Liquidity Gap Analysis And Schedule Finance Essay

Liquidity Gap Analysis And Schedule Finance Essay The main technique used to measure liquidity position is liquidity gap analysis. Liquidity gaps are differences between assets and liabilities at present time and in the future (Thomas Barnes 15 Jan 2010). Gaps generate liquidity risk; deficits will require funding and excess will result in interest rate risk. Gaps can either be static or dynamic. Static gaps will consider all assets and liabilities which are actually present in the balance sheet. In such case the analysis shows a reduction of the assets and liabilities as they mature. Dynamic gaps are simply the consideration of actual plus projected inflows and outflows; these depend on business uncertainties (Hampel et al 1999). A liquidity gap schedule provides an analytical framework for measuring future funding needs by comparing the amount of assets and liabilities maturing over specific time intervals (Thomas Barnes 15 Jan 2010). Table 3 presents a sample liquidity gap schedule. Table 3: Liquidity gap schedule Less than 10 days Over 10 days but less than 3 months Over 3 months but less 6 months Over 6 months less than one year 1 to 5 years Over 5 years and capital Total Assets 10 10 10 5 65 0 100 Liabilities and Equity 50 30 15 0 0 5 100 Net outflow(Assets minus Liabilities) (40) (20) (5) 5 65 (5) 0 Cumulative net outflow (40) (60) (65) (60) 5 0 0 Source: Office of Thrift Supervision Jan 15 (2010) Sec 530 page 29 In the liquidity gap schedule, the company ranges assets and liabilities into different time intervals taking into account their remaining time to maturity. Generally, the company ranges assets and liabilities according to their effective maturities rather than their contractual maturities. For instance, a company will treat non maturity deposits as long-term liabilities rather than short-term liabilities. Negative gapping at the shorter end of the schedule increases the risk that the company will be unable to rollover maturing liabilities as they come due. While such a position is in favour to liquidity, it tends to enhance profitability over the long-term, provided the company keeps the gaps within manageable limit. However, a limitation of the liquidity gap schedule is that it does not capture projected balance sheet changes such as future loan and deposit growth. While it is important to understand the liquidity of a companys existing balance sheet, it is also essential to forecast the growth of key balance sheet components, such as deposits and loans, over time. (Thomas Barnes 15 Jan 2010) 2.8.3 Risk Management Liquidity risk management should be vigorous with analysis and metrics that reflects a companys liquidity position and assess its options under different market conditions, such as economic stress, crisis, and collapse (Thomas Barnes 15 Jan 2010). Liquidity risk needs to be managed once it has been identified and measured. Risk is more integral to business for insurance that it is perhaps for any other industry (Capgemini 2006). Long-run profitability will suffer when companies hold too much low-earning liquidity assets. Holding too little liquidity can lead to severe financial problems. Managing liquidity risk is not only to eliminate the risk but rather find the equilibrium between return and risk (Decker, A, P 2000). Selling some assets rapidly seems to be an easy solution, but still insurers will have to face forced sales risk. For some insurers, their projects to improve risk management evolved into the establishment or expansion of their risk management department (Henry Essert march 2010). The aim in managing liquidity is to minimize cost. The cheapest approach is to try to restructure the balance sheet in such a way to reduce gap and that the appropriate level of risk is reached (Decker, A, P 2000). 2.8.3.1 Metrics used for liquidity risk management Most financial firms such as insurance companies use various metrics to control their liquidity risk. This consists of three basic approaches which can be categorized as: the liquid assets approach, the cash flow approach, and a combination of both. (Sharma paul et al 2006) Under the liquid assets approach, the company needs to maintain liquid instruments on their balance sheet which can be consulted whenever required. (Ratios are the relevant metrics in this approach) Under the cash flow matching approach, the company tries to match cash outflows against contractual cash inflows across a range of near-term maturity buckets. This approach is mostly used by insurance companies. The mixed approach is a combination of both cash flow approach and the liquid assets approach. The company attempts to match cash outflows each time bucket against a combination of contractual cash inflows. Insurance companies place more emphasis on the cash flow matching approach. When gaps in maturity buckets are unfavorable, insurance companies would utilize the mixed approach to help ensure that they will be able to meet their obligations to provide cash to counterparties. (Sharma et al 2006) 2.8.3.2 Assets Liability Management Assets Liability Management (ALM) can be termed as a risk management technique designed to earn an adequate return while maintaining a reasonable surplus of assets beyond liabilities. It considers interest rates, earning power and degree of willingness to take on debt and hence is also known as Surplus Management (Sayonton Roy 2010). Management of liquidity consists of raising fund and invests where excess of fund is available. The managers will buy, hold and sell assets and liabilities in order to maintain a predetermined level of liquidity (Matti Peltonen 2010). This technique forms part of the Asset liability Management and thus facilitates in Funding, Investing and Hedging issues to achieve predetermined strike between risk and return. The objective is to increase profitability, while monitoring risk, as well as complying with the constraints of companies (Arzu Tektas et al 2005). 2. 9 Study in the same field 2.9.1 Estimation of Liquidity Risk Patrick Tobin and Alan Brown 2003 designed a method to model liquidity using a bottom-up approach. They calculated average size of withdrawals as, Yt=ZtNt Where, Zt is the total withdrawals for time t Nt is the number of withdrawals for time t A period of 35 weeks was considered The average values were, N=t=1TNt, Y=t=1TYt, Z=t=1TZt Then they rescaled data as follows, Mt=NtN , Ct=YtY , Bt=ZtZ Where, Mt is the mob, Ct is the clip, Bt is the bag The basic model was found and applied to product p BLt=p=1KWpBpt, Where, BLt= Business Line at time t Bpt= Bag for each product p at time t Wp= Weight for product p This gives rise to a weekly factor. The dispersion of this weekly factor was the subject of further analysis. This model tries to estimate the weekly cash outflow. 2.9.2 Measuring liquidity risk in Insurance companies In an article namely Measuring Liquidity risk in Banking Management Framework Giampaolo Gabbi (2000, p.44-58) proposed a model to implement liquidity risk within the risk management mostly used, the Value at Risk (VaR). This model also applies for the Insurance sectors since they have similar operations such as fixed deposits, loan facilities and other banking activities. Value at Risk is the largest likely lost from market risk that an asset or portfolio will suffer over a time interval and with a degree of certainty selected by the decision maker Titus Lewis, 1997. In a general circumstance five factors are considered before calculating VaR, this are: volatility of prices, interest and exchange rates probability distribution of likely return time horizon confidence interval correlation among different positions Once these elements are known, risk manager can calculate VaR in the worst case scenario for the single position (pos) VaR pos= pos.n. Ã‚ ³Ã¢â€š ¬Ã‚  t where,  Ã‚ ³Ã¢â€š ¬Ã‚  t is volatility for frequency t n is the scaling factor needed to obtain the desired confidence level under the assumption of a normal distribution of market returns Modeling liquidity in a VaR framework is given by: VaR= n { Ã‚ ³Ã‚ Ã¢â‚¬ ¦Ã‚ Ã¢â‚¬ ºÃ‚ Ã¢â‚¬Å¾Ã¢â€š ¬Ã‚ ¨ L)  Ã‚ 1â‚ ¬Ã‚ ¯2 + Æ’( Ã‚ ­  Ã‚ ³Ã¢â€š ¬Ã‚ ²Ã¢â€š ¬Ã‚  Ã¢â€š ¬Ã‚ ©Ã¢â€š ¬Ã‚  Ã†â€™.  Ã‚ ³Ã‚ Ã¢â‚¬ ºÃ‚ Ã¢â‚¬Å¾Ã¢â€š ¬Ã‚ ¨ Lâ‚ ¬Ã‚ ©Ã‚ Ã‚  +  Ã‚ ³Ã‚ Ã¢â‚¬ º log c â‚ ¬Ã‚ ¨Lâ‚ ¬Ã‚ ©Ã‚ Ã‚ Ã‚ Ã‚ ½ Where n depends on the underlying distribution,  Ã¢â‚¬ ¦Ã‚ Ã¢â‚¬ ºÃ‚ Ã¢â‚¬Å¾Ã¢â€š ¬Ã‚ ¨ L)  Ã‚  is the expected execution log in selling the L shares,  Ã‚ ­ is the mean quality discount,  Ã‚ ³Ã¢â€š ¬Ã‚  is the volatility of the discount and c â‚ ¬Ã‚ ¨Lâ‚ ¬Ã‚ © is the quantity discount Unfortunately all these information are difficult to access or calculate, so indicators were used to simplify the equation, leading to the following outcome COL = 12  Ã¢â‚¬ º Pt â‚ ¬Ã‚ ¨S +  Ã‚ ¡Ã‚ Ã‚ ³Ã¢â€š ¬Ã‚  spreadâ‚ ¬Ã‚ ©Ã‚ Ã‚  Where COL is the cost of liquidity, Pt is todays mid price for the assets or instrument, S is the average relative defined as  Ã¢â‚¬ ºbid ask Ã‚ Ã¢â€š ¬Ã‚ ¯ mid price,  Ã‚ ¡ is the scaling factor and  Ã‚ ³Ã¢â€š ¬Ã‚  spread is the volatility of relative spread. 2.10 Overview of liquidity Risk Management in Mauritius 2.10.1 Liquidity in the Insurance Act 2005 Insurance Companies in Mauritius are governed by the Insurance act 2005 which is regulated by the Financial Services Commission (FSC). The FSC has the responsibility to ensure that Insurance companies are taking appropriate measures to manage all the risks to protect the interest of the clients and the public at large. The consequences of liquidity risk on a countrys financial system make its management become a very important issue. Section 23 of the Insurance Act 2005 considers liquidity and solvency issues. It also lists the different assets which are to be considered as liquid assets, for example; cash balances, fixed interest, equities. According to Section 24 (1)(a) of the insurance act an insurer shall in respect of its insurance business at all times have and maintain its level of liquidity as may be prescribed. It imposes Insurance to maintain an adequate and appropriate form of liquidity. At any time the Financial services Commission may order an Insurer to increase its level of liquidity, depending on risks in the Insurance operation, maturing liabilities, quality of assets and other financial resources. Failure to comply with the above will result in that Insurance not been permitted to assume any new risks of any kind, or underwrite or renew any insurance policy; unless it increases its level of liquidity to the indicated amount. 2.10.2 Guideline on Liquidity The Financial Services Commission has issued a Guideline on Liquidity in February 2008. This Guide is issued under section7 (1) (a) of the Financial Services Act 2007 and Section 130 of the Insurance Act 2005. The Guideline on Liquidity gives an exact indication of what the Financial Services Commission is expecting from the Insurers in their management of liquidity. In order to help insurance companies to foster professional standards the Commission expects all insurers to have regard to these Guidelines. These guidelines also require insurers to provide reports on its liquidity position every three months for the first year and at the end of each year afterwards. Guideline on liquidity also concerns contingency planning. A good contingency plan should be realistic, unambiguous, designed to be flexible and should indicate the responsibility and priority of the Insurance and their management team. This will enable an insurance company to withstand a liquidity crisis. Stress test is another aspect of the Guidelines on liquidity. The stress test requirement is the minimum amount of assets that an insurer should hold in excess of its liabilities. The stress test requirement is important in managing liquidity risk. Special attention should be given to assets, liabilities and off balance sheet, consider maturity of policies and their future prospects. The guideline is not intended to be prescriptive on how insurance should measure and control its funding requirement, but however, certain approaches in the theoretical review are recommended. Finally an Insurance company should manage access to fund and consider its diversification. Concentrating in few types of assets, liabilities or market may be risky. Therefore, internal limits on maximum fund engage in one type of activity should be set. The guideline also encourage Insurance to look for new arrangement and developing financial assets and market to have access to fund while reducing liquidity risk. 2.10.3 Solvency II consideration of liquidity Since the introduction of the Solvency I in the early 1970s, there has been continuous development of sophisticated risk management systems leading to its replacement by Solvency II. Solvency II has introduced a wide framework for risk management which helps in implementing procedures to identify, measure, and manage levels of risk. It is the most recent set of regulatory requirements for insurance companies and is scheduled to start on 1 January 2013. New funding sources and liquidity management techniques have been brought forward by financial and technological advances. Therefore, Insurance companies are expected to understand the liquidity levels and the behavior of cash flows in different circumstances and thus enabling them to react accordingly. Solvency II identifies the principles for a proper liquidity management. Those principles fall under the following main headings; reducing the risk that an insurer cannot meet its claims; To reduce the losses encountered by policyholders ; To enable supervisors to act spontaneously if capital goes below the level required; Increase confidence in the financial stability of insurance sector. The Solvency II framework has three major parts for the insurance sector: Quantitative requirements. Governance and risk management requirements. Disclosure and transparency requirements The Guideline on Liquidity issued by the Financial Services Commission reflects mostly the following principles; to develop a structure for the management of liquidity, to measure and monitor net funding requirements, to manage market access, contingency planning, and internal controls for liquidity risk management in improving Liquidity.

College Application Essay :: essays research papers

I am not a Martin Luther King, devoted to a movement, or a Christopher Columbus, devoted to a quest, or a Leonardo di Vinci, devoted to an image. Yet everyone needs some devotion in his life. I am a musician, a daughter, a Christian, a traveler, a sister, a friend, an animal lover, a writer, and many things besides. The biggest dilemma for me is finding ways to fuse these different parts of myself into a recognizable person. I would need several lifetimes to pursue all of my dreams individually, so they must become one dream, one working vessel of passion. So how can I mix my zeal for music, for example, with my need to write? They are one in the same for me, really, both means of ardent expression of sadness or anger or joy. The experience that brought about the conception of my understanding is starkly fixed in my memory. I was at a concert featuring one of Schubert’s Suites for String Quartet and my lack of familiarity with the work only served to heighten my already bursting excitement. They were late getting started and the audience around me fidgeted and chattered. I ignored them, sitting still in my seat, tense with anticipation. Finally the lights dimmed and a pregnant silence took hold. Despite my expectancy I was unprepared for the sudden eruption of applause like a bomb detonating in the hall as the four black figures strode onto the stage. Reminding me of Virginia Woolf’s description in The String Quartet, the performers â€Å"seated themselves facing the white squares under the downpour of light, rested the tips of their bows on the music stand, [and] with a simultaneous movement lifted them.† I leaned forward on my seat, straining to hear the first note even befo re it sounded. With an almost telepathic communication from the first violin, it began. From that moment I was lost. The audience, the musicians, even the music itself was forgotten, swept away by the surge of emotions that engulfed me. As I listened, or rather encountered the exquisite performance, for it was more intimate than listening, I realized with more force than ever before, that this was what I wanted to do. I wanted to make people feel like this when I sang.

Rise And Fall Of The Kkk Essay -- essays research papers

The Rise and Fall of the Ku Klux Klan "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness" - Thomas Jefferson (Cultural Racism 1) This excerpt from the Declaration of independence specifically stated that all men are created equal, but that is contradiction to the governments decisions. The Ku Klux Klan founded in 1865 by William Nathan Bedford a former confederate general, began a campaign of terror against free blacks and their white supporters. The KKK had a wide array of uneducated people because their main incentive was to recruit young, homeless, and mindless children to follow in their footsteps and become a member of the KKK. In many instances Klan members were taught the KKK did not believe that blacks were capable of the necessary decision making in life, they thought that Blacks were sub-human(Student Handbook 316). The KKK had many wrong beliefs, like that Blacks were not capable of decision making, recruiting young children who did not know better to become members of the KKK, that they were above the law in many instances. On the other hand very few Klan members were educated to know what they were in the Klan for, like David Duke. I believe in white supremacy until blacks are educated to a point of responsibility. I don't believe in giving authority and positions of leadership and judgement to irresponsible people. John Wayne Interview in Playboy Magazine, May 1971 (Cuturla Racism 2) White supremacy served as the basis for the organization of the Ku Klux Klan, despite slaves and white abolitionists. The KKK blames the abundance of ethnic groups for their misfortunes. The Supreme Court ruled many times that no slave had any rights as a free man. Either their plantation owners or high-ranking officials determined the exploitation and way of life. Whenever a slave escaped it was the right of the owner to reclaim its property (Hamm 27). The whites in the KKK then wanted to become the ultimate race and would do almost anything to do that, an example would be that their main incentive was to go out and recruit young, homeless, ... ...he received his BA in history in 1974, he became an enthusiastic admirer of Adolph Hitler, and by 1975, he had risen to Grand Wizard of the Louisiana Ku Klux Klan (Student Handbook 490).† The United States is known as the melting pot. Since its beginnings as small settlements, this country has always been known as a haven to those who love to cherish it. When people think of America they think of the land of opportunity and that is why so many people are immigrating or emigrating to or in this Country. The Ku Klux Klan is everything the American Dream is not. They are a sign of bigotry and hatred. They have tried for over a hundred years to shatter the dreams of so many people. Many people think that since the civil rights movement the KKK is no longer a danger but in fact it is still a great danger. There are still people like David Duke in office and there is no way to persuade someone to change their views, so we have to live with the bigotry and hatred for a very long time. The Klan of 1865 differs from the Klan of 1999 and it will always be changing. The Klan will never revolve around the main theme of 1865 again but they will always have the same people involved

Nuclear Weapons and their effects :: essays research papers

A nuclear explosion is caused by the release of energy in an atom, either through fission or fusion. Fission weapons cause an explosion by the splitting of atomic nuclei. This happens when a neutron collides with the nucleus of an atom. The protons in the nucleus are transformed into a great amount of energy and two or three more neutrons are sent out, which go on to split other nuclei. If this continues, a chain reaction will occur. The result is a gigantic explosion. To form a chain reaction, a certain amount of material is needed. This amount is known as the critical mass. If the amount is too small it is called a subcritical mass. The critical mass of a material depends on its purity. The materials used in making fission weapons are uranium and plutonium. They are the only elements able to be used in making a fission weapon.   Ã‚  Ã‚  Ã‚  Ã‚  The destructive power in fusion weapons comes from the combining of very light atoms, such as hydrogen. The atoms of the element are fused, and they release a great amount of energy. The element must first be heated to a temperature of 50 million degrees Celsius. The only way to do this, without using more energy than is produced, is to use a fission explosion. So, a ball of hydrogen is surrounded by either uranium or plutonium and then by a non-nuclear explosive. The explosive is set off, and it causes the uranium or plutonium to react through fission, which in turn causes the hydrogen to fuse. Once again, the result is a colossal explosion meant for mass destruction.   Ã‚  Ã‚  Ã‚  Ã‚  The three main effects that would follow a nuclear explosion are blast, thermal radiation or heat, and radiation. The very first thing to happen is the formation of a fireball. The fireball gives off the thermal radiation that cremates anything within a quarter mile and ignites any and all flammable materials within ten miles. The thermal radiation can cause eye injuries as well as skin burns called flash burns. Between 20 and 30 percent of the deaths at Hiroshima and Nagasaki were caused by flash burns. When the fireball begins to dissipate it forms a blast wave that travels away from the explosion at speeds up to 400 miles per hour. This destroys most building within 6 miles. It also kills most people within 3 miles and severely injures or kills most people up to 6 miles away. Nuclear Weapons and their effects :: essays research papers A nuclear explosion is caused by the release of energy in an atom, either through fission or fusion. Fission weapons cause an explosion by the splitting of atomic nuclei. This happens when a neutron collides with the nucleus of an atom. The protons in the nucleus are transformed into a great amount of energy and two or three more neutrons are sent out, which go on to split other nuclei. If this continues, a chain reaction will occur. The result is a gigantic explosion. To form a chain reaction, a certain amount of material is needed. This amount is known as the critical mass. If the amount is too small it is called a subcritical mass. The critical mass of a material depends on its purity. The materials used in making fission weapons are uranium and plutonium. They are the only elements able to be used in making a fission weapon.   Ã‚  Ã‚  Ã‚  Ã‚  The destructive power in fusion weapons comes from the combining of very light atoms, such as hydrogen. The atoms of the element are fused, and they release a great amount of energy. The element must first be heated to a temperature of 50 million degrees Celsius. The only way to do this, without using more energy than is produced, is to use a fission explosion. So, a ball of hydrogen is surrounded by either uranium or plutonium and then by a non-nuclear explosive. The explosive is set off, and it causes the uranium or plutonium to react through fission, which in turn causes the hydrogen to fuse. Once again, the result is a colossal explosion meant for mass destruction.   Ã‚  Ã‚  Ã‚  Ã‚  The three main effects that would follow a nuclear explosion are blast, thermal radiation or heat, and radiation. The very first thing to happen is the formation of a fireball. The fireball gives off the thermal radiation that cremates anything within a quarter mile and ignites any and all flammable materials within ten miles. The thermal radiation can cause eye injuries as well as skin burns called flash burns. Between 20 and 30 percent of the deaths at Hiroshima and Nagasaki were caused by flash burns. When the fireball begins to dissipate it forms a blast wave that travels away from the explosion at speeds up to 400 miles per hour. This destroys most building within 6 miles. It also kills most people within 3 miles and severely injures or kills most people up to 6 miles away.

Moot Court Essay

Jitender Sharma was a young boy of 18 years of age. He fell in love with Poonam Sharma who was a girl of 16 years of age. One day they eloped from their respective homes and finally got married as per Hindu rites and ceremonies. Poonam’s family members were against this marriage. Even her Grand Father and Paternal uncle were not ready to accept this marriage at any cost. They threatened Poonam of her life and safety. Thereafter Poonam’s father lodge First Information Report (FIR) against Jitender at Gandhi Nagar Police Station, Delhi under section 363 and section 376 of Indian Penal Code. On 05.05.2010, a typed letter signed by Poonam was received at the Gandhi Nagar Police Station stating that ‘she had married Jitender with her own will and requested not to file any criminal case against Jitender’. Thereafter on 07.05.2010 Jitender and Poonam were apprehended from Bilaspur in Utter Pradesh and produced before respective court. Poonam refuse to undergo any medical examination. She did not state any thing against Jitender in her statement before the Magistrate under section 164 of Code of Criminal Procedure, 1973. Thereafter Jitender was sent to Juvenile Home. Subsequently, Poonam gave in writing that she had left her parents home by her own will and went along with Jitender. The court sent Poonam to Nari Niketan for some time. Then on 17.05.2010, Poonam’s custody was handed over to her Parents. Thereafter, on 15.06.2010 Jitendre was released. Subsequently, he demanded cudtody of her wife by filing writ petition in Delhi High Court. Now argue for the both side and also the law and procedure in the aforesaid matter. Some the issues are listed below and are not limited to the below mentioned issues. These issues are as follows: 1) Whether Jitender is lible for the kidnapping of Poonam from her legal guardian? 2) Whether the marriage is voidable under the Hindu Marriage Act, 1955? 3) Whether the Jitender is liable under section 376 of I.P.C, 1960? 4) Whether Poonam must be sent with Jitender under Guardian and Wards Act, 1890?

History of Alcohol

Alcohol: Past, Present, and Future Karl Ballenger Mrs. Hines Communication Arts 200 period 7 February 20, 2007 The beginning of Alcohol While no one knows when alcohol was first used as a beverage (or even created) we do know that it has been used for over ten thousand years. Archeologists to this day are discovering old beer mug containers from the B. C period. Some other archeologist and a few scientists believe it was created in an experimental accident. Like most failed experiments alcohol was soon to be one of the most popular drinks in America.Not only was it going to impact America it impacted the whole world. Everyone would you alcohol in many different ways medicinal purposes, in South America and in the Middle East. They would use it for celebrations any type of celebration and it would be used in sacrifices or offering rituals too. As alcohol caught on people realized what a problem it could be. Everyday people would use alcohol as an everyday beverage not knowing what the affect could be or do; it wasn’t long until everyone was catching on to the harmful effects of the alcohol.Soon after Americans and people all over the world soon were able to control alcohol not before alcohol had gone through prohibition and much other banishment in countries and cultures. Alcohol is considered a drug though some people may not agree we all that once you had too much alcohol you’re not yourself. Although Americans were no always getting to the point where they were unconscious and becoming â€Å"drunk†, there was a lot tolerance for the type of people who would drink alcohol everyday they just knew how to control their selves.Alcohol in Early America Alcohol in early America was highly accepted, everyone would have their fair share of drinks. Alcohol can be easily found in the old days because it was so easy to make, before bars there were pubs and before that people would just drink in their own homes instead of going out to drink. It was so easy to make because alcohol back then would mostly be wine, wine was the typical form of alcohol to be found because it is made up fruits, any kind of fruits but if you wanted stronger tastier wine you would specific types of fruits.The most commonly type of fruit that people would use are grapes, after you pick them you would press them then add in some sugar and water basically and then some yeast. Then allow for fermentation to proceed. As time goes by you would have yourself some tasty drinkable wine. And from their you would end up having your many liquors and eventually beer. It wasn’t long until alcohol played a big role in American history which begun in the 1920s, which was when alcohol became prohibited for a time.Americans have always drunk alcohol especially beer liquor in the 1900s, they would drink daily â€Å"since the availability and purity of water supplies and other drinkable liquids were uncertain† (Clayton Rivers 94). Drinking was used as a socia l activity everyone would feel a little more comfortable than usually with a little wine or beer in their system; it would be breaking the social barrier at gathering for the shy people so that they can interact more.At the same time there has always been a passionate opposition towards alcohol many people would think it is evil and created by the â€Å"devil† because of the nasty effects and the illness’s that it caused. It would even ruin people financially in some cases because of the addiction people would have with it, â€Å"it was typical to see people in saloons night and day†(Karen F Balken04) for weeks just drinking or trying to get the bartender to give them a free drink.So there would be a huge conflict between the alcoholic supporters â€Å"wets† and the non supporters â€Å"dry’s† (Adam Wong03) has existed throughout American history, since the 20th century. It wasn’t until 1919 when the â€Å"dry movement† (Adam W ong03) achieved its greatest victory by banding alcohol nationwide. In 1919 a majority of states ratified the eighteen amendment to the constitution, which states: â€Å"After one year from the ratification of this article the manufacture, sale, or transportation of intoxicating liquors within the importation thereof into, or the exportation hereof from the U. S and all territory subject to the jurisdiction thereof for beverage purposes is here by prohibited† (Adam Wong03). This banishment, called Prohibition, went into effect in 1920: it was accompanied by the† Volstead Act† (Clayton rivers94), congressional legislation that provided specific rules for enforcing the ban. So for the next 13 years prohibition remained in place, President Calvin Coolidge called it â€Å"the greatest social experiment of modern times† (President Calvin Coolidge). Prohibition in the 1920sAlthough Prohibition continued until 1933 it remains most closely associated with the 1920. in the 1920s â€Å"it was a colorful period in history† (Adam Wong03) bracketed on both ends by tragedy and misfortune. At the start of the twenties, America was just recovering from the devastation and deprivation of World War 1. At the decade’s end the stock market crashed of 1929 which then fell into the great depression and years of hardship. Then in between the 1920s it was a time of unusual prosperity, the economy seemed to be on an endless climb.That no one can believe, it was a type of miracle people had enough money to buy amazing new devices like radios, refrigerators and washing machines. Even the poorest family of the towns and states were able to afford a car, it was also an era of significant social change and great fun, â€Å"it was so fun that it was nicknamed the roaring twenties† and the â€Å"Jazz Age† (Adam Wong03). Everyone was relived and could relax after all the harsh full events that America had went through that now they were ab le to kick back and relax.People would listen to the radio dance in the nightclubs and saw â€Å"talkies† (which are present day movies) everyone was just happy to have their freedom back. Although the 1920s was a fun-loving atmosphere the people would still have to sustain the ban of liquor. But finally the anti alcohol forces succeeded and they were able to get across the eighteenth amendment and the Volstead act. The advocates who wrote and backed these new laws assumed that a majority of Americans would go along with it. They thought that even though you didn’t like the new law you would have to follow it because it was law of the land.But nonetheless law abiding citizens were still able to secretly drink liquor and beer by home brewing it. These illegal drinking parlors were called â€Å"speakeasies† (Adam Wong03). Criminal gangs and known thieves would smuggle the liquor and beer and they made a fortune each one of these â€Å"speakeasies† had their own little illegal organization by selling the illegal liquor. The law enforcement like nowadays would be corrupted by these small organizations with either money or liquor as a bribe and so there wasn’t really a stop to these guys.Prohibition Gone the Right to Drink Prohibition affected millions of Americans but it even went into deeper meaning than just not being able to drink, it touched onto a fundamental issue in American life. The role of government in regulating private lives. â€Å"Many Americans felt that a degree of federal control is justified for the good of the majority† (Adam Wong03). However others argued that the rights of each individual American citizen and states should not be limited by the federal government.This particular group argued that the federal government had no right to mandate something as personal and as trivial compared with serious crimes as drinking habits. â€Å"it was incredible to many people that the federal government, which h ad thoughtfully left their murders, lynching’s, adulteries, discriminations, frauds, and other transgressions to the disciplines of their state legislatures, would ever take a primary and oppressive interest in what American citizens might want to drink† (Historian Norman H.Clark). The conflict over liquor was a long hard-fought battle. But in the end everyone had their right to drink. Alcohol in modern days and future Present day alcohol is still considered somewhat of a menace to society, because alcohol by itself does no harm or damage to anyone, it is our actions and alcohol combined that make it a threat to anyone. In today’s society there have been over millions of alcohol related accidents involving car accidents and suicides and homicides.Every time someone gets into a problem with the police they blame the alcohol they had that it was to strong or they didn’t know what it had in it either way they blame it on the alcohol. Although alcohol does hav e a affects on you and your body it disrupts your nervous system and disrupts your brain waves so that you don’t have full control of your body. But you should already know that, you learn about alcohol your whole life on television school your parents.Alcohol does not change people; the people change their selves by drinking the alcohol, alcohol is a gateway drug which means that it leads to more drugs and more suffering to you and to the people who care about you. Alcohol should be thought up of in moderation like everything, everything and anything is bad for you in moderation so you must be able to control yourself when comes to things like alcohol and drugs alcohol is not as nearly serious as drug but it can lead up to either doing drugs or addiction.Alcohol addiction or an alcoholic is a person who must have some type of alcohol in their system their body won’t function well without the alcohol so they must drink every day. But there is special rehabilitation cen ters to help those kind of people who want to change their life and stop drinking. These places change people’s lives into a good path redirect them to a healthier long lasting life. One of the most important things that alcohol affects could be ones family, alcohol affects about 95 percent families in the United States.And especially affects the kids alcoholics lead to divorces in their family and can ruin sometimes child’s lives and lead them down that same path. There has always so many domestic violence around in America because of alcoholics and what they do to their wives and their children. After they realize what they have done its almost always too late they lose their job their belongings and their families so they basically ruin their lives.Now in the future who knows how bad alcohol and peoples actions will be with all of these new types of drinks they are creating everyday people will just continue drinking without getting any help and lives will be ruined the percentage of alcohol related deaths will probably increase , there is no telling on how bad alcohol will go. Bibliography http://www. drugrehab. net/the-history-of-alcohol-in-america/ http://www2. potsdam. edu/hansondj/Controversies/1114796842. html Alcohol Abuse: Clayton Rivers Prohibition Banning Alcohol: Adam Wong

Discrimination in fairytales

What do you think about fairytales? Do you think about a pretty little princess waiting for her prince or a dark sensual world of make-believe that revolves around violence? I seriously doubt it's the latter. This is because fairytales have drastically changed over the centuries. The modern versions we know today were preceded by a much darker kind of story, one that played heavily on the ideas of superstition, the devil and violence. Genders weren't as heavily criticised. Heroines used to save themselves and others too, usually with brains or charm opposed to brawn. But at least they were trying. An example of this could be â€Å"Sleeping Beauty†, Perrault's version, where the Princess saves herself and her two children from her husband's evil stepmother, by cooking a goat; instead of one of the children as the ogress requested. Her husband then comes in to save her. She played a crucial part in the story: saving her children from the cannibalism of their father's step-mother. Cannibalism is certainly frowned on in society, but is in fact actually a rather common theme in fairytales: Red Riding Hood also originally included cannibalism. The Wolf left the Grandmother's blood and meat for the girl to eat. After she unwittingly cannibalises her grandmother, she sometimes strips for the wolf and gets into bed with it. He then either eats her or ties her to a piece of string. She usually escapes using her own cunning. This is quite different from the grandma-loving biscuit-carrying Red Riding Hood of today. It actually comes across as a story more about child molesting, or at the very least, lust. The story is sometimes seen as a parable of sexual awakening. The red cloak symbolises the blood of the menstruation cycle or the hymen, although earlier versions of the tale do not state the cloak is red. The anthropomorphic wolf can symbolise a lover, a seducer, a rapist, or a molester. This is clearly a rather different take on the Red Riding Hood than we're used to. It seems to be a rather mature disturbing tale. I don't think it's necessarily something we would want our children exposed to. But that was how they were originally written. At least until they were bowdlerised by the Grimm brothers. Fairy stories were originally gothic tales and scary stories about what might come and take you in the night; they were far removed from the Disney classics. The Grimm brothers, Jacob and Wilhelm, were born in Germany in the late 18th century. In an effort to preserve Germany's heritage and promote cultural unity, they collected a vast array of folk and fairy tales from their fellow Germans-mostly middle- and upper-class friends. Although their original intent was to preserve the stories exactly as told, one edit led to another, and soon they had given the stories a literary style and released them as Kinder- und Hausmirchen (Children's and Household Tales. ) Because their intended audience included children, the Grimms selectively bowdlerised the tales they published, notably removing evil mothers and replacing them with step-mothers (as in the case of †Snow White†), and removing implications of sex and pregnancy (as in †Rapunzel†). However, because standards of child-friendliness have shifted in the past 200 years, some of the Grimms' stories are now considered family unfriendly and the deaths written in them are considered to be shockingly violent. This was not the view at the time. So basically they took a fornicating girl in a tower, and turned her into a damsel in distress. This was not quite the same idea. This gave rise to the dependent needy princesses and maidens that feature so heavily in today's fairytales. These are characters that belittle everything that women fight and give their lives to achieve. And ironically it is the past stories that show less anti-feminism even though people were actually more sexist in that period. At least those women had some self-respect and the ability to plot, and in rare cases, use weapons. The blonde stereotype of women in modern fairytales is unparalleled. From a young age, it's almost as if we are being trained to indulge in the ideals of vanity and sexual dependence. Well excuse me†¦ but I'd rather not. It seems to me that this is the start of young girls' urge and desperation for ‘the look': this is something that many women will diet and exercise to achieve. Although as girls age they graduate off pretty princesses and onto fashion icons and models. I'm completely against this idea, partly because I'm a perpetrator of wanting ‘the look' myself, and the fact that I will never achieve it. In other fairytales, a heroine is willingly bound by a spell, whereas a male character may be cursed because he has refused to yield something, for example shelter, in ‘Beauty and the Beast'. If the female character is cursed unwillingly, she is cursed by a malignant character that is as ugly as her personality. This is the exact opposite of the maiden who is cursed. This amplifies the idea that beauty is idyllic and good and ugliness is evil and unforgivable. This isn't a very good role model for children and I find this interesting because it seems to reflect our desire for beauty. However, the reality is that women are not all beautiful and if they aren't, it doesn't necessarily mean that they are nasty unpleasant people. Some villains do have a sort of beauty, but this is usually a sharp-featured frightening beauty that terrifies the younger generation. A wronged women in a fairytale may take the form of a particular animal to escape an evil stepmother or an unwanted marriage. The animal they take is usually reflective of their main traits. For example a graceful and delicate woman may take the form of a swan or a doe. These are animals that are considered to be beautiful. Their fellow animals will provide some company and will somehow help the character to regain what they have lost. This animalistic form gives the character a connection to nature and separates them from society. They become wilder and less sophisticated, embracing a more instinctual kind of beauty. So characters have also gone from blonde to beast, the opposite of the current situation-where blondes prevail far more than beasts. Beastly women, however, are often considered to be connected the Devil, like ‘wild woman' who is the devil's offspring. Lots of hair or fur seems to show some relation to evil, perhaps as it isn't very attractive. This can be compared with the Elizabethan saying ‘Bush natural more hair than wit' which means that people with lots of hair or fur are supposed to be primitive, inferior, sexual and beastly. These weren't exactly desirable traits either at the time or now. Nowadays there seems to be a teeming population of blondes in fairy stories. An example could be â€Å"La Belle aux cheveux d'or† who had hair ‘finer than gold' that was ‘marvellously wonderfully blonde' and was ‘curly and fell to her feet'. This is a rather pleasing image: a beauty with long wondrously blonde hair. The story claims ‘you couldn't look upon her without loving her'. A rather amazing claim: that a woman or man may just gaze upon her and find themselves desperately in love with her, whether in a sexual way or not. This seems to be an illustration of the power possessed by mere appearances. The word blonde comes from the Latin ‘blandus' meaning charming. So in the past it had no implications of sex or great femininity. It also comes from the Medieval Latin ‘blundus' meaning yellow, which only serves to describe the colour not the appeal. In the 14th century, Chaucer began to use the word ‘blondinet' or ‘blondin', which was an affectionate diminutive. In fact it was mainly used for boys. Nowadays we don't think of boys being blonde in the same way girls are. Blonde began to become exclusively female and suggested sweetness, charm and youthfulness: everything a young princess would desire. Only in the 30's and 40's did the word acquire ‘hot' vampirish undertones and begin to be desired almost obsessively. The word blonde symbolises femininity and beauty; things that women crave beyond reason. However, the reality is that it's just a hair colour and that there are women of all hair colours- black, brown, red, grey†¦ white, if you count albinos- that are as beautiful as blondes. More disturbingly perhaps, in recent years the word blonde has been yoked with ‘dumb' to depict a particular character type. Not only is the heroine nearly always blonde, but she is always young. This seems rather ageist to me and isn't the sort of idea that we would want our children brainwashed with. Do we want them to idolise the youthful and not respect that the elderly can achieve things themselves? No. They should understand from a young age that you can't use people and that OAP's are not a step of the stairway of success, as people is fairy stories often do. The heroine never possesses great wisdom and seems to get things and assistance by flicking her hair and batting her eyelashes. Wow†¦ that's very useful. I don't think that that should be something that children aspire to be like. Intelligence and knowledge are more important than beauty, and fairytales seem to miss this. So the prince can slay a dragon, but can he win a game of checkers? I wouldn't count on it. It seems to me that in fairytales, only the villains seem to possess a decent IQ, as they're the only characters that use their brains or cunning to conjure up a scheme. Heroes rely on courage. I think it's almost sad that in the stories strength and beauty are idolised and seem to triumph over intelligence. This is similar today, however, if we think about how the bullies of the world act all big and tough, but aren't the brightest bulbs around. They tend to pick on the weak, so in today's world that would be the geek. Rather sad, don't you think? The stereotype of a maiden in fairy stories is dependent, needy and waiting for her happily-ever after. This is not exactly an image to aspire to. After all why would a woman need a man? She could get on perfectly well on her own. As the feminist saying goes, â€Å"A women needs a man, like a fish needs a bicycle. † However, I think this is a little extreme. Perhaps this dreadful stereotype of women could be remedied if half the time the women went out to save the men. Perhaps it would ruin the men's egos, but at least the women could be portrayed with a little self-respect and not a day-dreaming ditz who has the attention span of a goldfish. The 90's Disney movies tried desperately to do this. Ariel, Belle and Mulan who rush to the aid of their lovers are the examples of this. I decided to write about fairytales because there are so many issues surrounding them. I remember them with fondness from my childhood, and I would want to read them to my children and grandchildren. I think gender discrimination is a serious issue. Just because someone has an X and a Y chromosome or two X's, it doesn't mean they are any better than the other. I think feminism is a step too far in the other direction however. Being co-dependent isn't necessarily a bad thing. Men need women too. Fairytales show both sides of this as well. The prince rescues his princess as he can't live without her and the maiden loves the man because†¦ well who can resist a man on a white horse? Not me! They are simple stories that are debated hotly because of the context of them. Are they too violent? Are they too idealistic? Are they too perfect? Fairytales are all about love and romance. They are about good triumphing over evil in a series of unlikely events. They tell us of deeds of valour and bravery in a time that we can only imagine. They show us how a poor little maid can fall in love and become a princess. The characters may be seriously flawed and have many issues, but they are stories. Wonderful stories. Stories that we read time and time again so that we can dream of being that brave knight or that damsel in distress. I think that my childhood would not have been the same without Chicken Licken or the Princess and the Pea. I think that even though they are unrealistic and give people impossible expectations and dreams, they are a part of our culture. To edit them, as the Grimm brothers did, would destroy a time long-forgotten. I think that they still exist today. The royalty of today is the celebrities-actors and models. We look at them and wish we were like them, just as the people of the Renaissance would have looked at a princess and thought ‘I wish I was her†¦ ‘ Dreaming is in our nature and to change that for the sake of a few misconceptions would be unforgivable.