Advances in Seed Quality Evaluation Techniques in Soybean

Advances in Seed Quality Evaluation Techniques in Soybean Seed is alive; and it can change over time under varying conditions. It can also vary from year to year as do planting conditions. When planting, seed vigor can be used to assist with management decisions, especially under adverse planting conditions. Seed quality is critical in the establishment of a uniform plant stand, the first step in producing a successful crop, but good planting conditions are also critical since even high quality seed can fail under too much stress. Seed quality is complex. Several factors influence seed quality including variety, purity, weather, insects, diseases, harvest moisture, handling, and storage. The soy bean(US) or soya bean(UK) (Glycine max) is a species of  legume  native to  East Asia, widely grown for its edible  bean  which has numerous uses. The plant is classed as an oilseed  rather than a  pulse  by the UN  Food and Agricultural Organization. Soybean Oil  and protein content account for about 60 (%) of dry soybeans by weight (protein at 40% and oil at 20 %). The remainder consists of 35(%) carbohydrate and about 5 (%) ash. Soybean cultivars comprise approximately 8% seed coat or hull, 90 (%)  cotyledons  and 2 (%)  hypocotylaxis or germ. The U.S., Argentina, Brazil, China and India are the worlds largest soybean producers and represent more than 90% of global soybean production. India produces 9.8 million metric tons against the world’s total production of 249.0 million metric tons. Furthermore, the soybean seeds when stored under ambient conditions quickly lose viability and upon planting such seeds in the next season results in very poor germination. Because of the hot and humid conditions prevailing from March to June, the seed viability of soybeans drops by 50 (%). However in soybean, seed viability during storage was observed to be related to seed size. Thus ensuring seed quality becomes one of the important aspect of soybean production. The seed quality evaluation can be broadly categorized under and ensured to have Trueness to type (often referred to as variety purity). Satisfactory germination and vigour. Freedom from other materials, including plant debris, dead or broken seeds, seeds of other crops, weed seeds, noxious and parasitic weed seeds also non-plant materials. Freedom from seed-borne pests and diseases. During 2009-10 soy bean breeder seed production was 10198.03s (q.) with a seed rate (kg/ha) of 75 kg/ha, total certified seed requirement will be 667.5000 tonnes. Keeping these production trends â€Å"VISION-2030† of Directorate of Seed Research, Mau, India and estimates with a target increase in SRR of 0.5% and available SMR ratio of 16 foundation seed requirement is 20.8594 thousand tones and breeder seed requirement of 1303.7109 tones by 2030. This ever increasing demand for quality seed in soybean demands precise seed quality evaluation methods. The routine seed testing methods available for seed quality evaluation of soybean are standard germination, Seedling vigour, Accelerated Ageing, Controlled Deterioration, seed leachate conductivity tests and Clorox Soak for seed coat mechanical damage as described by ISTA and AOSA. However, these tests are time consuming and lack reproducibility over laboratories. Hence there is a greater need of advanced seed quality evaluation methods to overcome the aforesaid problems. Advanced seed quality evaluation techniques: 1. Seed and seedling image analysis: Computer-aided image analysis, which are contributing to improving insight of seed morphology and biology, in terms of seed quality and germination and various aspects of seed image analysis like image acquisition and pattern recognition. Image analysis deals the means by which digital images are acquired and processed and how imaging technology is applied in seed science research in terms of varietal identification, characterization, germination, moisture, grading and sorting by analysis of seed size, shape and color parameters. Implication of new techniques for addressing a particular variety can be focused and also attention is being laid at international level for the development of suitable lab techniques like image analysis of seed or plant organs, bio chemical and molecular markers. Image analysis technique (machine vision system) is one of such systems offers the prospect that researchers will be able to study seed surface features more cl osely and hence increase the available character set. a) Machine Vision System: a computerized tool for Image Analysis (IA). It functions being similar to the human observations. Machine vision refers to the acquisition of data (shape, size, etc.) via a video camera or similar system and the subsequent computer analysis of these data following suitable processing. The term â€Å"image analysis† has also been used in this context, but it more strictly refers to the extraction of numerical data from an acquired image. The colour, size, shape characteristics of plant products, and their capability to produce digital images suitable for further processing make modern image acquisition techniques highly adaptable tools. Bio-morphological seed features may be analyzed by computer-aided image analysis systems and data quickly processed. b) Seed Analyzer based on Chlorophyll fluorescence and the maturity of seeds: Aims at Automated detection of the ripeness of the seeds and deliver the information for improving the quality of the seed lot. The maturity of the seeds can be measured with this technology. The maturity of the seeds is highly correlated with the quality of the seeds. With the Seed Analyzer the correct harvest moment can be determined, the seed quality can be improved, improved, the amount of waste can be lowered as well as been known and the priming conditions can be optimized for the seed batch. Applications in Seed Science Research includes Distinctness, Uniformity and Stability (DUS) Testing, Varietal Identification and Characterization. Wherein, Automatic systems can be based on seed images, from which the characteristics for the classification, such as size, shape, colour and texture, can be obtained quickly. Digital image analysis offers an objective and quantitative method for estimation of morphological parameters. Besides, in routine seed testing for enhanced seed quality as Germination: Seed germination has intrigued the human activity since the late Neolithic age, because of practical reasons becoming a milestone in the ‘agriculture framework’ (Evenari, 1984). The application of computational techniques to the study of seed germination covers three aspects: computer-assisted image analysis systems, descriptive simulation modeling, and combined relation modeling between morphological changes and biological processes. A digital image of a plant seed can be regarded as a two-dimensional object which can be measured in size, shape and color density during the development stage of germination by computer image analysis technology. Moisture: Moisture content is the most vital factor influencing physical and mechanical properties of cereal crop seeds. For example, an increase in moisture content leads to an increase in the major, minor and intermediate diameters; increase in all linear dimensions, projected area and volume; increase in length, width, thickness, arithmetic mean diameter, geometric mean diameter, sphericity, volume and surface area. These monochromatic images acquired can be used to determine the moisture content of seeds. Vigor Assessment: Vigour is the ability of a seed lot to establish normal (or usable) seedlings under diverse production environments. Use of computer-aided image analysis of seedling size overcomes many of the limitations that occur during manual vigour tests Image analysis provides rapid measurement of an object’s physical characteristics and allows quantitative, objective observation. Several commercial systems use some form of computer-aided analysis of digital images to evaluate seedling growth as a measure of seed vigour. Single seed oxygen measurement: Development of automated system for scoring different seed quality parameters by detection of metabolic activity. This technology measures the oxygen consumption of single seeds in a closed environment. The total test is therefore performed under increasing stress conditions (oxygen stress) and gives us a deeper insight in various aspects of the seed quality. c) Chlorophyll fluorescence of imbibing and (early) germinating seeds: The present technology focuses on chlorophyll fluorescence of imbibing and (early) germinating seeds. It claims to â€Å"detect the metabolic activity [of seeds] during seed germination phase†. The technology enables the nonà ¢Ã¢â€š ¬Ã‚ destructive destructive evaluation of imbibing seeds on a number of characteristics, with the advantage to be able to follow the development of individual seeds in time, to be able to use or test the seeds (e.g. reà ¢Ã¢â€š ¬Ã‚ dried after priming) or the emerging preà ¢Ã¢â€š ¬Ã‚ germinated seeds or seedlings developing from these seeds. It also potentially enables sorting. d) Spectral imaging: Spectral imaging technology can be seen as a methodology which can add to the knowledge of seed quality aspects, the speed of testing and the reproducibility of traditional tests within and between laboratories. Seed size, shape and colour are common features that are employed as sorting parameters for improvement of seed quality. In spectral imaging the sequential exposure of the object to light of different wavelengths provides further information about topographical texture, spectral texture and gloss. Multi- and hyperspectral imaging and analysis of the generated data are clear examples of these developments. The light sources, cameras and computers for such systems are readily available and relatively affordable. This opens a wide array of potential applications in seed testing at various levels, as well as research opportunities that before were only possible for a few very specialized institutions. Multispectral and hyperspectral imaging as to be part of the standard seed testing equipment in the near future. 2. Chemical tests: Peroxidase Test: This is a test is effectively employed for cultivar separation based on high or low seed coat peroxidase activity. This information is taken from the AOSA Rules. Analysts remove and place the dry seed coat from soybean seeds into individual test tubes or suitable containers. They add 10 drops of 0.5 percent guaiacol to each test tube. After waiting 10 minutes they add one drop of 0.1 percent hydrogen peroxide to the tube. After one minute, seeds are recorded as peroxidase positive(high peroxidase activity) if there is a reddish-brown solution; or peroxidase negative (low peroxidase activity) if there is a colorless solution in the test tube. 3. Biochemical markers for seed quality evaluation and testing: With the advent of newer technologies to effectively quantify and detect the precedence of particular protein and isozymes. The isozymes lack repeatability owing to their specific stage and range of expression and are highly responsive for environment. However, among these Two Dimensional Protein Gel Electrophoresis (2 D PAGE) is recommended for hybrid purity testing by ISTA. 4. DNA/Molecular markers for seed quality evaluation and testing: Quality seeds has to meet the minimum seed certification standards and quality attributes viz., physical purity, germination per cent, moisture content, seed health and genetic purity.The genuineness of the variety is one of the most important characteristics of good quality seed.Genetic purity test is done to verify any deviation from genuineness of the variety during multiplication stages.For certification genetic purity test is compulsory for all foundation and certified hybrid seeds.Higher genetic purity is an essential requirement for the commercialization of any seed. Importance stable marker for genetic purity: CMS plants and its maintainer plants, which originated from female parent during multiplication, are major off-types in F1 hybrids. Maintenance of the purity of parent CMS lines is essential in achieving the purity of hybrid and thus commercial benefit.CMS purity during multiplication can only be assessed at heading stage by observing pollen fertility. The results are prone to be erratic due to different examiners and environments.So it is significant to develop a novel, simple, rapid and effective method to assess CMS seed purity during multiplication at seedling stage. The molecular markers are more efficient in assessing genetic purity. Among markers RAPD and AFLP are dominant markers.Dominant markers unable to identify heterozygous condition (AA and aa only but not Aa). Low reproducibility of RAPD and lengthy process of AFLP markers have made them impractical and difficult for their routine use in seed purity analysis.While SSR, SCAR, STMS are Co- dominant markers and are able to identify heterozygous condition.These markers are more popular because of their accuracy in results and are reproducible. Quick and simple processes of these markers have made them practical for their routine use in hybrid conformity and seed purity analysis.Markers vary based on their ability to differentiate lines with the crop and hybrids and parental lines involved in developing particular hybrid. With the advancement of science and engineering new throughout put genomics and phenomics technologies viz., Nuclear Magnetic Resonance Spectroscopy, Nu PCR, rapid onsite DNA detection, Nested DNA Markers Battery, genome sampling and Genome sequencing the â€Å"next generation seed testing† is going to transform the seed quality evaluation and testing to an elevated stature having real-time application with high degree of reliability. New methods for seed testing are emerging with increasing technological possibilities and computer power, parallel to decreasing prices will enhance the precision and speed with which the soybean seed quality is being tested with increase in accuracy and reproducibility of results.

Care and love Essay

However, this is when we contradict our first impression of him being a caring father, because no commendable father or even guardian will wait until morning to find out what is wrong with a child. Especially if previous events might have been the key to the survival of the child. We first see how he treats his daughter, Betty now we see the other responsibility he neglects, his niece; she is an orphan and should be treated with care and love. Instead he questions her commitment to the church and notes she was â€Å"dancing like heathen in the forest†; this testifies that he really does not care about his own flesh and blood, being an outcast of the church in this time was very dangerous: it was the centre of the community. Hale’s main interrogation method is to ask leading questions; therefore his victory of the debate whether Tituba was a witch or not. In the same way Parris asks leading questions to Abigail â€Å"What did you do with her in the forest?†. There is one thing about Parris though when dealing with minors he always is completely sure of who should take charge of the conversation.  Parris is quite selfish on numerous occasions he talks about himself more than Betty, by â€Å"my enemies† and the fact that â€Å"they will ruin me† does show some sort of over reaction. Getting frustrated over position and forgetting the main cause of the conversation driven to the point of believing a â€Å"faction swore to drive me out of my pulpit† we see definite troubles in Parris. The employment of a teenager nearing womanhood was very important it showed that you were respected if you became a servant in those days, Abigail had not been employed for a â€Å"seven month† but until this conversation he had always over-looked the matter and never inquired why as to she was sacked.  The Crucible reveals to us the modern day â€Å"tooth for a tooth†, Parris uses emotional blackmail, when he demands for an issue to be revealed in his favour he declares that he has â€Å"put clothes upon you back† this implies the use of emotional blackmail for getting something he wants; but putting clothes on your nieces back should not be a chore. Goody Putnam is the husband of a wealthy land owner, when she intervenes he shows a certain â€Å"deference† towards her for she is on the winning side of the community her husband is a rich land owner. Parris shows greed and hunger for money and status, he is easily â€Å"swayed† into agreeing with the Putnam’s that witches were among them in Salem we get the feeling of neglecting one self he is a man who thinks he is prosecuted everywhere, unpopular and mistrusted in the community.  Finally Parris makes a decision and indeed leaves in kin over money and power, he cleverly leaves Abigail in a complicated situation by stating â€Å"then you were conjuring spirits last night† he gives away his own kin for power and respect. Millers concern is that many in power are led astray by greed. Miller wants to have these people not in control of the public and it is people like Parris whom are dangerous and selfish  Goody Putnam and Parris have similar status she is a women she is married to a powerful landlord. Parris looks up to her and will believe anything, like her. In order to keep status.  Goody Putnam is directly portrayed as a â€Å"twisted soul† Miller makes us keep a open mind. We already get the gist of this. It means that a person who not trustworthy and has been through so much that they have become bended to one side of an argument. She has been described as â€Å"Death ridden† because she had lost all her â€Å"seven babies†. Later on we will learn how and why she acts in such a irresponsible and insane manner. When she first appears with play she is â€Å"shiny eyed† this gives us the opinion that she had just heard extraordinary news that Parris daughter had just flown over a barn. â€Å"How high did she fly† as a question shows clear stupidity for then or now anyone could have worked out for themselves they cannot. She indicates to Parris that the â€Å"devil† was right under his nose and in his household for there was a â€Å"stroke of hell† upon him and the â€Å"devil† was directly attacking him. Goody Putnam’s only daughter is â€Å"sick† as well and has the same sort of sickness as Betty, before thinking of a medical explanation she forces a recognition of witchcraft for the â€Å"devils touch† was on the children and was no natural cause for this illness.  This superstitious ignorance was terribly dangerous then: There could be a false accusation and someone’s life would pay the price these are Millers concerns. She does in some reference act like Hale. She is completely zealous in terms of supernatural causes but her reasons are not intellectual but ignorant. In depth we must look why, she believes she gave birth to seven â€Å"hearty babies† which suggest they were healthy. But â€Å"withered† in her arms. Now we could have a reason maybe a rare type blood disease for instance. At the time, a lack of science helped to sustain superstitious ideas  She is so immersed in her beliefs to the point that she sends her own daughter, Ruth to dance with the girls and try and â€Å"get closer† to her previous dead kids. This is entirely a kind of taboo. Since there is no other resource or explanation for these things at these times, the supernatural good and evil were heeded: the local doctor was â€Å"baffled† because the science was not advanced, not because the devil had intervened.

Wilfred Owen The Solider Poet - 1337 Words

Wilfred Owen: The Solider Poet Wilfred Owen reflects a dislike of how war is portrayed in his poems â€Å"Dulce et Decorum† and â€Å"Disabled†. Owen enlisted to fight in World War I in 1915 after teaching English for two years in Bordeaux. It was during his enlistment that he was sent to the front lines of the war in France. Two years later Owen was sent to the Craiglockhart War Hospital to be treated for shell shock until he could return to combat. Then, in 1918 five of his poems were published and he was killed in combat one week before the war end. His poems would go on to portray the life of soldiers in World War I and mock the ones who claimed it was honorable to fight in the war while they were safe at home ( Mays). â€Å"Disabled†, one of these poems, told the story of a young solider that had been tricked into thinking that joining the military was the most honorable and good thing to do and later returned regretful and broken (Owen). â€Å"Dulce et De corum† was another one of these famous poems. It described the horrors that soldiers went through during gas attacks and â€Å"protested against the mentality of that perpetuates war† (Parfitt). â€Å"Disabled† tells the story of a solider, about how he joined the army and it has affected him now that he is a veteran of war. The poem, unlike with the previous one, starts off with a paralyzed solider sitting in his wheel chair outside of a hospital. The solider listens to the sound of youthful laughter and is filled with sadness and regret as heShow MoreRelatedWilfred Owen Poetry799 Words   |  3 PagesPoetry is a form of writing that can be used to convey very strong emotions and ideas to the reader, this can be seen in the works of famous poet Wilfred Owen, Owen is the most well-known English trench warfare poet who fought in World War I. His military career began in 1915, when he enlisted himself in the Artists Rifle group and soon became a second lieutenant, like many young men he was ready to fight and die for his country. In 1917 he was wounded in battle and was diagnosed with shell shock;Read MoreWorld War 1 Poetry Essay1681 Words   |  7 PagesFocusing on two World War One poems, explore how the poet expresses their feelings. Dulce et Decorum Est - Wilfred Owen Suicide in the Trenches - Siegfried Sassoon In the poem, Dulce et Decorum Est by Wilfred Owen we can understand Owens feelings toward the war, in the form of strong sarcasm and empathy. Poems were often used by many people, as a way to vent their feelings, and find a voice. Strong empathy is felt as Owen himself was a soldier in the army and military hero until he got admittedRead MoreThe Fury Of Aerial Bombardment1332 Words   |  6 Pagesuse of abstract and concrete diction allows the poet to express doubts about the nature of God and humanity while memorializing two students who died in the war. The author of â€Å"The Death of the Ball Turret Gunner,† which was published in 1945 is Randell Jarell. He spent his early adulthood during World War II briefly as a pilot, but mainly as a trainer of pilots (Zames). The poem is about a man who is killed in a plane during wartime. The poet uses connotation to criticize the practice of sendingRead MoreAnalysis Of Facing It By Yusef Komunyakaa And Dulce Et Decorum Est847 Words   |  4 Pagesâ€Å"Facing it† by Yusef Komunyakaa and â€Å"Dulce et Decorum Est† by Wilfred Owen, are 2 great poems written in the perspective of soldiers who experienced disturbance of war. In â€Å"Dulce et Decorum Est† Owen talks about his experience in World War 1, taking the reader inside the actual event and giving them the insight on his feelings watching his fellow troops die. In â€Å"Facing it†, Komunyakaa also discusses his feeling towards his fellow troops who didn’t survive the attack but he also sheds light on hisRead More ESSAY ON 3 WAR POEMS1160 Words   |  5 Pagesafter. In the past 200 years warfare has changed and wi th this change the ideas on war have changed too. Wilfred Owen, Rudyard Kipling and David Roberts are well known war poets. Using a selection of their poems we hope to analyze the two conflicting views on war. To understand what influenced the poets we need to get an idea of their social and historical background. The poet Rudyard Kipling was an ex army official so his poems on war can be trusted. However during Kipling’s war daysRead More The Charge of the Light Brigade Essay1055 Words   |  5 PagesThe Charge of the Light Brigade War poetry is a theme that has inspired many poets. Compare and contrast poems by 2 poets from different eras and cultures. Say which one you prefer and why. The two poems and the poets that I am going to look at are The Charge of the Light Brigade written by Alfred, Lord Tennyson and Dulce ET Decorum Est. Pro Patria Mori by Wilfred Owen. The first poem was written during the reign of Queen Victoria in England. During this time the Victorians as the peopleRead MoreDulce Et Decorum Est And The Horrors Of War Poem Analysis1425 Words   |  6 Pageswords. Poetry, however, is a very powerful form of expression, and when written by someone who has experienced the horrors of war, it can deeply convey the grim reality of war. Utilising personal experiences and pre-war ideology, World War I poets Wilfred Owens and Rupert Brookes’ were able to recreate the glory and horror of the Great War through their works ‘Dulce Et Decorum Est’ and ‘The Soldier’. This essay will compare and contrast the themes, mood and tone, and imagery through the use of literaryRead MoreStrange Meeting By Wilfred Owen Essay1399 Words   |  6 Pagesdevises and different sounds to make the reader feel almost as uncertain as the narrator himself. In his poem, Strange Meeting, Wilfred Owen brilliantly uses the sound, figurative language and diction of the poem to introduce a â€Å"str ange† meeting between two characters in hell, which engages the readers to feel almost similar to the narrator himself. Over the course of the poem, Owen uses a plethora of techniques to engage the reader as much as possible. Through Owen’s use of sound, he tends to halt theRead MoreUniversity Of Oxford English Professor, Dr. Stuart Lee1318 Words   |  6 PagesBritain’s memory of the war, as it has acted as an avenue to access the real emotions and difficulties faced by the people, including soldiers, caused by the cruelties of the war. The paper will explore O’Prey’s quotation through the poets Siegfried Sassoon, Wilfred Owen, Isaac Rosenberg, Vera Brittain and Charlotte Mew. Their works of poetry not only shed light on the conditions and occurrences of the war but also touch upon the way in which gender relations are viewed during the time of the conflictRead More Compare and Contrast Rupert Brookes The Solider with Wilfred Owens Dulce1470 Words   |  6 PagesCompare and Contrast Rupert Brookes The Solider with Wilfred Owens Dulce et Decorum Est. Although The Soldier by Rupert Brooke and Dulce et Decorum Est by Wilfred Owen are concerned with the common theme of war, the two poems contrast two very different views of war. The Soldier gives a very positive view of war, whereas Owens portrayal is negative to the extreme. Rupert Brookes The Soldier is very patriotic as Brooke loves his country and is ready to die for it. This perhaps

Reasons For The Financial Markets Existence Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2514 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The statement in question is also one of the features and probably a very important function of the global financial system. If the system aligns the need of the deficit unit with the surplus, then the systemic failings of global magnitude are presumed to be unlikely. This is probably why there are certain methodologies of operations adopted in the system which would holds the statement true and would help prevent any unforeseen event. However, the past decade has proven otherwise. It has challenged all assumptions and brought about a change in the system which would have never been imagined. The recent financial crisis has taught many lessons which have been transformed into thousands of books offering different explanations to one simple question, what went wrong? There are two distinct groups in an economy. Firstly, the one who have surplus funds more than their expenditure and the other whose expenditure are more than their sources of income. The former are known as surplus agents while the latter as deficit agents. These two groups are critical factors in an economy. The surplus agents comprises of firms and individuals whose motive to save funds is to meet future needs or come out best during any unforeseen circumstance. Even the investment decisions made by the surplus agents would be in a product which provides them a suitable combination of liquidity, returns and protection again inflation (Pilbeam, 2005). On the other hand, Deficit agents comprises of individuals, firms, government agencies whose motive for borrowing funds are diverse and wide. The investment made by the deficit agents takes a longer time to yield profits for the firm hence they require long term funding for their investments. The investments made by deficit agents are particularly risky hence, many firms are keen to raise finance through the means of equity whereby shares are offered to the public for subscription and the return to the holders of the equity depends upon the profitability of the firm. Individuals borrow to fund expenses which are above their current sources of income. The need of deficit agents is met by the surplus agents through financial intermediaries. The primary role of the financial intermediaries is to assist in transfer of funds from the surplus agents to the deficit agents. During the process of transfer there are several economic functions that the intermediary undertakes (Pilbeam, 2005). Transformation of Risk A financial intermediary pools together the funds from the surplus agents and allocates them to deficit agents. Effective risk reduction and cost effectiveness is achieved when the process is carried through a financial intermediary. Provisioning Liquidity High degree of liquidity if required by the surplus agents. Provisioning of liquidity is one of the important functions carried out by the intermediary. Provisioning the mechanism of making payments Financial intermediaries like bank and non bank financial intermediaries facilitate transfer of cash between the agents. Effectiveness of the payment systems is important for the sound health of the modern economy. Maturity transformation A financial intermediary like a commercial bank would be involved in converting short term liabilities into long term loans for deficit agents from surplus agents. Diversifying the fund allocate reduces risks and allows predictability of inflow and outflow of funds. Reducing costs Surplus agents lack adequate resources to look for deficit agents and analyse their financial history. Entering into contractual obligations can cause considerable economies on scale for the surplus agents. Hence, they look upto the financial intermediary who have the specialized knowledge and skill to serve the surplus agents. Mishkin and Eakins (2006) discuss that financial intermediaries can substantially reduce transaction costs that can be defined as the time and money spent in perfor ming financial transactions for instance the exchange of assets, goods or services. For the sound functioning of the modern economy, Financial Intermediaries play a very important role. Through the medium of the intermediary, transfer process is carried out in cost effective and a secured manner. Though with the advent of modern technology, the benefit of cost saving that an intermediary provides has become redundant, its still the market expertise and knowledge base that make the role of a financial intermediary ever so important. The recent financial crisis which was termed which was probably the worst crisis since the great depression bought out several weaknesses in the financial systems that existed. Even though, there were early warning signs, the savings and loan disaster which resulted in over one thousand banks failing due to bad economic policies. After which the dot com bubble which bought out just how irrational investments by the financial institutions can cost de ar. During the year 1998, a company called Long Term Capital Management which had equity of just $5billion; borrowed over $125 billion demonstrating how one fund can put an entire financial system at risk. Is it right to blame the financial intermediaries or the regulators or the government for the mess that had a propelling effect all over the world? During the meeting in 2004 between the regulators, Security Exchange Commission in the US and five major investment banks, a demand was made from the banks to gain exemption from the limitation on debt that they could have on their balance sheet, this demand was then accepted which resulted in investment in a riskier investment called the credit default swaps or CDS. Companies took on huge amount of debt. Bear Stearns had a leverage ratio of 1:34 (Kolb, 2010) which meant that it held $1 equity for every $34 of the debt. The mortgage industry was eventually not under the control of the fed and allowed borrowing to individuals with little money. The term coined for this kind of arrangement was NINJA loans (No Income, No Jobs or Assets). CDS was introduced initially to insure investors against bind risk but then it became a speculative instrument which became Toxic on the balance sheets of all major banks which were caught in the financial turmoil. Insurance was bought and sold for a fraction of an amount by the investors like the hedge funds only for speculative purposes. Insurance contracts were sold by banks and reported as income while there did not exist any regulatory oversight for the risk which was been taken by the banks. The risky activity of the bank bought about a southward pressure on the CDS while affected its pricing. When the prices of the CDS went own, hedge funds bought it at a cheaper rate one word which could describe the financial crisis in Paradox (Marthinsen, 2010). The trigger for the crisis was the subprime mortgage defaults. This was because funds were given to borrowers who were n ot creditworthy and had high probability of default. Low interest rates and huge inflows of funds into the country made it easy for the borrowers to borrow and lenders to lend. When more people borrowed money to buy houses, the demand of property increased. As mortgage was given against the property and there was increase in property prices, agents were asked to find potential buyers so that more money can be disbursed. Loans were given to people who had high probability of default and were deemed as Sub Prime Loans. Greed at this period of time had spread like wildfire. Since the prices of homes continued to increase, many homeowners refinanced their debt by taking on new debts (Refinance their house) with lower interest rates and attractive conditions even when they knew interest rates might rise after an initial period. However, the bubble bursts as the inventory of house were just too many and this eventually led to decline in the property prices. Homeowners were unable to re finance and began defaulting on their loans which were reset to high interest rates and payment amounts. Homes were worth less then their mortgages. This led to foreclosures. This further reduced the prices of the property and real estate market in America went down. This was just not the local problem of United States. Had this process remained between lenders and borrowers then it would have been a local problem. Sub Prime lending was a very lucrative business as interest earned on loans made under this category gave 2% interest higher than normal loans would and in the event borrower default then the lender could on the assumption sell the property at higher rate. The stock markets were booming and there was enough liquidity in the system to attract investors as this business model was lucrative and it seemed that nothing could go wrong with this. Big American and European investment banks and institutions heavily bought these loans called as Mortgage Backed Securities (MBS). Now , the problem was not just confined to US but spread almost across the globe. Ideally this investment vehicle was lucrative till the time house prices soared and remained at higher levels. But when the property prices started declining and loan interest rising, borrowers could not manage the second mortgage on their house and eventually led to defaulting on payments which then led to foreclosure. The loan amount exceeded the value of the property. There was no option remaining but to write of these loans. The problem became worse when prices of CDOs of American and European Investment banks started to fall. Banks capital was destroyed and portfolio was eroded. Banks like Lehmann brothers, Merrill Lynch, Bank of American suffered heavily during the crisis and had to be bailed out. Mortgage issuers require funding themselves to give money to borrowers. Funding can be achieved through external borrowing of maturity which is variable. Financial institutions were facing shortage of sh ort term funds before and after the crisis due to diminishing liquidity in the financial position. Another source of funding is the funds from retail banks who receive the money from customer who deposit into the bank for earning interest. Such funds can be withdrawn by the customer with minimum notice. This is what happened when many customers of northern rock withdrew money from the bank when there was media hype about northern rock approaching the bank of England for short term loan facility. Northern rock had troubles in the money market where it needed money to fund its short term obligations. The global banking communities became very risk averse because of the crisis and were pulling out of assets which were even remotely considered risky. The banking inter bank market froze the world over. Liquidity was frozen and the crisis became not just memorable for all the above reasons but for the fact that such huge proportions of losses and events were never imagined. Decades ear lier a run on the bank was characterized by customers physically lining up outside the bank to withdraw money. The run can be plugged by government an initiative which requires lot of money to be pumped into the system. The same is discussed briefly in the next section. The US economy is a mixed economy where certain regulatory functions are performed by the government. Banks are different in this concern. The bloodstream of the economy is provided by the bank where people deposit their savings and expect help from the bank for individual needs or purposes. US had learned a lesson from the crisis in 1930s that an adequate measure needs to be taken by the government when people are losing their savings. There lies a moral risk when the government rescues the bank as some believe that this gives bank a free hand to take undue risk which is beyond their capabilities. But the governments usually have adequate measures to make sure that the same mistakes dont happen again as US govern ment had during the most recent financial crisis. One of the measures that the US government facilitated the take over of bear sterns by JP Morgan. In another example the government offered $100 billion bail out package to AIG insurance group at a very high interest rate. They have also taken over 80% of shareholding in the company, more like punishing the shareholders for getting it all wrong. Freddie Mac and Fannie may were taken over even though they were considered to be US government agencies as it became necessary to protect millions of house owners in the US. The question then arises is whether why was Lehmann brothers allowed to fail while other given the support. May be because its situation had been worse for quite some time now and this way plenty of warning was given to institutions with which it had dealings. The rescue plan that the fed had introduced was to make the banks come in a position where they could generate higher level of lending. The US treasury formu lated a three step process for assessing the banks hit during the crisis. All the banks had to undergo a Stress Test where it would be seen if the banks had adequate capital for them to continue lending. This test was carried out to ascertain if the banks could remain solvent if the situation worsens from the current situation they were in. Under the Capital Assistance Program, treasury would take position in the bank in terms of equity in the form of preference shares in the banks which were receiving money under the CAP. Fund Managers would then look after the trusts which have been placed by the treasury. The main motives behind lending can be summarized as follows: Get the toxic assets out of the balance sheet of the bank and getting it up and running again Restore flow of credit again by boosting lending to businesses and consumers Monitoring the money which have been pumped into system and make sure it is used for the purpose it is intended for Prevent foreclosures and make flexible terms for borrowers with higher mortgages so that they could afford payment without facing any financial burden. Home Affordable Modification Program (HAMP), an initiative by Obama is one of the measures was introduced to help borrowers make payments and save their homes. Improving small business lending and community bank lending The recent financial crisis challenged the rules of a free economy and capitalism. Rule books were re written after understanding and learning from the mistakes which were committed by certain greedy institutes which were the reason behind the mess. Even though, the economy today seems to improving from the downtrend it noticed, there are many more lessons to be learned into the course. Emerging economies like India and China were probably the silver lining in the sky during the crisis and still continue to perform at phenomenal growth rates which the rest of the world reels under negative growth numbers. The economy of the future would be more sensitive to risks as the age of tax havens and regulatory arbitage would have been passed. But for the time being, the economies which were seriously affected during the crisis are at the end, are away from being an economy where were driven by unstable bubble and unsustainable bubble after another. From the above, it can appropriately summarized that the statement of unlikely failures if the surplus and deficit units are aligned together cannot be taken on face value as there are many factors and conditions that can cause an influence. Don’t waste time! 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