Introduction to Financial Markets - Forecasting interest rates Essay

Introduction to Financial Markets - Forecasting interest rates - Essay Example Interest rates, according to the Financial Times , have fallen back to the historic lows, permitting companies, individuals, and some countries to borrow loans at a price lower than before. Contrary to this, households and the extensive economy still fight back in the wake of credit stagnation. The relationship between these two forces, that is the stimulating impact on economic operations of low borrowing prices and the damping impact of a liability squeeze has adverse repercussions for investors globally, from those individuals who save on their own to the world’s largest insurance companies (Aline, Mackenzie, & Milne, 2010). For the past couple of years, following the 2008 collapse in equity markets as well as in a hysterical serach for â€Å"secure† investments, more cash has been poured into bonds as compared to earlier times. Bonds from the U.S Treasury debt to upcoming market corporate bonds have been performing amazingly well, being ranked among the possessions around the world that have generated the largest returns in 2009 and 2010. On the other hand, if the descending trend in rates were to come to an end, then there may be an abrupt halt to the rally in bonds. In the same way that falling interest rates raise the bond prices paying flat rates of interest, increasing rates eat into their value and push costs lower. It is noted that when the interest rates rises, bond holders and bonds funds are likely to undergo losses. In fact, in the near future, it is expected that borrowing rates may fall even lower. At the time when the article was written, the Federal Reserve was planning to buy government bonds with the only aim of pushing interest rates lesser (Aline, Mackenzie, & Milne, 2010). The issue to focus on in this section is that, even after extra two years of close to zero official rates and large quantities of stimulus spending, big economies like the United States have not grown as strongly as they expected. This is the reason why t he Fed is planning to start its â€Å"quantitative easing† despite the fact that there are many investors and economists who doubt that it will have a powerful impact on economic growth. The Fed is making interest rates low, which means inflation and decreased bond yield, seeming like a bubble. The factors likely to have an impact on future interest rate movements An interest rate can be defined as the quantity of money received in connection to a loan, generally stated as a ratio of dollars obtained for each hundred dollars lent. From the credit markets review in the section above, there are factors that may affect future interest rate movements.   First, the U.S economy is an important player in this section. When it grows, consumers get employment and thus get some investments to lend through banks, though they must also borrow to purchase big items like cars or homes, or to fund other properties by using credit cards. For instance, Lieb, in the article claims that he ha s never experienced such inexpensive borrowing rates on housing loans. This means that when the funds’ demands drop, interest falls. In contrast, when funds’ demand increases, there is a rise in interest rates, acting as a

The effect of music on ones social life Essay Example | Topics and Well Written Essays - 1250 words

The effect of music on ones social life - Essay Example The effect of music on one’s social life A study is set on the different types of behaviors that the listener attaches each the genres of music studied. Of importance to look into is the scope with which the genre of music chosen has influence on the behavior change and influence of the listener of the music. There are a considerable number of music genres. Among the several genres are rock, and roll, Hip Hop, soul, and rhythm and blues. Each of the aforementioned genres has different origins. They evoke different and diverse influences on the listener’s behavior. Listeners of every kind of music mentioned attach different levels of enthusiasms towards listening to their genre of preference. In finding out the influence of the genres on their listeners’ behavior, one needs to embark on a study of personality traits of the listener. Every genre would influence every personality trait in a special and unique manner. Of importance in the study is to find out the importance that listeners of music attach to the ge nre of preference in question. Rock and Roll dates its origin to a long time back in history. This notably was in the 1940s and 1950s. The genre found its invention from African Americans. This genre of music most probably roots its foundation from the United States. The genre often attaches its caliber to the elites. It is more popular among the high-class individuals than to the lower class individuals. The elite class tends to listen to the genre more than the other classes of people. Many concerts and entertainment scenes featuring rock and roll music receive a high turnout of the elite class than others classes in lifestyle. The word â€Å"rock† that the founders of this genre used to refer to it was a disguised manner of quoting the word sex. Hip Hop is a major known genre of music among the youth. Its acknowledgement and spread is significant among the black Americans. The genre of music roots from the, black American, people. Its sole purpose was to address the plight of blacks in America. It is associated considerably with the low-income class and the poor. Its origin dates back to the period of history during the 1970s. Many of the artists of Hip Hop are characters who at one moment in time had experiences with the effects of black supremacy. They might as well be descendants of former victims of the historical atrocities the black underwent. Among the several themes, this genre of music that address mistreat experienced by the blacks. The victims underwent the inhumane experiences during the slavery period. This genre of music tends to inform the authorities of the various problems faced by the black Americans. Sharp criticism of betrayal and neglect by the power holders is among the diverse expressions of the message from this genre of music. Soul music dates back to deep early ages in history. This is notably the time between the 1950s and 1960s. The origin of this genre of music is from the U.S. This genre of music explores a more seductiv e way of presentation than rock and roll music. It is common among individuals who feel the touch of romance with the songs. It plays on a cool and sentimental tone. The overriding theme in a remarkable numbers of soul music is romance and feelings of love that the characters attach to each other. The main associates with this genre of music are the elite class. Soul music is mainly played in instances of paying and merrymaking. It helps show romance and togetherness of parties involved.