West Africa the Atlantic Slave-Trade Essay Example | Topics and Well Written Essays - 750 words

West Africa the Atlantic Slave-Trade - Essay Example As an outcome Africans were taken to North America, Central America, South America and Caribbean to offer slave labor in gold and silver mines and agricultural plantations growing crops such as cotton sugar and tobacco (Rodney 125). The tarnished commerce of the human being persisted for more than 400 years since the Atlantic slave trade did come to an end in the late 1870’s. Atlantic slave trade was systematized in Europe and about the huge profits made by countries such as England and France. Africans journey from Africa to America across Atlantic Ocean was a terrible one. Africans were crowded like sardines on the slave ships of the Atlantic full of oppression and brutality which they replied nobly (Rodney 125). The precise number of how many Africans were taken from their families to be sold as slaves is not known, but it is estimated that 15 million slaves reached the American continent and the Caribbean island because of Atlantic slave trade. The number of slaves who left Africa soil was much higher than 15 million since some were killed during the brutal process of acquiring the slaves and also some died on board. By the 19th century, there was a modification as people who took the leading role in ill-using Africa. The European Countries themselves were inactive in the slave trade; in its place European who had established themselves in Brazil, North America and Cuba were the ones who planned the trade. America had gained independence from the Britain and it was the new nation of United States of America which played the greatest role in the last 50 years of the Atlantic slave trade, by taking back slaves at a greater value than ever before (Rodney 126). In order to be in a commerce relationship with West Africa, most of the European countries decided to up factories on the coast. A factory in the trading language of the West African coast was a place where European and African products

Subprime Mortgage Crisis Research Paper Example | Topics and Well Written Essays - 1750 words

Subprime Mortgage Crisis - Research Paper Example These numerous theories, which have come up to explain the root cause of the subprime crisis. Numerous experts and economists believe that a combination of factors resulted to the crisis (Lynnley 13). This study intends to examine the housing bubble as a major cause of the subprime crisis. Housing Bubble This study reveals that the present mortgage crisis started with the bursting of the U.S. housing bubble, which commenced in early 2001 and ascended to its peak in the year 2005. Essentially, a housing bubble can be defined as an economic bubble whose occurrence in both the local and international platforms in real markets id characterized by almost similar features. The housing bubble is defined by express rise in the valuations of real assets until untenable levels related to income and affiliated affordability indicators are reached (Lynnley 11). This situation leads to the decrease of home prices and debts related to mortgages, which are higher compared to the value of the assets . It is imperative to note that the housing bubble was discovered at the aftermath of the market correction that happened in the U.S in 2006. In 2007, Alan Greenspan, the former Chairman of the Federal Reserve Board indicated that, United States has been having a bubble in the housing sector (Muolo and Padilla 3-7). This came upon the realization that the house prices appeared to be overwhelmingly overvalued. The sentiments were echoed by the Richard Syron, the CEO Freddie Mac and concurred with the Yale University economist Robert Shiller who warned that the necessary correction of the bubble would be done in many years to come wit trillions of dollars being lost. This situation would lead to a double-digit decline in the home values. The housing bubble in relation to the historically low interest rates This study reveals that the majority of the experts and economists believe that the housing bubble in the United States of American was partially caused by the historical low intere st rates. It is imperative to note that the Federal Reserve Board had reduced the short-term interest rates by 5.5% (from 6.5% to as low as 1 %). This was a response of the collapse of the dot-com bubble (Muolo and Padilla 3-7). This happened in early the year 2000 and was followed by the ensuing recession in 2001; however, this response significantly endangered the housing bubble through the decrease in real long-term interest rates. It is essential to note that, the US mortgages rates are set in relation to Treasury bond yields of 10 years. These rates are influenced by the Federal funds rates. This study establishes that the Federal Reserve Board acknowledged the relevance of the connection amid lower interests’ rates, increased liquidity and the higher home values in relation to the general status of the economy. On the other hand, Greenspan disputes the claim that he engineered the housing bubble. Greenspan asserts that the Fed’s decline in rates contributed to th e inflation of the bubble. In 2007, Greenspan argued that, the housing bubble was not in any way related or linked to the Fed’s policy on interest rates, however, Greenspan pointed out on the international surplus in savings, which pushed down the interest rates