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The Interstate Highway System is officially known as the 'Dwight D. Eisenhower National System of Interstate and Defense Highways' in his honor. It was inspired in part by Eisenhower's own Army experiences in World War II, where he recognized the advantages of the autobahn systems in Germany, Austria, and Switzerland. Commemorative signs reading "Eisenhower Interstate System" and bearing Eisenhower's permanent 5-star rank insignia were introduced in 1993 and are currently displayed throughout the Interstate System. Several highways are also named for him, including the Eisenhower Expressway (Interstate 290) near Chicago and the Eisenhower Tunnel on Interstate 70 west of Denver.
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At the end of May 1942, Eisenhower accompanied Lt. Gen. Henry H. Arnold, commanding general of the Army Air Forces, to London to assess the effectiveness of the theater commander in England, Maj. Gen. James E. Chaney. He returned to Washington on June 3 with a pessimistic assessment, stating he had an "uneasy feeling" about Chaney and his staff. On June 23, 1942, he returned to London as Commanding General, European Theater of Operations (ETOUSA), based in London and with a house on Coombe, Kingston upon Thames, and replaced Chaney. He was promoted to lieutenant general on July 7.
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Eisenhower began smoking cigarettes at West Point, often two or three packs a day. Eisenhower stated that he "gave [himself] an order" to stop cold turkey in March 1949 while at Columbia. He was probably the first president to release information about his health and medical records while in office. On September 24, 1955, while vacationing in Colorado, he had a serious heart attack that required six weeks' hospitalization, during which time Nixon, Dulles, and Sherman Adams assumed administrative duties and provided communication with the President. He was treated by Dr. Paul Dudley White, a cardiologist with a national reputation, who regularly informed the press of the President's progress. Instead of eliminating him as a candidate for a second term as President, his physician recommended a second term as essential to his recovery.
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After the Japanese attack on Pearl Harbor, Eisenhower was assigned to the General Staff in Washington, where he served until June 1942 with responsibility for creating the major war plans to defeat Japan and Germany. He was appointed Deputy Chief in charge of Pacific Defenses under the Chief of War Plans Division (WPD), General Leonard T. Gerow, and then succeeded Gerow as Chief of the War Plans Division. Next, he was appointed Assistant Chief of Staff in charge of the new Operations Division (which replaced WPD) under Chief of Staff General George C. Marshall, who spotted talent and promoted accordingly.
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In November 1956, Eisenhower forced an end to the combined British, French and Israeli invasion of Egypt in response to the Suez Crisis, receiving praise from Egyptian president Gamal Abdel Nasser. Simultaneously he condemned the brutal Soviet invasion of Hungary in response to the Hungarian Revolution of 1956. He publicly disavowed his allies at the United Nations, and used financial and diplomatic pressure to make them withdraw from Egypt. Eisenhower explicitly defended his strong position against Britain and France in his memoirs, which were published in 1965.
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While President Truman had begun the process of desegregating the Armed Forces in 1948, actual implementation had been slow. Eisenhower made clear his stance in his first State of the Union address in February 1953, saying "I propose to use whatever authority exists in the office of the President to end segregation in the District of Columbia, including the Federal Government, and any segregation in the Armed Forces". When he encountered opposition from the services, he used government control of military spending to force the change through, stating "Wherever Federal Funds are expended ..., I do not see how any American can justify ... a discrimination in the expenditure of those funds".
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Eisenhower attended Abilene High School and graduated with the class of 1909. As a freshman, he injured his knee and developed a leg infection that extended into his groin, and which his doctor diagnosed as life-threatening. The doctor insisted that the leg be amputated but Dwight refused to allow it, and miraculously recovered, though he had to repeat his freshman year. He and brother Edgar both wanted to attend college, though they lacked the funds. They made a pact to take alternate years at college while the other worked to earn the tuitions.
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Eisenhower retired to the place where he and Mamie had spent much of their post-war time, a working farm adjacent to the battlefield at Gettysburg, Pennsylvania, only 70 miles from his ancestral home in Elizabethville, Dauphin County, Pennsylvania. In 1967 the Eisenhowers donated the farm to the National Park Service. In retirement, the former president did not completely retreat from political life; he spoke at the 1964 Republican National Convention and appeared with Barry Goldwater in a Republican campaign commercial from Gettysburg. However, his endorsement came somewhat reluctantly because Goldwater had attacked the former president as "a dime-store New Dealer".
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He assumed duties again at Camp Meade, Maryland, commanding a battalion of tanks, where he remained until 1922. His schooling continued, focused on the nature of the next war and the role of the tank in it. His new expertise in tank warfare was strengthened by a close collaboration with George S. Patton, Sereno E. Brett, and other senior tank leaders. Their leading-edge ideas of speed-oriented offensive tank warfare were strongly discouraged by superiors, who considered the new approach too radical and preferred to continue using tanks in a strictly supportive role for the infantry. Eisenhower was even threatened with court martial for continued publication of these proposed methods of tank deployment, and he relented.
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The last three years of Eisenhower's second term in office were ones of relatively good health. Eventually after leaving the White House, he suffered several additional and ultimately crippling heart attacks. A severe heart attack in August 1965 largely ended his participation in public affairs. In August 1966 he began to show symptoms of cholecystitis, for which he underwent surgery on December 12, 1966, when his gallbladder was removed, containing 16 gallstones. After Eisenhower's death in 1969 (see below), an autopsy unexpectedly revealed an adrenal pheochromocytoma, a benign adrenaline-secreting tumor that may have made the President more vulnerable to heart disease. Eisenhower suffered seven heart attacks in total from 1955 until his death.
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Operation Torch also served as a valuable training ground for Eisenhower's combat command skills; during the initial phase of Generalfeldmarschall Erwin Rommel's move into the Kasserine Pass, Eisenhower created some confusion in the ranks by some interference with the execution of battle plans by his subordinates. He also was initially indecisive in his removal of Lloyd Fredendall, commanding U.S. II Corps. He became more adroit in such matters in later campaigns. In February 1943, his authority was extended as commander of AFHQ across the Mediterranean basin to include the British Eighth Army, commanded by General Sir Bernard Montgomery. The Eighth Army had advanced across the Western Desert from the east and was ready for the start of the Tunisia Campaign. Eisenhower gained his fourth star and gave up command of ETOUSA to become commander of NATOUSA.
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The Bronx has several local newspapers, including The Bronx News, Parkchester News, City News, The Riverdale Press, Riverdale Review, The Bronx Times Reporter, Inner City Press (which now has more of a focus on national issues) and Co-Op City Times. Four non-profit news outlets, Norwood News, Mount Hope Monitor, Mott Haven Herald and The Hunts Point Express serve the borough's poorer communities. The editor and co-publisher of The Riverdale Press, Bernard Stein, won the Pulitzer Prize for Editorial Writing for his editorials about Bronx and New York City issues in 1998. (Stein graduated from the Bronx High School of Science in 1959.)
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The Bronx contains one of the five poorest Congressional Districts in the United States, the 15th, but its wide diversity also includes affluent, upper-income and middle-income neighborhoods such as Riverdale, Fieldston, Spuyten Duyvil, Schuylerville, Pelham Bay, Pelham Gardens, Morris Park and Country Club. The Bronx, particularly the South Bronx, saw a sharp decline in population, livable housing, and the quality of life in the late 1960s and the 1970s, culminating in a wave of arson. Since then the communities have shown significant redevelopment starting in the late 1980s before picking up pace in the 1990s into today.
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Beginning with the advent of beat match DJing, in which Bronx DJs (Disc Jockeys) including Grandmaster Flash, Afrika Bambaataa and DJ Kool Herc extended the breaks of funk records, a major new musical genre emerged that sought to isolate the percussion breaks of hit funk, disco and soul songs. As hip hop's popularity grew, performers began speaking ("rapping") in sync with the beats, and became known as MCs or emcees. The Herculoids, made up of Herc, Coke La Rock, and DJ Clark Kent, were the earliest to gain major fame. The Bronx is referred to in hip-hop slang as "The Boogie Down Bronx", or just "The Boogie Down". This was hip-hop pioneer KRS-One's inspiration for his thought provoking group BDP, or Boogie Down Productions, which included DJ Scott La Rock. Newer hip hop artists from the Bronx include Big Pun, Lord Toriq and Peter Gunz, Camp Lo, Swizz Beatz, Drag-On, Fat Joe, Terror Squad and Corey Gunz.
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The Bronx street grid is irregular. Like the northernmost part of upper Manhattan, the West Bronx's hilly terrain leaves a relatively free-style street grid. Much of the West Bronx's street numbering carries over from upper Manhattan, but does not match it exactly; East 132nd Street is the lowest numbered street in the Bronx. This dates from the mid-19th century when the southwestern area of Westchester County west of the Bronx River, was incorporated into New York City and known as the Northside.
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The history of the Bronx during the 20th century may be divided into four periods: a boom period during 1900–29, with a population growth by a factor of six from 200,000 in 1900 to 1.3 million in 1930. The Great Depression and post World War II years saw a slowing of growth leading into an eventual decline. The mid to late century were hard times, as the Bronx declined 1950–85 from a predominantly moderate-income to a predominantly lower-income area with high rates of violent crime and poverty. The Bronx has experienced an economic and developmental resurgence starting in the late 1980s that continues into today.
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The Bronx underwent rapid urban growth after World War I. Extensions of the New York City Subway contributed to the increase in population as thousands of immigrants came to the Bronx, resulting in a major boom in residential construction. Among these groups, many Irish Americans, Italian Americans and especially Jewish Americans settled here. In addition, French, German, Polish and other immigrants moved into the borough. The Jewish population also increased notably during this time. In 1937, according to Jewish organizations, 592,185 Jews lived in The Bronx (43.9% of the borough's population), while only 54,000 Jews lived in the borough in 2011. Many synagogues still stand in the Bronx, but most have been converted to other uses.
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The Bronx is referred to, both legally and colloquially, with a definite article, as the Bronx. (The County of Bronx, unlike the coextensive Borough of the Bronx, does not place the immediately before Bronx in formal references, nor does the United States Postal Service in its database of Bronx addresses.) The name for this region, apparently after the Bronx River, first appeared in the Annexed District of the Bronx created in 1874 out of part of Westchester County and was continued in the Borough of the Bronx, which included a larger annexation from Westchester County in 1898. The use of the definite article is attributed to the style of referring to rivers. Another explanation for the use of the definite article in the borough's name is that the original form of the name was a possessive or collective one referring to the family, as in visiting The Broncks, The Bronck's or The Broncks'.
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East of the Bronx River, the borough is relatively flat and includes four large low peninsulas, or 'necks,' of low-lying land which jut into the waters of the East River and were once saltmarsh: Hunts Point, Clason's Point, Screvin's Neck (Castle Hill Point) and Throgs Neck. The East Bronx has older tenement buildings, low income public housing complexes, and multifamily homes, as well as single family homes. It includes New York City's largest park: Pelham Bay Park along the Westchester-Bronx border.
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Starting in the 1970s, the Bronx often symbolized violence, decay, and urban ruin. The wave of arson in the South Bronx in the 1960s and 1970s inspired the observation that "The Bronx is burning": in 1974 it was the title of both a New York Times editorial and a BBC documentary film. The line entered the pop-consciousness with Game Two of the 1977 World Series, when a fire broke out near Yankee Stadium as the team was playing the Los Angeles Dodgers. Numerous fires had previously broken out in the Bronx prior to this fire. As the fire was captured on live television, announcer Howard Cosell is wrongly remembered to have said something like, "There it is, ladies and gentlemen: the Bronx is burning". Historians of New York City frequently point to Cosell's remark as an acknowledgement of both the city and the borough's decline. A new feature-length documentary film by Edwin Pagan called Bronx Burning is in production in 2006, chronicling what led up to the numerous arson-for-insurance fraud fires of the 1970s in the borough.
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According to the 2009 American Community Survey, White Americans of both Hispanic and non-Hispanic origin represented over one-fifth (22.9%) of the Bronx's population. However, non-Hispanic whites formed under one-eighth (12.1%) of the population, down from 34.4% in 1980. Out of all five boroughs, the Bronx has the lowest number and percentage of white residents. 320,640 whites called the Bronx home, of which 168,570 were non-Hispanic whites. The majority of the non-Hispanic European American population is of Italian and Irish descent. People of Italian descent numbered over 55,000 individuals and made up 3.9% of the population. People of Irish descent numbered over 43,500 individuals and made up 3.1% of the population. German Americans and Polish Americans made up 1.4% and 0.8% of the population respectively.
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The Bronx's highest elevation at 280 feet (85 m) is in the northwest corner, west of Van Cortlandt Park and in the Chapel Farm area near the Riverdale Country School. The opposite (southeastern) side of the Bronx has four large low peninsulas or "necks" of low-lying land that jut into the waters of the East River and were once salt marsh: Hunt's Point, Clason's Point, Screvin's Neck and Throg's Neck. Further up the coastline, Rodman's Neck lies between Pelham Bay Park in the northeast and City Island. The Bronx's irregular shoreline extends for 75 square miles (194 km2).
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Since then, the Bronx has always supported the Democratic Party's nominee for President, starting with a vote of 2-1 for the unsuccessful Al Smith in 1928, followed by four 2-1 votes for the successful Franklin D. Roosevelt. (Both had been Governors of New York, but Republican former Gov. Thomas E. Dewey won only 28% of the Bronx's vote in 1948 against 55% for Pres. Harry Truman, the winning Democrat, and 17% for Henry A. Wallace of the Progressives. It was only 32 years earlier, by contrast, that another Republican former Governor who narrowly lost the Presidency, Charles Evans Hughes, had won 42.6% of the Bronx's 1916 vote against Democratic President Woodrow Wilson's 49.8% and Socialist candidate Allan Benson's 7.3%.)
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The Gateway Center at Bronx Terminal Market, in the West Bronx, is a shopping center that encompasses less than one million square feet of retail space, built on a 17 acres (7 ha) site that formerly held the Bronx Terminal Market, a wholesale fruit and vegetable market as well as the former Bronx House of Detention, south of Yankee Stadium. The $500 million shopping center, which was completed in 2009, saw the construction of new buildings and two smaller buildings, one new and the other a renovation of an existing building that was part of the original market. The two main buildings are linked by a six-level garage for 2,600 cars. The center has earned itself a LEED "Silver" designation in its design.
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The Bronx Museum of the Arts, founded in 1971, exhibits 20th century and contemporary art through its central museum space and 11,000 square feet (1,000 m2) of galleries. Many of its exhibitions are on themes of special interest to the Bronx. Its permanent collection features more than 800 works of art, primarily by artists from Africa, Asia and Latin America, including paintings, photographs, prints, drawings, and mixed media. The museum was temporarily closed in 2006 while it underwent a major expansion designed by the architectural firm Arquitectonica.
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The Bronx's evolution from a hot bed of Latin jazz to an incubator of hip hop was the subject of an award-winning documentary, produced by City Lore and broadcast on PBS in 2006, "From Mambo to Hip Hop: A South Bronx Tale". Hip Hop first emerged in the South Bronx in the early 1970s. The New York Times has identified 1520 Sedgwick Avenue "an otherwise unremarkable high-rise just north of the Cross Bronx Expressway and hard along the Major Deegan Expressway" as a starting point, where DJ Kool Herc presided over parties in the community room.
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In the 1990s, New York City began closing the large, public high schools in the Bronx and replacing them with small high schools. Among the reasons cited for the changes were poor graduation rates and concerns about safety. Schools that have been closed or reduced in size include John F. Kennedy, James Monroe, Taft, Theodore Roosevelt, Adlai Stevenson, Evander Childs, Christopher Columbus, Morris, Walton, and South Bronx High Schools. More recently the City has started phasing out large middle schools, also replacing them with smaller schools.
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In the 1970s, the Bronx was plagued by a wave of arson. The burning of buildings was predominantly in the poorest communities, like the South Bronx. The most common explanation of what occurred was that landlords decided to burn their low property-value buildings and take the insurance money as it was more lucrative to get insurance money than to refurbish or sell a building in a severely distressed area. The Bronx became identified with a high rate of poverty and unemployment, which was mainly a persistent problem in the South Bronx.
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Mid-20th century movies set in the Bronx portrayed densely settled, working-class, urban culture. Hollywood films such as From This Day Forward (1946), set in Highbridge, occasionally delved into Bronx life. Paddy Chayefsky's Academy Award-winning Marty was the most notable examination of working class Bronx life was also explored by Chayefsky in his 1956 film The Catered Affair, and in the 1993 Robert De Niro/Chazz Palminteri film, A Bronx Tale, Spike Lee's 1999 movie Summer of Sam, centered in an Italian-American Bronx community, 1994's I Like It Like That that takes place in the predominantly Puerto Rican neighborhood of the South Bronx, and Doughboys, the story of two Italian-American brothers in danger of losing their bakery thanks to one brother's gambling debts.
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The Bronx has also become home to a peculiar poetic tribute, in the form of the Heinrich Heine Memorial, better known as the Lorelei Fountain from one of Heine's best-known works (1838). After Heine's German birthplace of Düsseldorf had rejected, allegedly for anti-Semitic motives, a centennial monument to the radical German-Jewish poet (1797–1856), his incensed German-American admirers, including Carl Schurz, started a movement to place one instead in Midtown Manhattan, at Fifth Avenue and 59th Street. However, this intention was thwarted by a combination of ethnic antagonism, aesthetic controversy and political struggles over the institutional control of public art.
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The Bronx is named after Jonas Bronck who created the first settlement as part of the New Netherland colony in 1639. The native Lenape were displaced after 1643 by settlers. In the 19th and 20th centuries, the Bronx received many immigrant groups as it was transformed into an urban community, first from various European countries (particularly Ireland, Germany and Italy) and later from the Caribbean region (particularly Puerto Rico, Jamaica and the Dominican Republic), as well as African American migrants from the American South. This cultural mix has made the Bronx a wellspring of both Latin music and hip hop.
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Several boutique and chain hotels have opened in recent years in the South Bronx; in addition, a La Quinta Inn that has been proposed for the Mott Haven waterfront. The Kingsbridge Armory, often cited as the largest armory in the world, is scheduled for redevelopment as the Kingsbridge National Ice Center. Under consideration for future development is the construction of a platform over the New York City Subway's Concourse Yard adjacent to Lehman College. The construction would permit approximately 2,000,000 square feet (190,000 m2) of development and would cost US$350–500 million.
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Penny Marshall's 1990 film Awakenings, which was nominated for several Oscars, is based on neurologist Oliver Sacks' 1973 account of his psychiatric patients at Beth Abraham Hospital in the Bronx who were paralyzed by a form of encephalitis but briefly responded to the drug L-dopa. Robin Williams played the physician; Robert De Niro was one of the patients who emerged from a catatonic (frozen) state. The home of Williams' character was shot not far from Sacks' actual City Island residence. A 1973 Yorkshire Television documentary and "A Kind of Alaska", a 1985 play by Harold Pinter, were also based on Sacks' book.
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The western parts of the Bronx are hillier and are dominated by a series of parallel ridges, running south to north. The West Bronx has older apartment buildings, low income public housing complexes, multifamily homes in its lower income areas as well as larger single family homes in more affluent areas such as Riverdale and Fieldston. It includes New York City's fourth largest park: Van Cortlandt Park along the Westchester-Bronx border. The Grand Concourse, a wide boulevard, runs through it, north to south.
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The office of Borough President was created in the consolidation of 1898 to balance centralization with local authority. Each borough president had a powerful administrative role derived from having a vote on the New York City Board of Estimate, which was responsible for creating and approving the city's budget and proposals for land use. In 1989 the Supreme Court of the United States declared the Board of Estimate unconstitutional on the grounds that Brooklyn, the most populous borough, had no greater effective representation on the Board than Staten Island, the least populous borough, a violation of the Fourteenth Amendment's Equal Protection Clause pursuant to the high court's 1964 "one man, one vote" decision.
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The development of the Bronx is directly connected to its strategic location between New England and New York (Manhattan). Control over the bridges across the Harlem River plagued the period of British colonial rule. Kingsbridge, built in 1693 where Broadway reached the Spuyten Duyvil Creek, was a possession of Frederick Philipse, lord of Philipse Manor. The tolls were resented by local farmers on both sides of the creek. In 1759, the farmers led by Jacobus Dyckman and Benjamin Palmer built a "free bridge" across the Harlem River which led to the abandonment of tolls altogether.
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There are three primary shopping centers in the Bronx: The Hub, Gateway Center and Southern Boulevard. The Hub–Third Avenue Business Improvement District (B.I.D.), in The Hub, is the retail heart of the South Bronx, located where four roads converge: East 149th Street, Willis, Melrose and Third Avenues. It is primarily located inside the neighborhood of Melrose but also lines the northern border of Mott Haven. The Hub has been called "the Broadway of the Bronx", being likened to the real Broadway in Manhattan and the northwestern Bronx. It is the site of both maximum traffic and architectural density. In configuration, it resembles a miniature Times Square, a spatial "bow-tie" created by the geometry of the street. The Hub is part of Bronx Community Board 1.
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This meant that nearly one-third of the U.S. lending mechanism was frozen and continued to be frozen into June 2009. According to the Brookings Institution, the traditional banking system does not have the capital to close this gap as of June 2009: "It would take a number of years of strong profits to generate sufficient capital to support that additional lending volume". The authors also indicate that some forms of securitization are "likely to vanish forever, having been an artifact of excessively loose credit conditions". While traditional banks have raised their lending standards, it was the collapse of the shadow banking system that is the primary cause of the reduction in funds available for borrowing.
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The pricing of risk refers to the incremental compensation required by investors for taking on additional risk, which may be measured by interest rates or fees. Several scholars have argued that a lack of transparency about banks' risk exposures prevented markets from correctly pricing risk before the crisis, enabled the mortgage market to grow larger than it otherwise would have, and made the financial crisis far more disruptive than it would have been if risk levels had been disclosed in a straightforward, readily understandable format.
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It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".
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In separate testimony to Financial Crisis Inquiry Commission, officers of Clayton Holdings—the largest residential loan due diligence and securitization surveillance company in the United States and Europe—testified that Clayton's review of over 900,000 mortgages issued from January 2006 to June 2007 revealed that scarcely 54% of the loans met their originators’ underwriting standards. The analysis (conducted on behalf of 23 investment and commercial banks, including 7 "too big to fail" banks) additionally showed that 28% of the sampled loans did not meet the minimal standards of any issuer. Clayton's analysis further showed that 39% of these loans (i.e. those not meeting any issuer's minimal underwriting standards) were subsequently securitized and sold to investors.
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For a variety of reasons, market participants did not accurately measure the risk inherent with financial innovation such as MBS and CDOs or understand its impact on the overall stability of the financial system. For example, the pricing model for CDOs clearly did not reflect the level of risk they introduced into the system. Banks estimated that $450bn of CDO were sold between "late 2005 to the middle of 2007"; among the $102bn of those that had been liquidated, JPMorgan estimated that the average recovery rate for "high quality" CDOs was approximately 32 cents on the dollar, while the recovery rate for mezzanine CDO was approximately five cents for every dollar.
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These institutions, as well as certain regulated banks, had also assumed significant debt burdens while providing the loans described above and did not have a financial cushion sufficient to absorb large loan defaults or MBS losses. These losses impacted the ability of financial institutions to lend, slowing economic activity. Concerns regarding the stability of key financial institutions drove central banks to provide funds to encourage lending and restore faith in the commercial paper markets, which are integral to funding business operations. Governments also bailed out key financial institutions and implemented economic stimulus programs, assuming significant additional financial commitments.
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In the early and mid-2000s, the Bush administration called numerous times for investigation into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003, the House Financial Services Committee held a hearing at the urging of the administration to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of the committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded.
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The U.S. Senate passed a reform bill in May 2010, following the House which passed a bill in December 2009. These bills must now be reconciled. The New York Times provided a comparative summary of the features of the two bills, which address to varying extent the principles enumerated by the Obama administration. For instance, the Volcker Rule against proprietary trading is not part of the legislation, though in the Senate bill regulators have the discretion but not the obligation to prohibit these trades.
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This boom in innovative financial products went hand in hand with more complexity. It multiplied the number of actors connected to a single mortgage (including mortgage brokers, specialized originators, the securitizers and their due diligence firms, managing agents and trading desks, and finally investors, insurances and providers of repo funding). With increasing distance from the underlying asset these actors relied more and more on indirect information (including FICO scores on creditworthiness, appraisals and due diligence checks by third party organizations, and most importantly the computer models of rating agencies and risk management desks). Instead of spreading risk this provided the ground for fraudulent acts, misjudgments and finally market collapse. In 2005 a group of computer scientists built a computational model for the mechanism of biased ratings produced by rating agencies, which turned out to be adequate to what actually happened in 2006–2008.[citation needed]
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One of the first victims was Northern Rock, a medium-sized British bank. The highly leveraged nature of its business led the bank to request security from the Bank of England. This in turn led to investor panic and a bank run in mid-September 2007. Calls by Liberal Democrat Treasury Spokesman Vince Cable to nationalise the institution were initially ignored; in February 2008, however, the British government (having failed to find a private sector buyer) relented, and the bank was taken into public hands. Northern Rock's problems proved to be an early indication of the troubles that would soon befall other banks and financial institutions.
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This credit freeze brought the global financial system to the brink of collapse. The response of the Federal Reserve, the European Central Bank, the Bank of England and other central banks was immediate and dramatic. During the last quarter of 2008, these central banks purchased US$2.5 trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action, in world history. Following a model initiated by the United Kingdom bank rescue package, the governments of European nations and the USA guaranteed the debt issued by their banks and raised the capital of their national banking systems, ultimately purchasing $1.5 trillion newly issued preferred stock in their major banks. In October 2010, Nobel laureate Joseph Stiglitz explained how the U.S. Federal Reserve was implementing another monetary policy —creating currency— as a method to combat the liquidity trap. By creating $600 billion and inserting[clarification needed] this directly into banks, the Federal Reserve intended to spur banks to finance more domestic loans and refinance mortgages. However, banks instead were spending the money in more profitable areas by investing internationally in emerging markets. Banks were also investing in foreign currencies, which Stiglitz and others point out may lead to currency wars while China redirects its currency holdings away from the United States.
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In September 2008, the crisis hit its most critical stage. There was the equivalent of a bank run on the money market funds, which frequently invest in commercial paper issued by corporations to fund their operations and payrolls. Withdrawal from money markets were $144.5 billion during one week, versus $7.1 billion the week prior. This interrupted the ability of corporations to rollover (replace) their short-term debt. The U.S. government responded by extending insurance for money market accounts analogous to bank deposit insurance via a temporary guarantee and with Federal Reserve programs to purchase commercial paper. The TED spread, an indicator of perceived credit risk in the general economy, spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% on October 10, 2008.
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Bernanke explained that between 1996 and 2004, the U.S. current account deficit increased by $650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the country to borrow large sums from abroad, much of it from countries running trade surpluses. These were mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that a country (such as the U.S.) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the U.S. to finance its imports.
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During April 2009, U.S. Federal Reserve vice-chair Janet Yellen discussed these paradoxes: "Once this massive credit crunch hit, it didn’t take long before we were in a recession. The recession, in turn, deepened the credit crunch as demand and employment fell, and credit losses of financial institutions surged. Indeed, we have been in the grips of precisely this adverse feedback loop for more than a year. A process of balance sheet deleveraging has spread to nearly every corner of the economy. Consumers are pulling back on purchases, especially on durable goods, to build their savings. Businesses are cancelling planned investments and laying off workers to preserve cash. And, financial institutions are shrinking assets to bolster capital and improve their chances of weathering the current storm. Once again, Minsky understood this dynamic. He spoke of the paradox of deleveraging, in which precautions that may be smart for individuals and firms—and indeed essential to return the economy to a normal state—nevertheless magnify the distress of the economy as a whole."
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As financial assets became more and more complex, and harder and harder to value, investors were reassured by the fact that both the international bond rating agencies and bank regulators, who came to rely on them, accepted as valid some complex mathematical models which theoretically showed the risks were much smaller than they actually proved to be. George Soros commented that "The super-boom got out of hand when the new products became so complicated that the authorities could no longer calculate the risks and started relying on the risk management methods of the banks themselves. Similarly, the rating agencies relied on the information provided by the originators of synthetic products. It was a shocking abdication of responsibility."
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United States President Barack Obama and key advisers introduced a series of regulatory proposals in June 2009. The proposals address consumer protection, executive pay, bank financial cushions or capital requirements, expanded regulation of the shadow banking system and derivatives, and enhanced authority for the Federal Reserve to safely wind-down systemically important institutions, among others. In January 2010, Obama proposed additional regulations limiting the ability of banks to engage in proprietary trading. The proposals were dubbed "The Volcker Rule", in recognition of Paul Volcker, who has publicly argued for the proposed changes.
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In his dissent to the majority report of the Financial Crisis Inquiry Commission, American Enterprise Institute fellow Peter J. Wallison stated his belief that the roots of the financial crisis can be traced directly and primarily to affordable housing policies initiated by HUD in the 1990s and to massive risky loan purchases by government-sponsored entities Fannie Mae and Freddie Mac. Later, based upon information in the SEC's December 2011 securities fraud case against 6 ex-executives of Fannie and Freddie, Peter Wallison and Edward Pinto estimated that, in 2008, Fannie and Freddie held 13 million substandard loans totaling over $2 trillion.
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The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into a single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested.
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Others have pointed out that there were not enough of these loans made to cause a crisis of this magnitude. In an article in Portfolio Magazine, Michael Lewis spoke with one trader who noted that "There weren’t enough Americans with [bad] credit taking out [bad loans] to satisfy investors' appetite for the end product." Essentially, investment banks and hedge funds used financial innovation to enable large wagers to be made, far beyond the actual value of the underlying mortgage loans, using derivatives called credit default swaps, collateralized debt obligations and synthetic CDOs.
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Market strategist Phil Dow believes distinctions exist "between the current market malaise" and the Great Depression. He says the Dow Jones average's fall of more than 50% over a period of 17 months is similar to a 54.7% fall in the Great Depression, followed by a total drop of 89% over the following 16 months. "It's very troubling if you have a mirror image," said Dow. Floyd Norris, the chief financial correspondent of The New York Times, wrote in a blog entry in March 2009 that the decline has not been a mirror image of the Great Depression, explaining that although the decline amounts were nearly the same at the time, the rates of decline had started much faster in 2007, and that the past year had only ranked eighth among the worst recorded years of percentage drops in the Dow. The past two years ranked third, however.
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From 2004 to 2007, the top five U.S. investment banks each significantly increased their financial leverage (see diagram), which increased their vulnerability to a financial shock. Changes in capital requirements, intended to keep U.S. banks competitive with their European counterparts, allowed lower risk weightings for AAA securities. The shift from first-loss tranches to AAA tranches was seen by regulators as a risk reduction that compensated the higher leverage. These five institutions reported over $4.1 trillion in debt for fiscal year 2007, about 30% of USA nominal GDP for 2007. Lehman Brothers went bankrupt and was liquidated, Bear Stearns and Merrill Lynch were sold at fire-sale prices, and Goldman Sachs and Morgan Stanley became commercial banks, subjecting themselves to more stringent regulation. With the exception of Lehman, these companies required or received government support. Lehman reported that it had been in talks with Bank of America and Barclays for the company's possible sale. However, both Barclays and Bank of America ultimately declined to purchase the entire company.
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Current Governor of the Reserve Bank of India Raghuram Rajan had predicted the crisis in 2005 when he became chief economist at the International Monetary Fund.In 2005, at a celebration honouring Alan Greenspan, who was about to retire as chairman of the US Federal Reserve, Rajan delivered a controversial paper that was critical of the financial sector. In that paper, "Has Financial Development Made the World Riskier?", Rajan "argued that disaster might loom." Rajan argued that financial sector managers were encouraged to "take risks that generate severe adverse consequences with small probability but, in return, offer generous compensation the rest of the time. These risks are known as tail risks. But perhaps the most important concern is whether banks will be able to provide liquidity to financial markets so that if the tail risk does materialise, financial positions can be unwound and losses allocated so that the consequences to the real economy are minimised."
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On July 11, 2008, citing liquidity concerns, the FDIC put IndyMac Bank into conservatorship. A bridge bank, IndyMac Federal Bank, FSB, was established to assume control of IndyMac Bank's assets, its secured liabilities, and its insured deposit accounts. The FDIC announced plans to open IndyMac Federal Bank, FSB on July 14, 2008. Until then, depositors would have access their insured deposits through ATMs, their existing checks, and their existing debit cards. Telephone and Internet account access was restored when the bank reopened. The FDIC guarantees the funds of all insured accounts up to US$100,000, and has declared a special advance dividend to the roughly 10,000 depositors with funds in excess of the insured amount, guaranteeing 50% of any amounts in excess of $100,000. Yet, even with the pending sale of Indymac to IMB Management Holdings, an estimated 10,000 uninsured depositors of Indymac are still at a loss of over $270 million.
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As part of the housing and credit booms, the number of financial agreements called mortgage-backed securities (MBS) and collateralized debt obligations (CDO), which derived their value from mortgage payments and housing prices, greatly increased. Such financial innovation enabled institutions and investors around the world to invest in the U.S. housing market. As housing prices declined, major global financial institutions that had borrowed and invested heavily in subprime MBS reported significant losses.
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Lower interest rates encouraged borrowing. From 2000 to 2003, the Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%. This was done to soften the effects of the collapse of the dot-com bubble and the September 2001 terrorist attacks, as well as to combat a perceived risk of deflation. As early as 2002 it was apparent that credit was fueling housing instead of business investment as some economists went so far as to advocate that the Fed "needs to create a housing bubble to replace the Nasdaq bubble". Moreover, empirical studies using data from advanced countries show that excessive credit growth contributed greatly to the severity of the crisis.
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The financial crisis was not widely predicted by mainstream economists except Raghuram Rajan, who instead spoke of the Great Moderation. A number of heterodox economists predicted the crisis, with varying arguments. Dirk Bezemer in his research credits (with supporting argument and estimates of timing) 12 economists with predicting the crisis: Dean Baker (US), Wynne Godley (UK), Fred Harrison (UK), Michael Hudson (US), Eric Janszen (US), Steve Keen (Australia), Jakob Brøchner Madsen & Jens Kjaer Sørensen (Denmark), Kurt Richebächer (US), Nouriel Roubini (US), Peter Schiff (US), and Robert Shiller (US). Examples of other experts who gave indications of a financial crisis have also been given. Not surprisingly, the Austrian economic school regarded the crisis as a vindication and classic example of a predictable credit-fueled bubble that could not forestall the disregarded but inevitable effect of an artificial, manufactured laxity in monetary supply, a perspective that even former Fed Chair Alan Greenspan in Congressional testimony confessed himself forced to return to.
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The term financial innovation refers to the ongoing development of financial products designed to achieve particular client objectives, such as offsetting a particular risk exposure (such as the default of a borrower) or to assist with obtaining financing. Examples pertinent to this crisis included: the adjustable-rate mortgage; the bundling of subprime mortgages into mortgage-backed securities (MBS) or collateralized debt obligations (CDO) for sale to investors, a type of securitization; and a form of credit insurance called credit default swaps (CDS). The usage of these products expanded dramatically in the years leading up to the crisis. These products vary in complexity and the ease with which they can be valued on the books of financial institutions.
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Some developing countries that had seen strong economic growth saw significant slowdowns. For example, growth forecasts in Cambodia show a fall from more than 10% in 2007 to close to zero in 2009, and Kenya may achieve only 3–4% growth in 2009, down from 7% in 2007. According to the research by the Overseas Development Institute, reductions in growth can be attributed to falls in trade, commodity prices, investment and remittances sent from migrant workers (which reached a record $251 billion in 2007, but have fallen in many countries since). This has stark implications and has led to a dramatic rise in the number of households living below the poverty line, be it 300,000 in Bangladesh or 230,000 in Ghana. Especially states with a fragile political system have to fear that investors from Western states withdraw their money because of the crisis. Bruno Wenn of the German DEG recommends to provide a sound economic policymaking and good governance to attract new investors
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Senator Charles Schumer (D-NY) would later point out that brokered deposits made up more than 37 percent of IndyMac's total deposits and ask the Federal Deposit Insurance Corporation (FDIC) whether it had considered ordering IndyMac to reduce its reliance on these deposits. With $18.9 billion in total deposits reported on March 31, Senator Schumer would have been referring to a little over $7 billion in brokered deposits. While the breakout of maturities of these deposits is not known exactly, a simple averaging would have put the threat of brokered deposits loss to IndyMac at $500 million a month, had the regulator disallowed IndyMac from acquiring new brokered deposits on June 30.
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Many causes for the financial crisis have been suggested, with varying weight assigned by experts. The U.S. Senate's Levin–Coburn Report concluded that the crisis was the result of "high risk, complex financial products; undisclosed conflicts of interest; the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street." The Financial Crisis Inquiry Commission concluded that the financial crisis was avoidable and was caused by "widespread failures in financial regulation and supervision", "dramatic failures of corporate governance and risk management at many systemically important financial institutions", "a combination of excessive borrowing, risky investments, and lack of transparency" by financial institutions, ill preparation and inconsistent action by government that "added to the uncertainty and panic", a "systemic breakdown in accountability and ethics", "collapsing mortgage-lending standards and the mortgage securitization pipeline", deregulation of over-the-counter derivatives, especially credit default swaps, and "the failures of credit rating agencies" to correctly price risk. The 1999 repeal of the Glass-Steagall Act effectively removed the separation between investment banks and depository banks in the United States. Critics argued that credit rating agencies and investors failed to accurately price the risk involved with mortgage-related financial products, and that governments did not adjust their regulatory practices to address 21st-century financial markets. Research into the causes of the financial crisis has also focused on the role of interest rate spreads.
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A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $467 billion of mortgage lending was made by Community Reinvestment Act (CRA)-covered lenders into low and mid level income (LMI) borrowers and neighborhoods, representing 10% of all U.S. mortgage lending during the period. The majority of these were prime loans. Sub-prime loans made by CRA-covered institutions constituted a 3% market share of LMI loans in 1998, but in the run-up to the crisis, fully 25% of all sub-prime lending occurred at CRA-covered institutions and another 25% of sub-prime loans had some connection with CRA. In addition, an analysis by the Federal Reserve Bank of Dallas in 2009, however, concluded that the CRA was not responsible for the mortgage loan crisis, pointing out that CRA rules have been in place since 1995 whereas the poor lending emerged only a decade later. Furthermore, most sub-prime loans were not made to the LMI borrowers targeted by the CRA, especially in the years 2005–2006 leading up to the crisis. Nor did it find any evidence that lending under the CRA rules increased delinquency rates or that the CRA indirectly influenced independent mortgage lenders to ramp up sub-prime lending.
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Krugman's contention (that the growth of a commercial real estate bubble indicates that U.S. housing policy was not the cause of the crisis) is challenged by additional analysis. After researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis." Other analysts support the contention that the crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reports: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects. Denice A. Gierach, a real estate attorney and CPA, wrote:
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Falling prices also resulted in homes worth less than the mortgage loan, providing a financial incentive to enter foreclosure. The ongoing foreclosure epidemic that began in late 2006 in the U.S. continues to drain wealth from consumers and erodes the financial strength of banking institutions. Defaults and losses on other loan types also increased significantly as the crisis expanded from the housing market to other parts of the economy. Total losses are estimated in the trillions of U.S. dollars globally.
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The World Bank reported in February 2009 that the Arab World was far less severely affected by the credit crunch. With generally good balance of payments positions coming into the crisis or with alternative sources of financing for their large current account deficits, such as remittances, Foreign Direct Investment (FDI) or foreign aid, Arab countries were able to avoid going to the market in the latter part of 2008. This group is in the best position to absorb the economic shocks. They entered the crisis in exceptionally strong positions. This gives them a significant cushion against the global downturn. The greatest impact of the global economic crisis will come in the form of lower oil prices, which remains the single most important determinant of economic performance. Steadily declining oil prices would force them to draw down reserves and cut down on investments. Significantly lower oil prices could cause a reversal of economic performance as has been the case in past oil shocks. Initial impact will be seen on public finances and employment for foreign workers.
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The U.S. Federal Reserve and central banks around the world have taken steps to expand money supplies to avoid the risk of a deflationary spiral, in which lower wages and higher unemployment lead to a self-reinforcing decline in global consumption. In addition, governments have enacted large fiscal stimulus packages, by borrowing and spending to offset the reduction in private sector demand caused by the crisis. The U.S. Federal Reserve's new and expanded liquidity facilities were intended to enable the central bank to fulfill its traditional lender-of-last-resort role during the crisis while mitigating stigma, broadening the set of institutions with access to liquidity, and increasing the flexibility with which institutions could tap such liquidity.
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Behavior that may be optimal for an individual (e.g., saving more during adverse economic conditions) can be detrimental if too many individuals pursue the same behavior, as ultimately one person's consumption is another person's income. Too many consumers attempting to save (or pay down debt) simultaneously is called the paradox of thrift and can cause or deepen a recession. Economist Hyman Minsky also described a "paradox of deleveraging" as financial institutions that have too much leverage (debt relative to equity) cannot all de-leverage simultaneously without significant declines in the value of their assets.
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Predatory lending refers to the practice of unscrupulous lenders, enticing borrowers to enter into "unsafe" or "unsound" secured loans for inappropriate purposes. A classic bait-and-switch method was used by Countrywide Financial, advertising low interest rates for home refinancing. Such loans were written into extensively detailed contracts, and swapped for more expensive loan products on the day of closing. Whereas the advertisement might state that 1% or 1.5% interest would be charged, the consumer would be put into an adjustable rate mortgage (ARM) in which the interest charged would be greater than the amount of interest paid. This created negative amortization, which the credit consumer might not notice until long after the loan transaction had been consummated.
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Prior to the crisis, financial institutions became highly leveraged, increasing their appetite for risky investments and reducing their resilience in case of losses. Much of this leverage was achieved using complex financial instruments such as off-balance sheet securitization and derivatives, which made it difficult for creditors and regulators to monitor and try to reduce financial institution risk levels. These instruments also made it virtually impossible to reorganize financial institutions in bankruptcy, and contributed to the need for government bailouts.
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Portugal’s national energy transmission company, Redes Energéticas Nacionais (REN), uses sophisticated modeling to predict weather, especially wind patterns, and computer programs to calculate energy from the various renewable-energy plants. Before the solar/wind revolution, Portugal had generated electricity from hydropower plants on its rivers for decades. New programs combine wind and water: wind-driven turbines pump water uphill at night, the most blustery period; then the water flows downhill by day, generating electricity, when consumer demand is highest. Portugal’s distribution system is also now a two-way street. Instead of just delivering electricity, it draws electricity from even the smallest generators, like rooftop solar panels. The government aggressively encouraged such contributions by setting a premium price for those who buy rooftop-generated solar electricity.
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Scientific and technological research activities in Portugal are mainly conducted within a network of R&D units belonging to public universities and state-managed autonomous research institutions like the INETI – Instituto Nacional de Engenharia, Tecnologia e Inovação and the INRB – Instituto Nacional dos Recursos Biológicos. The funding and management of this research system is mainly conducted under the authority of the Ministry of Science, Technology and Higher Education (MCTES) itself and the MCTES's Fundação para a Ciência e Tecnologia (FCT). The largest R&D units of the public universities by volume of research grants and peer-reviewed publications, include biosciences research institutions like the Instituto de Medicina Molecular, the Centre for Neuroscience and Cell Biology, the IPATIMUP, the Instituto de Biologia Molecular e Celular and the Abel Salazar Biomedical Sciences Institute.
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This in turn led to the establishment of the right-wing dictatorship of the Estado Novo under António de Oliveira Salazar in 1933. Portugal was one of only five European countries to remain neutral in World War II. From the 1940s to the 1960s, Portugal was a founding member of NATO, OECD and the European Free Trade Association (EFTA). Gradually, new economic development projects and relocation of mainland Portuguese citizens into the overseas provinces in Africa were initiated, with Angola and Mozambique, as the largest and richest overseas territories, being the main targets of those initiatives. These actions were used to affirm Portugal's status as a transcontinental nation and not as a colonial empire.
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The Head of State of Portugal is the President of the Republic, elected to a five-year term by direct, universal suffrage. He or she has also supervision and reserve powers. These powers are often compared[by whom?] with the "moderator power" that was held by the King in the Portuguese Constitutional Monarchy.[citation needed] Presidential powers include the appointment of the Prime Minister and the other members of the Government (where the President takes into account the results of legislative elections); dismissing the Prime Minister; dissolving the Assembly of the Republic (to call early elections); vetoing legislation (which may be overridden by the Assembly with a supermajority); and declaring a state of war or siege. The President is also the ex officio Commander-in-Chief of the Armed Forces.
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Continental Portugal's 89,015 km2 (34,369 sq mi) territory is serviced by four international airports located near the principal cities of Lisbon, Porto, Faro and Beja. Lisbon's geographical position makes it a stopover for many foreign airlines at several airports within the country. The primary flag-carrier is TAP Portugal, although many other domestic airlines provide services within and without the country. The government decided to build a new airport outside Lisbon, in Alcochete, to replace Lisbon Portela Airport, though this plan has been stalled due to the austerity. Currently, the most important airports are in Lisbon, Porto, Faro, Funchal (Madeira), and Ponta Delgada (Azores), managed by the national airport authority group ANA – Aeroportos de Portugal.
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There are more than 100 freshwater fish species, varying from the giant European catfish (in the Tagus International Natural Park) to some small and endemic species that live only in small lakes (along the western portion of country, for example). Some of these rare and specific species are highly endangered because of habitat loss, pollution and drought. Up-welling along the west coast of Portugal makes the sea extremely rich in nutrients and diverse species of marine fish; the Portuguese marine waters are one of the richest in the world. Marine fish species are more common, and include thousands of species, such as the sardine (Sardina pilchardus), tuna and Atlantic mackerel. Bioluminescent species are also well represented (including species in different colour spectrum and forms), like the glowing plankton that are possible to observe in some beaches.
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The 20th century saw the arrival of Modernism, and along with it came the most prominent Portuguese painters: Amadeo de Souza-Cardoso, who was heavily influenced by French painters, particularly by the Delaunays. Among his best-known works is Canção Popular a Russa e o Fígaro. Another great modernist painters/writers were Carlos Botelho and Almada Negreiros, friend to the poet Fernando Pessoa, who painted his (Pessoa's) portrait. He was deeply influenced by both Cubist and Futurist trends. Prominent international figures in visual arts nowadays include painters Vieira da Silva, Júlio Pomar, Helena Almeida, Joana Vasconcelos, Julião Sarmento and Paula Rego.
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In the 20th century, Portugal engaged in two major conflicts: World War I and the Portuguese Colonial War (1961–1974). After the end of the Portuguese Empire in 1975, the Portuguese Armed Forces have participated in peacekeeping missions in East Timor, Bosnia, Kosovo, Afghanistan, Somalia, Iraq (Nasiriyah) and Lebanon. Portugal also conducted several independent unilateral military operations abroad, as were the cases of the interventions of the Portuguese Armed Forces in Angola in 1992 and in Guinea-Bissau in 1998 with the main objectives of protecting and withdrawing of Portuguese and foreign citizens threatened by local civil conflicts.
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Portugal has considerable resources of wind and river power, the two most cost-effective renewable sources. Since the turn of the 21st century, there has been a trend towards the development of a renewable resource industry and reduction of both consumption and use of fossil fuel resources. In 2006, the world's largest solar power plant at that date, the Moura Photovoltaic Power Station, began operating near Moura, in the south, while the world's first commercial wave power farm, the Aguçadoura Wave Farm, opened in the Norte region (2008). By the end of 2006, 66% of the country's electrical production was from coal and fuel power plants, while 29% were derived from hydroelectric dams, and 6% by wind energy.
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Traditionally a sea-power, Portugal has had a strong tradition in the Portuguese fishing sector and is one of the countries with the highest fish consumption per capita. The main landing sites in Portugal (including Azores and Madeira), according to total landings in weight by year, are the harbours of Matosinhos, Peniche, Olhão, Sesimbra, Figueira da Foz, Sines, Portimão and Madeira. Portuguese processed fish products are exported through several companies, under a number of different brands and registered trademarks, such as Ramirez (the world’s oldest active canned fish producer), Bom Petisco, Nero, Combate, Comur, General, Líder, Manná, Murtosa, Pescador, Pitéu, Tenório, Torreira and Vasco da Gama.[citation needed]
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Portuguese cuisine is diverse. The Portuguese consume a lot of dry cod (bacalhau in Portuguese), for which there are hundreds of recipes. There are more than enough bacalhau dishes for each day of the year. Two other popular fish recipes are grilled sardines and caldeirada, a potato-based stew that can be made from several types of fish. Typical Portuguese meat recipes, that may be made out of beef, pork, lamb, or chicken, include cozido à portuguesa, feijoada, frango de churrasco, leitão (roast suckling pig) and carne de porco à alentejana. A very popular northern dish is the arroz de sarrabulho (rice stewed in pigs blood) or the arroz de cabidela (rice and chickens meat stewed in chickens blood).
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Tourist hotspots in Portugal are Lisbon, Algarve, Madeira, Porto and the city of Coimbra, also, between 4-5 million religious pilgrims visit Fátima each year, where apparitions of the Blessed Virgin Mary to three shepherd children reportedly took place in 1917. The Sanctuary of Fátima is one of the largest Roman Catholic shrines in the world. The Portuguese government continues to promote and develop new tourist destinations, such as the Douro Valley, the island of Porto Santo, and Alentejo. Lisbon is the 16th European city which attracts the most tourists (with seven million tourists occupying the city's hotels in 2006, a number that grew 11.8% compared to previous year). Lisbon in recent years surpassed the Algarve as the leading tourist region in Portugal. Porto and Northern Portugal, especially the urban areas north of Douro River valley, was the tourist destination which grew most (11.9%) in 2006, surpassing Madeira (in 2010), as the third most visited destination.[citation needed]
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After the bailout was announced, the Portuguese government headed by Pedro Passos Coelho managed to implement measures with the intention of improve the State's financial situation, including tax hikes, a freeze of civil service-related lower-wages and cuts of higher-wages by 14.3%, on top of the government's spending cuts. The Portuguese government also agreed to eliminate its golden share in Portugal Telecom which gave it veto power over vital decisions. In 2012, all public servants had already seen an average wage cut of 20% relative to their 2010 baseline, with cuts reaching 25% for those earning more than 1,500 euro per month.
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Pelayos' plan was to use the Cantabrian mountains as a place of refuge and protection from the invading Moors. He then aimed to regroup the Iberian Peninsula's Christian armies and use the Cantabrian mountains as a springboard from which to regain their lands from the Moors. In the process, after defeating the Moors in the Battle of Covadonga in 722 AD, Pelayos was proclaimed king, thus founding the Christian Kingdom of Asturias and starting the war of Christian reconquest known in Portuguese as the Reconquista Cristã.
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Portugal
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9,289
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Portugal has several summer music festivals, such as Festival Sudoeste in Zambujeira do Mar, Festival de Paredes de Coura in Paredes de Coura, Festival Vilar de Mouros near Caminha, Boom Festival in Idanha-a-Nova Municipality, Optimus Alive!, Sumol Summer Fest in Ericeira, Rock in Rio Lisboa and Super Bock Super Rock in Greater Lisbon. Out of the summer season, Portugal has a large number of festivals, designed more to an urban audience, like Flowfest or Hip Hop Porto. Furthermore, one of the largest international Goa trance festivals takes place in central Portugal every two years, the Boom Festival, that is also the only festival in Portugal to win international awards: European Festival Award 2010 – Green'n'Clean Festival of the Year and the Greener Festival Award Outstanding 2008 and 2010. There is also the student festivals of Queima das Fitas are major events in a number of cities across Portugal. In 2005, Portugal held the MTV Europe Music Awards, in Pavilhão Atlântico, Lisbon.
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Portugal
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9,290
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SL Benfica, FC Porto, and Sporting CP are the largest sports clubs by popularity and by number of trophies won, often known as "os três grandes" ("the big three"). They have won eight titles in the European UEFA club competitions, were present in many finals and have been regular contenders in the last stages almost every season. Other than football, many Portuguese sports clubs, including the "big three", compete in several other sports events with a varying level of success and popularity, these may include roller hockey, basketball, futsal, handball, and volleyball. The Portuguese Football Federation (FPF) – Federação Portuguesa de Futebol – annually hosts the Algarve Cup, a prestigious women`s football tournament that has been celebrated in the Algarvian part of Portugal.
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Portugal
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9,291
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The Council of Ministers – under the presidency of the Prime Minister (or the President of Portugal at the latter's request) and the Ministers (may also include one or more Deputy Prime Ministers) – acts as the cabinet. Each government is required to define the broad outline of its policies in a programme, and present it to the Assembly for a mandatory period of debate. The failure of the Assembly to reject the government programme by an absolute majority of deputies confirms the cabinet in office.
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Portugal
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9,292
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Portuguese wines have enjoyed international recognition since the times of the Romans, who associated Portugal with their god Bacchus. Today, the country is known by wine lovers and its wines have won several international prizes. Some of the best Portuguese wines are: Vinho Verde, Vinho Alvarinho, Vinho do Douro, Vinho do Alentejo, Vinho do Dão, Vinho da Bairrada and the sweet: Port Wine, Madeira Wine, the Moscatel from Setúbal and Favaios. Port and Madeira are particularly appreciated in a wide range of places around the world.
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Portugal
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9,293
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In 27 BC, Lusitania gained the status of Roman province. Later, a northern province of Lusitania was formed, known as Gallaecia, with capital in Bracara Augusta, today's Braga. There are still many ruins of castros (hill forts) all over modern Portugal and remains of Castro culture. Numerous Roman sites are scattered around present-day Portugal, some urban remains are quite large, like Conímbriga and Mirobriga. The former, beyond being one of the largest Roman settlements in Portugal, is also classified as a National Monument. Conímbriga lies 16 km from Coimbra which by its turn was the ancient Aeminium). The site also has a museum that displays objects found by archaeologists during their excavations.
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Portugal
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9,294
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In the first week of May 2013, Prime Minister Passos Coelho announced a significant government plan for the public sector, whereby 30,000 jobs will be cut and the number of weekly working hours will be increased from 35 to 40 hours. Coelho reaffirmed the announcement by explaining that austerity measures are necessary if Portugal seeks to avoid another monetary bailout grant from the European Commission, European Central Bank and International Monetary Fund—the overall plan intends to enact further cuts of €4.8 billion over a three-year period.
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Portugal
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9,295
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The total adult literacy rate is 99 percent. Portuguese primary school enrollments are close to 100 percent. According to the OECD's Programme for International Student Assessment (PISA) 2009, the average Portuguese 15-year-old student, when rated in terms of reading literacy, mathematics and science knowledge, is placed at the same level as those students from the United States, Sweden, Germany, Ireland, France, Denmark, United Kingdom, Hungary and Taipei, with 489 points (493 is the average). Over 35% of college-age citizens (20 years old) attend one of the country's higher education institutions (compared with 50% in the United States and 35% in the OECD countries). In addition to being a destination for international students, Portugal is also among the top places of origin for international students. All higher education students, both domestic and international, totaled 380,937 in 2005.
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Portugal
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9,296
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After annexing the County of Portugal into one of the several counties that made up the Kingdom of Asturias, King Alfonso III of Asturias knighted Vimara Peres, in 868 AD, as the First Count of Portus Cale (Portugal). The region became known as Portucale, Portugale, and simultaneously Portugália — the County of Portugal. Later the Kingdom of Asturias was divided into a number of Christian Kingdoms in Northern Spain due to dynastic divisions of inheritance among the kings offspring. With the forced abdication of Alfonso III "the Great" of Asturias by his sons in 910, the Kingdom of Asturias split into three separate kingdoms of León, Galicia and Asturias. The three kingdoms were eventually reunited in 924 (León and Galicia in 914, Asturias later) under the crown of León.
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Portugal
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9,297
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With the occupation by Napoleon, Portugal began a slow but inexorable decline that lasted until the 20th century. This decline was hastened by the independence in 1822 of the country's largest colonial possession, Brazil. In 1807, as Napoleon's army closed in on Lisbon, the Prince Regent João VI of Portugal transferred his court to Brazil and established Rio de Janeiro as the capital of the Portuguese Empire. In 1815, Brazil was declared a Kingdom and the Kingdom of Portugal was united with it, forming a pluricontinental State, the United Kingdom of Portugal, Brazil and the Algarves.
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Portugal
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9,298
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The most important demographic influence in the modern Portuguese seems to be the oldest one; current interpretation of Y-chromosome and mtDNA data suggests that the Portuguese have their origin in Paleolithic peoples that began arriving to the European continent around 45,000 years ago. All subsequent migrations did leave an impact, genetically and culturally, but the main population source of the Portuguese is still Paleolithic. Genetic studies show Portuguese populations not to be significantly different from other European populations.
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Portugal
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9,299
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Portugal (Portuguese: [puɾtuˈɣaɫ]), officially the Portuguese Republic (Portuguese: República Portuguesa), is a country on the Iberian Peninsula, in Southwestern Europe. It is the westernmost country of mainland Europe, being bordered by the Atlantic Ocean to the west and south and by Spain to the north and east. The Portugal–Spain border is 1,214 km (754 mi) long and considered the longest uninterrupted border within the European Union. The republic also includes the Atlantic archipelagos of the Azores and Madeira, both autonomous regions with their own regional governments.
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Portugal
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