Subprime lending

During the Foreclosure Crisis several years ago, my community was hit hard. I never thought I would see homes in my neighborhood being foreclosed. It was unbelievable. I was in middle school and high school when this was going on and heard my parents discussing this many times. I look back and think there were things that could have been done to prevent this from being a nation-wide disaster. I believe that there are things that can be done to minimize the effect of a foreclosure crisis…

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…

Enron: The purpose is to examine how information asymmetry and opportunistic behavior of legal firms, executives and auditors and the incompetence of the owners ie. The principal to control it let to the catastrophic collapse of Enron. The implosion caused due to US in Enron had created massive havoc costing the economy a whopping $ 64 billion in 2002 with GDP declining by 0.67 % in the next two years and a major decline in investor confidence directing a 17% decline in share prices. The main…

Andrew Beattie states moral hazard is “An idea that a party that is protected in some way from risk will act differently than if they didn 't have that protection”. The concept of 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…

Being a Millennial, I recognize how much of an impact the “Great Recession” has had on my life, especially in regards to adopting homeownership. This essay will be written from the perspective of someone who, because of the “Great Recession” has plain and simply, not been able to afford anything in the ways of homeownership. It is not just about the mortgage crisis, the recession, often has affected every choice someone of my era has had to make in their life thus far. The pros and cons of…

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…

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 swaps, to wager that the lodging business sector would crash, and they won. Alongside them is a supporting cast of imbecilic, shabby financiers and land dealers who sold subprime contracts, made the fake subprime sold upheld manufactured securities,…

from occurring again. History has revealed that the nature of every single crisis is vastly different from one another, whether it is the 1990 Savings and Loans crisis, the 1998 Long Term Capital Management crisis, the 2000 Dotcom crisis or the 2008 subprime crisis. One crisis leads to another because after implementing the policy reforms following one crisis, economists and policymakers become complacent with their “backward looking fix” and do not anticipate the next disaster to…

The Panic of 1819 was about the 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…