Is fundamental analysis redundant Essay

Introduction Shortly after the stock market crash in 1929, as the first batch of financial experts in the Great Wall, Benjamin Graham and David Dodd firstly mentioned the concept in a book called security analysis: Based on public information that intelligent investors are able to analyse securities and determine whether the current price of stocks and bonds is over or below their intrinsic value. The Critical thinking and strong logic make this theory become the foundation of nearly all investments theories in Wall Street. Warren Buffett, John Neff, Peter Lynch and other famous investors become the  best practitioners in fundamental analysis. This essay will firstly introduce the related theories of fundamental analysis. Secondly, the essay will explain free cash flow model to equity valuation and the qualitative and quantitative factors of fundamental analysis. Thirdly, choosing a particular company analyses the relationships between the leading financial ratios and its stock price. Finally, indicating why financial ratios and free cash flow model cannot explain Berkshire Hathaway cooperation’s stock price changed during global financial crisis. Theory Aasuumption & Metholody Theory Fundamental analysis which is based on analyzing the intrinsic value of securities, focuses on factors affecting the stock price and its trend and lets investors determine what type of securities they choose to buy and when to buy. (Lee and Swaminathan 1999, 8 )The basic assumption of fundamental analysis is that value investors believe that the market price is determined by its intrinsic value and the stock price can reflect its intrinsic value in the long term. Cash flow model Fundamental analysts use cash flow model, dividend model to roughly estimate a company’s intrinsic value. They assume that the stock price of the intrinsic value is its present value of the stream of expected cash flows and the selected reference values are based on generating the cash flow data. For example, using free cash flow model to measure intrinsic value, investors firstly assume the observed company can increase at constant rate and then choose the reference value based on a constant growth rate (g)to estimate free cash flow the next 10 years. Secondly, they calculate the present value of the 10-year cash flow based on the constantly discounted rate (k). Secondly, they estimate the terminal value P10=free cash flow*(1+g)/(k-g) and calculate its present value. Thirdly, they get the present value of the company and calculate pre- share value: equity value/numbers of shares. Rational investors can make well-informed investment decisions according to the relationship betw een market price and intrinsic value. Qualitative factors On the company level, fundamental analysis focused on two factors: qualitative and quantitative. Qualitative and quantitative analyses have a dialectical relationship. Both analyses should join together to analysis and inspect on a particular company. Although qualitative analysis is used for physical areas, with the usage to tackle non-financial information, it can be widely useful in business and finance fields.(kesh and Raja 2005, 167) The qualitative analysis of the company level is concerned with products and services, competitive advantage, management efficiency, corporate culture. Advanced products can get increasing cash inflows and improve company value (Carter and Demissew 2008, 63) because booming demand for products and services can lead to a high reinvestment rate of the company, this creates additional wealth.( Madden 2007, 125) Competitive advantage can includes producing capacity and the efficiency of a company’s design and cost controlling better than the industry’s competitors. Generating a competitive advantage for a company will creates stakeholder value. (Vilanova, Lozano and Arenas 2009, 63) The improvement of management efficiency can lower operating costs and company culture can enhance corporate image, leading to improvement of company value. Quantitative factors The quantitative factors in fundamental analysis are based on a deep understanding of financial reports which is the process of identifying opportunities and threats from the company, so investors must be concerned with the balance sheet, cash flow statement and income statement analysis. Financial statements consist of all important historical information about the company’s operation management during a specific time period (quarterly, annually). All these information provide an overview of a company’s business activities and can help managers assess the company’s wellbeing. (Dayanandan 2010, 116) Financial statement Different users are interested in different areas of the financial statements. For example, investors and equity holders are concerned with  expected earnings and dividends of the observed companies. Company’s executives usually focus on the company’s capacity. Therefore, based on historical reports, different users can get valuable information about what they concentrate on. Financial statement analysis includes selected data from financial statements to predict the company’s financial health.( Hagos and Pal 2010, 441) Applying these data from financial reports, such as profitability ratio, liquidity ratio, management efficiency ratio, debt ratio, market performance ratio analyses year by year to determine whether to buy or sell observed companies. Based on analyzing financial statements, financial analysts are able to use profitability ratio, including gross margin, ROE to indicate how efficiently revenue is generated. The liquidity ratio such as current ratio, net working capital can be used to prove the firm’s ability to generate sufficient liquidity when needed and to meet short term obligations. For example, current ratio is an indicator as a rate of current assets to current liabilities. It measures the liquidity status of a company. With a higher current ratio over time, this company will be able to meet its current obligations and experience less financial risk.( Zaki, Bah and Rao 2011, 315) Table1 Sourced by Berkshire Year ROE Total asset turnover Debt/equity P/E P/B closed Price 2003 0.105 0.588 1.32 12.7 1.34 $84280 2004 0.085 0.394 1.20 18.8 1.6 $87900 2005 0.093 0.412 1.16 15.5 1.45 $88620 2006 0.102 0.397 1.27 12.5 1.27 $109990 Table 1 above shows the some figures provided by Berkshire corporation’s annual report from 2003 to 2006. During this period, the stock price has a significant increase from $67600 in Jan 2rd, 2003 to $109990 in Dec 1st, 2006. And from 2003 to 2006, Berkshire Hathaway Inc’s net worth is $13.6billion, $8.3billion, $5.6billion and 16.9billion respectively. Graph1: Berkshire Hathaway(BRK) Inc’s stock price between 2003 and 2006 Sourced by yahoo finance The increase of Net worth can indicate the stock price’s change during this period. The gain in net worth during 2003 was $13.6billion, which increased the per-share book value of its stock by 21% from $41727 to $50498. Because of good quarterly reports and an annual report, the stock price reflected the company’s performance, rising from $67600 to $89490. However, between 2004 and 2005, the gain in net worth increased $8.3billion and $5.6billion. Although in 2004 Berkshire’s book-value gain of 10.5% fell short of the index’s 10.9% return, the net worth fell from $13.6billion to $8.3billion, leading to fluctuation of the stock price during 2004. In 2005, the net worth fell to $5.6 billion because hurricane caused loss worth of $34billion. And in the stock market, the price fluctuated and even slightly increased. However, the price reflected the company’s performance. As a multi-business company, its main business-insurance company called GEICO improved its management efficiency at nearly 32% and warranty numbers increased by 26%. On the other hand, insurance float of BRK’s insurance company increased from 46 billion to 49 billion. Due to the capital cost rate of mostly 0% and improving competitiveness, its stock price rose sharply. Financial ratios (price to book ratio and earnings per share ratio) measure share price compared to earnings, book value per share and indicate whether the market overvalues, undervalues and appropriately values the firm’ shares. Managers use to assess investors’ perceptions of future prospects. Some investors invest in stock market based on analyzing financial statements. Table2 Table2 shows mainly the relationship between the book value and stock price. Financial analysts are willing to use book value to measure the stock price. From the table 2 above, the book value of the Berkshire Hathaway increases from $14426 in 1995to $70281 in 2006 and the company’s stock movements, rising from $31900 in 1995 to $110050 in 2006. In addition to particular years, these two charts reflect clearly whether a short term or a long term, the trend of the book value and stock price is roughly the same. In the long term, the growth rate of the net worth is a useful indicator to justify intrinsic value. From 1995 to 2006, the net worth of Berkshire Hathaway’s  net worth increased from $5.3billion to $16.9billion, more than 3.18 times growth during the period. Stock price had increased 3.44 times with book value 4.87 times. Although 1n 1999, the net worth fell to 0.358billion, in the long term, this company still had a significant increase in its stock market per formance. Analysts also can apply activity ratios such as total asset turnover ratio and average payment ratio period to measure management effectiveness in managing its assets and to determine whether the investment in particular asset categories is too high or too low and also find out the efficiency or speed in converting accounts to sales or cash. (Dayanandan 2010, 114)Debt ratios such as debt to equity ratio and debt ratio can indicate financial leverage and the apparent financial risk assumed by the firm’s equity holders. Application Dow Jones Graph2 Dow Jones industrial index Sourced by yahoo finance Graph2 shows the change of Dow Jones industrial index before, during and after global financial crisis. The global financial crisis started in 2007 because the burst of housing bubble caused credit crisis especially in the debt markets.( McCarthy, Solomonand Mihalekl 2012, 1277 ) the stock market highly violated between 2007 and 2009. For example, in United States, the stock market increased to the peak in October 2007 with the Dow Jones Industrial Average about 14,000. After that duration, the Dow Jones dropped sharply from 12,000 in August 2008 to 6,600 in March 2009. After 2009, there is significant increase until now, rising to 14,929. Company- Berkshire Hatchaways Berkshire’s core business for insurance business includes the property casualty reinsurance and special class insurance company. For the past 25 years, this company has increasingly strong capital and little debt, for shareholders to create the value of more than 25% growth on average every  year. Table 3 shows analysis ratios and stock price from 2006 to 2012. Table3 Year ROE Total asset turnover Debt/equity P/E P/B closed Price 2006 0.102 0.40 1.27 12.5 1.27 $109990 2007 0.109 0.43 1.24 13.8 1.51 $141600 2008 0.046 0.40 1.41 38.16 1.71 $96600 2009 0.059 0.38 1.19 18.1 1.11 $99200 2010 0.08 0.37 1.29 14.9 1.24 $120450 2011 0.06 0.37 1.32 19 1.18 $114755 2012 0.077 0.38 1.23 14 1.1 $133000 Sourced by Berkshire Graph3 Berkshire’s stock price between 2006 and 2012 Sourced by yahoo finance The gain in net worth during 2006 was $13.6billion, which increased the per-share book value of its stock by 18.4% to $109990. In 2007, the net worth is 12.3billion, which increased the per-share book value of its stock by 11% to $141600. However, in 2008, the stock price fell to $96600, and then there is an increasing trend from 2009 to 2012. Total assets turnover ratio Total assets turnover ratio measures the management efficiency of the firm in managing its total assets to generate sales. A high ratio suggests greater efficiency. Figures shown in table3, the total assets turnover ratio during global crisis had slight change between 0.37 and 0.40. However, the stock price changed sharply, so the stock price can not reflect the stability of this ratio. ROE indicates the rate of return realized by a firm’s shareholders on their investments and uses as an indicator for the company’s operation. Return on equity (ROE) Return on equity (ROE) is the best indicator to learn how much money a company is making for its investors and measurement of the company’s operations. (Dayanandan 2010, 117) However, ROE is also sensitive to leverage. Assuming that proceeds from debt financing can be invested at a return greater than the borrowing rate, ROE will increase with greater amounts of leverage. From 2007 to 2008, the debt to equity ratio increased by 13.7%, from 1.24 to 1.41. However, ROE rate fell sharply from 10.9% to 4.6%. Although ROE overreact to debt change, Berkshire’s fundamental did not change in 2008. Most of Berkshire’s business is affected by the economic significant downward in 2009. However, its manufacturing services and retail generated a lot of cash flow and continued to consolidate their market competitive advantage. Berkshire’s two most important businesses: business insurance and utilities also had a good growth rate. These businesses produced a large amount of business profits in 2008. P/E ratio P/E ratio is a common approach used by security analysts. In practice, investors usually use expected P/E ratio for the following year and analyse whether the stock price is overvalued or undervalued on the basis. P/E ratio indicates that a stock of its P/E rate over 30 is more likely to be overpriced. The P/E ratio in 2007 and 2008 is 13.8 and 38 respectively and the stock price during the period time of 2007 and 2008 is $141600 and $96600. The change of stock price is overreact to the pre-share earnings. P/B ratio P/B ratio gives some idea of whether an investor is paying too much for what would be left if the company went bankrupt immediately. From 2006 to 2009, P/B ratio increased or decreased had no direct correspondence with the stock price. However, to most companies, the book value is always lower than the stock price. Because most companies have intangible assets such as brand name, specialized skillsï ¼Å'product pricing power. These factors can not reflect in the balance sheet, but the long term trend of the market value is similar with book value. It seems that when P/B ratio increases, the gap between book value and stock price increases. On the other hand, the gap shows investors are willing to hold the stock due to its intangible assets. Cash flow model All these financial ratios cannot explain what happened in 2008 and using cash flow model to estimate the stock price also cannot explain this situation. Because investors assume the company can increase at constant rate. Although they use long-term GDP growth rate to reduce the risk of assessing value, this growth rate cannot explain and predict what happened during the investing period. They also use CAPM to measure discounted rate given by the risk-free interest rate plus a risk premium. The formula is ki=Rf+(Rm-Rf)ÃŽ ²i. However, ÃŽ ²sometimes cannot estimate risk between the market and stock. For example, a company’s market value increases from 10billion t0 20billion is less than market value of the company from 10billion to 3billion. If the company still operate well, from the market side, the risk of buying a company of the market value of 20billion is less than buying the same company of its market value of 3billion. Conclusion Therefore, during global financial crisis, fundamental analysis was useless. It is clear that during some periods the stock price is overvalued or undervalued significantly from its intrinsic value, leading to highly volatility of market price. Any market volatility is considered as irrational performances, so these market valuations caused by behavioral finance which do not have impacts on the company’s assets valuations and  operations. (Adams, Armitage and FitzGerald 2012, 157). In the long term, the trend of the stock price is similar to the trend of its intrinsic value. On the other hand, in the short term, market price is influenced and fluctuated by political, economic, psychological factors, so market price is always undervalued or overvalued, but it is fluctuating around the intrinsic value. Some research show that sometimes earnings information cannot react to the stock market simultaneously and all the public financial information pose a gradual influence on the stock market for a while. During global financial crisis, the stock price sharply fluctuated because of financial behavior. Debt crisis caused by housing loan had a significant impact on people’s confidence. Trader’s low confidence let them make decisions irrationally. Reference list 1. Lee, C.M.C. and Swaminathan, B. 1999. â€Å"Valuing the Dow: A bottom-up approach.† Financial Analysts Journal 55 (5): 4-23. 2. Kesh, Someswar. and Raja, M. K. 2005. â€Å"Development of a qualitative reasoning model for financial forecasting.† Information Management & Computer Security 13 (2): 167-179. 3. Carter, T. and Demissew, D.E. 2008. â€Å"Value innovation management and discounted cash flow.† Management Decision 46(1): 58-76. 4. Madden, B.J. 2007. â€Å"Guidepost to Wealth Creation: Value-Relevant Track Records.† Journal of Applied Finance 17 (2): 119-130. 5. Vilanova, M., Lozano, J.M. and Arenas, D. 2009. â€Å"Exploring the Nature of the Relationship Between CSR and Competitiveness.†Journal of Business Ethics 87: 57-69. 6. Dayanandan, R. 2010. â€Å"Working Capital Management for Sustainable Cooperatives.† Global Business and Management Research 2(1): 102-124. 7. Hagos, T.M. and Pal, G. 2010. â€Å"The means of analysis and evaluation for corporate performances. â€Å"Annales Universitatis Apulensis : Series Oeconomica 12 (1): 438-449. 8. Zaki, E., Bah, R. and Rao, A. 2011. â€Å"Assessing probabilities of financial distress of banks in UAE.† International Journal of Managerial Finance 7 (3): 304-320. 9. McCarthy, Mary., Solomon, P., and Mihalek, Paul. 2012. â€Å"Financial Crisis During 2007 And 2008: Efficient Markets Or Human Behavior?† Journal of Applied Business Research 28 (6): 1275-1281. 10. Adams, A., Armitage, S. and FitzGerald, A. 2012. â€Å"An analysis of stock market volatility.† Annals of Actuarial Science 6ï ¼Ë†1ï ¼â€°Ã¯ ¼Å¡153-170.

Banning On Cloning Is Unjust essays

Banning On Cloning Is Unjust essays On February 24, 1997, the world was shocked and fascinated by the announcement of Ian Wilmut and his colleagues. A press release stated that they had successfully cloned a sheep from a single cell of an adult sheep. Since then, cloning has become one of the most controversial and widely discussed topics. The issue that gets the greatest focus is human cloning, and there has been an onslaught of protests and people lobbying for a ban on it. However, there is a real danger that prohibitions on cloning will open the door to inappropriate restrictions on accepted medical and genetic practices. Therefore, the banning of cloning is unjust. The most popular objection to human cloning is the assumption that science would be playing God if it were to create human clones. This argument refuses to accept the advantage of biological processes and to view the changes of the world. Religious objections were once raised at the prospects of autopsies, anesthesia, artificial insemination, organ transplants, and other acts that seemed to be tampering with divine will. Yet enormous benefits have been gathered by each of these innovations, and they have become a part of human ¡s daily life. The issue of playing God has already arisen when a doctor selects a patient on a waiting list for transplant and leaves others to die, and when the doctor puts their patient under life support whenever they are in coma or they are near death. The moral issue of cloning is similar to the past issue faced by the society such as nuclear energy, recombinant DNA, and the computer encryption. There have always been religious and moral objections to new technologies and changes merely because they are different and unknown to humans. The public not only worries about science playing God, but also fears that the cloned child ¡s autonomy and individuality will be reduced because it will have the same DNA as another person. One of the more eloquently stated fears about the ...

Analysis of Tenth of December by George Saunders

Analysis of Tenth of December by George Saunders George Saunders deeply moving story Tenth of December originally appeared in the October 31, 2011, issue of The New Yorker. It was later included in his well-received 2013 collection, Tenth of December, which was a bestseller and a National Book Award finalist. Tenth of December is one of the freshest and most compelling contemporary stories, yet we find it almost impossible to talk about the story and its meaning without making it sound trite (something along the lines of, A boy helps a suicidal man find the will to live, or, A suicidal man learns to appreciate the beauty of life). We have to chalk this up to Saunders ability to present familiar themes (yes, the little things in life are beautiful, and no, life isnt always neat and clean) as if were seeing them for the first time. If you havent read Tenth of December, do yourself a favor and read it now. Below are some of the features of the story that particularly stand out; perhaps theyll resonate for you, too. Dreamlike Narrative The story shifts constantly from the real to the ideal, to the imagined, to the remembered. Like the 11-year-old protagonist of Flannery OConnors The Turkey, the boy in Saunders story, Robin, walks through the woods imagining himself a hero. He trudges through the woods tracking imaginary creatures called Nethers, who have kidnapped his alluring classmate, Suzanne Bledsoe. Reality merges seamlessly with Robins pretend world as he glances at a thermometer reading 10 degrees (That made it real) and also as he begins to follow actual human footprints while still pretending that hes tracking a Nether. When he finds a winter coat and decides to follow the footsteps so he can return it to its owner, he recognizes that [i]t was a rescue. A real rescue, at last, sort of. Don Eber, the terminally ill 53-year-old man in the story, also holds conversations in his head. He is pursuing his own imagined heroics- in this case, going into the wilderness to freeze to death in order to spare his wife and children the suffering of caring for him as his illness progresses. His own conflicted feelings about his plan come out in the form of imagined conversations with adult figures from his childhood and finally, in the grateful dialogue, he imagines between his surviving children when they realize how selfless hes been. He considers all the dreams hell never achieve (such as delivering his major national speech on compassion), which seems not so different from fighting Nethers and saving Suzanne- these fantasies seem unlikely to happen even if Eber lives another 100 years. The effect of the movement between real and imagined is dreamlike and surreal- an effect that is only heightened in the frozen landscape, especially when Eber enters the hallucinations of hypothermia. Reality Wins Even from the beginning, Robins fantasies cant make a clean break from reality. He imagines the Nethers will torture him but only in ways he could actually take. He imagines that Suzanne will invite him to her pool, telling him, Its cool if you swim with your shirt on. By the time he has survived a near drowning and a near freezing, Robin is solidly grounded in reality.  He starts to imagine what Suzanne might say, then stops himself, thinking, Ugh. That was done, that was stupid, talking in your head to some girl who in real life called you Roger. Eber, too, is pursuing an unrealistic fantasy that he will eventually have to give up. Terminal illness transformed his own kind stepfather into a brutal creature he thinks of only as THAT. Eber- already tangled in his own deteriorating ability to find accurate words- is determined to avoid a similar fate. He thinks: Then it would be done. He would have preempted all future debasement. All his fears about the coming months would be mute. Moot.   But this incredible opportunity to end things with dignity is interrupted when he sees Robin moving dangerously across the ice carrying his- Ebers- coat. Eber greets this revelation with a perfectly prosaic, Oh, for shitsake. His fantasy of an ideal, poetic passing wont come to be, a fact readers might have guessed when he landed on mute rather than moot. Interdependence and Integration The rescues in this story are beautifully intertwined. Eber rescues Robin from the cold (if not from the actual pond), but Robin would never have fallen into the pond in the first place if he hadnt tried to rescue Eber by taking his coat to him. Robin, in turn, saves Eber from the cold by sending his mother to go get him. But Robin has already saved Eber from suicide by falling into the pond. The immediate need to save Robin forces Eber into the present. And being in the present seems to help integrate Ebers various selves, past and present. Saunders writes: Suddenly he was not purely the dying guy who woke nights in the med-bed thinking, Make this not true make this not true, but again, partly, the guy who used to put bananas in the freezer, then crack them on the counter and pour chocolate over the broken chunks, the guy who’d once stood outside a classroom window in a rainstorm to see how Jodi was faring. Eventually, Eber begins to see the illness (and its inevitable indignities) not as negating his previous self but simply as being one part of who he is. Likewise, he rejects the impulse to hide his suicide attempt (and its revelation of his fear) from his children, because it, too, is part of who he is. As he integrates his vision of himself, he is able to integrate his gentle, loving stepfather with the vitriolic brute he became in the end. Remembering the generous way his desperately ill stepfather listened attentively to Ebers presentation on manatees, Eber sees that there are drops of goodness to be had even in the worst situations. Though he and his wife are in unfamiliar territory, stumbling a bit on a swell in the floor of this stranger’s house, they are together.

Summary and Analysis of Platos Euthyphro

Summary and Analysis of Plato's 'Euthyphro' The Euthyphro is one of Platos most interesting and important early dialogues. Its focus is on the question: What is piety?  Euthyphro, a priest of sorts, claims to know the answer, but Socrates shoots down each definition he proposes. After five failed attempts to define piety Euthyphro hurries off leaving the question unanswered. The Dramatic Context It is 399 BCE.  Socrates and Euthyphro meet by chance outside the court in Athens where Socrates is about to be tried on charges of corrupting the youth and impiety (or more specifically, not believing in the citys gods and introducing false gods). At his trial, as all of Platos readers would know,  Socrates was found guilty and condemned to death. This circumstance casts a shadow over the discussion.  For as Socrates says, the  question hes asking on this occasion is  hardly  a  trivial, abstract issue that doesnt concern him.  As it will turn it will turn out, his life is on the line. Euthyphro is there  because he is prosecuting his father for murder. One of  their servants had killed a slave, and Euthyphros father had tied the servant  up and left him in a ditch while he sought advice about what to do.  When he returned, the servant had died.  Ã‚  Most people would consider it impious for a son to bring charges against his father, but Euthyphro claims to know better.  He was probably a kind of priest in a somewhat unorthodox religious sect.  His purpose in prosecuting his father is not to get him punished but to cleanse the household of blood guilt.  This is the kind of thing he understands, and the ordinary Athenian does not. The Concept of Piety The English tern piety or the pious translates the Greek word hosion.  This word might also be translated as holiness or religious correctness.  Piety has two senses: A narrow sense: knowing and doing what is correct in religious rituals. For example, knowing what prayers should be said on any specific occasion, or knowing how to perform a sacrifice.A broad sense: righteousness; being a good person. Euthyphro begins with the first, narrower sense of piety in mind.  But Socrates, true to his general outlook, tends to stress the broader sense.  He  is less interested in correct ritual than in living morally. (Jesus attitude toward Judaism is rather similar.)   Euthyphros 5 Definitions Socrates says, tongue in cheek, as usual, that hes delighted to find someone whos an expert on piety.  Just what he needs in his present situation. So he asks Euthyphro to explain to him what piety is.  Euthyphro tries to do this five times, and each time Socrates argues that the definition is inadequate. 1st Definition: Piety is what is Euthyphro is doing now, namely prosecuting wrongdoers. Impiety is failing to do this. Socrates Objection:  Thats just an example of piety, not a general definition of the concept. 2nd Definition:  Piety is what is loved by the gods (dear to the gods in some translations). Impiety is what is hated by the gods. Socrates Objection:  According to Euthyphro, the gods sometimes disagree among themselves about questions of justice.  So some things are loved by some gods and hated by others.  On this definition, these things will be both pious and impious, which makes no sense. 3rd Definition: Piety is what is loved by all the gods. Impiety is what all the gods hate. Socrates Objection:  The argument Socrates uses to criticize this definition is the heart of the dialogue. His criticism is subtle but powerful.  He poses this question: Do the gods love piety because it is pious, or is it pious because the gods love it?  To grasp the point of the question, consider this analogous question:  Is  a film funny because people laugh at it, do people laugh at it because its funny?  If we say its funny because people laugh at it, were saying something rather strange. Were saying that the film only has the property of being funny because certain people have a certain attitude towards it.  But Socrates argues that this gets things the wrong way round.  People laugh at a film because it has a certain intrinsic property, the  property of being funny.  This is what makes them laugh. Similarly, things arent pious because the gods view them in a certain way.  Rather, the gods love pious actions such as helping a stranger in need, because such actions have a certain intrinsic property, the property of being pious. 4th definition: Piety is that part of justice concerned with caring for the gods. Socrates Objection: The notion of care involved here is unclear. It cant be the sort of care a dog owner gives to its dog since that aims at improving the dog, but we cant improve the gods. If its like the care a slave gives his master, it must aim at some definite shared goal.  But Euthyphro cant say what that goal is. 5th Definition: Piety is saying and doing what is pleasing to the gods at prayer and sacrifice.   Socrates Objection: When pressed, this definition turns out to be just the third definition in disguise. After Socrates shows how this is so, Euthyphro says in effect, Oh dear, is that the time?  Sorry, Socrates, I have to go. General Points About the Dialogue The Euthyphro  is typical of Platos early dialogues: short; concerned with defining an ethical concept; ending without a definition being agreed upon. The question: Do the gods love piety because it is pious, or is it pious because the gods love it? is one of the great questions posed in the history of philosophy.  It suggests a distinction between an essentialist perspective and a conventionalist  perspective.  Essentialists apply labels to things because they possess certain essential qualities which make them what they are.  The conventionalist view is that how we regard things determines what they are.  Consider this question, for instance: Are works of art in museums because they are works of art, or  do we call them works of art because they are in museums?   Essentialists assert the first position, conventionalists the second. Although Socrates generally gets the better of Euthyphro, some of what Euthyphro says makes a certain amount of sense.  For instance, when asked what human beings  can give  the gods, he replies that we give them honor, reverence, and gratitude.  The British philosopher Peter Geach has argued that this is a pretty good answer.

A Dogs Tale - How to Train a Lonely Master Essay

A Dogs Tale - How to Train a Lonely Master - Essay Example Mon seems really great. He is responsible and hard working. But he does not know how to have a life. He does care to have a happy break from his busy hours. I can even say that staying with him for a week seems lonelier than staying in the pound. He does not care about me. He does not even take care of himself. Yes, he feeds and bathes me. But he does not walk me at the park. He does not go out unless he needs to buy food and the other needs. My master needs me. I suddenly barked and barked while he was working. He turned around and shoo me away. He was definitely annoyed at what I was doing. But then again, I need to get his attention. I need to help him. I continued to bark and he stopped working. He turned away from the table and he went to the kitchen to find food. He fed me but I did not touch the food. He really seemed confused. I think he is trying to understand why I barked and not eat when fed. I moved closer to him. He looked at me and mumbled words I cannot understand. I b arked and then I rolled over. He smiled. I think he understood what I wanted him to do. He grabbed a ball and threw it. I ran, picked the ball and ran back to him. He smiled again. We played for few minutes and then I went to the kitchen to eat. He went back to his work too. I was happy that he understood me and he seemed happy playing with me. Every day, I do this to him and he responds quicker than the first time. When I roll over the floor, he already knew what to do. I am happy he is learning. Every day, Mon cleans his car. Every time he does this, I go with him. When I know he is almost done, I bark again and I move closer to the pail of water. He is trying to figure out what I was trying to do. He tried to give me water but I did not move closer, rather I barked again. He then poured the water on me. I stayed unmoved. He knew that I wanted to take a bath. I was happy he understood me again. One day, while we were playing outside the house I saw a girl walking her dog.

Treaty of Versailles Essay Example | Topics and Well Written Essays - 750 words

Treaty of Versailles - Essay Example Thus, the Germans came to feel that they were tricked and betrayed into surrendering during a war that they did not believe they were losing. This is the main reason that they hated the treaty. It was drafted and approved without the input of the German people. No consultations were made with Germany. Instead, Germany was forced to accept all of the terms of the treaty under duress. The treaty, which was drafted at the Palace of Versailles by David Lloyd George, Georges Clemenceau, and Woodrow Wilson, known as the Big 3, were the only ones who had the power to decide what the treaty would contain and how Germany would be instructed to respond to it. Lloyd believed that Germany should be treated in such a way that it would serve as a barrier to the rise of communism. Clemenceau, elt that Germany should be prevented from being able to declare another war, which was the view of the French public, who were directly involved in the German-Prussian war. While Wilson, representing the interests of the United States, hoped that the treaty would represent European reconciliation2. While the desires of the big 3 were met, Germany was left to silently seethe and protest the contents of a treaty that it never agreed to. One of the main problems that Germany had with the treaty, was the way that Reparations were listed. Although the word â€Å"guilt† never actually appeared in the treaty, the Germans felt that they were forced to admit guilt under the â€Å"War Guilt Clause†. This caused the country to become open to financial remunerations for their war crimes in the amount of six million six hundred pounds. Germany was also forced to accept total blame for the war 3 In the process, the countries that comprised the whole of Europe was redefined, with Germany suffering from population and land loss in the process.

Definition and Explanation of Closed and Open Economic Systems Essay

Definition and Explanation of Closed and Open Economic Systems - Essay Example ic system are trading of goods and services at international levels and engaging in import and export of goods and services between various countries. Therefore there is no doubt that this leads to inner and outer flows. It may be goods and services in the form of import and export or the flow of resources, such as labor, capital and currency. The flow of labor is in two ways: emigration and immigration. Emigration means the outer flow of people to different countries, whereas immigration is the inner flow of laborers into the country. Capital flow refers to foreign trade investment. Defines and explains leakages in an open system. In the open system, a there is financial model that computes the goods and services exchanged nationally. The leaks in the open system include all transactions of foreign countries.  Ã¢â‚¬Å"In an open system, taxes are included in the model to show government purchases and inject money back in to the economy† (The Mechanics of Open and Closed Syste m, 2012, para. 4).  Ã‚  Funds being lost due to purchases of foreign facilities can also be seen in the open system. Another structure of leakage that can happen is when US industries outsource their capital OR labor to foreign countries. Even though the industry is saving and can currently make extra profits, the cash that is leaked may not be regained later. Define and explain injections in an open system. An injection happens when a foreign or individual company purchases American commodities or facilities. If a foreign industry hires workers belonging to the US, the wages deserved by the employees are measured and injected back into the financial system. Similarly, when the local government produces purchases in America or provides facilities like welfare, the cash is injected back into the... This essay discusses the closed economy, that is the opposite of an open economy. In a closed economic country, that were analyzed in this essay all economic activities are conducted within the boundary of the country. Such an economy is an independent economy, which means the country does not accept imports from other countries and also does not export to foreign countries. The main objective of this type of economy is to make everything available for people within the confines of the economy. Thus, it can be stated that such a country will not engage in any type of trade or have even the slightest of interactions with other countries. However, it can be seen that in the modern times closed economic countries are very rare. For example, China was a closed economy earlier and then transformed into an open economy, when the China Government understood the benefits that come along with being an open economy. Hovewer, the researcher also mentions that Brazil remains one of the most clos ed economies in the world today. Today, an industry aims to give more US jobs in addition to create earnings from selling to foreign countries is the important example of injection. The company â€Å"green† was identified Wind Sail Reception, Inc. is situated in Nevada and has been creating turbines to change wind to power since the year 2002. The industry sells to American energy services and European services. The income created from the European market is measured a cash injection to the economy of the United States.