Mortgage lenders

Is Brexit the Lehman Moment for the $100 Trillion Global Bond Bubble? Is Brexit the Lehman Moment for the $100 Trillion Global Bond Bubble? Most economies have barely recovered from the 2008 subprime mortgage fiasco that was caused by sloppy lending practices at banks, overextended them and compromised essential liquidity to pay their own debts. Investopedia.com reports that Lehman Borothers, the fourth-largest investment bank in the United States, was forced to declare bankruptcy with $619…

1. Appreciation of the Swiss franc 1.1 Causes The global financial crisis led to a significant weakening in economic growth. The worldwide recession hit almost every country and financial uncertainty was dominating the markets. This has mainly happened due to the insolvency of many system-relevant financial firms, such as the Lehman Brothers, Fannie Mae & Freddie Mac. The franc has been permanently revaluated since 2008. 1.2 Measures against the strength of the Swiss franc After the SNB…

moral hazard really came to light in the late 2000’s when the United States was on the verge of an economic meltdown. The inevitable crisis was a result of the risky investments made by several of the country’s largest banks on Wall Street in home mortgages, and the manner many of the country’s wealthiest insurance companies had agreed to cover these investments. An apparent government bailout would be needed to prevent the potential economic depression. When moral hazard was applied to the…

Speaker-Steven D. Levitt, labeled as a “rogue economist” explores the causes behind many of the world's economic situations, such as how a woman’s fight for the right to abort her baby led to the decrease in criminals 50 plus years later, or how crack gangs show an uncanny resemblance to a capitalist enterprise. Levitt, sees beyond the average economist and looks to solve the riddles that define our economy today. Many people may see Levitt’s ideas as anything but economics. That is because…

In the case study of “Global Financial Crises and the Future of Securitization”, four global financial crisis have been reviewed. Although different factors precipitated the crisis in those four cases, two vital indicators of financial crisis can be identified, which are the excessive liquidity and the excessive leverage. Furthermore, misguide of changes in regulatory framework might be a root cause of the financial crisis. (Cabral, 2013) In the case of “Asian Financial Crisis”, excessive…

The motion picture is a portrayal of the budgetary emergency, in view of Michael Lewis' top of the line book "The Big Short: Inside the Doomsday Machine." The fundamental characters are cash chiefs Michael Burry (Christian Bale) and Mark Baum (Steve Carell), who anticipated the emergency and discovered approaches to make over a billion dollars benefit from it. They predicted that the lodging market and the supporting subprime contracts would crash, and they found a way, utilizing credit default…

Issue: The crisis of 2007-08 demonstrated that macroeconomics and macroeconomists failed as a social science and a profession. The objectives of macroeconomics as a social science are twofold: to understand the complex workings and drivers of the global economy through models and predict the economic changes in the near future. Successfully macroeconomists not only grasp the intricate webs of our economy but also are able to advise on policies that would ensure economic stability and…

economic and financial disaster in America that also affected other nations outside America. It was the first financial disaster that occurred in the United States during James Monroe terms of presidency. The effect of the Panic of 1819 resulted in mortgage foreclosing, failed banks which resulted for people to go into bankruptcy, widespread of unemployment throughout the states, falling prices, and people forced to move out of their houses. This epidemic lasted until 1824. There were many…

Austeriansis is the title of chapter eleven of the book End This Depression Now! written by the economist and Nobel Laureate Paul Krugman. In this chapter Paul Krugman analyzes the failing European respond to the European Financial Crisis. The lesson from the American Great Depression was clear: in times of depression states must act in order to implement expansionary fiscal and monetary policy. When the cash flow slows, states must act in order to restart the virtuous circle. Unfortunately, as…

The Argentine Great Depression was an economic depression in Argentina which began in 1998 and lasted until 2002. This depression began due to the Brazilian and Russian financial crises. Among many more, this crisis caused the fall of the government, riots, unemployment and defaults on the country's debt payment to the IMF. During this time, Argentina’s economy shrank by 28 percent from 1998 to 2002.More than 60 percent of Argentines were poor and seven out of ten children in Argentina were…