(a) Term paper 1: You will write a short guide book or a reference on a topic. It is also acceptable if the paper is written in the encyclopedia or wikipedia article style. If the report is very good, you will have a chance to give a presentation in class for extra credits. The proposal will be the cover page of the final report. Put section titles in each section following the proposal. Max 15 pages including tables and figures. The paper is evaluated by the usefulness of the topic to your classmates and the depth of the material. If you use MS Word, use the Cambria font. Do not include irrelevant pictures to decorate the paper. IMPORTANT: You must cite all references properly in the main text and attach the list of references. Follow the APA citation format.

I. The definition of financial crisis
a. Definition from economic dictionary
b. Almost impossible to avoid, therefore, lower the risk of financial crisis
II. Causes of financial crisis
a. Taxes and subsidy
b. Leverage
c. Complex industry
d. Liquidity
e. Governance
f. Interest conflicts
III. Previous financial crisis around the World
a. The Great Depression
b. E. Asia Financial Crisis in 1997
c. The Great Recession in 2008
d. European Debt Crisis in 2009
IV. Pros and cons of financial crisis
a. Pros
i. Restore liquidity
ii. Prevent another major bank collapse
iii. Clearing “toxic assets” in the economy
iv. Creation of new companies
b. Cons
i. Current companies bankrupt
ii. High unemployment rate
iii. Increase in price of food
V. Possible ways to lower the risk of financial crisis
a. Strong and strict regulations
b. Limit leverage ratios
c. Creation of legal authority to handle insolvent financial institution