IMPACT OF INTEREST RATES ON THE HOUSEING MARKET Essay

IMPACT OF INTEREST RATES ON THE HOUSEING MARKET - Essay Example In terms of the 15 and 30 year mortgage rates since 2001, the rates have remained close to the interest rates set by the Feds. The connection between the two is certainly obvious therefore an understanding of the federal rate is important to obtain an understanding of the housing market. The federal rate is the rate of interest at which depository institutes loan out their holdings in the Federal Reserve to other depository institutes on an overnight basis (Arnold, 2005). This rate is different from the discount rate which the Federal Reserve uses to calculate loan payments for financial institutions. The federal rate has many important implications for the economy of the country and changes in this rate would affect everything from mortgage rates to the stock market. It also has a significant impact on economic growth depending on several factors in the monetary policy being followed by the country. Fundamentally, the Federal Reserve System operates to ensure that all American banks keep a certain level of reserves which are normally a percentage of the value of the bank’s demand accounts (Arnold, 2005). Since this is a regulatory requirement, banks may borrow money from each other to maintain such a level of reserves and the interest rate paid between banks would be the Federal Rate. Through these means, the Federal Reserve has considerable power over the supply and demand for balances of Reserve Banks. The monetary experts at the Federal Reserve are supposed to ensure that the rate is set at such a level that it will create economic growth and stability in the economy. However, the economic demands have to be balanced with the political and social realties which may influence how and at what exact level the rate is set (Wikipedia, 2006). The Federal Reserve therefore adjusts the rate periodically to keep the economy running smoothly. However, even a

Recommendations to the Cyber Czar Assignment Example | Topics and Well Written Essays - 2250 words

Recommendations to the Cyber Czar - Assignment Example Countries work with special strategies to facilitate cyberspace security. This is aimed at protecting a national territory from cyber space malicious attacks. Implementing the security system is a joint comparison of Homeland Security and the National Strategy. The policies are set to engage the global population to engage in implementing security levels in the cyberspace. This comes as an initiative of every country to implement security details in the cyberspace they own, operate and control. Securing the cyberspace involves difficult strategic challenges which require focus and coordination from the entire society. This comes as a combined force from the local and state governments and the private sector (Arias, 2010). Objectives set to meet the recommendations The strategy to secure the cyberspace comes with a combination of prioritizing and organizing efforts. This offers departmental heads in government with directions in curbing malicious attacks on the cyberspace. The strateg y aims at identifying the local and state governments, private organization and individuals who can take place in improving cyber security. The highlight of the strategy is in the merging of private and public engagement. Improving cyber security comes with everyone working as one to secure the cyberspace. ... Consistence within the National Strategy by the Homeland Security works with set objectives to ensure that the set strategy in securing cybercrime works with the set recommendations (Briggs & Burke, 2009). The main objectives are to: 1. Provide the citizens with security from cyber-attacks on critical infrastructures 2. Reduce the possibility of individuals to get cyber attacks 3. Implement a damage control and recovery plan from the cyber attacks The threat and vulnerability portrayed by the cyberspace The economy and the security system depend on information technology. Major applications that run at the core depend on the internet. The internet was originally built to facilitate research among scientists. Abusing the internet network was not part of the plan. Today the internet connects people through computer networks exposing ISP’s, Software Manufacturers, End Users and Operating System producers to malicious attacks. Computer networks connect different objects such as st ock markets, electrical transformers and trains. A malicious attack that compromises the functioning of such objects puts the end user at a disadvantage. Cyber Czar can spread a spectrum of malicious attacks against critical information. The main concern is organized attacks that cause disruption of the National critical infrastructure, national security and the economy. Attackers require sophistication to carry out such attacks but this does not mean that countries can relax on setting security measures. Nations face situations where hackers have identified loopholes where they can maximize on in doing their fraudulent activities (Purdy, 2011). Proper analysis of the cyber threats needs a long term analysis of the