The role of regulation and crisis Essay Example | Topics and Well Written Essays - 1000 words

The role of regulation and crisis - Essay Example The subprime crisis was also an outcome of negligence of financial regulatory body as well as the professionals engaged in accounting and auditing process. To have a better understanding of financial crisis the role of government, regulatory body, accounting system & standards, political environment and capitalism needs an analysis. From 2001, the Lamfalussy framework was introduced in EU system of supervision and regulation. The framework was arranged in four separate levels and published by European council (Great Britain: Parliament: House of Lords: European Union Committee, 2009, p.12). These regulations are responsible for making the accounting and auditing process more transparent. After the great depression, International Monitory Fund and World Bank were established to avoid the causes which actually results into depression. But these regulatory bodies are almost 65 years old and are ill equipped to handle the complex banking environment of 21st century. Almost all the major economies have their own regulatory bodies, like Financial Services Authority (FSA) of UK and the Securities and Exchange Commission (SEC) in US, but they failed to check the financial crisis. Even the Basel II Accord agreement that was published in 2004 failed to detect and control credit crunch. Many banks are blaming Mark to Mark et system for development of such a disastrous financial crisis (Rayner, 2008). The financial system is based on the trust and faith, but collapse of Lehman Brothers, Bank of America and PNC Bank Corp are few examples of how the policymakers and regulators failed to maintain people’s faith in them. Most surprisingly America’s financial system failed to manage risk and proper allocation of capital (Stiglitz, 2008). Fair Value Accounting or US Accounting Standard FAS 157 is basically used for determining fair value or market value of the assets and the liability. Many critics argued that fair value accounting is highly

Reason in Philosophy Essay Example | Topics and Well Written Essays - 250 words - 4

Reason in Philosophy - Essay Example In the Twilight of the Idols, he describes the problem of the early philosophers such as Socrates and he says, "you want to know what the philosophers' idiosyncrasies are?... Their lack of historical sense for one thing, their hatred of the very idea of becoming, their Egypticity. They believe that they ought to be showing respect for something when they dehistoricize it, sub specie aeterni,- when they turn it into a mummy." He believes that for the past decade or so, philosophers (attempting to define why society is the way it is, or why someone behaves as they do), have lost touch. They use concepts that have been mummified, meanings that they kill the idea as it is and instead, stuff it with their beliefs. When they are faced with questions they cannot handle or that is beyond their reasoning, they look for reasons to criticize it (NIETZSCHE). The irony in his way of reasoning enables the reader to understand why he completely differs from every other philosophers explanations. It is his interpretation of what reasoning ought to be. This guides the themes he discusses in his first book where he rejects God and Christianity and sees them only as generalizations and a point whereby the philosophers confuse the idea of causal from effect. As a result, they take the obvious truths - the last idea, which is Christianity that ought not to be included, and criticizes what they accept as good since for him it is evil. According to Nietzsche, good people are great liars. As such, the society has embraced this morality to Christians who, in essence, are reasonable. A reasonable person, in this case, refers to an individual who embraces alternative truths. Thus, the society tends to criticize people by morally generalizing them. His justification for this argument, is that a strong person has learnt to put his personal desires for p ower that brings happiness to most humans under control, instead of being caught in crossfire of trying to justify themselves (Nietzsche).