Research Assignment Paper About Advantages of Fracking - 1375 Words

Research Assignment Paper About Advantages of Fracking (Research Paper Sample) Content: Name:Institution:Date:Instructor:Advantages of FrackingAs the global concerns on energy production and consumption continue to rise, one of the major areas of attention has been that of hydraulic fracturing and its impact on the environment. A great deal of attention has been placed on the negative impacts, with little consideration being placed on the benefits that this energy production process generates economically and socially. This essay attempts to convince the reader on the importance of fracking by pointing out some of the major benefits that it creates. The fracking process primarily involves the injection of a fluid that contains sand, chemicals into oil and gas wells with the aim of breaking through the shale rocks so as to gain access to the natural gases and oils that deep inside the earth. The resultant effect is the ability to access fossil fuels that were previously inaccessible. For the American society, this process has brought instrumental and posi tive outcomes as will be discussed below.First and foremost, fracking is a method that surpasses the effectiveness of traditional extraction, more so when it comes to fossil fuels that are deep into the ground. In this case therefore it has made gas and oils that were previously unavailable more accessible. The increase in gas productions does present two main advantages, beginning with that of more affordable fuels for the American public. As more oil becomes accessible its abundance makes the prices go down considerably (Hadley, et al, p.4). It is also clear that more time is needed for the world over to find cheaper and safer energy source. As the world grapples with the fact that fossil fuels are non-renewable, significant resources have been invested in the finding alternative sources. The adoption of fracking however, does provide a significant break by offering more time for research to be conducted. As surplus gasses are made accessible through fracking, the world over gest to enjoy a significant amount of time in its pursuit of safer and efficient energy sources.Hydraulic fracturing also introduces another important economic advantage; that of value in increased production as a result of fracking. The ability to drill more oil wells has been instrumental in allowing for the United States to bolster its balance of trade with other countries. In other words with increasing volumes of production, the government is importing lesser fossil fuels than before (Christenson, p.7) The affordability of fossil fuels that emerges as a result of abundance translates into other sectors of the economy in that the cost of production in most sectors go down. While billions of dollars were being flown out of the country in exchange of fossil fuels, most of it has been put back into the pockets of American people in the form of disposable incomes.Another economic impact has been the increase in employment opportunities. The fracking process has slowed for the expansion o f the energy sector even as more people are absorbed into the production and supply value chain. The transcendence of the limitations imposed by traditional extraction methods coupled by the fact that more natural gas deposits abound within the US, it is clear that increase in employment is likely to continue rising.From a political perspective, fossil fuels have been instrumental in defining global relations between nations. The reliance on oil imports from oil producing countries has previously resulted imbalance of power between states. As a matter of fact, such imbalances have been utilized to gain political and diplomatic headway in the past. The fact that fossil fuels are unevenly distributed around the worlds means that some nations naturally lack ready access, making it a cause for great tension.From an environmental perspective, fracking has predominantly been viewed as an environmental destructive process (Spellman, p.6). What has been missed however, is the fact that the accessibility of natural gasses that has come about as a result of hydraulic fracturing technology has made it possible for coal power to be replaced. According to Christenson, a significant proportion of electricity in the United States is produced through the burning of coal (p.3). The cheapness of coal has been instrumental in increasing its consumption within the United States, with the adoption of fracking however, more natural gas deposits have been made accessible allowing for the replacement of coal. The greatest advantage that emerges from this particular shift is a significant reduction in the build of greenhouse gasses within the atmosphere.The burning of natural gasses results in the production of lesser carbon into the air as compared to that of coal. As more natural gas deposits continue to be explored within the United States it is clear that its carbon footprint is likely to be reduced even as its coal consumption is brought down. Considering the United States propor tion of contribution to greenhouse gas emissions, a significant drop in its emission is of great benefit to the world over.A number of concerns have been raised in relation to the negative environmental issues that arise as a result of fracking. From the contamination of water resources to the destruction of soils through chemical damping, the fracking process has been painted as an environmentally destructive process. It is however, important to note the advantages that abound as a result of its adoption versus the destructiveness that is causes. For instance, improved economic productivity emerging from the increased value of production can be translated into community projects that are environmentally safe.As more investors are drawn to the highly efficient hydraulic fracturing technology, more resources are being invested into the local economy in an unprecedented way. For investors, it also presents them with an opportunity to improve the lives of the communities in which they operate. As a result numerous organizations and groups dealing with environmental concerns and issues have received millions of dollars even as they push for environmental wellbeing. From an improved energy outlook of the world, hydraulic fracturing can be seen ...

Why Trenches Were Used in World War I

During trench warfare, opposing armies conduct battle, at a  relatively close range, from a series of ditches dug into the ground. Trench warfare becomes necessary when two armies face a stalemate, with neither side able to advance and overtake the other. Although trench warfare has been employed since ancient times, it was used on an unprecedented scale on the Western Front during World War I. Why Trench Warfare in WWI? In the early weeks of the First World War (late in the summer of 1914), both German and French commanders anticipated a war that would involve a large amount of troop movement, as each side sought to gain or defend territory. The Germans initially swept through parts of Belgium and northeastern France, gaining territory along the way. During the First Battle of the Marne in September 1914, the Germans were pushed back by Allied forces. They subsequently dug in to avoid losing any more ground. Unable to break through this line of defense, the Allies also began to dig protective trenches. By October 1914, neither army could advance its position, mainly because war was being waged in a very different way than it had been during the 19th century. Forward-moving strategies such as head-on infantry attacks were no longer effective or feasible against modern weaponry such as machine guns and heavy artillery. This inability to move forward created the stalemate. What began as a temporary strategy evolved into one of the main features of the war at the Western Front for the next four years. Construction and Design of Trenches Early trenches were little more than foxholes or ditches, intended to provide a measure of protection during short battles. As the stalemate continued, however, it became obvious that a more elaborate system was needed. The first major trench lines were completed in November 1914. By the end of that year, they stretched 475 miles, starting at the North Sea, running through Belgium and northern France, and ending in the Swiss frontier. Although the specific construction of a trench was determined by the local terrain, most were built according to the same basic design. The front wall of the trench, known as the parapet, was about 10 feet high. Lined with sandbags from top to bottom, the parapet also featured 2 to 3 feet of sandbags stacked above ground level. These provided protection, but also obscured a soldiers view. A ledge, known as the fire-step, was built into the lower part of the ditch and allowed a soldier to step up and see over the top (usually through a peephole between sandbags) when he was ready to fire his weapon. Periscopes and mirrors were also used to see above the sandbags. The rear wall of the trench, known as the parados, was lined with sandbags as well, protecting against a rear assault. Because constant shelling and frequent rainfall could cause the trench walls to collapse, the walls were reinforced with sandbags, logs, and branches. Trench Lines Trenches were dug in a zigzag pattern so that if an enemy entered the trench, he could not fire straight down the line. A typical trench system included a line of three or four trenches: the front line (also called the outpost or the fire line), the support trench, and the reserve trench, all built parallel to one another and anywhere from 100 to 400 yards apart. The main trench lines were connected by communicating trenches, allowing for the movement of messages, supplies, and soldiers and were lined with barbed wire. The space between the enemy lines was known as No Mans Land. The space varied but averaged about 250 yards. Some trenches contained dugouts below the level of the trench floor, often as deep as 20 or 30 feet. Most of these underground rooms were little more than crude cellars, but some, especially those farther back from the front, offered more conveniences, such as beds, furniture,  and stoves. The German dugouts were generally more sophisticated; one such dugout captured in the Somme Valley in 1916 was found to have toilets, electricity, ventilation, and even wallpaper. Daily Routine in the Trenches Routines varied among the different regions, nationalities, and individual platoons, but the groups shared many similarities. Soldiers were regularly rotated through a basic sequence: fighting in the front line, followed by a period in the reserve or support line, then later, a brief rest period. (Those in reserve might be called upon to help the front line if needed.) Once the cycle was completed, it would begin anew. Among the men in the front line, sentry duty was assigned in rotations of two to three hours. Each morning and evening, just before dawn and dusk, the troops participated in a stand-to, during which men (on both sides) climbed up on the fire-step with rifle and bayonet at the ready. The stand-to served as preparation for a possible attack from the enemy at a time of day—dawn or dusk—when most of these attacks were likeliest to occur. Following the stand-to, officers conducted an inspection of the men and their equipment. Breakfast was then served, at which time both sides (almost universally along the front) adopted a brief truce. Most offensive maneuvers (aside from artillery shelling and sniping) were carried out in the dark when soldiers were able to climb out of the trenches clandestinely to conduct surveillance and carry out raids. The relative quiet of the daylight hours allowed men to discharge their assigned duties during the day. Maintaining the trenches required constant work: repair of shell-damaged walls, removal of standing water, the creation of new latrines, and the movement of supplies, among other vital jobs. Those spared from performing daily maintenance duties included specialists, such as stretcher-bearers, snipers, and machine-gunners. During brief rest periods, soldiers were free to nap, read, or write letters home, before being assigned to another task. Misery in the Mud Life in the trenches was nightmarish, aside from the usual rigors of combat. Forces of nature posed as great a threat as the opposing army. Heavy rainfall flooded trenches and created impassable, muddy conditions. The mud not only made it difficult to get from one place to another; it also had other, more dire consequences. Many times, soldiers became trapped in the thick, deep mud; unable to extricate themselves, they often drowned. The pervading precipitation created other difficulties. Trench walls collapsed, rifles jammed, and soldiers fell victim to the much-dreaded trench foot. Similar to frostbite, trench foot developed as a result of men being forced to stand in water for several hours, even days, without a chance to remove wet boots and socks. In extreme cases, gangrene would develop and a soldiers toes, or even his entire foot, would have to be amputated. Unfortunately, heavy rains were not sufficient to wash away the filth and foul odor of human waste and decaying corpses. Not only did these unsanitary conditions contribute to the spread of disease, they also attracted an enemy despised by both sides—the lowly rat. Multitudes of rats shared the trenches with soldiers and, even more horrifying, they fed upon the remains of the dead. Soldiers shot them out of disgust and frustration, but the rats continued to multiply and thrived for the duration of the war. Other vermin that plagued the troops included head and body lice, mites and scabies, and massive swarms of flies. As terrible as the sights and smells were for the men to endure, the deafening noises that surrounded them during heavy shelling were terrifying. Amid a heavy barrage, dozens of shells per minute might land in the trench, causing ear-splitting (and deadly) explosions. Few men could remain calm under such circumstances; many suffered emotional breakdowns. Night Patrols and Raids Patrols and raids took place at night, under cover of darkness. For patrols, small groups of men crawled out of the trenches and inched their way into No Mans Land. Moving forward on elbows and knees toward the German trenches and cutting their way through the dense barbed wire on their way. Once the men reached the other side, their goal was to get close enough to gather information by eavesdropping or to detect activity in advance of an attack. Raiding parties were much larger than patrols, encompassing about 30 soldiers. They, too, made their way to the German trenches, but their role was more confrontational. Members of the raiding parties armed themselves with rifles, knives, and hand grenades. Smaller teams took on portions of the enemy trench, tossing in grenades, and killing any survivors with a rifle or bayonet. They also examined the bodies of dead German soldiers, searching for documents and evidence of name and rank. Snipers, in addition to firing from the trenches, also operated from No Mans Land. They crept out at dawn, heavily camouflaged, to find cover before daylight. Adopting a trick from the Germans, British snipers hid inside O.P. trees (observation posts). These dummy trees, constructed by army engineers, protected the snipers, allowing them to fire at unsuspecting enemy soldiers. Despite these strategies, the nature of trench warfare made it almost impossible for either army to overtake the other. Attacking infantry was slowed down by the barbed wire and bombed-out terrain of No Mans Land, making the element of surprise unlikely. Later in the war, the Allies did succeed in breaking through German lines using the newly-invented tank. Poison Gas Attacks In April 1915, the Germans unleashed an especially sinister new weapon at Ypres in northwestern Belgium: poison gas. Hundreds of French soldiers, overcome by deadly chlorine gas, fell to the ground, choking, convulsing, and gasping for air. Victims died a slow, horrible death as their lungs filled with fluid. The Allies began producing gas masks to protect their men from the deadly vapor, while at the same time adding poison gas to their arsenal of weapons. By 1917, the box respirator became standard issue, but that did not keep either side from the continued use of chlorine gas and the equally-deadly mustard gas. The latter caused an even more prolonged death, taking up to five weeks to kill its victims. Yet poison gas, as devastating as its effects were, did not prove to be a decisive factor in the war because of its unpredictable nature (it relied upon wind conditions) and the development of effective gas masks. Shell Shock Given the overwhelming conditions imposed by trench warfare, it is not surprising that hundreds of thousands of men fell victim to shell shock. Early in the war, the term referred to what was believed to be the result of an actual physical injury to the nervous system, brought about by exposure to constant shelling. Symptoms ranged from physical abnormalities (tics and tremors, impaired vision and hearing, and paralysis) to emotional manifestations (panic, anxiety, insomnia, and a near-catatonic state.) When shell shock was later determined to be a psychological response to emotional trauma, men received little sympathy and were often accused of cowardice. Some shell-shocked soldiers who had fled their posts were even labeled deserters and were summarily shot by a firing squad. By the end of the war, however, as cases of shell shock soared and came to include officers as well as enlisted men, the British military built several military hospitals devoted to caring for these men. The Legacy of Trench Warfare Due in part to the Allies use of tanks in the last year of the war, the stalemate was finally broken. By the time the armistice was signed on November 11, 1918, an estimated 8.5 million men (on all fronts) had lost their lives in the so-called war to end all wars. Yet many survivors who returned home would never be the same, whether their wounds were physical or emotional. By the end of World War I, trench warfare had become the very symbol of futility; thus, it has been a tactic intentionally avoided by modern-day military strategists in favor of movement, surveillance, and airpower.

Stem Cell Research Stem Cells - 1416 Words

STEM CELLS In this report, I mainly focused on Stem-Cells. You will read about Stem-Cells and its history from the moment this term was known. Also, you will know the Sources, properties, and the types of Stem-Cells. In addition, you will know some of the pros and cons researches about Stem-Cells. Stem-Cells are cells that have the ability to divide and multiply and renew itself. †¢ Sources of Stem-Cells: 1- The first source is Bone Marrow. 2- The second source is Adipose Tissue (lipid cells). 3- The third source is The Blood. †¢ Stem cells types: 1- The first type of Stem Cells is Embryonic stem cells (ES cells) . 2- The second type of Stem Cells is Adult stem cells. 3- The third type of Stem Cells is†¦show more content†¦Ã¢â‚¬ ¢ 1997: Cloned lamb from stem cells. †¢ 1997: Leukemia origin found as hematopoietic stem cell, indicating possible proof of cancer stem cells. â€Å"In 1998, Thompson, from the University of Wisconsin, isolated cells from the inner cell mass of early embryos and developed the first embryonic stem cell lines. During that exact same year, Gearhart, from Johns Hopkins University, derived germ cells from cells in fetal gonad tissue; pluripotent stem cell lines were developed from both sources. Then, in 1999 and 2000, scientists discovered that manipulating adult mouse tissues could produce different cell types† . This meant that cells from bone marrow could produce nerve or liver cells and cells in the brain could also yield other cell types. These discoveries were exciting for the field of stem cell research, with the promise of greater scientific control over stem cell differentiation and proliferation. Sources of Stem-Cells There are three sources of autologous adult stem cells in humans: 1. The first source is Bone marrow. Bone marrow requires extraction by harvesting, that is, drilling into bone (typically the femur or iliac crest). 2. The second source is Adipose Tissue (lipid cells). Adipose Tissue which requires extraction by harvesting, that is, drilling into bone (typically the femur or iliac crest). 3. The third source is The Blood. Blood requires extraction through apheresis, wherein blood is drawn from the donor (similar to a bloodShow MoreRelatedStem Cell Research : Stem Cells1338 Words   |  6 Pages Stem Cells Stem cells are cells that are found throughout the human body. They reproduce over a long period of time without changing. Stem cells can produce specialized cells, such as brain, muscle or lung cells. Stem cells in the last few years have recently made a big debut because medical professionals have discovered so many unique qualities to stem cells. They are on the cutting edge of medicine because of all their uses and the qualities that make them so unique from any other cell in theRead MoreStem Cell Research : Stem Cells941 Words   |  4 PagesStem cells have the extraordinary power to develop into several body cell types during early growth and development. (Stem Cell Basics). Stem cells are either embryonic: from a human fetus, or somatic: from an adult (Stem Cell Basics).These cells can be used to rebuild body tissue, treat diseases, and even cure others. They can be more effective in treatment of illness than the common treatment, such as therapy or medication. Stem cells a re potentially more medically effective than traditional treatmentsRead MoreStem Cells And Stem Cell Research1310 Words   |  6 Pagesnonspecialized cells which have the potential to create other types of specific cells in order to survive? Those cells are called Stem Cells and they are very crucial to develop organisms. Stem cell research is a subject that most people in the world have a different viewpoint on. Some view the issue of stem cell research and stem cell therapy as morally wrong and a crime against humanity, others view the study of stem cells as the next step in modern science (Reeve.) I think in some twisted way, stem cellRead MoreStem Cell Research : Stem Cells1261 Words   |  6 Pagescure diseases. Now we have stem cell therapy. Stem cells promise future cures for many currently considered to be â€Å"incurable† diseases, but with more research, we can overcome the controversy surrounding this this topic and help people live longer, improve their quality of life, and save many many lives. To understand the big hype about stem cells, one must know what a stem cell is. Stem cells have specialized functions that have the potential to become any type of cell in the body. According toRead MoreStem Cell Research : Stem Cells999 Words   |  4 PagesSTEM CELLS WORKING TO SPECIALIZE INTO CARDIAC CELLS Once the stem cells are delivered near the damaged areas of the heart, the regeneration of cardiac (heart) cells is possible. There is a lack of understanding on how or why specifically the stem cells turn into heart cells. â€Å"Recent studies indicated that the benefits associated with adult stem cell injection might come from paracrine effects, the effect of a nearby cell sending chemical and electrical signals to the stem cell, and not from myocardialRead MoreStem Cell Research : Stem Cells1416 Words   |  6 PagesDana Moua English IV 25 April 2016 Stem Cell Research What are stem cells? Stem cells are undifferentiated cells that are found in multicellular organisms. The reason for scientist’s interest in stem cells is because of the possible applications of using them. These stem cells can be used to regrow organs/tissues. By using stem cells, scientists may be able to find cures for different cancers, certain genetic diseases, and different physical trauma damages. They can be used to treat a varietyRead MoreStem Cell Research : Stem Cells1999 Words   |  8 Pagesregenerative medicine, commonly known as stem cell research. Stem cells are undifferentiated cells within the body that have the capability to specialize into any tissue. They are most commonly found in cord blood, bone marrow, organ donations, placenta, and embryos . Stem cells are seen by some as a new miracle treatment, encouraging many countries to invest in their research. The transfer of information, often shared through scientific reports and research, puts this topic in a highly internationalRead MoreStem Research On Stem Cell Research1747 Words   |  7 PagesEnglish 111-36 25 November 2014 Stem Cell Research Stem cell research has cultivated a new, miraculous study in the health field. The study has led to an increase in curing diseases over the past couple of decades. Before stem cell research, diseases were destroying and devastating lives continuously on end. With the use of stem cells in modern time, diseases are no longer taking control of lives. The innovation in biomedical technology, such as stem cell research, has greatly impacted the understandingRead MoreStem Cell Research Controversy : Stem Cells1886 Words   |  8 Pages Stem cell research controversy. What is the first thing that comes to your mind? A person like me will either agree with it or disagree with this topic. I personally agree with stem cell research. First I want to start by pointing out that there are three main stem cells used in research the adult stem cell, induced-pluripotent stem cells, and lastly the embryonic stem cells. It has been shown that using blood stem cells to treat diseases of the blood hav e been beneficial, and has also saved manyRead MoreStem Cells And Adult Stem Cell Research882 Words   |  4 PagesStem cell are cells with the ability to divide for indefinite periods in culture and to give rise to specialized cells( Introduction [Stem Cell Information]., 2015). Stem cells, like any other cell divide, however, when stems cells divide they either remain a stem cell or become a specialized cell, for example, a neuron (Introduction [Stem Cell Information]., 2015). Stem cell research is nothing new; in fact the first bone marrow transplant to successfully treat two siblings with combined immunodeficiency

Causes Global Financial Crisis In The USA †Myassignmenthelp.Com

Question: Discuss About The Causes Global Financial Crisis In The USA? Answer: Introduction The global financial crises origination was from the USA economy. This is the greatest recession that resulted in negative harmful impacts to many world economies. Some economies are still on the recovery process as the impacts still last to date. This paper will show the factors that contributed to the USA financial crisis which consequently resulted in the global financial crisis. The crisis can be argued to have been spread in a fast pace to the other world economies owing to the interrelatedness that has been raised by globalization (Rosner, 2013). There are a wide view of factors that major analysts has put forward to explain the causes. The major cause is argued to be the failure of the subprime mortgages that the mortgage lenders had introduced. According to Fisher (2013), there was a notable boom in the US housing market that later turned to be a painful burst. It was in the mid-2000s when the housing demand in the US started rising; the rise was facilitated by factors such as; the mortgage interest rate was relatively low, there was a recovery of personal income, in addition, the credit lending standards were lowered. These factors made it easier for the households to acquire mortgage credits. The banks also went forward and started lending to high-risk borrowers whose incomes were too low. There was an increased housing demand which caused a rise in prices. According to Fisher (2013), the gauge for the US housing market by the Federal Housing Finance Agencys (FHFA) showed that the price rose by 67% in 2007. The low lending standards by the lending institutions is an indicator that there was limited government regulation. The recession triggered the attempt of many responses of which some were deemed successful whereas others did not result in significant changes. Most economists consider the actions of the US big banks to be the real origination of the global recession; there is a great support for the same. This paper will cover the performance of the US economy prior and during the crisis. The factors that contributed to the global recession will be determined whether they started showing up signs on the same year of the crisis or had shown signs for a period before. If we find out that the signs had been shown a long time before, we shall conclude that the crisis was avoidable. However, if the signs showed up closer to the crisis, it will concluded to have been unavoidable. It shall put more emphasis on the major factors that are commonly agreeable to have been behind the global recession. We shall analyze where the banks went wrong and also where the government failed to play its part well. Subprime Mortgage crisis and the US Housing Market The US housing boom was stimulated by the deep involvement of the US government on its mortgage market through various regulations. Its main aim for the deep involvement was to facilitate the access of credit to the subprime borrowers. For instance, the 1977 Community Reinvestment Act prohibited the discrimination of borrowers based on their income levels. The 2003 American Dream Down payment Assistance Act provided closing cost assistance and down payments to low-income communities (Malinen, 2017). The turmoil in the US financial market lasted from 2007 to 2009; it was caused by a housing bubble that was as a consequence of the expansion of mortgage loans to borrowers that were of high risk. Initially, the interest rate were very high and the potential borrowers were discouraged from borrowing from the lenders because servicing the debt was more expensive. When the interest rates were lowered by the federal government, the servicing costs fell and mortgages became less expensive to the borrowers, it attracted many less risk and high risk borrowers (Amadeo, 2017). Initially, the high risk borrowers wouldnt be allowed an access to credit; the lenders were of strict restrictions. The only people who were allowed access to mortgage were those who had credit histories that were above average. The purchase for homes was thus low since many people had credit histories that were below average. Their requests for small down payments or on choosing high payment loans were always denied b y the lenders unless they were backed up by the government insurance. The Federal Housing Administration (FHA) backed some high-risk families to enable them to acquire access to small-sized mortgages from the lenders. Those who were not backed up by this governments body were forced to depend on rentals. The stemming of the 2007-10 subprime mortgage was from the expansion of mortgage credit to even the high-risk borrowers. Since people had more mortgage credit, their demand for homes went up consequently resulting in rising home prices (Anderson, 2017). The availability of mortgage credit to those who couldnt access them before contributed to a fluctuation in the homeownership by around 65% with low mortgage foreclosure rates. It was in the mid-2000s when the lenders made a decision to make credit mortgages available to the high- risk borrowers through selling them to investors while repackaged into pools. These risks were apportioned by the use of new financial products; most of the subprime mortgage funding was now provided by private-label mortgagebacked securities (PMBS) (Duca, 2013). The new financial instruments used made the securities to be viewed as less risky. More potential first-time homebuyers were attracted to the mortgage credit and thus a rise in the homeownership (He, Jun and Strahan, 2011). The supply of houses is not equal in all the places; there are places where its high and others where it is too low. The credit expansion raised the demand and thus home prices went up; the rise was so intense in areas where the supply was already insufficient. The houses were projected to continue gaining in value as their demand and prices continued rising. The investors were protected from making lo sses since the house prices were on the rise and thus purchasing of the PMBS was at first profitable. It reached a point when the high-risk borrowers were unable to make their repayment obligations and were thus forced to sell their homes at a higher gain and repaid their mortgages obligations, otherwise, the made some additional borrowing against the higher market prices and continued with their repayments. The sustainability of the new mortgage product (PMBS) was untested and thus its riskiness was unknown. When the peak for house prices was reached it became less viable for settling mortgage debt through re-borrowing by the investors to refinance the mortgage or even selling the homes. This resulted in a rise in the mortgage loss rates for both the lender and the investors. Stateofworkingamerica.org (2017) noted that the 8 Trillion burst of the housing bubble was the beginning of the financial crisis in the US. Consumers spending was reduced since there was a great loss of wealth in the economy. When the bubble busted, there were chaos triggered on the financial markets; these chaos combined with the decreased consumer spending distorted the business investment (there was a collapse) as shown below. The trust in business in the US before the crisis was higher compared to the other economies. During the crisis the trust fell by a 20-point drop. The drying up of business investment and the consumer spending resulted in a massive loss of jobs. The New Century Financial Corp was the first leading lender of subprime mortgage to file for bankruptcy in April 2007. Shortly thereafter, the initially viewed as of low risk PMBS and their backed securities were then downgraded to high risk; several subprime lenders ended up closing down. This resulted in a collapse of the subprime bond funding which consequently prevented the lenders from not only making additional subprime mortgages, but also avoided the nonprime mortgages. The unavailability of mortgage credit resulted in a falling housing demand and thus a decline in the house prices (Kolb, 2010). Further expectation of a falling price completely made the demand to shrink. The decline in prices was so extreme such that it became so diffi cult for the high-risk borrowers to repay their mortgages; even after reselling their homes, the money received was inadequate to fully repay their mortgages. This was not only to the high-risky borrowers, but also to the less risk borrowers who had initially provided high-sized down payments. Fannie Mae and Freddie Mac were government-sponsored enterprises that made huge losses as a result of the failing prime mortgages; this forces the government to seize them in the 2008 summer. The reason for the government to lower its interest rate was to boost the ownership of homes. This federally mandated goals made Fannie Mae and Freddie Mac to issue debt for funding the purchase of the mortgage-backed subprime securities whose value fell after the default rate by the borrowers increased (Atif, Sufi and Trebbi, 2010); their action was according to the 1992 Housing and Community Development Act. These two enterprises suffered great losses after the prime mortgage failure; they had bought the backed securities, insured them, and bundled them into the investors package of prime mortgage-backed securities. The losses made by the subprime lenders, the falling into bankruptcy and the closure of some lenders resulted in increased restriction on credit advances to both the high-risk and the low-risk borrowers; the qualification for such loans was made to be more difficult resulting in an extended fall in the housing demand. The housing market became weak as the number of repossessions multiplied as a result of increased foreclosures; many initial investors sold their homes at lower market prices. Some delinquent borrowers also tried to sell their homes in an attempt to avoid the foreclosure (Friedman, 2011). The selling sometimes was on short sale where lenders accepted partial losses for homes sold at a value lower than the owed amount. The bursting of the housing bubble that caused the 2007-09 recession affected the overall economy in several major ways. Construction was lowered, consumer spending was lowered since their wealth was reduced, the lending ability of firms was reduced and the firms ability to raise funds from securities market was also reduced (Duca, 2013). The Monetary Policy This is another factor argued to be responsible for the financial crisis in the US. It is noted by Malinen (2017) that before the crisis, the US had left its monetary policy to remain so loose. This is also a factor that contributed to the housing boom that later resulted in the worst burst ever. The loose monetary policy raised the circulation of money into the economy and raised the demand for assets (Taylor, 2014). It was left to be loose so as to stimulate the economic performance of the US economy. Conclusion The US economy is actually the real origination of the 2008-09 global recession. The financial crisis was caused by regulatory poor regulations that were aimed at promoting the US economic growth. There are many policies that were used in an attempt to attain recovery in the US and all other affected economies. The global recession was a good basis in which world economies can determine the signs of the occurrence of a recession and bearing the fact that recovery from this global recession was an extended process, they will employ policies immediately in order to avoid it. During the housing bubble boom that resulted from expanded subprime mortgage, the house prices rose to very high levels, however, the failure of the prime mortgages resulted in an accelerated downward spiral on the home prices. The fact that the signs for the US financial crisis were in existence long before the crisis, it can be concluded that the crisis was avoidable. The government can therefore be accused for p oor financial regulations. References Amadeo, K. (2017). 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