The Cost of Coronary Heart Disease to Society Essay Example for Free

The Cost of Coronary Heart Disease to Society Essay â€Å"Coronary heart disease (CHD), also called coronary artery disease (CAD), is when the vessels supplying blood and oxygen to your heart become narrow or constrictedâ‘ ºÃ¢â‚¬  The main causes are: Smoking cigarettes Cigarette smoking is a major cause of strokes. High blood pressure Can put strain on your heart and can lead to CHD. High cholesterol levels Cholesterol is essential for healthy cells, but if there is too much in the blood it can lead to CHD. Unhealthy diet A bad diet can lead to diabetes, high cholesterol, hypertension and uncontrolled weight. Each of these factors independently contribute to a high risk of heart disease. Physical inactivity Regular physical activity decreases the risk of coronary artery disease because it makes the coronary arteries wider and more flexible. Alcohol consumption Raises blood pressure; puts more pressure on arteries. Obesity Reduces HDL cholesterol which enable lipids to be transported within the water-based bloodstream. The cost of coronary heart disease to society cannot be viewed in terms of just money, but also the loss of 166,000 lives every year, this figure is the number of people who died of coronary heart disease in 1961 in the UK. The figure in 1997 however had fallen to 140,500. In 2000, this figure had fallen still to 125,000, and in 2010 more than 65,000 people died from coronary heart disease; more than for any other diseaseâ‘ ¹. The total direct healthcare costs of coronary heart disease in 1999 came to  £1.73 billion. The major costs were those used for hospital inpatient care, which accounted for  £917 million (or 53% of the total) and drug treatment, which accounted for  £558 million (or 32% of the total). Rehabilitation and community care, prevention and primary care, accident and emergency (AE) and outpatient care accounted for 7.4%, 3.6%, and 2.9%, respectively, of total direct costs. People aged 65 years and above and men utilised 63% and 52% of total expenditure, respectivelyâ‘ ´. In 2006, coronary heart disease cost the UK NHS approximately  £3.2 billion, this represents a cost per capita of just over  £50 for each condition. The cost of hospital care for people who have coronary heart diseases accounts for about 73% of these costsâ‘ µ. The hospital costs for stroke account for 94% of the total health care costsâ‘ ¶. In 2006 the total cost of coronary heart disease to the UK economy was approximately  £9.0 billionâ‘ ¸. Some patients with coronary heart disease will be referred for cardiac rehabilitation, particularly following bypass surgery or if they have experienced angina or a heart attack. The rehabilitation may consist of an exercise plan to help regain stamina safely based on individual ability and needs, and education, counseling, and training. Training may include ways to better manage stress, as well as how to manage other lifestyle factors that contribute to coronary heart disease. An estimated 401 000 people provided informal care to coronary heart disease patients in the UK and about 408 million hours were used to care for them. Informal care of coronary heart disease sufferers was estimated to cost  £2.42 billionâ‘ ´. About 150 565 working years were lost from deaths from coronary heart disease in England and Wales; 71% of these working years lost were from deaths in men in the 45–64 year age rangeâ‘ ´. There were 65.4 million working days lost because of incapacity resulting from coronary heart disease in the UK. In 2004, the average length of stay for an individual entering the hospital for CHD complications was 4.3 daysâ‘ ´. To the UK population, an estimated 765 000 men and 698 000 women had experienced a coronary heart disease event in the past year, with those aged 55 and above accounting for 88% of cases, also to the UK population, an estimated 1.42 million men and 1.14 million women have a history of doctor diagnosed coronary heart diseaseâ‘ ·. In 2006 over 2.2 million people were living with CHD; 1.3 million men and 860,000 womenâ‘ ¸. The mortality cost of coronary heart disease in the UK was estimated to be about  £1.81 billion (of which  £1.68 billion can be attributed to men and  £0.123 billion to women)â‘ ´. The total cost of illness associated with coronary heart disease in the UK is  £7.06 billion per yearâ‘ ·. CHD, by itself, is the most common cause of premature death in the UK. About one fifth (18%) of premature deaths in men and one in ten (9%) premature deaths in women from CHD, which caused over 28,000 premature deaths in the UK in 2008â‘ ¶. Rates of CHD are higher in men than in women and rates increase with age. However CHD is also a major cause of premature (under 75) deaths. In 2010, there were over 21,000 premature deaths from CHD in Englandâ‘ ¸. CHD rates are not distributed evenly around England. Death rates are much higher in the North of England compared to the South. Premature mortality rates in the North West are about 50% higher than in the South East for men, and 60% higher for women. But CHD rates in England are lower than in the rest of the UKâ‘ ¸. Approximately 85% of those who die of coronary artery disease are age 65 or olderâ‘ ½. People that are diagnosed with coronary heart disease may feel worried or anxious about their personal well being and how this diagnosis will affect their lifestyleâ‘ ». Patients diagnosed with heart disease may experience guilty feelings. They may believe that their chosen lifestyles may have contributed to them acquiring coronary heart diseaseâ‘ ». Patients with coronary heart disease may isolate themselves socially from their friends as a result of side effects of their medications or symptoms of their disease, such as fatigueâ‘ ». Depression is a condition that patients with coronary heart disease may experience. This may be caused by a variety of reasons. They may become less motivated and less functional in their roles in life; achieving goals and getting jobsâ‘ ». Depression is strongly correlated with the presence of angina within a patients with coronary heart disease. Also patients with physical health problems such as coronary heart disease often have worse quality of lifeâ‘ ¼. In conclusion, the cost of coronary heart disease to society are the mass amount of people lost to this disease every year, the pain that the relatives and friends endure and the economic burden from the cost of all the healthcare and time invested to help those in need.

Evaluate the concept of normal and abnormal behaviour

Evaluate the concept of normal and abnormal behaviour To most people abnormality is described as being different from other people in other words it is seen as different from what is recognised as normal or unusual in society. Psychologists have described several approaches for standard behaviour but an evaluation of three different categories and their concept is going to be discussed. Different societies have their own set standards of behaviour and attitudes so anything that would fall outside the set criteria would be considered to be abnormal, psychologically referred to as deviation from social norms. Another theory of abnormality can be explained by referring to people who deviate from statistical norms. This definition groups people together, based on certain measured characteristics, and put this information into a distribution pattern to classify whether people fit into the average, or whether they fall outside the average, for example, if intelligence quotient is measured, the results would show that on average most people would fall around the middle, so those with either low or high scores statistically would be considered to be abnormal, though the assumption of intelligence can be portrayed in tow ways, for example if a person has a high IQ , they are regarded positively and do not fall in the abnormal criteria, whereas if others fall under the low score there are viewed negatively and therefore considered to be abnormal. Physical examples can also be taken into account, especially in terms of height or foot size. In other words manufacturers would produce products accord ing to the statistical numbers that fall into the normal criteria. Psychologists do have an overall assumption of how mental health, gender and culture issues are referred to statistically. Though they are several factors of mental health problems, there some such as anxiety or depression which are statistically considered to be normal human conditions whereas, if one is clinically disorganised with severe anxiety, or found to be clinically depressed can be described as someone with a mental disorder which is abnormal in a statistical sense. In terms of gender, some psychologists have argued that males are less likely to consult their doctors when suffering from mental disorders, which makes the females score highly in statistical data. Bennett (1995) believed that this would be due to matters of socialisation especially in industrialised societies. In regards to culture Cohen (1988) gave a description of how Indian mental patients are highly discriminated, so this would leave many patients without seeking any clinically help for their mental disord ers so this would lead to wrong statistical measures. Another definition would refer to those people whose behaviour is maladaptive or dangerous. This looks at the effects of the behaviour problems either to the wellbeing of an individual or any social group. We have to remember that defining abnormality is usually limited by cultural differences. This means that what may be classed as normal in one culture could be defined as extremely abnormal in another and this limits the definitions accuracy in being able to define abnormality as a whole so the three definitions above do not consider cultural differences. The concept of abnormal can be brought to a conclusion by evaluating the above approaches as they all help society identify abnormalities in other individuals which helps promote an overall safe living environment. For example, if an individual deviates from social norms, adequate help may be given to them as soon as their behaviour is detected from what is considered to be normal but on the other hand defining abnormality as deviation from social norms, can be used to justify the removal of those people who are considered to be abnormal from society. Statistically, it has been found out that though statistical frequency or infrequency is important to the population it is not effective when applied to mental disorders, so this makes it difficult to determine what is normal in the statistical sense. ANALYSE THE DIFFICULTIES INVOLVED IN DIAGNOSING MENTAL ILLNESS AND DISCUSS THEIR USEFULLNESS. A neurological examination, which helps physicians identify structural and psychiatric abnormality is usually carried out on patients with psychiatric disorders, and later gives an understanding of the wellbeing of the persons brain, mental function, nerves and muscles. Psychologists have developed two classification systems that help classify abnormality into mental disorders and also diagnose them clinically. They are known as Diagnostic statistical Manual of Mental Disorder (DSM) and the International Classification of The Causes of disease and Health Related Problems (ICD). Both these systems classify abnormal patterns of thinking, behaviour and emotion into mental illnesses. A significant feature of the DSM classification is the 5-axis diagnostic system, which gives a systematic evaluation of the patient and then gives a full account on the general medical condition of the patient or personality disorders, psychosocial and environment problems, as well as the level of functioning of the individual. The ICD on the on the other hand includes diagnoses for all the systems in the human body and is not popularly used in clinics as the DSM. Both classifications have the same e definition of mental disorders, so they both have their focus on the patients personal distress other than on what the rest of society react to any type of behaviour of the individual. The above classifications tend to be objective, but in society fear arises to the fact that those individuals who are classified and their families may be prejudiced against. The approach of classifications has been approved for its successfulness to the treatment of physical illnesses but not is found not to be very effective in treating mental disorders and this is because symptoms from those suffering with mental illnesses are usually subjective, meaning it is always what they feel and this may be diverse between individuals. Psychiatrists and clinical psychologists have very limited information to assess the well being of an individual compared to those who treat physical illnesses, for they carry out extra laboratory examinations like x-rays and blood tests to find the symptoms and then diagnose the individual. This shows that cause of a disease in mental patients is partially known whereas in those patients with physical disorders causes are fully known. David Rosenhan (1973) carried out a study on eight people who were normal but complained of hearing voices, they were diagnosed with schizophrenia, so he argued that psychiatrists could only rely on their observation methods because they could not verify the patients symptoms. Therefore he drew a conclusion that psychiatric classification could be very inaccurate. Scheff (1966) also criticised the classification method in his labelling of theory. He argued that a psychiatric label to a patient may worsen their condition, because they might be treated as though they are mentally ill. On the other hand, psychologists have found it advantageous, and insist that DSM classification has helped in terms of developing and understanding the causes of mental illnesses in different patients. According to Gelder et el. (1996), The use of classification can certainly be combined with consideration of a patients unique qualities, indeed it is important to combine the two.{Pg 648 Eysenck M, (2000) Psychology A Students Handbook, Psychology Press}. According to ICD classification, 11 major categories can be identified for mental disorders. But they are found to be more general than those of DSM. Therefore, it has some extent of reliability, but very limited information on its validity. EVALUATE THE USEFULNESS OF DIFFERENT MODELS OF ABNORMAL BEHAVIOUR The models of abnormality are theories that help to describe the cause of psychological disorders. There four models known as Biological, Psychodynamic, Behavioural and Cognitive approaches, and each model has a distinct view which helps to provide extra research and treatment approaches as a result. However, psychologists have split views in terms of analysing the disorders; some believe that disorders must originate from psychological causes whilst others believe that the disorders could be based on biological causes. A brief description and an evaluation is going to be looked at for both, Biomedical and Psychodynamic models and an outline of their usefulness will also be accounted for. Biological psychologists would explain that mental disorders are the consequences of biological systems due to the fact that, they regard abnormal behaviour in terms of abnormal biology. In fact the biological model is also known as the medical model because it categorises abnormality as a physical condition and it is the model that addresses mental disorder as an illness. Since it is see seen from the perspective of medicine, its concept for mental disorders, resemble that of physical illnesses, which means psychological disorders have under lying biological or biochemical causes. These are thought to arise from Infection by germs, inherited systemic defect, neurochemical factors and effects of trauma. The Psychodynamic model, was developed by Freud, though some of other psychologists changed some of its emphasis, most of the original assumption for this model is still actively used. Freud believed that humans are born with the id part of our personality and later on in life when people socialise into the moral standards of their culture then our super ego is developed. Freud explained that a well adjusted person develops a strong ego and therefore able to manage their personality. Although the biological approach is known to have fairly witnessed astonishing success in treating mental disorders with drug cures, it has also been criticised for having its main focus on the symptoms and therefore whenever drugs are stopped, the symptoms return which means the root of the problem is not being addressed. This approach tends to use classification systems such as DSM and ICD which have been doubted for their consistency and validity. Its scientific standing and links with medicine, the medical model is known to have gained popularity and credibility, but on the other hand danger of over diagnosis of mental illness and long dependency on drugs, which risks severe side effects, has also been addressed. The Psychodynamic model on the other hand has also been criticised for its validity, the fact that it carries out clinical interview and case studies for its experiments, it does not subject to scientific, empirical analysis. This means the central forces of the brain are unconscious, therefore making it difficult to directly be observed. Its theory is referred to as deterministic because it finds childhood attachments to parents, in the very early stages is crucial for personality development. Apart from the above criticism, the model is identified as the origin of modern day cures. . DESCRIBE AND EVALUATE THE MAIN APPROACHES TO THE TREATMENT OF MENTAL ILLNESS. The biological model treats mental disorders as physical illnesses. Somatic drugs such as minor and major tranquillizers or antidepressants are widely used. Chemotherapy is also regarded as effective and the main treatment of mental illnesses because of the assumption that chemical balance is the main cause of the problem. However, some psychologists have disagreed, and assume that the chemical imbalance to be the effect, rather than the cause of mental problems. For the Psychodynamic model, Freud developed a method of treatment called psychoanalysis, which is a type of therapy that seeks to uncover the underlying causes of abnormal behaviour. The belief was that unresolved emotional conflicts from early childhood could be withdrawn, so by talking to bring out and work through unconscious conflicts would bring it out to the conscious level and therefore be dealt with accordingly. It is also believed within the psychodynamic theory, that the unconscious can be revealed in dreams, so analysis of dreams is one of the techniques used in the treatment of mental disorders in psychodynamic theory. DESCRIBE AND EVALUATE PRACTICAL AND ETHICAL IMPLICATIONS OF THERAPIES AND TREATMENTS

Free Great Gatsby Essays: Point of View :: Great Gatsby Essays

Importance of Point of View in The Great Gatsby  Ã‚   In novels containing interweaving plot and varying scenes, the author's selection of point of view becomes a primary factor in its impact and effectiveness. The Great Gatsby is such a novel which demonstrates this point most evidently.   While Fitzgerald's decision to view the plot through the eyes of Nick Carraway presents certain limitations, it provides the means to relate the tone and message of the novel as whole.   Ã‚  Ã‚  Ã‚   F. Scott Fitzgerald would be the first to admit that his masterpiece was not without flaws.   In a letter written to Edmund Wilson, he criticized what he understood to be the novel's "BIG FAULT."   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   I gave no account of (and had no feeling about or knowledge of) the emotional relationship   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   between Gatsby and Daisy from the time of their reunion to the catastrophe. Undoubtedly, this constraint on detailed development was imposed almost solely by point of view.   Because Fitzgerald lays out the plot through the prospective of one essential character, intimacy between any other group of characters is lost or can only be hinted at.   Somewhat of a haze surrounds these important relationships, as Nick and in turn the reader are blind to the details of their occurrence.   In the case of Gatsby and Daisy, some of the power that backs Gatsby's dream is never presented.   Ã‚  Ã‚   Such a situation is somewhat relieved, however, by integration of dialog.   Not only does this aspect of of Fitzgerald's point of view thoroughly describe the other character of the novel, but also it keeps the credibility of the narrator in check.   Who is to say that Nick Carraway is to be the readers' only insight to the affluent world of Long Island during the 1920's?   He himself admitted to being far from perfect; even "vulnerable."   By providing the reader with a chance to judge the importance, purpose, and mission of each character, less time is spent analyzing the credibility of the narrator and more is devoted to understanding Fitzgerald's statement as a whole.   Ã‚  Ã‚  Ã‚   In The Great Gatsby, this is a message that would be lost if it were not for the selected point of view.   Fitzgerald, through what Nick perceives and the changes he undergoes, comments specifically on the society of the time.

Comparing Composed Upon Westminster Bridge by William Wordsworth and Lo

Comparison between William Blake and William Wordsworth’s Views of London William Blake grew up in the slums of London and this is shown in his poem, he wrote his poem in the slums and back alleys of London as he never had very much money. He describes London as being â€Å"charter’d†, this gives us the impression that everything has rules and boundaries in London, and that there is no mystery to be discovered. Also chartered means on a map, almost as if it is owned, by the king perhaps. The line in which the word is on, â€Å"I wander through each charter’d street, near where the charter’d Thames does flow,† makes us feel as if every thing is owned and nothing is natural, like all the people in London are prisoners of society The ending line of stanza two tells us, â€Å"The mind-forg'd manacles I hear†, this is Blake’s way of showing to us that there are no free minds in London. Everyone had been brainwashed by society and they could not think for themselves because of that. In the next stanza Blake describes the corruption of the Church of England by mentioning, â€Å"Every black'ning Church apalls† this shows the dirtiness of the buildings and shows us that there is a possibility that he is a strong catholic. This line ties in very well with the line directly above it â€Å"How the chimney-sweeper's cry†, both of the lines are discussing how dirty and filthy London is. We could also think of these lines in a different way Blake could be telling us that the priests are corrupt and dirty rather than just physically dirty. In the final line of this stanza, Blake states. â€Å"And the hapless soldier's sigh, runs in blood down palace-walls.† This could be considered as an other sign of corruption, and that monarchs are to blame for the death in London a... ...f London, but they only do this because of their life before they wrote the poems. One poet grew up in the rich area outside London and moved there later, whereas the other poet grew up in the slums of London. They never had the chance to see London through each others eyes, if they had they may have thought differently of London. Both poets grew up and wrote about what each thought of the same place, London is a city that is magnificent and beautiful to the people who know it like that. Whereas it is filthy and dirty to the people who have grown up in those filthy dirty areas. In my opinion London is a place that is somewhere between these two extreme versions of it, a place where there is magnificent splendour but also a place where there is filth and poverty. Theses poems where written two hundred and six years ago and London has not changed that much since then.

Religion Versus Government Essay -- Government

Over two thousand years after Aristotle’s said, â€Å"There are two parts to a good government; one is the actual obedience of citizens to the laws, the other part is the goodness of the laws which they obey,† (Frank 328) his words still rings true in modern societies. America is full of opinions and various ideas, but the government itself is steady. The leaders and key decision makers on the other hand are not. These people, who are entrusted with the responsibility of running the government, often use this power to thrust their personal opinions into the laws the citizens must abide by. Thus their choices bring turmoil within the country. A common difference among Americans is people’s spiritual and heavenly belief. Some call it religion and others call it a lifestyle. The passion people feel for each of their personal experiences and the integral part it plays in people’s lives makes it a complicated to fix. This fissure between religion and govern ment causes a conflict in society, it halts progress, causes unnecessary deaths and it creates a gaping crevasse that splits America at its very heart. Christianity, Muslim, Islam, Atheism, and many other religious beliefs are practiced in the United States of America. Each of these religions has its own doctrines that guide its followers, producing disagreements on many important issues. For one, the â€Å"War on Terror† is a major source of conflict. It is a massive clash between Iraq’s Muslim nation and America’s Christian nation. It began when on September 11, 2001 an Islamic religious terrorist group called Al Qaida hijacked two American planes and crashed them into the World Trade Centers in New York. In response, â€Å"’Born-again’ Christian, George W. Bush, has disclosed his inst... ... 16 Mar. 2012. Web. 30 Apr. 2012 . Poole, Shelia M. "Catholics Upset by Federal Health Insurance Mandate."  | Ajc.com. The Atlanta Journal-Constitution. 1 Feb. 2012. Web. 30 Apr. 2012 . Samuels, Dorothy. "Back to First Principles on Religious Freedom." New York Times. 25 Feb. 2012. Web. . Stiglitz, Joseph E. and Linda J. Bilmes "The True Cost of the Iraq War: $3 Trillion and beyond."Washington Post. The Washington Post, 5 Sept. 2010. Web. 1 May 2012 .

Environmental toxicology Essay

Environmental toxicology refers to specific organs as target organs. This is an organ that has the highest probability of being affected by exposure to a specific substance. Target organ toxicity refers to the negative effects a chemical has on that target organ after entry into the body (Hodgson, 2010). There are multiple organs such as the liver which are targeted simply because of ease of access. Any organ that can be accessed through less guarded cell walls or higher levels of lipids are more susceptible to entry by toxicants. High traffic organs like the kidneys and liver make it easy as they receive and filter all blood therefore taking the toxin in large doses to cleanse the body. The primary purpose of the kidneys and liver is to expel toxins and therefore this action is there specialty making them more susceptible. The human body has a specialized detoxification process that includes a specific target organ, the liver. The liver is a primary regulator of chemical levels in the blood and it also excretes bile that helps the breakdown of fat (Lucile Packard Children’s Hospital, 2012). This breakdown helps to prepare the fats for the final stages of digestion and ultimately absorption. The liver has two sources of blood flowing threw it at all times, oxygenated blood from the hepatic artery and nutrient-rich blood from the hepatic portal vein. Approximately 13% of blood in the body is held in the liver at any moment (Lucile Packard Children’s Hospital, 2012). The blood that leaves the stomach and intestines will be passed through the liver before it is allowed to travel anywhere else in the body. In the liver nutrients and toxins are broken down so they can be used easily the body. Waste is not only excreted through the bile but also in the blood which will travel to the kidneys and leave the body as urine (Lucile Packard Children’s Hospital, 2012). The liver has many very important duties it carries out such as cleaning the blood of toxins and bacteria, and producing the bile that carries away waste and breaks down fat (Lucile Packard Children’s Hospital, 2012). With all of this toxic intervention the liver an be overworked and disease can overcome, such as chronic liver disease (Lucile Packard Children’s Hospital, 2012). The conditions that lead to chronic liver disease are vast but they fall into five groups (Chronic liver, 2011). The first group is the viral group classification which includes conditions such as hepatitis B and C (Chronic liver, 2011). The second group is the metabolic group which includes diseases such as Wilson’s disease (Chronic liver, 2011). The third group is the autoimmune response group which includes primary biliary cirrhosis sufferers (Chronic liver, 2011). The fourth group is the toxin-related group which includes alcoholism and the last is the miscellaneous group with ailments such as right heart failure (Chronic liver, 2011). Within these groups there is a silent killer though which raises the risk for that group. That is the toxin-related group because alcoholism leads to cirrhosis and then to hepatitis (Chronic liver, 2011). That group alone takes a person through three groups in one shot. While researching toxicants and reactions there have been some similarities found. Many toxicants affect the lungs, skin, and eyes. Take for instance Sulfur Dioxide, Asbestos, and gasoline. Sulfur Dioxide is a colorless gas with a choking odor and suffocating qualities (Air Gas, 2012). It is toxic to humans even at low concentrations. The target organs of Sulfur Dioxide are the lungs, upper respiratory tract, the skin, and eyes (Air Gas, 2012). At the low dose of 8ppm coughing will commence leading to severe respiratory tract issues as well as eye and skin burns (Air Gas, 2012). Another toxic substance is a naturally occurring fibrous mineral called asbestos (Centers for Disease Control and Prevention, 2011). The most common types are Chrysotile and Amosite. It targets the respiratory system, eyes, and is known as a carcinogen because it causes lung cancer. With chronic exposure dyspnea will begin, interstitial fibrosis and restricted pulmonary functions will be observed as well as finger clubbing, and eye irritation (Centers for Disease Control and Prevention, 2011). Gasoline is a volatile combination of flammable liquid hydrocarbons. Taken from crude petroleum it is highly used for internal-combustion engines. No matter the grade gasoline affects the eyes, skin, lungs, gastrointestinal tract, nose, throat, the respiratory tract, the central nervous system, the liver and kidneys (Amerada Hess Corporation, 2004). In the eyes the effects are moderate causing irritation. When it comes to the skin it depends on the exposure, if acute gasoline is mild but with prolonged contact toxic amounts can be absorbed and damage can be made. If the gasoline is ingested there are many major issues that will follow (Amerada Hess Corporation, 2004). First the breathing of liquid drops into the lungs when vomiting occurs, which can cause chemical pneumonia, lung damage, respiratory failure and ultimately death (Amerada Hess Corporation, 2004). This is not all ingestion can cause though as gastrointestinal issues can arise such as nausea, diarrhea, vomiting and even brain damage (Amerada Hess Corporation, 2004). If the ingestion is a chronic level of exposure convulsions could follow, even loss of consciousness, coma, and respiratory arrest. Another means of exposure is through inhalation. This can cause serious issues with the nose, throat, lungs and once again the respiratory tract (Amerada Hess Corporation, 2004). It can also cause headaches, dizziness and in vertigo, unconsciousness that leads to coma and even death. At the most chronic of levels gasoline that contains benzene can cause anemia or leukemia. If the liver or kidneys of the exposed person have already been compromised they can also become a target organ (Amerada Hess Corporation, 2004).

Ltcm (Long Term Capital Management)

Workshop 2, week 3 Syndicate 1 1. The collapse of Trio Capital demonstrated the way in which hedge funds and funds of hedge funds can be overly complex, unclear and lacking in transparency, particularly for retail investors. a. Briefly summarise what has happened in the case of Trio Capital last year in 2012 in Australia The collapse of Trio Capital is the biggest superannuation fraud in Australian history. Trio Capital was the trustee of a numbers of super funds governed by the APRA (Ryan, S. , 2011).It also had a number of managed investment schemes, like ARP Growth Fund and Astarra Strategic Fund. An American lawyer, Jack Flader, controlled the hedge funds in the Caribbean in behalf of the company with the $180 million from Trio Capital’s schemes (Ryan, S. , 2011). When those funds collapsed, Australian investors funds disappeared. The company had very poor corporate governance, and at least one of the directors had fraudulent conduct and has gone to jail (Ryan, S. , 2011). Liquidators have record $300 million assets, but more than $ 200million are still missing (Ryan, S. 2011). More than 6000 investors lost money and some of them lost their entire retirement savings (Ryan, S. , 2011). And 5000 of those investors share $55 million taxpayer-funded levy to compensate the loss (Ryan, S. , 2011). However more than 600 investors will not get any compensation because the hedged funds they invested were self- managed and not governed by the APRA (Ryan, S. , 2011). 2. Discuss the regulations that were in place with regard to hedge funds in Australia and what the changes that are in place are.Firstly, Lacking of universal definition of â€Å"hedge funds† has been a problem. Hedge funds have five unique characteristics defined by the regulations. According to Class Order [CO 12/749] Relief from the shorter PDS regime, a responsible entity using expression of â€Å"hedge funds† must exhibit two or more characteristics from the following list: (i) U se of investment strategies intended to generate returns with low correlation to equity and bond indices and/or complex investment structures (ASIC, 2012) (ii) Use of everage to increase returns (ASIC, 2012); (iii) Use of derivatives for speculative purposes (ASIC, 2012); (iv) Use of short selling (ASIC, 2012); or (v) Performance fees (in contrast to fees based on funds under management (FUM)) (ASIC, 2012). However, after the scale collapse of Trio Capital and other funds, hedge funds mangers might try to avoid labelled as hedge funds due to poor reputation.Secondly, improving disclosure promote more efficient capital market, help disclosure relevant information, reduce the possibility of omitting important information, concentrated on the information need of the investors, and be flexible to adapt investors’ information needs changes (ASIC, 2012). Under Corporations Act. 3 Pt 7. 9 requires the Product Disclosure Statement need to be prepared to the offer of interests, and on going disclosure obligation and requirements on advertising and publicity for the offer of interests(ASIC, 2012) .In detail, PDS must: (a) Be worded and presented in a clear, concise and effective manner (s1013C(3)) (ASIC, 2012); (b) Make specific disclosures (s1013D), including among other things about the significant risks associated with holding the product (ASIC, 2012); and (c) Include all other information that might reasonably be expected to have a material influence on the decision of a reasonable person (when investing as a retail client) about whether or not to invest in the product (s1013E) (ASIC, 2012).In addition, Ch 5C has further requirements on hedge funds, including the registration need to be label as a managed investment scheme operated by a responsible entity which holds an Australian financial services (AFS) licence, and to have a scheme constitution and compliance plan (ASIC, 2012). 3. Describe the roles of investment banks and merchant banks, with an emphasis o n the nature of their off -balance-sheet business, in particular mergers and acquisitions. The merge and acquisition services income of the investment banks and merchant banks are large.In 2003 the total amount of advisory fees that charged exceeded $596 million in USA, suggesting that investment banks earned a significant amount of income for providing M&A advice (Walter, Yawson & Yeung, 2007). The advisory services offered by investment banks usually related to various aspects of the acquisition and sale of company and assets such as business valuation, negotiation, pricing and structuring of transactions, and procedure and implementation (Water, et al. , 2007).One of the most important analyses is called dilution analysis, which requires updated skills about M & A accounting. Investment banks also provide â€Å"fairness opinions† which usually involved documents attesting to the fairness of a transaction (Water, et al. , 2007). In some cases, firms interested in M & A advi ce will contact an investment bank directly to process a transaction in mind. However, in the majority cases, investment banks will pitch ideas to potential clients.After a general introduction of investment banks services in merger and acquisition, the specific roles will be provided below: First, investment bank plays an advisory role for both buyers and sellers. When investment bank takes the role of an advisor to potential sellers, this is named as a sell-side engagement (Water, et al. , 2007). On another hand, when investment banks act as an advisor to the acquirers, this is called a buy-side assignment (Water, et al. , 2007). Other services include advising clients on hostile takeovers, joint ventures, h, buyouts and takeover defense.Secondly, investment bank also plays a due diligence role. Due diligence means gathering, analyzing and interpreting the target company’s financial information, compared with its historical and projected financial results, assessing potenti al synergies and evaluating operations to identify opportunities and challenges (Water, et al. , 2007). Due diligence is used to investigate the risk and give client a true financial picture of the acquiring company. Clear the benefits and challenges of the transaction.Off balance sheet business means the business involved an asset or debt or financing activity is not record on the company’s balance sheet (Wikipedia, 2013). For example, financial institutions have business like asset management or brokage service to their clients. The assets (often securities) usually belong to the clients directly or in trust, the company has no direct claim to these assets or has no direct obligation to these liabilities (Wikipedia, 2013). The company usually has responsible for some fiduciary duties to the client.Financial institutions may report off –balance sheet items in their accounting statements or may also refer to â€Å"assets under management† on off balance sheet it ems. Under current accounting rules, the accounting distinction between on and off-balance sheet items are quiet detailed and depend on the degree of management (Wikipedia, 2013). In this case, investment banks help buyers and sellers to process the transaction in merge and acquisition. The assets and liabilities involved in merge and acquisition is directly controlled by the buyers and sellers rather than the investment banks.Hence these assets or liabilities should be recorded on the off-balance sheet of the investment banks. Syndicate 2 1. Describe the key factors, strategies that led to and the lessons learned from the demise of Long Term capital Management. Provide a brief summary of what happened and what were the strategies used by the fund. ( ,reference reading , reading ) Summary of what happened: Long-Term Capital Management was a hedge fund management company that involves absolute-return trading strategies accompany with high leverage nature.The firm's key hedge fund wh ich called Long-Term Capital Portfolio initially succussed with after fees yearly returns over 40% in its first years. However due to the influences from Russia financial crisis and its high leverage, in 1998 it lost $4. 6 billion in less than four months. There were a wide range of companies and individuals affected by LTCM’s loss. In order to prevent chain reaction, Federal Reserve’s financial intervention and other companies taken over required and the company closed down in early 2000. The strategies:Initially, the company use complex mathematical model to analyse fined income bond to demonstrate arbitrary trade (usually pick up American, Japan and European government bond) Government bond is a term contract, which means in the future, at a fixed time, they will receive a fixed amount money. When the bond firstly issued, the difference of price has been minimised. Hence, according to economic theory, any price gasp will be fulfilled by arbitrary. The price differen ce between 30 years government bond and 29 times 9 month bind should be very small. And both of them will be mature about 30years later.However these two bonds will have slightly difference due to liquidity difference. So through a serious of financial techniques, buy 29 year 9 month bond and sell 30 years bond before the 30 years bond just issued, the profit becomes possible (Edwards, F. R. , 1999). But using the price difference and arbitrary was not sustainable. Hence the LTCM must use high leverage to generate more returns. In 1998, the company only had 47. 2 billion by them self, but financed funds about 1245 to 1290 billion, which means the leverage ratio exceed 25 (Edwards, F. R. , 1999).And the majority of the funds are invested in derivatives which is extremely risky (Edwards, 1999). Lessons: Limited leverage should be required for companies to reduce solvency risk. Arbitrary will not sustainable for the long period. The company lack of sustainable strategy. Disclosure of i nformation is quiet important. This will reduce the investors gambling act and let them realise the true risk. 2. Refer to the case of LTCM. Imitation is said to be the sincerest form of flattery. What problems does this create in financial markets? Does this cause financial market crises or is it only a problem when a crisis occurs?Problems: Leverage ratio exceeds to 25, which is too high. Arbitrary is not sustainable, hence the long term investment strategy is absent. The funds amount is large; hence it is difficult to recover the loss. This will increase the possibility of the financial crisis to happen. Because LTCM is extremely high risk company, even though all the company’s partners are graduated from world’s leading universities like MIT Harvard, and they have complex mathematic model, but its high leverage financing structure and business activity nature (e. g. edge, derivative) determined LTCM is an extremely high risk company. Those high-educated partners us e other person’s money to take risk without nominating the true risk. If the principal knows the risk, they might not invest in this company. As one company failure will cause others loss money. If the same investment strategies apply to all the companies in this industry, then the failure will expand to the whole industry, and have various chain reactions. Hence it is not only a problem when financial crisis occur, it actually will becomes the perpetrator to cause the financial crisis. . Explain the structure, roles and operation of managed funds and identify factors that have influenced their rapid growth. Structure: the variety of assets is wider same as the management styles range. Some portfolios are conservative and some are aggressive. Different structure is aim to achieve different portfolio goals, timeframe and risk tolerance (ASX, 2013). Roles: A management fund is a tool for investors to accumulate wealth. Managed funds can invest in a portfolio rather than a singl e security.The portfolio assets include wide range of financial products like domestic shared, international shares, fixed income securities, unlisted private companies and specialist sectors (ASX, 2013). Thereby the diversification of the portfolio reducing the risk of single security falls. Also managed funds can provide professionally managed portfolio to meet the need of customers who do not have time or the skill to manage (ANZ, 2013). Also managed funds can be bought and sold freely on ASX like share, hence the liquidity risk is low, and if you need money you can immediate trade at current price (ASX, 2013).What is more, it could help start at small, which means investor can invest a small amount of money and reach the same diversification as the large amount money (ANZ, 2013). Operation: Managed funds invest client’s money on the behalf of clients. They generally put same appetite clients’ money together to the selected portfolio (ANZ, 2013). The portfolio asset s include wide range of financial products like domestic shared, international shares, fixed income securities, unlisted private companies and specialist sectors (ANZ, 2013). Factors influence their rapid growth:There are four factors influence its rapid growth. Firstly, entry, exit and ongoing management fees reduce the return (ANZ, 2013). Secondly, diversification can limit portfolio risk but it may also dilute profits (ANZ, 2013). Thirdly, there might be more tax payment compared with funds managed by client themselves, or more adjustments made by the portfolio manager, more tax applies (ANZ, 2013). Fourthly, the owner lost control of the money (ANZ, 2013). Losing control of your money – others may be involved in making decisions regarding where your money is invested. Reference List:ANZ. (2013, March 15th). Managed Funds. Retrieved from: http://www. anz. com/personal/ways-bank/work-life-financial/personal-finance/managed-funds/ ASIC (2012, September). Hedge funds: Improvi ng disclosure. Retrieved from:http://www. asic. gov. au/asic/pdflib. nsf/LookupByFileName/RIS-hedge-funds-published-18-September-2012. pdf/$file/RIS-hedge-funds-published-18-September-2012. pdf ASX. (2013) Managed Funds. Retrieved from http://www. asx. com. au/products/managed-funds. htm Edwards, F. R. (1999) Hedge Funds and the Collapse of Long Term Capital Management, Journal of Economics