What is a Bank Run

The Economics Glossary gives the following definition for a bank run: A bank run takes place when the customers of a bank fear that the bank will become insolvent. Customers rush to the bank to take out their money as quickly as possible to avoid losing it. Federal Deposit Insurance has ended the phenomenon of bank runs. Simply put, a bank run, also known as a run on the bank, is the situation that arises when a financial institutions customers withdraw all of their deposits simultaneously or within short succession out of fear for the banks solvency, or the banks ability to meet its long-term fixed expenses. Essentially, it is the banking customers fear of losing their money and distrust in the sustainability of the banks business that leads to a mass withdrawal of assets. To gain a better understanding of what occurs during a bank run and its implications, we first must understand how banking institutions and customer deposits work. How Banks Work: Demand Deposits When you deposit money into a bank, you will generally make that deposit into a demand deposit account such as a checking account. With a demand deposit account, you have the right to take your money out of the account on demand, that is, at any time. In a fractional-reserve banking system, however, the bank is not required to keep all of the money in demand deposit accounts stored as cash in a vault. In fact, most banking institutions only keep a small portion of their assets in cash at any time. Instead, they take that money and give it out in the form of loans or otherwise invest it in other interest-paying assets. While banks are required by law to have a minimum level of deposits on hand, known as a reserve requirement, those requirements are generally quite low as compared to their total deposits, generally in the range of 10%. So at any given time, a bank can only pay out a small fraction  of the deposits of its customers on demand. The system of demand deposits works quite well unless a large number of people demand to take their money out of the bank at the same time and over the reserve. The risk of such an event is generally small unless there is a reason  for banking customers to believe that money is no longer safe in the bank.   Bank Runs: A Self-Fulfilling Financial Prophecy? The only causes required for a bank run to occur is the belief that a bank is at risk of insolvency and the subsequent mass withdrawals from the banks demand deposit accounts. That is to say that whether the risk of insolvency is real or perceived does not necessarily impact the outcome of the run on the bank. As more customers withdraw their  funds out of fear, the real risk of insolvency or default increases, which only prompts more withdrawals. As such, a bank run is more a result of panic than true risk, but what may begin as mere fear can quickly produce a real reason for fear. Avoiding the Negative Effects of Bank Runs An uncontrolled bank run can result in a banks bankruptcy or when multiple banks are involved, a banking panic, which at its worst can lead to an economic recession. A bank may try to avoid the negative effects of a bank run by limiting the amount of cash a customer can withdraw at one time, temporarily suspending withdrawals altogether, or borrowing cash from other banks or the central banks to cover the demand. Today, there are other provisions to protect against bank runs and bankruptcy. For instance, the reserve requirements for banks have generally increased and central banks have been organized to provide quick loans as a last resort. Perhaps most important has been the establishment of deposit insurance programs such as the Federal Deposit Insurance Corporation (FDIC), which was set up during the Great Depression in response  to the bank failures that exacerbated the economic crisis. Its aim was to maintain stability in the banking system and to encourage a certain level of confidence and trust. The insurance remains in place today.

Sonnet 43 - 1462 Words

Sonnet 43 (Sonnets From the Portuguese) BY Elizabeth Barrett Browning How do I love thee? Let me count the ways. I love thee to the depth and breadth and height My soul can reach, when feeling out of sight For the ends of Being and ideal Grace. I love thee to the level of every day’s Most quiet need, by sun and candle-light. I love thee freely, as men strive for right; I love thee purely, as they turn from praise, I love thee with the passion put to use In my old griefs, and with my childhood’s faith. I love thee with a love I seemed to lose With my lost saints –I love thee with the breath, Smiles, tears, of all my life! –and, if God choose, I shall but love thee better after death. Criticism Brent Goodman is a†¦show more content†¦In lines where she’s comparing her love to the most domestic or common events of day-to-day living, as in the first line of the second stanza, the rhythm matches this plain or common mood, only slightly deviating from strict meter, â€Å"I LOVE thee TO the LEVel of EVery DAY’s†¦Ã¢â‚¬  On the other hand, as she moves on in the poem, and her voice gets more and more passionate as she continues to develop her list of ways she loves her husband, she builds each line’s rhythm to match this mood. By the time we reach the final stanza, her lines find a rhythm of their own, almost completely ignoring traditional form â€Å"WITH my LOST SAINTS – I LOVE THEE with the BREATH,/SMILES, TEARS of ALL my LIFE!† Another set structure for sonnets is how each line ends. Traditionally, each line ends with punctuation, a period, comma or otherwise to create a pause and contain a complete thought. Lines which end this way are called end-stopped. Reading through â€Å"Sonnet 43†, we notice that five of the 14 lines do not end with a set pause; rather, they are enjambed. Enjambed means to carry over; this term describes how one line flows into the next without hesitation. To try to understand what Barrett Browning’s intentions might be for this move away from traditional form, it is useful again to notice what the mood of the poem is where she breaks the rules. In the first stanza, as she begins to â€Å"count the ways,† the ways sheShow MoreRelatedCompare Hour and Sonnet 431410 Words   |  6 PagesHigher English Paper Section A – Question 7 â€Å"Hour compared with Sonnet 43† Both poems are about love. Hour presents love as being times enemy, whereas, Sonnet 43 presents love as absolute and unconditional. Both poets see love as being precious and worth more than life itself. Barrett Browning shows love as lasting forever, but Duffy feels that love can’t last forever. Sonnet 43 is an old fashioned poem; you can see this from the form. It uses iambic pentameter which creates the feeling ofRead MoreSonnet 43 Analysis1483 Words   |  6 Pages‘Sonnet 43’ is a romantic poem, written by Elizabeth Barrett Browning. In the poem she is trying to describe the abstract feeling of love by measuring how much her love means to her. She also expresses all the different ways of loving someone and she tells us about her thoughts around her beloved. The tone of the poem is deep, in a loving way. The poet starts of by saying â€Å"How do I love thee? Let me count the ways,† by which she starts of with a rhetorical question, because there is no ‘reason’Read MoreCompare the Ways Love Is Presented in Sonnet 43 and Ghazal1292 Words   |  6 PagesCompare the way love is presented in ‘Sonnet 43’ and ‘Ghazal’ Both poems, Sonnet 43 and Ghazal convey emotions and passionate feelings of love in different ways. Sonnets and Ghazals are poem that are meant to express strong feelings of love. Khalvati and Barrett Browning chose them to illustrate their loving feelings to their lovers. Barrett Browning does not correctly carry out all the rules of Sonnets in her poem which gives an effect that she would do anything for her lover and that thereRead MoreLove In Sonnet 431089 Words   |  5 PagesCompare the methods the poets use to explore the ideas about love in ‘Sonnet 43’ and ‘Sonnet 116’ In ‘Sonnet 43’ and ‘Sonnet 116’, both Browning and Shakespeare present love as eternal using biblical allusion. ‘Sonnet 43’ is a love letter to the speaker, who is the poet (Elizabeth Barrett Browning) to her beloved. The title suggests that this is her 43rd declaration of her love to her beloved which shows that the love she has for her beloved is so intense, that it inspired her to write numerous poemsRead MoreSonnet 43 : How Do I Love Thee804 Words   |  4 PagesHeidi Fish Mrs. Holthaus Advanced Comp. 6 October 2017 Sonnet 43: How Do I Love Thee? â€Å"How Do I Love Thee?† is just one of the many love poems that Elizabeth Browning had written in her lifetime. It expresses the unconditional love she has for her husband by listing the many ways she loves thee. Browning lists these ways by using a sonnet layout, many metaphors, and daily situations. There are many different poetry forms, one being a sonnet. It originates from the Italian word ‘sonetto’, whichRead MoreWilliam Shakespeare s Romeo And Juliet1205 Words   |  5 Pagesrole in both poems. The fearful passage of their death-mark d love [†¦] Is now the two hours traffic of our stage this is from the prologue line 9 and 12 this is telling us they are conscious from the start they are heading near death. In ‘Sonnet 43’ and ‘Romeo and Juliet’ love is presented very religiously as it plays a fundamental part in both poems. This is shown by using religious links an example of this is clearly shown in Act 2. Scene 2 in which Romeo says â€Å"messenger of heaven† lookingRead MoreAnalysis Of The Poem Le Regrets 1747 Words   |  7 PagesJoachim Du Bellay’s ‘Le Regrets’ is a collection of sonnets with diverse messages but with an underlying theme of missing France, his home country. From the onset, it is important to state that the sonnet originated from Italy. Bellay had gone to Italy partly because of his fascination with this form of poetry but after a short stay, he began longing for France. His poems express this longing. He uses poems to show exasperation and disappointment with Italy for failing to live up to the hype. AsRead MoreThe Comparison of Two Love Poems634 Words   |  3 Pagesfirst person, the speaker is more defined l eading the reader to believe it is a she who is talking about love in the past tense. Both poems are sonnets written with fourteen lines, and written in Italian style. When comparing these poems we will be looking at the use of rhyme scheme and metaphors and how they were used to express emotions in these two sonnet poems. One of the most used love poems would have to be, â€Å"How Do I Love Thee?† by Elizabeth Barrett Browning. It has been recited at many weddingsRead MoreAnalysis of Petrachs Poetry: a Translation of Italian Poem Rime 1401561 Words   |  7 Pagesunder a wide variety of definitions and uses, even being dismissed as nineteenth-century romantic fiction. Its interpretation, origins and influences continue to be a matter of critical debate. Stages of courtly love (Adapted from Barbara Tuchman[43]) * Attraction to the lady, usually via eyes/glance * Worship of the lady from afar * Declaration of passionate devotion * Virtuous rejection by the lady * Renewed wooing with oaths of virtue and eternal fealty * Moans of approachingRead MoreCompare How the Theme of Love Is Presented in a Selection of Pre-1914 Poetry7665 Words   |  31 Pagesto an interpretation that his is all a dream due to the fact that Keats could be illustrating the nature of the folk ballad which is sung by only one person. ‘Remember’ and ‘Shall I Compare Thee’ are both sonnets which convey intense emotion within stylistic and thematic constraints of the sonnet form. This, in turn, intensifies the emotion. Both have regular rhyme, scheme and beat. The tone of ‘La Belle Dame Sans Merci’ and ‘Porphyria’s Lover’ both vary dramatically, ‘La Belle Dame Sans Merci’

Diffusion and Standardization with Operation System Free Essays

Abstract This paper discusses the standard of operation system (OS) in the personal computer industry, and how Windows finally became a standard of this industry. To comprehend better of this process, we critically evaluate the proprietary regime and what is the effect of this regime on the diffusion process. This paper also provides a short view of network effect and switching cost, product preannouncement that have influenced the outcome of the standards competition. We will write a custom essay sample on Diffusion and Standardization with Operation System or any similar topic only for you Order Now 1. Introduction of Windows and Mac OS There have been two distinct operation environments along with personal computer industry, Windows and Mac OS. They are undergoing an intensive standard race over the past 10 years. Windows is an operation environment introduced by Microsoft in 1985, a strong market leader which accounts for more than 90% usage share in 2009 with its high quality and easy handling graphical user interfaces.1 Mac OS is a system developed by Apple, a small usage share of 6% and less well known in operation systems.2 The two systems are incompatible with each other by different technology support. Technologically speaking, both have their advantages. The Windows is supported by hardware configuration, which is provided by a series of hardware manufacturing, like INTEL ?AMD. On the other hand, Mac OS has its uniqueness which is a way to differentiate it from all other personal computers out there. Mac OS is only to be installed at Apple’s computer by Apple’s license agreement, that is to say Apple is not to license their OS. What is more, Windows is able to run on any portable application and there are a mounting number of end systems could be offered with it. By contrast, Mac OS is compatible to limited software. 2. The Development of the OS Standard By the early 1980s, some small companies which led the minicomputer market in the late 1970s have been taken a hand by larger computers. A smaller number of de-facto industry standards have developed. In 1981, when the largest computer firm which is IBM entered into the microcomputer area and made the decision that all the IBM PC shipped with IBM PC-DOS which is a licensed version of Microsoft’s MS-DOS rather than the superior industry-standard CP/M-86 operation system.3 In 1984, 4 Microsoft achieved growth of revenues from MS- DOS’s sales by IBM and other competitor’s manufacturers who were willing to buy MS-DOS license to be shipped with their computers. However, it still achieved little popularity and it was competition with Apple’s own OS. Back then, the industry expected that the IBM would be the technical direction .However, 1987 when IBM made a risky business decision that chose to introduce their PS/2 line which would be licensed to anyone who could afford the royalty, however it failed to maintain the open AT bus.8 PS/2 line made the IBM machines were not IBM-compatible anymore. Because of that, many PC manufactures hold off accepting the PS/2 licenses and worked together on a new open bus type to all manufactures, which lead to that IBM no longer the leader and standard of the industry. Around the same time, at the beginning of the 1990s, 9 Microsoft developed a brand new OS –Windows, which turned out being very popular. At the same time, IBM would prefer to replace DOS with its vastly superior OS/2, but Microsoft insisted on pushing the industry standard with Windows.With lower price and high technically superior performance, Windows became the de-facto standard with more than 2 million selling of copies of Windows version 3.0 in 1992. After then, Windows 95 made a revolutionary change to the user interface and also used preemptive multitasking. During that time, the early adopters of computer tended to use the internet to communicate the strengths and weaknesses of Windows 95 and programming more software. Windows XP was released and becoming the largest usage OS ever. In 2009, a new edition –windows 7 focused on new features with more compatible applications and hardware. Moreover, in 2011, a preannouncement of Windows 8 has been made that will be released in 2 years later in order to affect the choices of potential customers. In fact, Windows OS would be an open format with all the computers shipped with Windows is capable of using extensive compatible software. Moreover, the historical record reflected that the key to the success of Windows OS lay in the fact that Windows can be licensed to PC manufacturers as much as possible. 3. The MAC OS Threat Despite the extensive success of Windows OS in the past 20 years, industry competitor still is trying to change the market. Some preserved with the unique and technically superior system, like Mac OS by Apple. Apple’s Macintosh developed in 1984, which achieved a commercially successful in the beginning of 1980s. Macs are rapidly growing in popularity by its unique software/hardware market niche. They insisted on their unique standard with their proprietary system which is Mac OS that would run nothing anyone else programmed.7 In the case ofcomputer OS, Mac OS has very limited compatibility with other programme but on the other hand, is quite easy to use and requires relatively little maintenance, which is the reason why It is undergoing a slightly growth in the usage market in comparison with previous performance. 4. How the proprietary regime would affect the diffusion As we all know that the value of a specific computer system depends on availability of compatible software 11.User usually not care whether others use the same computer as me, but I benefit indirectly from the fact that there are many other users of the same product which means that there is a large market of software. The historical record of Windows OS and Mac OS has shown that fact that Windows OS is a relatively open standard. Microsoft knowing that they would not dominate the market on their own without the cooperation to other computer manufacturing. Thus they licensed the Windows OS to other companies which at last achieved a monopoly on OS market with 90% share and all computers running their OS. Apple, by contrast, made its Mac OS closed standard. They has a high monopoly on Mac os with 100% of their computer Reference http://en.wikipedia.org/wiki/Microsoft_Windows http://en.wikipedia.org/wiki/Microsoft_Windows http://en.wikipedia.org/wiki/Wintel http://www.islandnet.com/~kpolsson/compsoft/soft1991.htm http://www.thocp.net/companies/microsoft/microsoft_company.htm http://answers.yahoo.com/question/index?qid=20090715083926AATdrXk Kennedy, Randall C. (2008-04-14). â€Å"Fat, fatter, fattest: Microsoft’s kings of bloat | Applications†. InfoWorld. Retrieved 2010-01-12. http://articles.orlandosentinel.com/1999-10-13/business/9910130219_1_chips-microprocessor-gartner http://www.ocdqblog.com/home/the-diffusion-of-data-governance.html G.M.Peter Swann The Economics of Innovation An Introdution 2009 How to cite Diffusion and Standardization with Operation System, Essay examples