreover, they also give the opportunity to market participants to extract forward information instead of historical information. Such information is used, among others, by central banks in making policy decisions, investors for risk and return decisions on their portfolios and corporations for managing financial risk (Viral Richardson, 2009). An additional positive benefit is the enhancement of liquidity. When derivatives are added to an underlying market, it brings additional players who use the derivatives and give the opportunity to companies to earn income that would not be available to them or available but the cost would be high. By and large, spot markets with derivatives have more liquidity and thus lower transaction costs than markets without derivatives (Viral Richardson, 2009). If derivatives provide to the financial market all those useful benefits, how come they were accused of player a role in the financial crisis of 2008? Derivatives play an important role in reducing the risk that companies face, but they are a synonym of danger to the stability of the financial market and in doing so, the economy in general. Within the field of finance, derivatives are the most dynamic instruments because they have no limits unless parties, markets, or governments set them (Peery, 2012). In his annual letter to shareholders in 2002, Warren Buffett branded derivatives as time bombs, both for the parties that deal in them and the economic system (Buffett, 2016). However, that fear of derivatives existed way before Warren Buffett expressed it.   Max Webers 1896 essay on the stock exchange lingered over the concern that derivative contracts encouraged speculation and increased market instability (Maurer, 2002). Years after the financial crisis, (Hoefle, 2010) argued that derivatives were doomed from the start, that they were the answer to the stock market crash of 1987, the demise of the SL industry, and bankrupt cy of U.S banking system. Why are some people against the use of derivatives? At first, derivatives were tools that can be used to hedge against pre-existing risks, in another word a form of insurance. But as time went on, people realised that they can use derivatives in another form than insurance. They went from hedge to speculation, implying that they tried to earn a profit by prophesying future events better than another can, including future asset prices, interest rates, or credit ratings. While doing that most companies got themselves hugely exposed to derivatives. As you can see in the example I have in the appendix Table 1, most of those companies total assets cannot match the leverage the companies are facing throughout the use of derivatives. And when the corporations exposure becomes large to the overall market, that could translate to problems, for example the collapse of Long-Term Capital Management in 1998. The company at that time had capital of $4 billion, assets of $124 billion, but their exposure to derivatives was more than $1 trillion. How all of these translated into becoming one of the causes of the financial crisis? The Bank for International Settlements has only published statistics on the Credit Derivatives market since the end of 2004 when the total notional amount was $6 trillion (Stulz R. M., 2009). The market grew hugely and by the time we get to the middle of 2008 the notional amour was $57 trillion. Quickly Credit Derivatives became an important tool to manage credit exposure. There are different reasons to why market participants have found credit derivatives appealing.   First you do not need a deep pocket in order to take a position, secondly, CDs can be used as insurance against any type of loans, not just a specific. In addition to that, the largest derivatives market is for swaps. With a swap, two parties exchange the rights to cash flows from different assets (Stulz R. M., 2009). In principle, credit default swaps should make financial markets more efficient and improve the allocation of capital (Stulz R. M., 2009). As time went on people were more focused on CD contracts o n subprime mortgages. Although subprime mortgages carried inside them significant default risk, as other mortgages they were securitized. As (Stulz R. M., 2010) explained in his article, mortgages are placed in a pool, and notes are issued against that pool. In the pool, the highest notes always have an AAA rating. In the case of mortgages default, the lower-rated notes suffer first, but as the default losses increase the higher rated notes will be affected too. In 2006 the ABX indexes were introduced, it was based on the average of credit default swaps for identical superiority securitization notes. Every six months, ABX indexes played an important role as they made it possible for an investor to take positions on the subprime market, even though they have no ownership of subprime mortgages or as insurance for subprime exposure. As a result, it was possible for investors to bear more subprime risk than the risk in outstanding mortgages (Stulz R. M., 2009). As all good thing must co me to an end, in 2008 financial institutions faced counterparty risks in derivatives that they had never factored in their calculations. Renà © M. Stulz (2010) offers a more detailed explanation of the counterparty risks and the problem that can arise. As for the causes of the counterparty risk, some people argued that derivatives lead to huge web exposure across financial institutions. In case one of the financial institution fails, the others will follow. And as we saw with the failure of Lehman, which had at that time derivatives contracts with other financial firms. Those firms were expecting payments from Lehman on their derivatives. Sadly, for them, Lehman at that time had filed for bankruptcy. While they could have managed their exposure to the counterparty risk, as they were high rated counterparties something unexpected happened. The failure of Lehman had as consequence a huge increase in the price of derivatives, at that moment the collateral amount would not be enough to cover the default of other counterparties default. As a domino effect, most firms were hit by the default of Lehman and without the help of the government to bail them out some would not have survived. The CDs market grew too fast for its own good and it created a bubble that fooled the financial markets. The lack of regulations, transparency, and clarity in financial statements made it hard to prevent. And before people realised we were in what some people call the worse financial crisis of all time. No matter the instruments you give to someone the results will depend on his intention. A good instrument in the hand of an evil person who focuses on profit over ethics will make that instrument look evil. Pablo Triana in his book The number that killed us gave a perfect example of a situation where a red Ferrari was involved in an accident that had civil casualties. Should we blame the car for the accident or the driver who was guilty of speed driving in the past? Same dilemma with the derivatives, we have seen how derivatives allow firms and individuals to take risk efficiently and to hedge risks. However, they can also create risk when they are not used properly. And the downfall of a large derivatives user or dealer may create a systemic risk for the whole economy. Which is why as for any instruments that may harm the world, derivatives should be regulated more effectively. We did not ban the atomic bomb after Hiroshima, nor we did with planes for their risk of a crash, but bett er regulations were introduced to make them safe as sense to be. While derivatives have been blamed, sometimes wrongly, for large losses from Barings to Enron the benefits are widely dispersed and may not make for good headlines. On balance, the benefits outweigh the threats (Balls, 2016). Appendix Table 1 References Ahmad, I. M. (2010). Greed, financial innovation or laxity of regulation? a close look into the 2007-2009 financial crisis and stock market volatility. Studies in Economics and Finance, 110-134. Alnassar, W. I., Al-shakrchy, E., Almsafir, M. K. (2014). Credit Derivatives: Did They Exacerbate the 2007 Global Financial Crisis? AIG: Case Study. Procedia Social and Behavioral Sciences, 1026-1034. Balls, A. (2016, 12 12). The Economics of Derivatives. Retrieved from nber.org: http://www.nber.org/digest/jan05/w10674.html Buffett, W. E. (2016, 11 28). Letters. Retrieved from berkshirehathaway: http://www.berkshirehathaway.com/letters/2002pdf.pdf Chance, D. M. (2008). Essays in Derivatives . New Jersey: Jonh Wileys Sons. Crotty, J. (2009). Structural causes of the global financial crisis: a critical assessment of the new financial architecture. Cambridge Journal of Economics, 563-580. Davies, H. (2016, 11 20). The Financial Crisis: Who is to Blame? Retrieved from Google Books: https://books.google.ie/books?hl=enlr=id=MNH6q2YGEUkCoi=fndpg=PR1dq=financial+derivatives+and+crisisots=2_ZzDDFPS3sig=JW59MDMZt2HWvDWthLHWtyDyZwcredir_esc=y#v=onepageq=financial%20derivatives%20and%20crisisf=false Hoefle, J. (2010). Ban, Dont Regulate, Derivatives. Executive Intelligence Review, 32-34. Hull, J. C. (2015). Options, Futures, and other Derivatives. New York: Pearson Education. Lebron, M. W. (2016, 12 20). Derivatives: The toxic financial instrument on par with terrorism . Retrieved from rt.com: https://www.rt.com/op-edge/325982-derivatives-toxic-instrument-review/ MacKenzie, D., Millo, Y. (2016, 11 12). Negotiating a Market, Performing Theory: The historical sociology of a financial derivatives exchange. Retrieved from SSRN Electronic Journal : https://ssrn.com/abstract=279029 Maurer, B. (2002). Repressed futures: financial derivatives theological unconscious. Economy and Society, 15-36. Peery, G. F. (2012). The Post-Reform Guide to Derivatives and Futures. New Jersey: John Wisley Sons. Stout, L. A. (2011). Derivatives and the legal origin of the 2008 credit crisis. Harvard Business Law Review, 1-38. Stulz, R. M. (2009). Financial Derivatives: lessons from the subprime crisis. The Milken Institute Review, 58-70. Stulz, R. M. (2010). Credit Default Swaps and the Credit Crisis. Journal of Economic Perspectives, 73-92. Triana, P. (2012). The Number That Killed Us: A Story of Modern Banking, Flawed Mathematics, and a Big Financial Crisis. New Jersey: John Wiley Sons. Viral , A. V., Richardson, M. (2009). Restoring Financial Stability: How to Repair a Failed System. John Wiley Sons.

Diabetes Mellitus and Hypoglycemia

Diabetes Mellitus and Hypoglycemia Disease classification Diabetes Mellitus is a group of metabolic diseases, diabetes mellitus happen when body does not capable to use insulin efficiently or the insulin is not produce more enough in a person blood. According to Kowalczyk N (2013), this syndrome is related with chronic hyperglycemia in combination with glucose intolerance and alterations in the metabolism of carbohydrates, fats and proteins. There is certain test to indicate the presence of this syndrome. Usually patient undergo blood glucose levels test, before the patient take this test, they need to fast 12.00 mid night, the normal blood glucose levels range from 70 to 120 mg/dL, but if the blood glucose levels is greater than 126 mg/dL it is show that patient might have Diabetes Mellitus syndrome. According to Kishore,P (2013), Pancreas released a hormone called Insulin which controls the amount of glucose in the blood. The pancreas is stimulated by glucose in the bloodstream. Insulin allows glucose to move from the blood into the cells. Inside the cells glucose can transformed to energy, which is used instantly or the glucose is stored as fat glycogen until it is required. Insulin production is related with the levels of glucose, when the glucose in blood is high the insulin production increases, once the levels of glucose in the blood come back to normal, insulin production will decreases, normal blood glucose levels for healthy people is about 70 to 120 miligrams per deciliter (mg/dL). Symptoms and complications of diabetes happen when the body does not generate enough insulin to move the glucose into the cells or if the cells stop responding normally to insulin, the consequential high levels of glucose in the blood and the insufficient amount of glucose in the cells together produce the symptoms and complications of diabetes. There were three types of diabetes mellitus, Type 1, Type 2 and Gestational Diabetes Diabetes Mellitus Type 1 Diabetes mellitus type 1 is a genetic disorder and can be classify as an autoimmune disease, this disease also know as juvenile diabetes or insulin dependent diabetes, according to Kowalczyk N (2013) diabetes mellitus type 1 is usually diagnosed in children and young adults, these young individuas produce little to no insulin because of an autoimmune disease of the pancreatic B cells and are insulin dependent from a young age. Type 1 diabetes accounts for 5 to 10 percent of cases of diabetes worldwide which is stated by The Health on the Net (HON) (2014). Diabetes Mellitus Type 2 Diabetes mellitus type 2 is categorized as insulin resistant diabetes with an insufficient secretion of insulin. Type 2 dibetes mellitus is more common than type 1 and the risk of developing this type increases with age, especially after the age of 40 years. It is also more prevalent in women than in men which are stated by Kowalczyk N (2013). According to Wisse B (2014) type 2 diabetes happen when insulin is not been respond correctly by fat, liver and muscle cells, this is called insulin resistance, therefore blood sugar or glucose does not get into these cells to be stored for energy. When sugar cannot go into cells, a high level of sugar builds up in the blood. This is called hyperglycemia Gestational Diabetes This type affects females during pregnancy. Gestational diabetes is caused when insulin receptors do not function properly, and their bodies are unable to produce enough insulin to transport all of the glucose into their cells, resulting in increasingly rising levels of glucose. Undiagnosed or uncontrolled gestational diabetes can elevate the risk of problems during childbirth. The baby may be bigger than he/she should be. Disease process Etiology Generally the cause of type 1 diabetes mellitus is unknown. A number of descriptive theories have been put forward, and the cause may be one or more. One of the causes is autoimmune disease. This is a condition that occurs when the immune system mistakenly attacks and destroys healthy body tissue, an infection causes the body to mistakenly attack the cells in the pancreas that make insulin in which destruction or damaging of the beta cells, beta cells is special cells that produced insulin hormone in the pancreas. According to Wisse B (2014) Insulin is needed to move glucose into cells. Inside the cells, glucose is stored and later used for energy. Without sufficient insulin, glucose builds up in the bloodstream instead of going into the cells. This increase glucose in the blood is called hyperglycemia, therefore body is unable to use the glucose for energy. Genetics is one of the causes, according to American Diabetes Association (2014) if you are a man with type 1 diabetes; the chances of your child developing diabetes are 1 in 17. If you are a woman with type 1 diabetes and your child was born before you were 25, your childs risk is 1 in 25, if your child was born after you turned 25, your childs risk is 1 in 100. Your childs risk is doubled if you developed diabetes before age 11. If both you and your partner have type 1 diabetes, the risk is between 1 in 10 and 1 in 4. Another cause of Type 1 diabetes mellitus is viruses that might promote autoimmunity. According to American Diabetes Association (2014) A significant number of viruses have been associated with type 1 diabetes, including enteroviruses such as Coxsackievirus B , but also rotavirus, mumps virus, and cytomegalovirus . Rubella virus has been suggested to cause type 1 diabetes, but so far only congenital rubella syndrome has convincingly been linked with the disease. The prime viral candidates for causing type 1 diabetes in humans are enteroviruses. Type 2 diabetes mellitus generally causes from the pancreas does not make sufficient insulin or the body is unable to use the insulin that is produced, as we know insulin resistance. According to Khardori. R (2014) Type 2 diabetes mellitus appears to involve complex relations between environmental and genetic factors, environmental factor is including lifestyle for example (excessive caloric intake, inadequate caloric expenditure, obesity), high body mass index (BMI) increases risk for diabetes. In addition, an in utero environment consequential in low birth weight may influence some individuals to develop type 2 diabetes mellitus. Infant weight velocity has a small, indirect effect on adult insulin resistance. In addition about 90% of obese patient develop type 2 dibetes mellitus. According to Winter S (2014). Second diabetes mellitus type 2 causes is by genetic, diabetes mellitus type 2 strongly has a hereditary component. However not everyone who carries a mutation will get diabetes. Gestational Diabetes type affects females during pregnancy. The cause’s gestational diabetes according to Mayo Clinic (2014) during pregnancy, the placenta, which connects your baby to your blood supply, produces high levels of various other hormones. Almost all of them impair the action of insulin in your cells, raising your blood sugar. As your baby grows, the placenta produces more and more insulin-blocking hormones. In gestational diabetes, the placental hormones provoke a rise in blood sugar to a level that can affect the growth and welfare of your baby. Gestational diabetes usually develops during the trimester. Pathogenesis According to Nucleus Medical Media (2014) Pathogenesis for diabetes mellitus type 1 is summaries that beta cells in the pancreas lose their ability to produce insulin, resulting in high blood glucose levels.In type 1 diabetes, your immune system, specifically your white blood cells, mistake your pancreatic beta cells for foreign invaders.In an autoimmune response, your white blood cells secrete auto antibodies that destroy your own beta cells.As a result, your pancreas produces little or no insulin.Without insulin, glucose cannot get into your cells, so they are starved for the calories they should be receiving from glucose.In addition, the glucose level builds up in your bloodstream, resulting in a condition called hyperglycemia. Diabetes mellitus type 2 usualy caused by obesity and physical inactivity, Diabetes mellitus type 2 is categorized as insulin resistant diabetes, it commonly referred to as the metabolic syndrome according to Hannele Yki-JÃ ¤rvinen (2011) Insulin resistance can be defined as the inability of insulin to produce its usual biological actions at circulating concentrations that are effective in normal subjects. In addition pathogenesis diabetes mellitus type 2 happen when beta cells of the pancreas are no longer capable to meet the body’s requirement for insulin. Hyperglycaemia therefore develops earlier in the course of beta cell failure, and in association with a greater beta cell mass, in insulin-resistant compared with insulin-sensitive individuals. The relative importance of reduced secretion of insulin and increased demand insulin resistance ranges along a range from one individual or population to the next. Pathogenesis of gestational diabetes. According to Manda A, when pregnant, human body will produce several hormones. Some pregnancy hormones disrupt the usual function of insulin by interfering cell signalling pathways. In the bloodstream insulin will stimulates fat tissue and skeletal muscle cells to absorb glucose. Because of presence insulin resistance the process uptake of blood glucose is prevented as a result the blood sugar level remains high. In the pregnancy glucose usually present in the blood stream in the placenta through the Glucose transporter 1 (GLU1) carrier to reach the fetus. If not been treated, amount of insulin develop by the fetus will increase, then the baby born larger body than is normal. After baby born the excess of glucose through placenta is done. However, the insulin production still increased it may lead to low blood glucose levels or hypoglycaemia. Manifestation According to Kishore P (2013), The types of diabetes have very related symptoms. The first symptoms are related to the direct effects of high blood glucose levels. When the blood glucose level rises above 160 to 180 mg/dL, glucose spills into the urine. When the level of glucose in the urine rises even higher, the kidneys excrete additional water to dilute the large amount of glucose. Because the kidneys produce excessive urine, people with diabetes urinate large volumes frequently. The excessive urination creates abnormal thirst. Because excessive calories are lost in the urine, people may lose weight. To compensate, people often feel excessively hungry. Other symptoms include blurred vision, drowsiness, nausea, and decreased endurance during exercise. Significant Lab Tests There are severe test can done to demonstrate diabetes mellitus (DM). According to Mayo Clinic (2014), the common test done is Glycated hemoglobin (A1C). Test this blood test indicates your average blood sugar level for the past two to three months. It measures the percentage of blood sugar attached to hemoglobin, the oxygen carrying protein in red blood cells. The higher your blood sugar levels, the more hemoglobin youll have with sugar attached. An A1C level of 6.5 percent or higher on two separate tests indicates that you have diabetes. An A1C between 5.7 and 6.4 percent indicates prediabetes. Below 5.7 is considered normal. However If the A1C test results arent consistent, the test isnt available, or if you have certain conditions that can make the A1C test inaccurate — such as if youre pregnant or have an uncommon form of hemoglobin (known as a hemoglobin variant) — your doctor may use the next tests to diagnose diabetes such as. Random blood sugar test. Fasting blood sugar test. Oral glucose tolerance test

The Mind of Kurt Vonnegut Essay -- Biography Biographies Essays

The Mind of Kurt Vonnegut Kurt Vonnegut is one of the preeminent writers of the later half of the twentieth century. His works are all windows into his mind, a literary psychoanalysis. He examines himself as a cog in the corporate machine in "Deer in the Works"; as a writer through the eyes of Kilgore Trout in several works; and most importantly, as a prisoner of war in Slaughterhouse-Five. Vonnegut created short stories and novels that dealt with events in his life. One of the most obvious self examinations is in "Deer in the Works". The short story is based on his experiences as a publicist at the General Electric Company Research Laboratory in Schenectady, New York. "Deer in the Works" takes place over two days in the life of David Potter as he begins his employment at the Ilium Works of the Federal Apparatus Corporation. He is assigned to cover a deer trapped in a remote corner of the Works. Potter gets lost in the Works himself and feels just as trapped as the deer. He eventually frees the deer and escapes the works to return to his newspaper. Vonnegut felt trapped like Potter does, and left General Electric in 1951 to write full time. Before World War II, Vonnegut was enrolled at Cornell University studying biochemistry. He was surrounded by scientists and machines and as a result, his first literary works were based on that influence. Vonnegutà ¸s early writings were not accepted as serious, mainstream literature due to their scientific nature. He was considered a science fiction writer by literary critics. That label caused him to be largely ignored. He created the character Kilgore Trout, a science fiction writer, to... ...hort-term events like that. Dresden was astonishing, but experiences can be astonishing without changing you" (Reed 776). Despite these claims to the contrary, the experiences at Dresden had always played a large part in his writings. His experiences have always shaped what Kurt Vonnegut has written. He said to his brother, Bernard, that he wrote for an audience of one, his dead sister; but he truly wrote for himself. He wrote about his experiences as a prisoner in Slaughterhouse-Five, as a publicist in a major corporation in "Deer in the Works", and as a writer through the character Kilgore Trout. Vonnegut examined his thoughts through the eyes of David Potter, Kilgore Trout, and Billy Pilgrim. His works are all deeply personal windows into the psyche of Kurt Vonnegut.

John Donnes The Indifference :: Poets, Poetry, Prose

John Donne's "The Indifference" is a love poem that can be interpreted in a number of ways. Not only is the meaning of the text debatable, but the audience for which the poem was intended can be argued as well. The language Donne uses leaves room for the reader's imagination and intellect to take over and decide to whom he is talking and why. The author is writing to a specific audience for a specific reason, trying to convey his point through his verse. While not all people agree as to whom this poem is intended for or whom the speaker is actually talking to, I have a good understanding as to what Donne is trying to accomplish by writing "The Indifference" and whom the voice of the piece is actually talking to. The interpretation that I found to be most convincing is that he is speaking to a woman, who is by herself, and he is letting her know what kind of qualities (or lack there of) he is looking for. He is giving a disclaimer to her on the type of person he is and how he views relationships so she knows what she's getting herself into. The first stanza starts off with the speaker listing opposite character types. All of the types listed refer to different types of women, "Her whom the county formed, and whom the town" and "Her who still weeps with spongy eyes, / And her who is dry cork, and never cries". The speaker is not referring to one type of woman in particular, but to all women in general. He is telling the woman that he is addressing know just how many different types of woman he can or will potentially be interested in. Another interesting aspect of the first stanza is Donne's wording at the beginning of each line. He starts each with either "I can love" or "Her who". This is his passive way of informing the reader as to what type of woman he can and wants to love: any woman who is alive and willing to take a chance on him. It is not until the final two lines of the stanza that he actually puts any requirements as to what kind of a woman he specifically wants, "I can love her, and her, and you and you, / I can love any, so she be not true".

Communication: Interviewer Essay

INTRODUCTION An interview is generally regarded as the kind of meeting which occurs when someone applies for a job. This is certainly an important kind of interview which many people encounter during their work life. All interviews need careful preparation, which should cover areas like, considering the purpose of the interview, gathering the necessary information, planning a suitable setting for the interview and thinking of the people who will be involved. Contaminants refer to those that which render impure or unsuitable by contact or mixture. There are various factors that contaminate the interview process. An effective interviewer is responsible for reducing the contaminants to the interview process. Most often, the greatest obstacle to an effective interview is the interviewer him/herself. The interviewer is supposed to focus on the subject as the person who will provide him with the information he seeks. The interviewer concentrates on establishing rapport, listening effectively, analyzing the subject verbal and non-verbal communication and grading how much or how little the subject is telling you. The aspects that are going to be covered include that which are caused by the interviewer and the person being interviewed and how they affect the interview process Some statistics suggest that as little as 10 to 20 percent of our communication is made up of our words, 30% by our sound while 60% is by body language. The greater influence will come as a result of non-verbal communication Circumstances the situation in which an exchange takes place has a lot to do with the impression you convey and thus the overall message which the other person receives, circumstances include factors such as the amount of preparation you have done for the discussion, whether you have arrived late for an interview, have not read relevant letters or papers. Whenever you arrange an interview or a meeting then make sure that the circumstances are such that there will be no interruptions, that you arrived on time and you have done the necessary preparations Arrangement of the room The interviewer should arrange the physical layout of the room so that the difference in ranks between him and the interviewer is empahsized.if on the other hand the two sit at the table or in easy chairs in a different room the air of equality will be created and it will impact negatively on the interview. Another essential point is that all participants should be able to see the other. Eye contact should be possible for everyone who takes part otherwise communication will be very limited and ineffective. Physical appearance ‘Dress like a professional and you are likely to be treated as one† (yate, 1986) the moment we set our eyes on someone, our minds make evaluations and judgments with lightening speed. The same is true for potential employers and employees. The interviewer should wear appropriate clothing for the interview, the interviewer can dress up or dress down too much.bussiness attire can send signals of formality and professionalism. Overdressing sets a serious mood which may contribute to stress on the part of the subject.one of the goals of the interviewer is to minimize stress and develop rapport. Appropriate attire vary from industry to industry, in all instances, our clothing are sending a message about our image, and the image we want to convey is one of reliability, trust and attention to detail. Grooming is important and it makes an important first impression about the interviewer’s attitude toward the subject†¦Ã¢â‚¬ how you dress makes an important statement not only about what you think of yourself but also how you regard the person or the people you are talking to†(sillars 1988) Most of us are far more adept at recognizing the dress mistakes of others than at spotting our own sartorial failings. When we do look for a second option, we often make the mistakes of asking only a loved one. It’s not that our loved ones don’t lack taste in clothing or attire, this people are more in tune with our positive qualities than the rest of the world and so, frequently, they do not recognize how essential it is to recognize those qualities in our dress. Better candidates for evaluation of your dress are trusted friends who have proved their objectivity in such matters. Hand written notes It might be at times advisable not to write down notes at the ties the individual tells the interviewer something sensitive. The interviewer might consider devoting his attention to the subject and writing down the sensitive information after the conversation has moved away from the sensitive area. As part of developing rapport, it might be best to at least initiate an interview without taking notes. This can enhance the communication process. If the circumstances dictate that the interviewer not take notes during the initial phase of the interview, the interviewer can review the relevant facts with the subject and make notes of those facts at the time of the review†¦Ã¢â‚¬ a lack of response clarity and poor grammar were  among the most often cited communication inadequacies observed during employment interviews† (Peterson, 1997) Multiple subjects or interviews The interviewer should not attempt to interview two or more people at a go unless there is no any other option. It is more difficult to control an interview with two or more subjects. One subject may be more embarrass themselves in front of a peer. The environment for confidential communication will adversely be affected. Unless there is a matter that requires two or more interviewers, it is advisable that one interviewer conduct the interview. It is not possible to establish rapport and the same level of confidence in two interviewers at the same time. Interview schedule and length The length and the number of times an individual may be interviewed sends signals to the balance of the group interviewed in situations where the interviewees are from the same organization As the interviews are conducted, factors such as the length of the interview, the sequence in which the individuals are interviewed and the number of times the interviewer conducts follow-ups may impact on the interview. Conclusion The main purpose of an interview is to get your views on a topic or to gain a general idea of how the interviewees view your company, organization or establishment. Giving a false impression will make the potential employees lose faith and trust that they had for that company and qualified candidates may turn down a job on the virtue of not having confidence in you. Sending the right nonverbal signals and showing interest without anxiety will convey a sense of involvement and commitment. Most often, the greatest obstacle to an effective interview is the interviewer him/herself. The interviewer is supposed to focus on the subject as the person who will provide him with the information he seeks. An effective interviewer is responsible for reducing the contaminants to the interview process. Everyone needs to be aware of the elements and the principals involved. The interviewer concentrates on establishing rapport, listening effectively, analyzing the subject verbal and non-verbal communication and grading how much or how little the subject is telling you. _References_ _Baran, (2004) introduction to mass communication, McGraw hill companies New York_ _Harter, nelson, Pearson, titsworth (2003) human communication, McGraw hill companies New York_ _Michael gamble, Teri gamble, (2002) how communication works, McGraw hill companies New York_ _Sillars (1988), success in communication, john Murray (publishers) ltd, London_ _Sillars (1981) communication rules ok! John Murray (publishers) ltd, London_ _Yate, (1986) great answers to tough interview questions 7th edition, kogan page limited, London_

How useful is Personality Theory? Essay

What motivates human behavior? Why is the past present and future day important to the cultivation of temper? How constant quantity is human behaviour? These questions along with or so(prenominal)(prenominal) others determine the need for a possibleness that will answer or so of the questions. spirit Theories aim to provide a viable description for packs one-on-one differences, it attempts to answer the questions mentioned above and assign some kind of meaning into peoples behaviour. (Furnham & Heaven pg10)There are numerous contrastive theories in order to beg off spirit some would explain peoples unique behaviour as beingness a product of our environment or social situations, personal tuition or part of our genetic makeup. constitution hypothesis attempts to explain the how is our behaviour shaped, what makes us contain in certain shipway in certain social situations and wherefore do we be nonplus in this manner. The stamp is that people are unique and no two people be nurture analogous in a predicament, no matter how close they are.(Furnham & Heaven pg4) The method in which nature theorists look at the development of genius all differ, some analyze the structure which attempts to reach below the come along of observable trait type behaviours. several(prenominal) explain the actual exploites of personality others analyze the development of personality. An important reason for set upvass personality is to gain scientific acquaintance and to try to assess people so that deviant behaviours can be modified. (Roth pg365)Concerning the different personality theories only one theory will be mentioned in this essay, that being the trait-type approach which explains personality as inherit differences that are biological. This theory of personality is utilise quite often in our all day life and the benefits and implications of using personality theories will be examined in detail, throughout the progression of this essay. re cord is a pro-active process and the theories attempt to stabilise ones behaviour, and beca usage personality is an implicate theory we can predict that people will be ware in a certain way.The know scale for introversion and extraversion as described by (Hippocrates, Galen, Wi nont, Jung, Eysenck, and Cattell among others) has been shown to be straight related to mental health, acquisition and education, sample taking, criminality and other social behaviours. These behaviour patterns may not become known by observation, or just conflux a person, this is why this approach has some benefits. (Wallace pg10)Individual differences in personality have long been recognised, in the last cardinal years psychologists have made a great deal of progress in developing procedures for assessing personality. A large piece of assessment methods, tasks and gadgets have been use to assay mans behaviour, attitudes, thoughts, aspirations and deviations. All of these approaches to assessing cate gorising, or measuring personality, have involved collecting responses from, or reservation observations about, the subject which could be used to guess more general personality traits or status characteristics.(Butcher page 4) The use of personality testing in occupational assessing has been change magnitude over the past two decades. few recent surveys have, for example suggested that up to two thirds of large organisations in the UK use personality assessment for selecting managers. The vast majority of organisations use tests responsibly and wisely, although it is undoubtedly true some do not. The British psychological beau monde (BPS) aim to promote responsible use. (Dr Russell Drakeley pg29)Personality assessment can be used for staff selection, promotion, individual personality development, police squad development, career guidance, counselling, educational or learning difficulties or clinical personality assessment. The possibilities of personality testing are varied, and some of the ones include in the above list would not meet with universal approval. Using personality tests for promotion and redundancy are peculiarly controversial and in the past have caused much consternation, both within and alfresco occupational psychology. (Dr Russell Drakeley pg28)

My Favorite Season of the Year

My pet epoch of the class is autumn. at that place atomic number 18 three main suits why it is my ducky of the four inures. During this season disposition is an absolute wonder to give a mode, Thanksgiving spend occurs at this conviction, and the suffer is sinless for umteen exterior activities. The first reason I roll in the hay autumn so much, curiously down here in the South, is because spirit is such an absolute wonder to fulfil during this time of the year. There be some animals that argon preparing for the cold winter. A proficient bearing for me to rifle out in the natural state and watch these spectacular events channelise place in nature is to go inquisition.It re alto shoot forhery is a great project for me. While hunting in the woods, I am enjoying lis cardinaling to the different denses that the birds are do. and then, out of nowhere, I hear the sound of deceased leaves rustling alto energiseher close me. I look rough to jut what is making the noise, and then I control to them. Two squirrels are digging around for food. Then, all of a sudden they bug out running, and they shoot straight up a tree wiz behind the early(a). after they get close to the top, they begin jumping from limb to limb and from tree to tree, wiz still following the other.Then they eventually disappear. I constitute upliftn this happen quite lots with both chipmunks and squirrels. They bid to sneak and cut around on top of the dead leaves, quickly searching and competing to gather the nigh nuts and acorns for their families for the winter. more or lessthing else I get to suck in nature musical composition hunting in the woods is the different lovely colorize of the leaves both up in the treetops and down on the floor of the woods. round of the leaves are variations of rosy, golden yellow, or perchance even a combination of the deuce.a nonher(prenominal) representation I standardised to see the well-favoured leaves t hat autumn has to offer is to honourable drive around and take in all the wonderful jams. Seeing the different colors of the leaves is my preferent part of nature during autumn. The leaves genuinely are quite a sight to see. The countenance reason autumn is my favorite season is because Thanksgiving occurs during this time. Thanksgiving is my favorite holiday of the year. It is the holiday for giving convey to all of those in my life whom I love and care for. There are many an(prenominal) things I like virtually the Thanksgiving holiday.One thing I like is the road hit my family and I take every year to visit our families. My family includes me, my pop music and stepmom, my two younger brothers who are seventeen and twelve, my little sister who is nine, and my cousin who is fourteen. On the way traveling to Madisonville, Tennessee, we get to see nature at its prettiest. The treetops are abruptly beautiful with their different shades of red and yellow. It takes us about t wo hours to get to where we are going, so we cod to trope out things to do to entertain ourselves while enjoying the beautiful scenery.One way to spend the time is to talk. We all discuss what has been going on in our lives, such as school, work, politics, and many other areas of life. Something else we do along the way is to play different games like I Spy. We see who can spot the most cars of a certain brand or color, or we play trivia games. Another favorite activity we like to do is to sing songs and just have a grand ole time. For me a road sideslip like this is a great way to spend quality time with the family. The second reason why Thanksgiving is so appealing to me is because of our great family reunion we have every year.It is a very effectual time for family members who have not seen iodin another in a year or more to reunite for Thanksgiving. Some family members who usually show up are the following of course my great aunties and uncles and my cousins and their sid es of the family who live there in Tennessee where we have our reunion, my family from Georgia, including my grandfather and my aunt and uncle, and my aunt and uncle and their children who travel all the way from Texas. It is quite a joyfulness for me to see everybody talking and laughing and just having a great time enjoying one anothers company.Third, and probably my favorite part about Thanksgiving, is the massive pith of deliciously fulfilling food I get to eat on this wonderful holiday. I probably gain around ten to fifteen pounds throughout the Thanksgiving spend Lets start with appetizers. We have comely, juicy, mouth-watering turkey and chicken, home-baked mashed potatoes, dark-green beans, corn on the cob, those sweet English peas that just dissolve in my mouth, homemade macaroni and cheese, all different kinds of pastas and veggies, and one of my favorites, the saucily baked, sweet- timbreing, buttered rolls. MmmmmI am becoming starved just thinking about them. Th en there are the delicious desserts. My favorites are that creamy banana pudding my aunt makes, pineapple upside down cake, and the sweet, dampish strawberry shortcake. But do not be mistaken. We have brownies, different kinds of cakes such as red velvet, German chocolate, symmetrical chocolate, and cheesecake. Oh, and we have many varieties of tasty pie. So those are some good reasons I enjoy Thanksgiving so much, making autumn my favorite season. The third reason autumn is such an awesome season is that it provides excellent weather for several outdoor activities.I really can appreciate the perfect weather fall leases along with it. pickings a weekend hiking and camping trip with my friends or family out in the wilderness of the mountains is always fun. This is especially true when the fair weather is out, the temperature stays around fifty to threescore degrees, and the winds are calm throughout the day. On this trip I spend with my friends, we tip from the ice cold river or creek to catch lunch and dinner with the fanaticism of the sun on our backs. Later, during the evening when the temperature drops, we get the fire started and everybody sits around it and sings, talks, tells stories, and just has a grand ole time.Sitting next to the vitriolic fire, I can feel the heat from the flames warming my face, and my nose becomes filled with the sweet smell of wood burning. There are other things I like to do as well. I like to go cycle or running and feel the nice collected air blow everywhere my skin to cool my body down. These two activities have three advantages to them. It is good exercise, I can do it almost anywhere, and it is a good way to enjoy those cool days fall has to offer. Its a three for one deal, baby any of these are enjoyable activities for me to do with my friends or family, but sometimes I like to do them alone.Mainly, these are some activities that bring people closer together and are enjoyable to do during the fall because the w eather is perfect. Autumn is neither too hot nor too cold. It is a season that keeps me active. In conclusion, these are three positive traits about the season of autumn I enjoy the most. Nature is an absolute wonder to see during the season of autumn, Thanksgiving occurs, and the weather during this season is perfect for many outdoor activities. wholly in all, autumn is the best season of the year and my favorite for these three reasons.