Essays on Financial Crisis

Background It has been over ten years since one of the most serious financial crises in history had occurred and nowadays it is clearer to understand what exactly happened in the US in 2007 and 2008. The crisis has affected most of the developed countries economically all around the world and had a massive negative...

You are in the line to pay for your takeout lunch and your card gets rejected, surprised you try again (since it worked perfectly well when you paid for coffee in the morning), worried you check the banking application on your smartphone to realise your account balance is zero, on enquiring with the bank you...

The 2008 financial crisis subjected global economies into immense pressure. The period stimulated significant changes as countries rushed to ensure economic balance and sustainability. Assessment of the possible factors that contributed to the crisis implicates issues such as deregulation in the financial sectors that allowed banks to participate in hedge fund trading derivatives. The consequences...

The primary sign that the economy was in a tough situation happened in 2006 when housing costs began to fall. From the start, real estate professionals commended; they thought the overheated housing business sector would come back to a progressively reasonable level. They didn’t understand there were an excessive number of mortgage holders with sketchy...

Introduction It is an indisputable fact that ten years ago the outbreak of a financial crisis in America quickly brought the global economy into a full recession. The impact of this crisis far exceeds the period of the Great Depression. It is most governments, businesses, and individuals who have not predicted the coming of this...

Introduction The continuous strengthening international tendency of economic and financial integration not only expands the international market but also makes various countries’ economies have great correlation and strong similarity. This has greatly advanced the global financial system’s vulnerability together with a regional or global financial crisis probability. Supposing that there occurs a crisis in a...

A financial crisis is defined by Wright & Quadrini (2009) as a cease in functioning or function only irrationally and ineffectively by one or more financial markets or intermediaries. This crisis is said to be non-systemic when only one or few markets are involved and systemic when all or almost all financial system is involved...

Introduction The continuous strengthening economic and financial integration’s international trend not only expands the international market but also makes various countries’ economies have great correlation or strong similarity. This has greatly advanced the global financial system’s vulnerability together with a regional or worldwide financial crisis probability. Supposing that a crisis occurs in a country’s economy,...

The government’s heavy spending has led to the Greek debt crisis, and due to the slowdown in global economic growth, the problems have not been solved for many years. The main reason for the Greek government to put this country on the road to debt is its profligate and excessive generosity such as generous pensions...

The purpose of this survey is to show the idea of securitization related to the house equity mortgage. It will explain the reason why Assets Back Securities (ABS) were created and how this was supposed to create a better and efficient market by reducing the risk. Additionally, it will help to acknowledge how ABS base...