America's Financial Crisis: The End of an Era

This paper reviews research on the origins of the financial crisis of 2008–2009, highlights the key events that triggered a financial panic in September 2008, and summarizes the extraordinary policy actions the United States (US) has taken to ameliorate the crisis. We discuss the proximate causes of the crisis, including the characteristics and growth of the subprime mortgage market, and the distorted incentives and flawed regulatory structure surrounding the secondary market for mortgage-backed securities. We also assess the role of more fundamental macroeconomic determinants of the bubble in US asset prices, most notably low global interest rates attributed to either loose monetary policy or excess global saving. We find that while low global interest rates may have contributed to the boom in housing markets and speculative excesses, the poorly understood innovations and microeconomic distortions of the financial system played a more fundamental role. Finally, the otherwise extraordinary policy response of the US government has been limited by the lack of an effective restructuring of the financial system, and a recovery marked by higher private saving, weak domestic investment, and a large public deficit appears to be unsustainable. Ultimately, the US economy will need to shift about 3% of GDP from domestic consumption to the export sector. This will pose some serious challenges to countries that have come to rely on exports to the US market.global financial crisis; financial panic; american policy actions

Wal-Mart Stores, Inc. Strategic Corporate Research Report

[Excerpt] Wal-Mart Stores, Inc. (hereinafter Wal-Mart) is the second-largest company in the world. It has more annual revenue than the GDP of Switzerland. It sells more DVDs, magazines, books, CDs, dog food, diapers, bicycles, toys, toothpaste, jewelry, and groceries than any other retailer does worldwide. It is the largest retailer in the United States, Mexico, and Canada, the second-largest in the United Kingdom, and the third largest in Brazil, With its partners, it is the largest retailer in Central America. Wal-Mart is also the largest private employer in the United States, Mexico, and Canada, and it has 1.8 million employees around the globe. Wal-Mart is so huge that it effectively sets the terms for large swaths of the global economy, from retail wages to apparel prices to transoceanic shipping rates to the location of toy factories. Indeed, if there is one single aspect to understand about the company, it is the fact that Wal-Mart is transforming the relations of production in virtually every product category it sells, through its relationships with suppliers. But its influence goes far beyond the economy. It sets social policy by refusing to sell certain types of birth control. Its construction of supercenters molds the landscape, shapes traffic patterns, and alters the local commercial mix. The retail goliath shapes culture by selling the music of patriotic country singer Garth Brooks but not the critical (and hilarious) The Daily Show with Jon Stewart Presents America (the Book): A Citizen’s Guide to Democracy Inaction. It influences politics by donating millions to conservative politicians and think tanks. Wal-Mart is, in short, one of the most powerful entities in the world. Not surprisingly, Wal-Mart has developed a long list of critics, including unions, human rights organizations, religious groups, environmental activists, community organizations, small business groups, academics, children’s rights groups, and even institutional investors. These groups have exposed the company’s illegal union-busting tactics, its many violations of overtime laws, its abuse of child labor, its egregious healthcare policies, its super-exploitation of immigrant workers, its rampant gender discrimination, the horrific labor conditions at its suppliers’ factories, and its unlawful environmental degradation. They have also chronicled the deleterious effect Wal-Mart has on the public coffers and the quality of community life. New Wal-Mart stores and distribution centers often swallow up government subsidies and tax breaks, take public land, create more congestion, reduce overall wages, destroy retail variety, and increase public outlays for healthcare. To its critics, Wal-Mart represents the worst aspects of 21st-eentury capitalism. Wal-Mart usually counters any criticism with two words: low prices. It is a powerful mantra in a consumerist world. The company does make more products affordable to more people, and that is nothing to sneeze at when wages are stagnant, jobs insecure, pensions disappearing, and health coverage shrinking. With low prices, Wal-Mart helps working men and women get more from their meager paychecks, more necessities like bread, and more luxuries, like roses, too. It is a brilliant and incontrovertible argument, and Wal-Mart’s most ardent defenders take it even farther. They say its obsession with low prices makes the entire economy more efficient and more productive. Suppliers and competitors have to produce more and better products with the same resources, and that redounds to everyone. In the micro, it means falling prices and rising product quality. In the macro, it means economic growth, more jobs, and higher tax revenues. To its defenders, Wal-Mart represents the best aspects of 21st-century capitalism. Despite their radical opposition, critics and defenders of the world’s largest corporation agree on one thing: Wal-Mart represents 21st-century capitalism. It symbolizes a system of increasing market penetration and decreasing social regulation, where more and more aspects of life around the world are subject to economic competition. Wal-Mart’s success rests upon the ongoing destruction of social power in favor of corporate power. It takes advantage of the conditions of the neo-liberal world, from the availability of instant and inexpensive global communication to the continuing collapse of agricultural employment around the world to the rapid diffusion of technological innovation to the oversupply of subjugated migrant labor in nearly every country to the continued existence of undemocratic and corporate-dominated governments. For some, this is as it should be, all part of capitalism’s natural and ultimately benign development. For the rest of us, Wal-Mart is at the heart of what is wrong with the world

Trading with Asia’s Giants

The United States large and sustained trade deficit with Asia raises concerns in the United States about its competitiveness in the region. The purpose of this paper is to examine the patterns of U.S. trade relationships with China and India, and the factors that are influencing their evolution. In contrast to the current public policy debate, the discussion largely addresses how these two economies compare as markets for U.S. exporters. This paper begins by noting that U.S. exports to both countries do appear low relative to the performance of Japan and the EU-15. We examine potential explanations for the weak exports from three different perspectives. First, we analyze the composition of U.S. exports to these economies, and consider how this mix of products compares to those which it appears to be competitive in exporting to the rest of the world. Second, we examine the role of multinational corporations in facilitating the trade flows between the U.S and these two economies. Finally, we employ the use of gravity equations to examine the bilateral trade patterns while controlling for a variety of country specific characteristics, such as distance. In this context, we are also able to analyze the pattern of trade in services as well as the more traditional focus on goods trade.China, India, United States, trade, and exports

Networked Families

Presents survey results on the use of the Internet and ownership of cell phones and computers, by household type. Examines how technology ownership affects the frequency, form, purpose, and quality of communications among family members and friends

Using video tutorials as a carrot-and-stick approach to learning

Traditional teaching styles practiced at universities do not generally suit all students\u27 learning styles. For a variety of reasons, students do not always engage in learning in the courses in which they are enrolled. New methods to create and deliver educational material are available, but these do not always improve learning outcomes. Acknowledging these truths and developing and delivering educational material that provides diverse ways for students to learn is a constant challenge. This study examines the use of video tutorials within a university environment in an attempt to provide a teaching model that is valuable to all students, and in particular to those students who are not engaging in learning. The results of a three-year study have demonstrated that the use of well-designed, assessment-focused, and readily available video tutorials have the potential to improve student satisfaction and grades by enabling and encouraging students to learn how they want, when they want, and at a pace that suits their needs

Human gut Bacteroides capture vitamin B12 via cell surface-exposed lipoproteins.

Human gut Bacteroides use surface-exposed lipoproteins to bind and metabolize complex polysaccharides. Although vitamins and other nutrients are also essential for commensal fitness, much less is known about how commensal bacteria compete with each other or the host for these critical resources. Unlike in Escherichia coli, transport loci for vitamin B12 (cobalamin) and other corrinoids in human gut Bacteroides are replete with conserved genes encoding proteins whose functions are unknown. Here we report that one of these proteins, BtuG, is a surface-exposed lipoprotein that is essential for efficient B12 transport in B. thetaiotaomicron. BtuG binds B12 with femtomolar affinity and can remove B12 from intrinsic factor, a critical B12 transport protein in humans. Our studies suggest that Bacteroides use surface-exposed lipoproteins not only for capturing polysaccharides, but also to acquire key vitamins in the gut

Student Attitudes to an Online, Peer-instruction, Revision Aid in Science Education

Peer instruction has been shown to have a positive effect on students’ engagement and learning. However, many of the techniques designed to incorporate peer instruction into the student experience are very heavy on resources. PeerWise is a free, low-maintenance, web-tool designed to allow peer instruction between students within a large class group. Students can write, answer and discuss Multiple Choice Questions (MCQs) based on their work in-class. In this study, we introduce PeerWise to a wide and varied cohort of science students (N=509) across different disciplines, undergraduate years, levels (certificate to honours degree) and institutes. The attitudes of the students to PeerWise are probed using a questionnaire (356 respondents). This includes responses to Likert-style questions and thematic analysis carried out on free-text responses. It is found that the students are positive about the addition of PeerWise and recognise the advantages of the software in their learning. They recognise, and articulate, the advantages of PeerWise as an active-learning, peer-instruction revision tool. Further advantages and disadvantages are discussed, such as the flooding of system with easy and/or repetitive questions. Overall, the results are positive and are very similar across the varied class groups. In this study, PeerWise performs as free and low-maintenance software that allows the addition of (another) peer-instruction aspect to modules

Collecting Samples From Online Services: How to Use Screeners to Improve Data Quality

Increasingly, marketing and consumer researchers rely on online data collection services. While actively-managed data collection services directly assist with the sampling process, minimally-managed data collection services, such as Amazon’s Mechanical Turk (MTurk), leave researchers solely responsible for recruiting, screening, cleaning, and evaluating responses. The research reported here proposes a 2 × 2 framework based on sampling goal and methodology for screening and evaluating the quality of online samples. By sampling goals, screeners can be categorized as selection, which involves matching the sample with the targeted population; or as accuracy, which involves ensuring that participants are appropriately attentive. By methodology, screeners can be categorized as direct, which screens individual responses; and as statistical, which provides quantitative signals of low quality. Multiple screeners for each of the four categories are compared across three MTurk samples, two actively-managed data collection samples (Qualtrics and Dynata), and a student sample. The results suggest the need for screening in every online sample, particularly for the MTurk samples, with the fewest supplier-provided filters. Recommendations are provided for researchers and journal reviewers that provide greater transparency with respect to sample practices