Chapter 8 Mishkin Notes Free Essays

An Economic Analysis of Financial Structure Why do Financial Institutions Exist? (Why is Indirect Finance so Important? ) Chapter 8 Chapter Preview W e take a closer look at why financial institutions exist and how they promote economic efficiency. Topics include: †¢ A Few Basic Facts About Financial Structure †¢ Transaction Costs †¢ Asymmetric Information: Adverse Selection and Moral Hazard Chapter Preview (cont. ) †¢ The Lemons Problem: How Adverse Selection Influences Financial Structure †¢ How Moral Hazard Affects the Choice Between Debt and Equity Contracts †¢ How Moral Hazard Influences Financial Structure in Debt Markets 1 Basic Facts About Financial Structure Throughout the World †¢ The chart on the next slide shows how non-financial business get external funding in the U. We will write a custom essay sample on Chapter 8 Mishkin Notes or any similar topic only for you Order Now S. , Germany, Japan, and Canada. †¢ Notice that, although many aspects of these countries are quite different, the sources of financing are somewhat consistent, with the U. S. being different in its focus on debt. Sources of External Finance Copyright  © 2007 Pearson Addison-Wesley. All rights reserved. 8-5 Eight Basic Facts of Financial Structure 1. Stocks are not the most important source of external financing for businesses [Direct Finance] 2. Issuing marketable debt and equity ecurities is not the primary way in which businesses finance their operations [Direct Finance] 2 Eight Basic Facts of Financial Structure 3. Indirect finance, which involves the activities of financial intermediaries, is m any times more important than direct finance, in which businesses raise funds directly from lenders in financial markets. 4. Financial intermediaries, particularly banks, are the most important source of external funds used to finance businesses. Eight Basic Facts of Financial Str ucture 5. The financial system is among the most heavily regulated sectors of economy. 6. Only large, well -established corporations ave easy access to securities markets to finance their activities. Eight Basic Facts of Financial Structure 7. Collateral is a prevalent feature of debt contracts for both households and businesses. 8. Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrowers. 3 W hy is Indirect Finance so Important? †¢ Transactions Cost †¢ Information Cost Transaction Costs †¢ Financial intermediaries to reduce transaction costs (and make profits) through – †¢ Economies of scale †¢ Expertise †¢ Read the municipal bond article. Transaction Costs †¢ Transactions costs ? ? ? E. g. a $5,000 investment only allows you to purchase 100 shares @ $50 / share (equity) No diversification Bonds even worse—most have a $1,000 size 4 Transaction Costs †¢ Financial intermediaries make profits by reducing transactions costs – Take advantage of economies of scale (example: mutual funds) – Develop expertise to lower transactions costs – provide investors with liquidity and diversification Information Costs – Asymmetric Information †¢ symmetric information—the case where all parties to a transaction or contract have the same information. †¢ In many situations, this is not the case. We refer to this as asymmetric information. Asymmetric Information: Adverse Selection and Moral Hazard †¢ We will focus on two specific forms of asymmetric information: ? Adverse selection ? Moral hazard 5 Asymmetric Information: Adverse Selection and Moral Hazard †¢ Adverse Selection 1. Occurs when one party in a transaction has better information than the other party 2. Before transaction occurs 3. Potential borrowers most likely to produce adverse outcome are ones most likely to seek loan The Lemons Problem: How Adverse Selection Influences Financial Structure †¢ If quality cannot be assessed, the buyer is willing to pay at m ost a price that reflects the average quality Sellers of good quality items will not want to sell at the price for average quality †¢ The buyer will decide not to buy at all because all that is left in the market is poor quality items †¢ This result, when bad quality pushes good quality from the m arket because of an information gap, is known as â€Å"adverse selection† †¢ This problem explains fact 2 and partially explains fact 1 Asymmetric Information: Adverse Selection and Moral Hazard †¢ Moral Hazard 1. Occurs when one party has an incentive to behave differently once an agreement is made between parties 2. After transaction occurs 3. Hazard that borrower has incentives to ngage in undesirable (immoral) activities making it more likely that won’t pay loan back 6 Health Insurance †¢ Symmetric Information: Suppose, if you get sick, drugs cost $10,000/year †¢ Everyone has a 1/10 chance of getting sick †¢ Solution – Insurance will be offered at $1,000 per year Health Insurance – Symmetric Information continued †¢ Suppose 10% of the population (2 out of 20) is sickly and has a 50%(1/2) chance of getting sick – independent. †¢ Other 90% (18 people) only has 1/18 chance of getting sick. †¢ This information in known to everyone. †¢ How do you price the insurance? Health Insurance – Symmetric Information ontinued †¢ Sickly types pay? †¢ Healthy types pay? 7 Health Insurance – Asymmetric Information Adverse Selection †¢ Same as previous example, but one’s type (sick or healthy) is private information. Suppose insurance company offers policy at $1,000 per year? Suppose insurance company offers policy at $1,000 per year? †¢ Sickly type happy to save $4,000. †¢ Healthy drop out and go without insurance. †¢ Adverse selection: Bad quality pushes good quality from the market because of an information gap. 8 How about charging less say $555. 56 to everyone? How about charging less say $555. 56 to everyone? Break even on the healthy type, but lose on sickly type. †¢ Only way for insurance company in this case to break even is to charge $5,000 ? Healthy will go without insurance. Adverse Selection and Financial Structure Lemons Problem in Securities Markets †¢ Suppose investors cannot distinguish between good and bad securities, willing to pay only the average of the good and bad securities’ values. †¢ Result: Good securities undervalued and firms won’t issue them; bad securities overvalued, so too many issued. 9 Lemons Problem in Securities Markets †¢ Investors won’t want to buy bad securities, so m arket won’t function well. ? Explains Facts 1 and 2 ? Also explains Fact 6: only large well established firms have access to securities m arkets †¢ Bad quality pushes good quality from the m arket because of an information gap. Tools to Help Solve Adverse Selection Problems †¢ Private Production and Sale of Information ? Free-rider problem interferes with this solution †¢ Government Regulation to Increase Information (explains Fact # 5) Tools to Help Solve Adverse Selection Problems †¢ Financial Intermediation ? Analogy to solution to lemons problem provided by used car dealers ? Avoid free-rider problem by making private loans (explains Fact # 3 and # 4) ? Also explains fact #6—large firms are more likely to use direct instead of indirect financing 10 Tools to Help Solve Adverse Selection Problems †¢ Collateral and Net Worth ? Explains Fact # 7 How Moral Hazard Affects the Choice Between Debt and Equity Contracts †¢ Called the Principal -Agent Problem ? Principal: less information (stockholder) ? Agent: more information (manager) †¢ Separation of ownership and control of the firm ? Managers pursue personal benefits and power rather than the profitability of the firm Tools to help solve the Principal-Agent Problem: †¢ Monitoring ? Expensive †¢ Government regulation to increase information Fact 5 †¢ Financial Intermediation ? Venture capital firms provides the equity and place there own people in management †¢ Debt Contracts ? Reduces the need to monitor as long as borrower is performing. Explains Fact 1, why debt is used more than equity 11 How Moral Hazard Influences Financial Structure in Debt Markets †¢ Even with the advantages just described, debt is still subject to moral hazard. ? Debt may create an incentive to take on very risky projects. How Moral Hazard Influences Financial Structure in Debt Markets †¢ Most debt contracts require the borrower to pay a fixed amount (interest) and keep any ash flow above this amount. †¢ For example, suppose a firm owes $100 in interest, but only has $90? It is essentially bankrupt. The firm â€Å"has nothing to lose† by looking for â€Å"risky† projects to raise the needed cash. Tools to Help Solve Moral Hazard in Debt Contracts Lenders need to find ways ensure that borrower’s do not take on too much risk. ? A good legal contract ? Bonds and loans often carry restrictive covenants †¢ Restrict how funds are used Require minimum net worth, collateral, bank balance, credit rating. †¢ Financial Intermediaries have special advantages in monitoring[Facts 3 and 4] ? 12 STOP HERE!! 13 How to cite Chapter 8 Mishkin Notes, Essay examples

Chapter 8 Mishkin Notes Free Essays

An Economic Analysis of Financial Structure Why do Financial Institutions Exist? (Why is Indirect Finance so Important? ) Chapter 8 Chapter Preview W e take a closer look at why financial institutions exist and how they promote economic efficiency. Topics include: †¢ A Few Basic Facts About Financial Structure †¢ Transaction Costs †¢ Asymmetric Information: Adverse Selection and Moral Hazard Chapter Preview (cont. ) †¢ The Lemons Problem: How Adverse Selection Influences Financial Structure †¢ How Moral Hazard Affects the Choice Between Debt and Equity Contracts †¢ How Moral Hazard Influences Financial Structure in Debt Markets 1 Basic Facts About Financial Structure Throughout the World †¢ The chart on the next slide shows how non-financial business get external funding in the U. We will write a custom essay sample on Chapter 8 Mishkin Notes or any similar topic only for you Order Now S. , Germany, Japan, and Canada. †¢ Notice that, although many aspects of these countries are quite different, the sources of financing are somewhat consistent, with the U. S. being different in its focus on debt. Sources of External Finance Copyright  © 2007 Pearson Addison-Wesley. All rights reserved. 8-5 Eight Basic Facts of Financial Structure 1. Stocks are not the most important source of external financing for businesses [Direct Finance] 2. Issuing marketable debt and equity ecurities is not the primary way in which businesses finance their operations [Direct Finance] 2 Eight Basic Facts of Financial Structure 3. Indirect finance, which involves the activities of financial intermediaries, is m any times more important than direct finance, in which businesses raise funds directly from lenders in financial markets. 4. Financial intermediaries, particularly banks, are the most important source of external funds used to finance businesses. Eight Basic Facts of Financial Str ucture 5. The financial system is among the most heavily regulated sectors of economy. 6. Only large, well -established corporations ave easy access to securities markets to finance their activities. Eight Basic Facts of Financial Structure 7. Collateral is a prevalent feature of debt contracts for both households and businesses. 8. Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrowers. 3 W hy is Indirect Finance so Important? †¢ Transactions Cost †¢ Information Cost Transaction Costs †¢ Financial intermediaries to reduce transaction costs (and make profits) through – †¢ Economies of scale †¢ Expertise †¢ Read the municipal bond article. Transaction Costs †¢ Transactions costs ? ? ? E. g. a $5,000 investment only allows you to purchase 100 shares @ $50 / share (equity) No diversification Bonds even worse—most have a $1,000 size 4 Transaction Costs †¢ Financial intermediaries make profits by reducing transactions costs – Take advantage of economies of scale (example: mutual funds) – Develop expertise to lower transactions costs – provide investors with liquidity and diversification Information Costs – Asymmetric Information †¢ symmetric information—the case where all parties to a transaction or contract have the same information. †¢ In many situations, this is not the case. We refer to this as asymmetric information. Asymmetric Information: Adverse Selection and Moral Hazard †¢ We will focus on two specific forms of asymmetric information: ? Adverse selection ? Moral hazard 5 Asymmetric Information: Adverse Selection and Moral Hazard †¢ Adverse Selection 1. Occurs when one party in a transaction has better information than the other party 2. Before transaction occurs 3. Potential borrowers most likely to produce adverse outcome are ones most likely to seek loan The Lemons Problem: How Adverse Selection Influences Financial Structure †¢ If quality cannot be assessed, the buyer is willing to pay at m ost a price that reflects the average quality Sellers of good quality items will not want to sell at the price for average quality †¢ The buyer will decide not to buy at all because all that is left in the market is poor quality items †¢ This result, when bad quality pushes good quality from the m arket because of an information gap, is known as â€Å"adverse selection† †¢ This problem explains fact 2 and partially explains fact 1 Asymmetric Information: Adverse Selection and Moral Hazard †¢ Moral Hazard 1. Occurs when one party has an incentive to behave differently once an agreement is made between parties 2. After transaction occurs 3. Hazard that borrower has incentives to ngage in undesirable (immoral) activities making it more likely that won’t pay loan back 6 Health Insurance †¢ Symmetric Information: Suppose, if you get sick, drugs cost $10,000/year †¢ Everyone has a 1/10 chance of getting sick †¢ Solution – Insurance will be offered at $1,000 per year Health Insurance – Symmetric Information continued †¢ Suppose 10% of the population (2 out of 20) is sickly and has a 50%(1/2) chance of getting sick – independent. †¢ Other 90% (18 people) only has 1/18 chance of getting sick. †¢ This information in known to everyone. †¢ How do you price the insurance? Health Insurance – Symmetric Information ontinued †¢ Sickly types pay? †¢ Healthy types pay? 7 Health Insurance – Asymmetric Information Adverse Selection †¢ Same as previous example, but one’s type (sick or healthy) is private information. Suppose insurance company offers policy at $1,000 per year? Suppose insurance company offers policy at $1,000 per year? †¢ Sickly type happy to save $4,000. †¢ Healthy drop out and go without insurance. †¢ Adverse selection: Bad quality pushes good quality from the market because of an information gap. 8 How about charging less say $555. 56 to everyone? How about charging less say $555. 56 to everyone? Break even on the healthy type, but lose on sickly type. †¢ Only way for insurance company in this case to break even is to charge $5,000 ? Healthy will go without insurance. Adverse Selection and Financial Structure Lemons Problem in Securities Markets †¢ Suppose investors cannot distinguish between good and bad securities, willing to pay only the average of the good and bad securities’ values. †¢ Result: Good securities undervalued and firms won’t issue them; bad securities overvalued, so too many issued. 9 Lemons Problem in Securities Markets †¢ Investors won’t want to buy bad securities, so m arket won’t function well. ? Explains Facts 1 and 2 ? Also explains Fact 6: only large well established firms have access to securities m arkets †¢ Bad quality pushes good quality from the m arket because of an information gap. Tools to Help Solve Adverse Selection Problems †¢ Private Production and Sale of Information ? Free-rider problem interferes with this solution †¢ Government Regulation to Increase Information (explains Fact # 5) Tools to Help Solve Adverse Selection Problems †¢ Financial Intermediation ? Analogy to solution to lemons problem provided by used car dealers ? Avoid free-rider problem by making private loans (explains Fact # 3 and # 4) ? Also explains fact #6—large firms are more likely to use direct instead of indirect financing 10 Tools to Help Solve Adverse Selection Problems †¢ Collateral and Net Worth ? Explains Fact # 7 How Moral Hazard Affects the Choice Between Debt and Equity Contracts †¢ Called the Principal -Agent Problem ? Principal: less information (stockholder) ? Agent: more information (manager) †¢ Separation of ownership and control of the firm ? Managers pursue personal benefits and power rather than the profitability of the firm Tools to help solve the Principal-Agent Problem: †¢ Monitoring ? Expensive †¢ Government regulation to increase information Fact 5 †¢ Financial Intermediation ? Venture capital firms provides the equity and place there own people in management †¢ Debt Contracts ? Reduces the need to monitor as long as borrower is performing. Explains Fact 1, why debt is used more than equity 11 How Moral Hazard Influences Financial Structure in Debt Markets †¢ Even with the advantages just described, debt is still subject to moral hazard. ? Debt may create an incentive to take on very risky projects. How Moral Hazard Influences Financial Structure in Debt Markets †¢ Most debt contracts require the borrower to pay a fixed amount (interest) and keep any ash flow above this amount. †¢ For example, suppose a firm owes $100 in interest, but only has $90? It is essentially bankrupt. The firm â€Å"has nothing to lose† by looking for â€Å"risky† projects to raise the needed cash. Tools to Help Solve Moral Hazard in Debt Contracts Lenders need to find ways ensure that borrower’s do not take on too much risk. ? A good legal contract ? Bonds and loans often carry restrictive covenants †¢ Restrict how funds are used Require minimum net worth, collateral, bank balance, credit rating. †¢ Financial Intermediaries have special advantages in monitoring[Facts 3 and 4] ? 12 STOP HERE!! 13 How to cite Chapter 8 Mishkin Notes, Essay examples

Kant The Problem of Modern Philosophy Essay Example

Kant The Problem of Modern Philosophy Essay Metaphysics in Kants Work In Immaneul Kants work, Prolegomena to Any Future Metaphysics, the principle idea or question of discussion is whether or not metaphysics is possible.Although this is clearly the objective of his argument, the author is not concerned with constructing metaphysics.Rather he uses this question as a method of articulating the problem of modern philosophy, for by creating an inquiry of the theory of metaphysics one is forced to examine its conditions of possibility.This problem of modern philosophy is based on the gap between the phenomenal and the noumenal, or the experience of reality and the knowledge of reality, as illustrated by the renowned empiricist, David Hume.According to Hume, we are fundamentally limited to the phenomenal, holding only our impressions as true based on perception.In contrast, Kant introduced the idea that the mind leaves an impression on perception, which illustrates cooperation between the mind and experience based on their conformity, t! hus explaining know ledge.This innate form has been given to us, and through time and space we are allowed a certain amount of flexibility within boundaries.The genius of Kant lies in the fact that he created an image of reality that was not possible with Hume, for he instilled a level of confidence through recognition of our limits.Therefore, the significance of Kants work is that it portrays the parameters within the mind, which in effect turns Humes skepticism into positive reinforcement of experience. It was Humes belief that you must have experience to have anything at all, for existence must be perceived through impression.The problem of this lies within the fact that our knowledge is restricted to appearances, for we will never know the true nature of things as they are in themselves. Moral law in Kants Conception Kant identifies something as the moral law as it is this purity that Kant acknowledges to exist withoutfirst needing to be perceived (which would therefore rely on that perception to validate it), and rightly claims as the absolute.He further argues that since this true and pure is omnipresent, then it is humanitys duty to hold itself to it, no matter how the inclination or desire to reason away from, or to ignore it, may tempt us.Kant then concludes that since it is this moral law that all beings are based, it is thusly imperative for the collective method, which we so direly depend upon to interpret and utilize the universe, should at its roots solely rely upon that knowledge given to us innately, and not upon empirical and anthropological grounds. Kant identifies this moral law by recognizing the innate sense of duty bestowed upon every being. That there must be such a [pure] philosophy is evident from the common idea of duty and of moral laws.Everyone must admit that if a law is to be morally valid, i.e., is to be valid as a ground of obligation, then it must carry with it absolute necessity. If a being has this idea of duty, of the need to fulfill, it is obvious that it should and must live in accordance to that obligation at every moment and in every way.The concept of survival in the animal kingdom supports this idea well.If we examine an animal and its daily activities, such as hunting for food, protecting its territory, and mating among others, we observe a duty in that animal to stay alive, to see another day. We will write a custom essay sample on Kant The Problem of Modern Philosophy specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Kant The Problem of Modern Philosophy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Kant The Problem of Modern Philosophy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Those who have a Kantian way of thought believe in the universal laws which is when something is commonly known as right or wrong. People like this believe that an action has moral worth if it is done as the right thing to do. In this situation, the right thing to do would be to not cheat on the test because it is commonly known that cheating on a test is wrong. Kantians dont think too much about the consequences of the action or the effects it will have on others. They believe that people should treat others the way they want to be treated. For example, would you want someone in your class to cheat on a test when you’ve worked hard studying? This is known as the Categorical Imperative.

Free Essays on A Prayer for Owen Meany

for Owen and his needs. Also, the author uses his â€Å"prayers for Owen† to illustrate to the audience that this man who is so rare must be a gift of God and must be prayed about and often reflected upon. He is a sign of the holy and the supernatural. The setting of the book is in many places because of the author’s erratic flavor in which he chooses to reminisce. In most scenes, the author tells of his life in the late 40’s / early 50’s in Gravesend, New Hampshire. The author himself is writing from his home in 1987 in Toronto, Canada, however most action takes place in his flashbacks occurring in and around Gravesend, (whether it be the Academy, 80 Front Street, or The Meany Granite Quarry.) What is significant about Gravesend is that it is an extremely older town founded by Mayflower descendents, many of which belong to the families of the town’s elite, aristocratic older society. The Wheelwright family can be traced back to the town’s founders, and John’s grandmother is considered an aristocrat of Gravesend. The main theme centers around the emerging theme of religious faith and doubt. John struggles throughout the book to resolve his religious faith with his skepticism and doubt, but at the end of the novel he isn’t required to make a real choice between the two extremes. John begins the novel by saying that Owen is the reason that he is a Christian man, and the rest of the novel explains his reasoning. It also themes around courage and belief through the means of faith. To John, Owen’s existence is a miracle and Owen is a distinct proof of God’s existence.... Free Essays on A Prayer for Owen Meany Free Essays on A Prayer for Owen Meany The title A Prayer for Owen Meany is referred upon several times throughout the story. The author uses the â€Å"prayers for Owen† by illustrating the reverend’s difficulty to create proper words for Owen and his needs. Also, the author uses his â€Å"prayers for Owen† to illustrate to the audience that this man who is so rare must be a gift of God and must be prayed about and often reflected upon. He is a sign of the holy and the supernatural. The setting of the book is in many places because of the author’s erratic flavor in which he chooses to reminisce. In most scenes, the author tells of his life in the late 40’s / early 50’s in Gravesend, New Hampshire. The author himself is writing from his home in 1987 in Toronto, Canada, however most action takes place in his flashbacks occurring in and around Gravesend, (whether it be the Academy, 80 Front Street, or The Meany Granite Quarry.) What is significant about Gravesend is that it is an extremely older town founded by Mayflower descendents, many of which belong to the families of the town’s elite, aristocratic older society. The Wheelwright family can be traced back to the town’s founders, and John’s grandmother is considered an aristocrat of Gravesend. The main theme centers around the emerging theme of religious faith and doubt. John struggles throughout the book to resolve his religious faith with his skepticism and doubt, but at the end of the novel he isn’t required to make a real choice between the two extremes. John begins the novel by saying that Owen is the reason that he is a Christian man, and the rest of the novel explains his reasoning. It also themes around courage and belief through the means of faith. To John, Owen’s existence is a miracle and Owen is a distinct proof of God’s existence....

Caesars Gallic Wars and Vercingetorix

Caesar's Gallic Wars and Vercingetorix One of Gauls most colorful historical figures is Vercingetorix, who acted as war chief for all the Gallic tribes who were trying to throw off the Roman yoke during the Gallic Wars. Vercingetorix and Caesar are the main figures in Book VII of De Bello Gallico, Caesars narrative about his wars in Gaul, although the Roman allies, the Aedui, also play a large role. This period of revolt follows the earlier Gallic battles at Bibracte, Vosges, and Sabis. By the end of Book VII Caesar has put down the Gallic revolt. The following is a summary of Book VII of De Bello Gallico, with some explanatory notes. Vercingetorix, son of Celtillus, a member of the Gallic tribe of Arverni, sent ambassadors out to Gallic tribes not yet allied with him asking them to join him in his endeavor to get rid of the Romans. By peaceful means or by attacking, he added troops from the Gallic tribes of the Senones (the tribe connected with the band of Gauls responsible for the sack of Rome in 390 B.C.), Parisii, Pictones, Cadurci, Turones, Aulerci, Lemovice, the Ruteni, and others to his own armed forces. Vercingetorix had used the Roman system of demanding hostages to ensure loyalty and ordered a levy of troops from each of these groups. He then took supreme command. He tried to ally the Biturgies, but they resisted and sent ambassadors to the Aedui for help against Vercingetorix. The Biturgies were dependents of the Aedui and the Aedui were allies of Rome (Brothers and Kinsmen of the Roman People 1.33). The Aedui started to help but then turned back perhaps because, as they said, they suspected the Biturgi es of complicity with the Arverni. Perhaps because they lacked the support of the Aedui, the Biturgies gave in to Vercingetorix. It is possible the Aedui already planned to revolt against Rome. When Caesar heard about the alliance, he realized it was a threat, so he left Italy and set out for Transalpine Gaul, a Roman province since 121 B.C., but he didnt have his regular army, although he did have some German cavalry and troops he had in Cisalpine Gaul. He had to figure out how to reach the main forces without putting them in danger. Meanwhile, Vercingetorix ambassador, Lucterius, continued to gain allies. He added the Nitiobriges and Gabali and then headed to Narbo, which was in the Roman province of Transalpine Gaul, so Caesar headed to Narbo, which made Lucterius retreat. Caesar changed his direction and advanced into the territory of the Helvii, then on to the borders of the Arverni. Vercingetorix marched his troops there in order to defend his people. Caesar, no longer able to do without the rest of his forces, left Brutus in command while he went to Vienna where his cavalry was stationed. Next stop was the Aedui, one of Romes main allies in Gaul, and where two of Cae sars legions were wintering. From there, Caesar sent word to the other legions of the danger presented by Vercingetorix, ordering them to come to his assistance ASAP. Vellaunodunum When Vercingetorix learned what Caesar was doing, he headed back to the Biturgies and then to the non-allied Boiian town of Gergovia in order to attack it. Caesar sent ahead messages to the Boii to encourage them to resist. Heading towards the Boii, Caesar left two legions at Agendicum. En route, at the Senones town of Vellaunodunum, Caesar decided to attack so there wouldnt be an enemy on his heels. He also figured he would take the opportunity to gain provisions for his troops. Especially during the winter when there was little to forage, having food could decide the outcome of a battle. Because of this, allied towns that werent potential enemies at ones back might still be destroyed to make sure the enemy army starved or retreated. This is what Vercingetorix would soon develop as one of his main policies. After Caesars troops surrounded Vellaunodunum, the town sent out their ambassadors. Caesar ordered them to surrender their weapons and to bring out their cattle and 600 hostages. With arrangements made and Trebonius left in charge, Caesar set out for Genabum, a Carnute town that had been preparing to send troops to help Vellaunodum fight, Caesar. The Romans pitched camp and when the townspeople tried to escape at night via a bridge across the Loire River, Caesars troops took possession of the town, pillaged and burned it, and then headed across the Loire bridge into the Biturgies territory. Noviodunum This move prompted Vercingetorix to stop his siege of Gergovia. He marched towards Caesar who was beginning a siege of Noviodunum. Noviodunum ambassadors begged Caesar to pardon them and spare them. Caesar ordered their weapons, horses, and hostages. While Caesars men went into town to gather up the arms and horses, Vercingetorix army appeared on the horizon. This inspired the people of Noviodunum to take up arms and shut the gates, backing down from their surrender. Since the people of Noviodunum were going back on their word, Caesar attacked. The town lost a number of men before the town surrendered again. Avaricum Caesar then marched to Avaricum, a well-fortified town in the Biturgies territory. Before responding to this new threat, Vercingetorix called a war council, telling the other leaders that the Romans must be kept from getting provisions. Since it was winter, foraged provisions were hard to come by and the Romans would have to leave. Vercingetorix suggested a scorched-earth policy. If a property lacked a good defense it would be burned. In this way, they destroyed 20 of their own Biturgies towns. The Biturgies begged that Vercingetorix not burn their noblest city, Avaricum. He relented, reluctantly. Vercingetorix then set up camp 15 miles from Avaricum and whenever Caesars men went foraging at a distance, some of Vercingetorix men attacked them. Caesar meanwhile built towers but could not build a wall around the city, as he would have wished, because it was enclosed by rivers and marshes. Caesar besieged the town for 27 days building towers and walls while the Gauls built countering devices. The Romans finally had success with a sudden attack, which frightened many of the Gauls into flight. And so, the Romans entered the town and massacred the inhabitants. About 800 in Caesars reckoning escaped to reach Vercingetorix. Caesars troops found ample provisions, and by this time winter was almost over. Vercingetorix was able to calm the other leaders despite all the recent disasters. Especially in the case of Avaricum, He could say the Romans didnt defeat them by valor but by a new technique the Gauls hadnt seen before, and besides, he might have said, he had wanted to torch Avaricum but had only left it standing because of the pleas of the Biturgies. The allies were appeased and supplied Vercingetorix with replacement troops for those he had lost. He even added allies to his roster, including Teutomarus, the son of Ollovicon, the king of the Nitiobriges, who was a friend of Rome on the basis of a formal treaty (amicitia). Aeduan Revolt The Aedui, Romes allies, came to Caesar with their political problem: their tribe was led by a king who held power for a year, but this year there were two contenders, Cotus and Convitolitanis. Caesar was afraid that if he didnt arbitrate, one side would turn to Vercingetorix for support of its cause, so he stepped in. Caesar decided against Cotus and in favor of Convitolitanis. He then asked the Aedui to send him all their cavalry plus 10,000 infantry. Caesar split his army and gave Labienus 4 legions to lead north, towards the Senones and Parisii while he led 6 legions into Arverni country towards Gergovia, which was on the banks of the Allier. Vercingetorix broke down all bridges over the river, but this proved only a temporary set-back for the Romans. The two armies pitched their camps on opposite banks and Caesar rebuilds a bridge. Caesars men headed to Gergovia. Meanwhile, Convictolitanis, the man Caesar had chosen to be king of the Aedui, treacherously conferred with the Arverni, who told him that the Aeduans holding out was preventing the allied Gauls from being victorious against the Romans. By this time the Gauls realized their freedom was at stake and having the Romans around to arbitrate and help them against other invaders meant the loss of freedom and heavy demands in terms of soldiers and supplies. Between such arguments and bribes made to the Aedui by the allies of Vercingetorix, the Aedui were convinced. One of those in on the discussion was Litavicus, who was put in charge of the infantry being sent to Caesar. He headed towards Gergovia, providing protection for some Roman citizens on the way. When they were near Gergovia, Litavicus riled up his troops against the Romans. He falsely claimed the Romans had killed some of their favorite leaders. His men then tortured and killed the Romans under their protection. Some rode off to th e other Aeduan towns to convince them to resist and avenge themselves on the Romans, as well. Not all Aeduans agreed. One in the company of Caesar learned of Litavicus actions and told Caesar. Caesar then took some of his men with him and rode to the army of the Aedui and presented to them those very men they thought the Romans had killed. The army lay down its arms and submitted themselves. Caesar spared them and marched back towards Gergovia. Gergovia When Caesar finally reached Gergovia, he surprised the inhabitants. At first, all was going well for the Romans in the conflict, but then fresh Gallic troops arrived. Many of Caesars troops did not hear when he called for a retreat. Instead, they continued to fight and try to plunder the city. Many were killed but they still did not stop. Finally, ending the days engagement, Vercingetorix, as the victor, called off the fight for the day when new Roman legions arrived. Adrian Goldsworthy says an estimated 700 Roman soldiers and 46 centurions were killed. Caesar dismissed two important Aeduans, Viridomarus and Eporedorix, who went to the Aeduan town of Noviodunum on the Loire, where they learned that further negotiations were being made between the Aeduans and the Arvernians. They burned the town so the Romans couldnt feed themselves from it and began to build up armed garrisons around the river. When Caesar heard of these developments he thought he should put down the revolt quickly before the armed force grew too large. This he did, and after his troops had surprised the Aeduans, they took the food and cattle they found in the fields and then marched off to the territory of the Senones. Meanwhile, other Gallic tribes heard of the revolt of the Aedui. Caesars very competent legate, Labienus, found himself surrounded by two newly rebelling groups and so needed to move out his troops by stealth. The Gauls under Camulogenus were tricked by his maneuvers and then defeated in a battle where Camulogenus was slain. Labienus then led his men to join Caesar. Meanwhile, Vercingetorix had thousands of cavalry from the Aedui and Segusiani. He sent other troops against the Helvii whom he defeated while he led his mena and allies against the Allobroges. To deal with Vercingetorix attack against the Allobroges, Caesar sent for cavalry and light-armed infantry help from the Germanic tribes beyond the Rhine. Vercingetorix decided the time was right to attack the Roman forces whom he judged to be inadequate in number, as well as encumbered with their baggage. The Arverni and allies divided into three groups to attack. Caesar divided his troops in three, too, and fought back, with the Germans obtaining a hilltop formerly in Arverni possession. The Germans pursued the Gallic enemy to the river where Vercingetorix was stationed with his infantry. When the Germans started to kill the Averni, they fled. Many of Caesars enemies were slaughtered, Vercingetorix cavalry was routed, and some of the tribal leaders were captured. Alesia Vercingetorix then led his army to Alesia. Caesar followed, killing those he could. When they reached Alesia, the Romans surrounded the hilltop city. Vercingetorix sent out mounted troops to go to their tribes to round up all those old enough to bear arms. They were able to ride through the places where the Romans hadnt yet completed their fortification. The fortifications were not just a means to contain those within. The Romans put torturous devices on the outside that could injure an army pressing against it. The Romans needed some to gather timber and food. Others worked on building the fortifications, which meant Caesars troop strength was diminished. Because of this, there were skirmishes, although Vercingetorix was waiting for Gallic allies to join him before a full-fledged fight against Caesars army. The Arvernian allies sent fewer than asked, but still, a great number of troops, to Alesia where they believed the Romans would easily be defeated by the Gallic troops on two fronts, from within Alesia and from those newly arriving. The Romans and Germans stationed themselves both inside their fortifications to fight those in the city and outside to fight the newly arriving army. The Gauls from outside attacked at night by throwing things from a distance and alerting Vercingetorix to their presence. The next day the allies came closer and many were injured on the Roman fortifications, so they withdrew. The next day, the Gauls attacked from both sides. A few Roman cohorts left the fortifications and circled round to the rear of the outer enemy whom they surprised and slaughtered when they tried to flee. Vercingetorix saw what had happened and gave up, surrendering himself and his weapons. Later Vercingetorix would be displayed as a prize in Caesars triumph of 46 B.C. Caesar, generous to the Aedui and Arverni, distributed Gallic captives so that every soldier throughout the army received one as plunder. Source: The Gallic Menace in Caesars Propaganda, by Jane F. Gardner Greece Rome  © 1983.

Position review Essay Example | Topics and Well Written Essays - 250 words - 1

Position review - Essay Example from advocating fully for their children`s rights, thus there is need to educate them.3)a)in paragraph three, inability of the parents of children with disabilities to understand terminologies has been brought out clearly. Teachers, therapists, health professionals, and even child advocates who provide services to these children often use terminologies and specialized language and forget that the parents cannot understand them including the most astute. b) In paragraph three, the writer states that even the most astute parents cannot understand the acronyms used by the professionals. Therefore the parents fail to understand them due to lack of knowledge and they feel embarrassed about that (Wilmshurst and Alan 241). c) In paragraph five, the writer makes appeals that include the use of simple language that the parents can easily understand and also parents accessing websites that can assist in understanding the various acronyms used in special education.4) the passage is more persuas ive in paragraph five, where the writer comes up with ways in which the problem could be solved where special educators can be made aware of the problem and then they communicate with the parents in manner that they are likely to understand. Parents are also encouraged to access websites that can assist them in understanding the various terminologies used (Wilmshurst and Alan 208).5) The writer has created an active voice. The use of active voice is appropriate as it tries to enlighten the problems the parents of children with disabilities face and what can be done to assist them by the special educators.by use of active voice the writer creates adequate ethos.6) The writer makes use of pathos by highlighting the problems the parents of children with disabilities go through while trying to understand special educators, who use acronyms that can hardly be understood by the parents.7)There is need for parents of children with disabilities to learn special education as it is unique and has

A Critical Assessment of an Agency or Funding Regime that promotes Essay - 1

A Critical Assessment of an Agency or Funding Regime that promotes physical regeneration - Essay Example ese agencies and their functioning toward the uplift of the regional economy, it would be interesting to study and understand what urban regeneration is all about and how it evolved. Urban areas are essentially dynamic in nature. Socio-economic factors, environmental and physical factors all interplay and interact together to generate changes in their structures. Moreover, an urban area experiences thrusts from outside which necessitates adaptation to changes while internal dynamics and pressure try to withstand such changes or accept those resulting in either prosperity or decline. Though each problem may not be unique to a specific rural area, yet each challenge requires a distinctive approach towards the generation and implementation of its solution. Since the beginning, urban areas have always performed a variety of functions, offering shelter, providing infrastructure and opportunities for trade and commerce and opportunities for social interaction, being a few of those. As time passed, the importance of each need changed necessitating the requirement for new infrastructure, more space, more facilities for business etc. These changes in the physical structure and functioning of a town and its social life are inevitable since the town has to reorganise itself to meet the changing demands. These changes are also beneficial in a somewhat indirect way since these changes also make fresh demands for improvement of infrastructure and facilities so that the community within an urban area is forced to adjust itself to the new demands and work towards providing better opportunities for growth and progress. The relation between social deprivation and meagre physical infrastructure and facilities had long been an accepted fact and legislations and policies were implemented for improved infrastructure for health and better living conditions. It was gradually realised that merely improving health and living conditions will not contribute significantly towards the