Ritically discuss the view that capital markets created the conditions that led to the a?new economya bubble and the banking crisis.

Critically discuss the view that capital markets created the conditions that led to the a?new economya bubble and the banking crisis.

a? This is an essay in two distinctive parts. First the new economy: A satisfactory should distinguish between new and old economy firms and the former further subdivided to include 3 distinct categories: new business activities especially technology, media and telecoms: e-commerce trade exchanges, web portals like Google, Yahoo and AOL and infrastructure provision of things like switches and routers; new methods of delivering/purchasing goods and services for business and consumer: especially in retail where Amazon would sell books not Barnes and Noble; new companies especially start-ups: cult of venture capital in Silicon Valley.
a? Further discussion could revolve around how the most successful adopters of new technologies were the a?old economya companies such as Tesco, Argos, John Lewis, etc. The restriction of capital applied to old economy with a requirement for earnings of 12-15% ROCE (post tax) which many could not easily achieve although all tried a this is a key point. New economy companies, the capital market threw money at companies, which had no earnings and uncertain prospects.
a? Excellent responses will use examples e.g. Amazon or Ford to demonstrate how this played in practice and more broadly, how a cyclical upswing was accompanied by restructuring.
a? A more evaluative discussion could cover the new economy disruption of old economy markets where the burden of adjustment fell on the latter while the former enjoyed the support of the institutional investors.
a? Banking is what happened after the new economy bubble burst where investors sought growing profits. The bank were, up to this point utilities but rapidly adapted to the requirement for shareholder value where bankingas privileged role in society and its ability to lever that privilege into profit through casino finance operations. The end result is that the capital market is never satisfied so banks had to keep ramping up debt and taking larger risks.
a? The difference between the bursting of the bubble is that the investors absorbed the new economy losses whereas the bank losses led to State intervention.

Analysis and Structure (Instructions by the Professor)

In planning your essay it is valuable to consider several issues:

a? Decide on your answer to the question or your point of view before you begin. That is, interpret the set question insightfully with both full understanding of its context and implications and an appreciation of its various dimensions and issues.
a? Include an analysis or description of relevant theories and concepts, blend them with (only) relevant evidence and cases, and support your view with theoretical understanding, evidence and cases.
a? To achieve this objective, you must plan your analytical structure carefully and be in a position to establish links between its different sections. That is, do not lose the thematic thread that unites the various aspects of your essay, and ensure that your use of theory, concepts, models, evidence and analytical structure lead you towards the answer you have already determined.
a? To decide upon the core of your structure, that is the key points of your assignment or examination answer, you must be well read and knowledgeable about the relevant major topics on the course.

One possible answer structure is:
a? Introduction. Suggest an answer to the question and outline how you intend to validate your suggested answer by clarifying the analytical structure (and maybe, therefore, the thematic thread or point of view you will pursue).
a? VERY IMPORTANT !!!! Describe the key theories, concepts, models, and/or debates, and/or areas of critique surrounding the question. Keep this section as short as possible: you need to state the main concepts but you need greater space to do more in order to acquire higher order marks. Try and establish a link with your structure (in themes and ideas) and the following sections. Here I talked with the professor about it whether it is okay to use also economic theories. However, as I am studying management they want to see a management theory/concept such as Porters five forces. The professor suggested me to use porter five force to analyze the effect of new technologies as this changed the business model in the new economy and investors were trusting the new venture IT-firms.
a? Key point 1: employ empirical information and quote cases as examples to bring the academic evidences into reality.
a? Key point 2: try to engage your analysis of the theories, concepts, models and other critical points to your examples and your own opinion (your voice is important when supported by evidences from the literature).
a? Do you need an extra section that pulls the previous sections together, or a section that follows logically from your separate conclusions you make amongst the key points? You may, for example, have analyzed late development characteristics, but might now look at one of the large implications, such as which theories, concepts or models are more inclined to explain your findings.
a? Are there other aspects of the debate that needed to be added, which could not be easily fitted into the structure, but nevertheless remain relevant? Or are there important debates you feel are ignored by the question? For example, you may have analyzed the a?classica five forces of Porter, but now need to question its relevance in the global world. You could discuss any other aspects from the literature which you find relevant, but then look at the implications of globalization for any analysis that might be relevant to your final approach in answering the question.
a? Conclusion. If possible, after summarising your answer, discuss other aspects of the debate needing investigation, or assess the reliability of current evidence and research.

Ritically discuss the view that capital markets created the conditions that led to the a?new economya bubble and the banking crisis.

Essays Analysis and Structure

In planning your essay it is valuable to consider several issues:

Decide on your answer to the question or your point of view before you begin. That is, interpret the set question insightfully with both full understanding of its context and implications and an appreciation of its various dimensions and issues.
Include an analysis or description of relevant theories and concepts, blend them with (only) relevant evidence and cases, and support your view with theoretical understanding, evidence and cases.
To achieve this objective, you must plan your analytical structure carefully and be in a position to establish links between its different sections. That is, do not lose the thematic thread that unites the various aspects of your essay, and ensure that your use of theory, concepts, models, evidence and analytical structure lead you towards the answer you have already determined.
To decide upon the core of your structure, that is the key points of your assignment or examination answer, you must be well read and knowledgeable about the relevant major topics on the course.

One possible answer structure is:
Introduction. Suggest an answer to the question and outline how you intend to validate your suggested answer by clarifying the analytical structure (and maybe, therefore, the thematic thread or point of view you will pursue).
Describe the key theories, concepts, models, and/or debates, and/or areas of critique surrounding the question. Keep this section as short as possible: you need to state the main concepts but you need greater space to do more in order to acquire higher order marks. Try and establish a link with your structure (in themes and ideas) and the following sections.
Key point 1: employ empirical information and quote cases as examples to bring the academic evidences into reality.
Key point 2: try to engage your analysis of the theories, concepts, models and other critical points to your examples and your own opinion (your voice is important when supported by evidences from the literature).
Do you need an extra section that pulls the previous sections together or a section that follows logically from your separate conclusions you make amongst the key points? You may, for example, have analysed late development characteristics, but might now look at one of the large implications, such as which theories, concepts or models are more inclined to explain your findings.
Are there other aspects of the debate that needed to be added, which could not be easily fitted into the structure, but nevertheless remain relevant? Or are there important debates you feel are ignored by the question? For example, you may have analysed the classic five forces of Porter, but now need to question its relevance in the global world. You could discuss any other aspects from the literature which you find relevant, but then look at the implications of globalization for any analysis that might be relevant to your final approach in answering the question.
Conclusion. If possible, after summarising your answer, discuss other aspects of the debate needing investigation, or assess the reliability of current evidence and research.

Ritically discuss the view that capital markets created the conditions that led to the a?new economya bubble and the banking crisis.

It needs a section for bibliography. Thank you.

Analysis and Structure
In planning your essay it is valuable to consider several issues:

a? Decide on your answer to the question or your point of view before you begin. That is, interpret the set question insightfully with both full understanding of its context and implications and an appreciation of its various dimensions and issues.
a? Include an analysis or description of relevant theories and concepts, blend them with (only) relevant evidence and cases, and support your view with theoretical understanding, evidence and cases.
a? To achieve this objective, you must plan your analytical structure carefully and be in a position to establish links between its different sections. That is, do not lose the thematic thread that unites the various aspects of your essay, and ensure that your use of theory, concepts, models, evidence and analytical structure lead you towards the answer you have already determined.
a? To decide upon the core of your structure, that is the key points of your assignment or examination answer, you must be well read and knowledgeable about the relevant major topics on the course.
a?
One possible answer structure is:

a? Introduction. Suggest an answer to the question and outline how you intend to validate your suggested answer by clarifying the analytical structure (and maybe, therefore, the thematic thread or point of view you will pursue).
a? Describe the key theories, concepts, models, and/or debates, and/or areas of critique surrounding the question. Keep this section as short as possible: you need to state the main concepts but you need greater space to do more in order to acquire higher order marks. Try and establish a link with your structure (in themes and ideas) and the following sections.
a? Key point 1: employ empirical information and quote cases as examples to bring the academic evidences into reality.
a? Key point 2: try to engage your analysis of the theories, concepts, models and other critical points to your examples and your own opinion (your voice is important when supported by evidences from the literature).
a? Do you need an extra section that pulls the previous sections together or a section that follows logically from your separate conclusions you make amongst the key points? You may, for example, have analysed late development characteristics, but might now look at one of the large implications, such as which theories, concepts or models are more inclined to explain your findings.
a? Are there other aspects of the debate that needed to be added, which could not be easily fitted into the structure, but nevertheless remain relevant? Or are there important debates you feel are ignored by the question? For example, you may have analysed the a?classica five forces of Porter, but now need to question its relevance in the global world. You could discuss any other aspects from the literature which you find relevant, but then look at the implications of globalization for any analysis that might be relevant to your final approach in answering the question.
a? Conclusion. If possible, after summarising your answer, discuss other aspects of the debate needing investigation, or assess the reliability of current evidence and research.

Ritically discuss the view that capital markets created the conditions that led to the a?new economya bubble and the banking crisis.

One possible answer structure is:

Introduction. Suggest an answer to the question and outline how you intend to validate your suggested answer by clarifying the analytical structure (and maybe, therefore, the thematic thread or point of view you will pursue).
Describe the key theories, concepts, models, and/or debates, and/or areas of critique surrounding the question. Keep this section as short as possible: you need to state the main concepts but you need greater space to do more in order to acquire higher order marks. Try and establish a link with your structure (in themes and ideas) and the following sections.
Key point 1: employ empirical information and quote cases as examples to bring the academic evidences into reality.
Key point 2: try to engage your analysis of the theories, concepts, models and other critical points to your examples and your own opinion (your voice is important when supported by evidences from the literature).
Do you need an extra section that pulls the previous sections together or a section that follows logically from your separate conclusions you make amongst the key points? You may, for example, have analysed late development characteristics, but might now look at one of the large implications, such as which theories, concepts or models are more inclined to explain your findings.
Are there other aspects of the debate that needed to be added, which could not be easily fitted into the structure, but nevertheless remain relevant? Or are there important debates you feel are ignored by the question? For example, you may have analysed the a?classica five forces of Porter, but now need to question its relevance in the global world. You could discuss any other aspects from the literature which you find relevant, but then look at the implications of globalization for any analysis that might be relevant to your final approach in answering the question.
Conclusion. If possible, after summarising your answer, discuss other aspects of the debate needing investigation, or assess the reliability of current evidence and research.