Referencing Styles : Harvard US FINANCIAL CRISIS 'The World As We Know It Is Going Down' By Marc Pitzke in New York Panic is the word of the hour on Wall Street. For traders, now might just be the worst of times. The original plan actually called for humor. The stock traders could have used a bit of comic relief. But it was not to be. Instead of Christy Carlson Romano, a NYSE employee in a joyless gray suit stood on the balcony and silently pressed a button. The bell rang and he disappeared. No waving, no clapping, none of the usual jubilation. By the end of the day, no one was in the mood for laughter. The bad news on Wall Street was coming thick and fast. All the US indexes were crashing again after Tuesday's brief and deceptive breather. In its wild, rollercoaster ride, the Dow Jones lost about 450 points, which was almost as much as it lost on Monday, the most catastrophic day on US markets since 2001. Investors were turning their back to the market in droves and fleeing to safer pastures. The price of gold broke its record for the highest increase in a one-day period. And then came the announcement that would dominate all of Thursday's market activities: Morgan Stanley -- the venerable Wall Street institution and one of the last two US investment banks left standing -- had lost massive amounts and was fighting for survival. Media reports were saying that it was even in talks about a possible bail-out or merger. Rumor had it that possible suitors might include Wachovia or China's Bank Citic. In fact, it really does look as if the foundations of US capitalism have shattered. Since 1864, American banking has been split into commercial banks and investment banks. But now that's changing. Bear Stearns, Lehman Brothers, Merrill Lynch -- overnight, some of the biggest names on Wall Street have disappeared into thin air. Goldman Sachs and Morgan Stanley are the only giants left standing. Despite tolerable quarterly results, even they have been hurt by mysterious slumps in prices and -- at least in Morgan Stanley's case -- have prepared themselves for the end. "Nothing will be like it was before," said James Allroy, a broker who was brooding over his chai latte at a Starbucks on Wall Street. "The world as we know it is going down." Many are drawing comparisons with the Great Depression, the national trauma that has been the benchmark for everything since. "I think it has the chance to be the worst period of time since 1929," financing legend Donald Trump told CNN. And the Wall Street Journal seconds that opinion, giving one story the title: "Worst Crisis Since '30s, With No End Yet in Sight." But what's really happening? Is this the beginning of the end? Or is it just a painful, but normal cycle correcting the excesses of recent years? Does responsibility lie with the ratings agencies, which have been overvaluing financial institutions for a long time? Or did dubious short sellers manipulate stock prices -- after all, they were suspected of having caused the last stock market crisis in July. Source: http://www.spiegel.de/international/business/0,1518,578944,00.html Guidance notes for TMA: The above questions should be discussed based on what you learned in Ch. 1, section 2 (Industrial Capitalism, markets and economics), listed in your course materials DD309 (Doing Economics). The challenge in your essay is to cover its most significant aspects within the specified word count. Your essay should be well organized, with a clear cut layout of an introduction, a body and a conclusion. The aim of this TMA is to encourage students to develop their skills of noticing language in use. This will help them learn how to use new and important words and concepts and become more fluent in writing about economics. Economists show the imperfect nature of financial institutions to deal with market imperfections. Chapter 1 of this textbook indicated that “One result of this financial and economic crisis was a heated public debate about the role of markets and governments in capitalist economies”. Other economists conclude that “We have seen something of the past and the present; what about the future? If we still live in the age of industrial capitalism as the dominant economic system of human society, then do we live near the beginning of that age or near the end of it?” Students should answer these questions. They should develop a well-rounded view of industrial capitalism and the economics and ethics of markets. This background should prove useful to them in writing this TMA, which should be between 1200 and 1400 words in length. Students are expected to explain the reasons behind the financial crisis and show its implications. They may concentrate on the following steps: - Start with an Introduction: Define the problem? - Address the question. - Show the importance of the issue you are going to write about, by using one or more of the following approaches. o Review the literature critically. o Read case studies, look at newspapers and apply from your work experience. o Try to use quantitative approach in your analysis: collect data, classify types of incidents, produce analyses, and make recommendations based on analysis. This is an optional use. o Turn your data into graphs and analyze the content of the graphs. - Make sure that you acknowledge your sources by including academic references in your essay. - End your essay with a conclusion summarizing your findings - Make sure that you list all your references at the end of your TMA. - Your source of references could be: Books, Newspapers, Journals, Internet sites or Conference proceeding. GOOD LUCK …