Hydrogen Fuel Cells The Fuel Of The Future Environmental Sciences Essay

Hydrogen Fuel Cells The Fuel Of The Future Environmental Sciences Essay Ever since the beginning of the human era, there has been an ever growing necessity for energy. Energy is the most basic aspect of human development. From lighting and communication to cooking and transport, quick and easy access to energy makes the modern way of life possible. Currently, planet earth is addicted to inefficient, polluting, and non-renewable sources of energy such as coal and oil. These energy sources allow for the unequal distribution of the benefits of energy. Some communities may receive the wealth and cheap energy that coal and oil bring, while others receive only polluted streams, acid rain, and deadly toxins. Fortunately, there is an answer to this problem: hydrogen fuel cells. Because hydrogen fuel cells are an emission-free fuel source, are more efficient than current fossil fuel sources, and have the possibility to create a diversified energy economy, more investments need to be made in this budding technology. Hydrogen is the most abundant element in the universe and has been present since the beginning of time. The earths own life-giving star, its sun, is composed almost entirely of this element (Bose and Malbrunot 22). As the smallest element in the universe, hydrogen consists as a diatomic, gaseous molecule with a single proton and a single electron. Hydrogen does not exist in its pure form on the planet, but it is present as a compound in molecules like water, glucose, natural gas, and even oil (Busby). Because it is found in such a variety of sources, hydrogen is the perfect power source for fuel cells. What exactly are hydrogen fuel cells and why will they be the fuel of the future? Hydrogen fuel cells are a mechanical device that convert the electrochemical energy found in a fuel source, like hydrogen, into electrical energy, with the only byproducts being heat and water (Hoffmann 6). In all fuel cells there are two electrodes, an anode and a cathode, with an electrolyte, a membrane capable of moving ions, in between the two (Sorenson 73). During their operation, hydrogen fuel is injected into the anode side, while oxygen, usually from the air, is pumped to the cathode. The hydrogen molecule disassociates, and the proton passes through the electrolyte to join the oxygen, while the electron from the hydrogen molecule travels in an outside circuit, producing electrical current (Brus and Hotek 22). Because of the fact that fuel cells have no moving parts, they are much more efficient than conventional internal combustion engines, which makes them a great investment for the future of the planets energy. In addition, there are multiple types of fuel cells, each with their own sets of merits and each able to be used a different way in todays energy economy. Proton exchange membrane fuel cells (PEMFCs) are the most prevalent type of fuel cell today. They deliver a high power density and a low weight to volume ratio (Sorensen 81). Because of this, and their abnormally low operating temperature of 80Â ° Celsius, PEMFCs are ideal for use in cars, buses, and other small scale portable applications. Also, the low operating temperature of PEMFCs allow for less wear and tear on the electrolyte, thereby reducing maintenance costs (Hordeski 145). Although PEMFCs have excellent performance characteristics in vehicles, they do not produce the amount of power necessary for large scale operations, like power plants. Molten carbonate fuel cells (MCFCs) are the answer to this problem. MCFCs have a higher operating temperature, around 800Â ° Celsius, which allows them to create a much higher amount of energy per unit of fuel. This also makes them difficult to use in portable applications (Kandlikar). In addition, MCFCs can reach efficiencies of up to seventy percent if cogeneration, the capturing of waste heat, is used. This is much higher than the twenty five to thirty five percent efficiencies of coal fired power plants (Brus and Hotek). Because of the large amount of energy produced in MCFCs, their excellent efficiency, and their possible cogeneration applications, they are much better suited for stationary applications, such as power plants, than are fossil fuels. Currently, the main reasons that hydrogen fuel cells are not in more widespread use is the lack of production, delivery, and storage infrastructure. Almost all of the energy infrastructure in the United States, and indeed the world, is geared toward fossil fuels (Busby). With a forward looking investment, the current fossil fuel infrastructure can easily be converted to hydrogen. The first step in creating a reliable hydrogen infrastructure is to invest in renewable hydrogen production methods. Renewable production methods include wind, solar, and hydroelectric. All of these methods produce energy, which leads to the eventual electrolyzing or splitting of water to produce both hydrogen, which is used in fuel cells, and oxygen, which can be captured as a useful byproduct (Hydrogen Energy). One of the main reasons experts such as Peter Hoffmann argue for a more widespread use of hydrogen fuel cells is because they have the possibility to become a zero emission fuel source. Hoffmann recognizes that a future hydrogen economy would consist of hydrogen being produced from clean, primary sources of energy. (8-9). Although the conversion of the existing fossil fuel based infrastructure would cost billions of dollars, citizens of the United States must evaluate whether the continued damage to the planet is worth the cost of switching to a renewable hydrogen based infr astructure. Before switching to a hydrogen based economy, one of the problems that must be solved is hydrogen storage. Hydrogen is an excellent energy storage medium, with energies in the range of 142 MJ kg-1 per unit of mass, but it has a low density (Broom 5). This produces the above mentioned storage problem, because although fossil fuels have a much lower energy content per unit of mass, 47 MJ kg-1, they are a liquid at ambient temperatures, which gives them a much higher density (Farndon). How can the high energy hydrogen be stored in such a way that it gives off the greatest amount of energy per unit of volume, rather than per unit of mass? Multiple options are available, the first of which is storing hydrogen as a compressed gas. Compressing hydrogen results in acceptable pressures, which are around 70 MPa per liter (Broom 5). Compressed hydrogen can also be transferred from dispenser to car in much the same way as gasoline. This makes it both easier and less costly to modify the current gasoline based infrastructure to accommodate hydrogen, although more money is needed to begin to facilitate the transition. The second option for hydrogen storage in the future would be as a complex solid metal hydride. These metal hydrides are transition metals, chiefly lanthanum, which soak up hydrogen like a sponge and then release it when given small amounts of energy (Sorensen). An advantage of these hydrides is that they can store hydrogen at densities higher than compressed hydrogen and gasoline, therefore providing more energy per unit of volume, which allows for smaller storage tanks on vehicles and other portable applications (Ogden). This allows for smaller cars, cell phones, and even power plants. Although the technology of complex metal hydrides is only just beginning to become available, it has great potential for a future hydrogen storage source and now only needs investments to make it become a reality. The only remaining infrastructure necessity for a future hydrogen based economy is a hydrogen delivery system that effectively moves hydrogen from its production source to its destination quickly and efficiently. Fortunately, because of the recent natural gas boom in the United States, this problem may have solved itself. Natural gas and hydrogen are similar: both are a gas at room temperature, both have similar densities, and both can be transported in vehicles and pipelines (Backus 6). Because of their similar properties, it is possible to modify the existing natural gas transportation network to transport hydrogen in place of natural gas. This would result in the quick and easy movement of hydrogen from its production source to its final destination, whether it be a fuel pump, a power plant, or even a cell phone charger (Potera). However, additional investments are needed to convert the natural gas network to hydrogen. One of the most overlooked advantages of a hydrogen based economy are the diverse uses for fuel cells. Commonly thought that their only applications would be in vehicles, fuel cells can actually be used for both small and large scale power generation as well as in vehicles. The most promising frontier is probably large scale power generation. As noted before, fuel cells produce electricity, heat, and water as byproducts (Hoffmann 6). Both forms of energy, the heat and the electricity, can be used to generate power on an industrial scale, making fuel cells far more efficient than fossil fuels (6). Also, hydrogen fuel cells have a possibility fossil fuels never had. They can be used for large scale localized power generation to power homes and neighborhoods. This reduces energy loss that takes place with power plants (153). The size and cogeneration ability of fuel cells makes them a great candidate for the future of the centralized power grid. Another application for fuel cells is in the portable electronics field. Because they produce direct current, fuel cells can be used to power virtually anything that batteries are able to power (Potera). Currently, some companies, like Jadoo Power, are marketing small scale consumer electronics that are fueled solely by hydrogen fuel cells. The fuel cells in these electronics are not only smaller than most batteries, but they also deliver more power for a longer period of time (Hoffmann 154). Because of their size and longevity, the military is beginning to take notice of the potential applications for fuel cells in the armed forces. The military is in need of smaller and lighter power sources for portable devices, and Jadoos technology ideally suits them, says Bob Unger, program manager at Kuchera Defense Systems (qtd. in Potera). Although the prospective applications for portable hydrogen fuel cells are only beginning to emerge, the industry is already in need of investments to kic k-start the development of hydrogen fuel consumer electronics. While both the portable and the stationary applications of hydrogen fuel cells are still emerging markets, the hydrogen fuel cell vehicle is not. Fuel cell vehicles (FCVs) have been under development since the 1970s, with the main goal of making them cost effective. Currently, approximately 10,000 fuel cell vehicles are on the road worldwide, with the eventual goal of increasing that number to around 500,000 by 2025 (Peter Hoffmann Responds). Advancements in technologies such as complex metal hydrides have reduced the size, cost, and weight of FCVs. It is estimated that if mass produced, hydrogen fuel cell vehicles would cost between 20,000 and 50,000 dollars, which is comparable with the cost of current vehicles (Ogden). Also, FCVs have driving ranges from 300 to 400 miles and refueling times of five minutes or less, which is also comparable with those of the current gasoline powered cars (Brown). So the question now becomes, why are there not more FCVs on the road right now? The an swer to this is the lack of infrastructure, mainly refueling stations. If more investments are made in a hydrogen based economy and its infrastructure, then the possibilities for growth are limitless. Although there are numerous advantages of a hydrogen economy, it is possibly easier to make an argument against the continued use of a fossil fuel based energy economy. Fossil fuels are a polluting, climate-warming, and non-renewable source of energy (Dawson and Spannagle 17). During their combustion, fossil fuels release greenhouse gasses like carbon dioxide, nitrogen dioxide, and sulphur dioxide. In addition to being extreme irritants for people with breathing difficulties, these compounds also cause the acidification of water, often resulting in acid rain, and the death of many organisms that survive in coral reefs (18). The emission of the above compounds also causes a severe depletion in the ozone layer, the high altitude barrier over the earth that protects its inhabitants from the harmful ultraviolet radiation of the sun (17). Because of the amount of harmful pollutants emitted into the atmosphere by fossil fuels, their use should be discontinued in favor of hydrogen fuel cell s. Although the amount of pollutants that fossil fuels emit is astounding, there are other disadvantages of their use. Climate change, which has only part of the international agenda since the 1970s, has continued to gain importance, especially in the wake of natural disasters like hurricanes Katrina, Isaac, and most recently, Sandy (Dawson and Spannagle 3). These natural disasters have also drawn attention to some of the effects of climate change, like rising sea levels and changing planetary climate patterns. There is significant evidence that supports the conclusion that humans, through the combustion of fossil fuels, are warming the atmosphere of the earth, roughly 1.4Â ° F so far. Although that number may seem insubstantial, over the next 100 years, the earths temperature is expected to rise anywhere from 5Â ° F to 14Â ° F if emissions of carbon dioxide and carbon monoxide continue at their current rates (Climate Change Basics). For that reason, investments in renewable resource s, such as hydrogen fuel cells, are needed. The final argument against fossil fuels is their non-renewability. Unlike hydrogen, fossil fuels cannot be replenished, and their reserves are currently being depleted. At present, there are an estimated 1.3 trillion barrels of oil left in the world. This is expected to last for no more than forty years. (Dawson and Spannagle 7). Fossil fuels are merely a short fix to the long term energy problem facing the planet. As John and ÇiÄÅ ¸dem Sheffield so eloquently put it, a coherent energy strategy is required, addressing both energy supply and demand, taking account of the whole energy life cycle (1). Fossil fuels are not the solution that the planet needs for its energy crisis. In addition to the numerous disadvantages of fossil fuels, there are many advantages to a completely hydrogen based economy. The first of these is complete energy security and independence. Because hydrogen can be produced from such a wide variety of sources, there is no possibility that one single country, like Saudi Arabia, would control a monopoly on its production (Hoffmann 8). Any country where the sun shines, the wind blows, and there is water can produce enough hydrogen to satisfy its energy needs. If the United States completely switched to a hydrogen fuel based economy, there would be no need to import oil, coal, or natural gas from other countries (Sheffield and Sheffield 7). However, before that transition can come about, more investments are needed in hydrogen fuel cells. Yet another major advantage of hydrogen fuel cells as a future energy source is the lack of emissions. As mentioned previously, hydrogen fuel cells produce only water as their emissions, which is not a greenhouse gas (Benefits). Because of this, water would have no effect on the climate. This is possibly the greatest advantage of hydrogen fuel cells. A fuel cell running on hydrogen emits little to no pollutants over the course of the chemical process (Benefits). Based on data gathered by the United States department of energy, a stationary fuel cell power plant emits less than half an ounce of pollution per 1,000 Kw/h of produced electricity, while fossil fuels create around twenty five pounds of greenhouse gasses and pollutants for the equivalent quantity of produced electricity (Sperling and Cameron 27). Emissions of pollutants from fuel cells are so small that some places in the United States have allowed fuel cells to be exempt from air quality controls (Benefits). Because of the ir low emissions, hydrogen fuel cells should be used in place of fossil fuels in a future energy economy. The final main advantage of hydrogen fuel cells is their excellent efficiency when compared with fossil fuels. Because fuel cells create energy using an electrochemical process and do not combust fuel, they are essentially have greater efficiencies than combustion engines (Brus and Hotek 23). Fuel cell systems today achieve forty to fifty percent fuel to electricity efficiency using only the electricity produced from the electrochemical reaction as power. If cogeneration is used, a fuel cells efficiency can be dramatically increased to between eighty five and ninety percent. Cogeneration can even help reduce a buildings heating costs in the winter by around thirty percent (Benefits). Even fuel cell vehicles are between two and three times more efficient than regular fossil fuel vehicles (Hoffmann 37). Because of their incredible efficiencies when compared with fossil fuel combustion sources, hydrogen fuel cells deserve the money and subsidies that governments currently give to fossil fuel companies. Although hydrogen fuel cells have large amounts of advantages, there is one main disadvantage: cost. The current price for 1kg of hydrogen, the energy equivalent of one gallon of gasoline, is around twelve dollars (Hydrogen Energy). Most citizens of the United States are used to paying three to four dollars for a gallon of gas, which is much less expensive than hydrogen. However, the price of gas fails to take into account the environmental damage associated with fossil fuels. If factored into the price, one gallon of gasoline costs between ten and eleven dollars (Hoffmann 64). Although the initial price of hydrogen may seem high when compared with gasoline, when the environmental damage is taken into account, hydrogen is actually less expensive than gasoline. Since hydrogen fuel cells emit no harmful pollutants, have efficiencies greater than current fossil fuel sources, and can create a diversified energy economy, they need more investments. Planet earth is facing an energy crisis. The human race must grow, develop, and move past old and inefficient ways of generating energy and into a future where clean and efficient hydrogen fuel cells generate energy for eons to come. If this transition into a hydrogen economy can be made, then the human race has utilized an energy source that can power the earth for thousands more years. If not, then the human race may face a bleak future without one of the main essentials for human existence: energy.

What Drives Someone to Complete the Devastating Acts of Terrorism? Essa

Since the darkest day, September 11, 2001, the citizens of The United States of America are on alert and are weary of acts of terrorism. One can turn on the television and can easily find an act of terrorism. Most recent acts are the Boston bombings or the bombings in Volgograd, and most recently the two bombings in Sochi. What drives someone to complete the devastating acts of terrorism? How can on predict, based off of antisocial behaviors, who is more likely to become a terrorist? Regardless of ethnicity, nationality, or racial background, experts agree terrorists share one common link: their childhood. One tends to be more susceptible to becoming a terrorist because of a traumatic event in their childhood to cause antisocial behavior. In fact one traumatic event, whether real or imagined, during childhood increases the likelihood of a person exhibiting anti-social behavior. Terrorist typically have a path they follow which leads them to a life of violence and antisocial behavior. According to a New York Times’ article on the terrorist mind, terrorist have â€Å"extremist beliefs, which begins early in life; a strong sense of victimization and alienation† (Kershaw). Sarah Kershaw believes, a terrorist fears becoming alienated from society; therefore to prevent this alienation, they draw attention to themselves through acts of terrorism. However, a major trigger that pushes a person beyond the breaking point of a â€Å"normal† person to a terrorist is their own individual past. One can define a â€Å"normal† person as one who goes with the flow of society and does not act out in violence to voice their opinion. Rex Hudson also believes, â€Å"Terrorists are generally people who feel alienated† The event in the person’s past could range from a num... ...ons." American Psychological Association. N.p., Nov. 2009. Web. 20 Dec. 2013. DeAngelis, Tori. "Understanding Terrorism." American Psychological Association. N.p., Nov. 2009. Web. 19 Dec. 2013. Hudson, Rex A. The Sociology and Psychology of Terrorism: Who Becomes a Terrorist and Why? Washington, D.C.: The Library of Congress, Sept. 1999. PDF. Kershaw, Sarah. "The Terrorist Mind: An Update." Nytimes.com. The New York Times, 9 Jan. 2010. Web. 18 Dec. 2013. "Narcissistic." Dictionary.com. Random House, 2013. Web. 09 Jan. 2014. "Osama Bin Laden Fast Facts." CNN.com. Cable News Network, 24 Dec. 2013. Web. 09 Jan. 2014. Rosenberg, Jennifer. "Adolf Hitler." 20th Century HIstory. About.com, n.d. Web. 09 Jan. 2014. Speaking of Psychology: Getting into a Terrorist's Mind. American Psychological Association, n.d. American Psychological Association. Web. 28 Dec. 2013.

Existential Therapy: Death, Freedom & Self-Awareness

Existential Therapy: Death, Freedom & Self-Awareness Some people rely on others to validate who they are, and to give them meaning. However, they must realize that they are alone in this world and they must find meaning from within themselves and not from others. Nevertheless, for many people being alone causes anxiety in which people feel that their life has no meaning. A person can become aware of who they are but not accept who they are while being alone. Existential therapy helps people to look within and find a way to cope with their emotional experiences they have encountered in order to recover from them.When individuals learn to love themselves and be content with themselves, they will then know how to love others. Existential therapy is different from other theories. It is therapy to help people understand that they are the authors of their own life and that they are free to choose how they respond to it. The important factors of existential therapy are getting the client to find personal meaning and truths. Taking responsibility for any decisions, he/she makes. Being able to live in the present and not the past: getting the client to experience life by living in the moment.Tolerating anxiety, as a part of life, this will reoccur throughout life. Finally, to help clients understand and accept death and a greater gain of self-awareness. Death and Meaning The only absolutes are life and death. Many people give death too much power by fearing it, instead of embracing it. â€Å"Death is often one of the most powerful forces which keeps us from truly living† (Hoffman, 2004). When a person sincerely accepts death, they realize that their purpose in life is to do something meaningful by helping others.By dealing with death through the loss of loved ones and friends, I have learned to appreciate life and use my time here on earth wisely. As a little child, I was always afraid to die, due to my parents dying at a young age. I just knew I would die early too. Eventually after witnessing so many deaths year after year, I could no longer be afraid. The anxiety was so strong at one point I would have nightmares. , However, after losing my husband I grew to be content with death and love life much harder.Not to just love life but to live for each moment, not looking in the past but looking towards the future, what can I do now to help humanity. If we question ourselves on what we would do if death would come on a certain day, it would sincerely change people’s attitude about dying and change them in a way to live more freely. Moreover, in order to accept death one must find meaning. Meaning asks questions like, who are we, what will we become, and what is our purpose for being here? Unfortunately, it took death and pain to help me realize what my purpose in life was which is helping people.Helping people to cope with their issues gives me more reason to live. Freedom and Responsibility Individuals are free to choose to do good or bad, right or wrong. Being free means that people are accountable for their own actions and that they have to live with the decisions they make. When we choose to act in a certain way, we should not blame others for the way we act. People have full control over their emotions so we need to take full responsibility for our own actions, how we live our lives, and not make excuses for what we did not do. However, with freedom there is much responsibility.When clients do not want to accept responsibility a counselor will then encourage the client to reflect on his or her life and find meaning and/or their purpose of living. Since we are free, we cannot blame others for our problems. As stated in the eighth edition of the Theory and Practice of Counseling and Psychotherapy (Corey, 2009), while people claim they desire freedom, the existential belief declares that most will try to escape this freedom. People do this in order to avoid responsibility of making choices, (p. p. 140-141). Peo ple have to live for themselves and make their own decisions and to take charge of their lives.If a person commits a crime than that person cannot blame their upbringing or society for being the reasons of committing the crime, they themselves committed the crime so they will suffer the consequences for their actions. Self-Awareness Self-awareness is a person’s ability to know who they are fully. The more we know ourselves the more we grow. The more we grow the more freedom we have to choose and make good choices. When we are fully aware we can accept that no matter what we have been through in life, those circumstance do not define who we are.Dealing with pain and suffering for many years I have let go of what I experienced (holding on does not help with counseling), however learning to handle situations helped me to react differently and live free from any anxieties. It is up to people to want to progress from their old way of thinking and adapt to a new ones (this is how w e make better choices), we cannot get better even with therapy if we do not find a way to do so. Strengths and Weaknesses Existential therapy focuses on the concepts of death, meaning, and purpose, which are all critical issues that play an important part of human existence.Counselors seek to help not train the clients to do better, client’s progress on their own terms. Clients learn to cope with being alone and not seek support from others around them. It teaches clients to understand anxiety because it will always be a part of our lives but knowing how to deal with it helps make us better people. Counselors are open-mind to different issues and can handle all types of attitudes, beliefs, and experiences. Weaknesses to this type of therapy: Melton (2010) states that, â€Å"a major criticism that this approach lacks a systematic statement of the principles and practices of psychotherapy.

Disturbances that took place US Subprime Housing sector - Free Essay Example

Sample details Pages: 6 Words: 1683 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? The disturbances in the US subprime housing sector graduated into a full blown economic downturn by the end of the year 2007, remaining underestimated for most of the year 2008, aggravated by current account deficits in the United States and Kingdom. The crisis was financed by excess flow of savings from developing economies and oil exporting countries and led to lax monetary policies and banking regulations, as well as misperception of risk, and loose financial regulations. Don’t waste time! Our writers will create an original "Disturbances that took place US Subprime Housing sector" essay for you Create order Investors became aware of the downturn only after the collapse of Lehman Brothers in September 2008. By then, liquidity had dried up. To counter the crisis, governments in developed and emerging economies responded by injecting credit into their financial sector, nationalizing banks, and cutting down interest rates. Despite critical implications, Asian countries remained well placed than others China and India being the pioneers. Nevertheless, 2010 has been a year filled with uncertainties for the world economy. Primarily affected have been exports and equity markets, currency and credit markets, among others. Causes Subprime Lending As a result of the dot-com bubble burst and the consequent recession in 2001, the Federal Reserve Board (Fed) took a decision to cut down short-term interest rates from 6.5% in 2000, to well below 2% in 2003, an incentive for investors across the globe to park their investments on financial instruments offering substantial returns. Subprime lending is referred to the availability of loans to people who may have difficulty in repaying the borrowed money. Bundling prime and subprime mortgages backed with assets (sellable property) making probable interest rates look attractive. Subprime lending led to a rise in home ownership in the US from 64% in 1994 to 69.2% in 2004. According to the National Home Price Index by SP/Case-Shiller, between 1997 and 2006, housing prices in the US rose by 124%. Homeowners started refinancing their properties and obtained second mortgages against the additional value of the property to use it for consumer spending beyond their means. Wall Street firms purchased mortgages, bundled and sold them off to investors as Mortgage-Backed Securities (MBS) which offered much higher returns than safer assets. With real estate prices soaring, foreign capital flowed from countries with current account surplus, namely, the fast growing Asian economies and the oil exporting nations. However, during 2006 and 2007, interest rates began to rise while housing prices started to drop, making refinancing difficult. As a result, defaults and foreclosures increased drastically when the easy initial terms expired and housing prices failed to rise as anticipated. Consequently, the US household debt as a percentage of income touched 130% in 2007, a 30% jump from the earlier rates. As corrective measures, between 2004 and 2006, the interest rate was raised from the existing 1% to 5.25%., however, the housing prices did not rise as anticipated. On the contrary, it started falling rapidly around 2006-2007. The institutions that invested in MBS encountered heavy losses. The result was housing and credit market bubble. Lessons Learned Financial institutions and investors should research and base financial strength apart from a high credit rating, while regulators should stop dependence upon the monopoly of a few credit agencies. Instead of excessive risks, institutional investors should focus on portfolio diversification for the long term, since short speculative runs would only prove futile. Portfolio investment should spread across all important sectors, and reach across to developed and emerging international markets. The collapse of Lehman Brothers alongside that of the US mortgage securities market causing the erosion of consumer trust and loss of liquidity is a proof of how making all investments into the same company, industry, sector or country could be catastrophic for a financial institution. Opportunities In spite of regional integration in terms of trade investment, Asia-Pacific has limited capital flow due to a lack of information, differing rules and regulations, undeveloped financial infrastructure and a lack of relevant financial instruments. According to Asia-Pacific market report for October 2009 by Credit Lyonnais Securities Asia (CLSA), Asia is at the foothold of demographically driven growth for domestic investment. The Alpha Advisory report in 2009 states emerging markets accounted for over 85% of the global population, 75% of landmass, 70% of foreign reserves, 50% of global GDPÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ and a mere 10% of the global equity market capitalization. Survey data from the years 2009 and 2010 on Asia reveal greater preference for equities. The private equity investment levels in Asia, in the year 2009 were the same as in the years 2005-2006 because the Asian market remains underexposed to private equity investments. By 2020, China has been projected to be the largest economy of the world, while India is expected to become larger than Japan, taking the third place after China and the US. Therefore, China and India hold greater investment opportunities for Asian investors, followed by Korea and Taiwan. Policy changes broadening information exchange, harmonizing institutional settings, improving financial infrastructure and information and developing products would further increase cross border portfolio flows. China China, the leading Foreign Direct Investment (FDI) recipient of the world remains an attractive destination for foreign investments. The Qualified Foreign Institutional Investors (QFII) in 2007 allows investors qualified by the State Administration of Foreign Exchange to invest in the Chinese stock market. In the first half of 2009, China accounted for one-third (US$7.3 BN) of the total amount of PE investment in Asia. In terms of the total number of equity investments made in 2009, the largest share went to the manufacturing industry (19%) followed by IT, Internet, energy, and healthcare. However, in terms of the total value of investment made, the financial sector received US$18.4 BN, followed by energy, manufacturing, and food and beverages, all of which are valuable long term opportunities for institutional investors. Additionally, the Chinese distressed debt market for the Asian investors in the form diversifying their portfolio, and receiving attractive returns at the same time. For example, Shoreline China Value I, L.P. a China-focused distressed asset investment firm managed by Shoreline Capital, witnessed oversubscription in 2008. India In India, institutional investor interests focus on key sectors like pharmaceuticals and healthcare, banking and finance, mining, Fast Moving Consumer Goods (FMCG), and Information Technology (IT)/Information Technology Enabled Services (ITeS). On the other hand, PE firms struck deals in cement, infrastructure, education, and real estate sectors, among others. According to India PE Report 2010 from Bain Company, a global consultancy, PE and venture capital (VC) investments are projected to reach US$17 BN by the year 2010. Other Asian Countries Other Asian countries like Indonesia, the Philippines, and Japan have also recorded increased flow of FII between 140-220% in 2010. On the other hand, South Korea and Taiwan have recorded lower inflows than other countries ranging between 28 50%. Commodities Asian financial investors, similar to those worldwide, are worried about the higher rates of inflation and are therefore keen on mitigating the risk through increased aggressive investment in commodities. State-owned companies in China like Chinalco, and Minmetals, in collaboration with state banks such as the China Development Bank, have invested in numerous natural resources deals in Africa, Australia, and Russia. Simultaneously, the Chinese government is using its foreign reserves to build crude oil reserves and building stocks of precious metals like gold, copper, and iron ore. Recommendations Regulations The financial instruments which make the market more efficient also introduced embedded or hidden leverage into balance sheets which complicate counterparties and transmit, rather than mitigate risk. To ensure mortgage underwriting and regulatory standards remain high, sponsors should continue their economic stakes with exposure to loss to ensure their vigilance and alignment with all parties. Transparency To safeguard future economic crises, institutional investors need to operate under a carefully regulated, transparent and capitalized environment. Rates of transparency, varying widely, from relatively higher levels in Hong Kong, to a more restrictive and opaque market in China, pose the biggest challenge to the institutional investors, and should be carefully assessed for risk. Diversify Outside The Dollar A single solution to both these objectives would be the movement towards a single Asian currency. It would be a safe investment alternative for Asian investors to enhance trade, and rule out exchange rate uncertainties, boost investment and monetary bonding within the region and grant more clout in the international market, and also limit the impact of cross-country effects. Otherwise, the Chinese Yuan or Renminbi is an alternative investment. The Asian Development Bank priced their first international bond denominated in Renminbi on October 19, 2010, which carries a ten-year bullet maturity with a critical long-term pricing reference for other borrowers. Gold Gold should always be included in an optimally diversified portfolio. Gold would never lose its intrinsic value, serving as a hedge against inflation. Investments in gold in 2009 surpassed the corresponding demand of the entire year of 2008. Large institutional investors, such as hedge and pension funds are allocating investment on gold and gold shares. Construction Construction and healthcare sector provide new avenues of long term investment for institutional investors. The construction sector provides critical infrastructure and requires occupation of unskilled work force, cheap labour without training requirements. This would forth employment and revenue for the economy, a multiplier effect on the economy and ultimately responsible for the Gross Domestic Product (GDP). Although healthcare investment has been in demand worldwide, investment in the healthcare sector necessitates a multifaceted approach in understanding the underlying trends that institutional investors should follow before making investments. The aging population and baby boomers; longer lifespan with chronic diseases; obesity and diabetes epidemics; the global reach of diseases, among others, are positive trends that drive investment in the healthcare sector. Healthcare investments in the form of sponsorships of the education of specialists; financing the development of a chain of hospitals or polyclinics, technological equipment and patented drugs promises rich rewards and good dividends for investors. Conclusion Could the crisis have been averted? Finance ministers of the ASEAN members as well as China, Japan, and South Korea have agreed to set up a crisis fund worth US$120 BN to help the region handle credit crunch and overcome the global financial crisis. With all this preparation to ward off another crisis, it is still a little known fact that the magnitude of the crisis was due to bond salesmen peddling American CDOs overseas. In the world of subprime lending, it was all about transferring risk. The last one holding the bond was a fool.