maszyny: Subprime mortgage crisis

Evidence: 100 • authority: 72

The American subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010, contributing to the 2008 financial crisis. It led to a severe economic recession, with millions becoming unemployed and many businesses going bankrupt. The U.S. government intervened with a series of measures to stabilize the financial system, including the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act of 2009 (ARRA). The collapse of the 2000s United States housing bubble and high interest rates led to unprecedented numbers of borrowers missing mortgage repayments and becoming delinquent. This ultimately led to mass foreclosures and the devalu…

Evidence: 87 • authority: 72

Government policies and the subprime mortgage crisis covers the United States government policies and its impact on the subprime mortgage crisis of 2007–2009. The U.S. subprime mortgage crisis was a set of events and conditions that led to the 2008 financial crisis and subsequent recession. It was characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. Several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession. Government housing policies, over-regulation, failed regulation and d…

Evidence: 70 • authority: 72

The 2008 financial crisis was a major worldwide financial crisis which started in the U.S. The cause of the crisis was the collapse of the 2000s U.S. housing bubble. The first phase was the subprime mortgage crisis, which began in early 2007 as mortgage-backed securities (MBS) tied to U.S. real estate, and a vast web of derivatives linked to those MBS, collapsed in value. A liquidity crisis spread to global institutions by mid-2007 and climaxed with the bankruptcy of Lehman Brothers in September 2008, which triggered a stock market crash and bank runs in several countries. The crisis exacerbated the Great Recession, a global recession that began in late 2007, and contributed to major crises…

Evidence: 44 • authority: 92

The Financial Crisis - Global Impact and Lessons. A review of the 2007-2008 financial crisis is conducted. We synthesize the insights provided by literature on the impact of this crisis on the United States and other countries. The extant literature on the policies undertaken by policymakers in United States and Europe and their global impact is reviewed, together with the prediction literature to assess the advancement in crisis forecasting. Finally, the lessons learnt from this crisis are put together for better preparedness for the next crisis. This is especially important in light of the worldwide disruption in economic activity and the expected global recession arising from the COVID-1…

Evidence: 40 • authority: 72

The subprime mortgage crisis reached a critical stage during the first week of September 2008, characterized by severely contracted liquidity in the global credit markets and insolvency threats to investment banks and other institutions.

Evidence: 31 • authority: 92

A Move Towards a Cashless Society Accelerates With the Novel Coronavirus Induced Global Lockdown. The novel coronavirus (COVID-19) pandemic has resulted in two important outcomes; first, centuries of developments and progress in technology, medicine, and science failed to combat the virus which has so far killed over 1.6 million people worldwide; second, and most importantly, the new vital role of ecommerce increased chances of survival under self-quarantine or imposed lockdowns. A cashless society can bring advantages and disadvantages; for example, ecommerce can reduce or eliminate costs associated with conducting business (i.e. job creation, accounts payable/receivable, scope of products…

Evidence: 31 • authority: 92

Resurrecting the Monster? Protecting the Market from Unfettered COVID-19 Fraud Enforcement. COVID-19 spread like a wildfire across the globe, and its effects have spread beyond public health and into all facets of society. The pandemic highlighted significant supply chain vulnerabilities in almost every market, especially those for critical health care supplies. The United States has spent trillions of dollars in response to the pandemic, and that spending has already invited significant fraud. The False Claims Act (FCA) will play a major role in combatting this fraud, and the Department of Justice (DOJ) will lead the charge. However, history indicates that aggressive FCA enforcement during…

Evidence: 30 • authority: 80

When Safe Became Risky: the Information Sensitivity of Subprime RMBS during the Financial Crisis of 2007-2009

Evidence: — • authority: 72

In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic). There is no official definition of a recession, according to the International Monetary Fund. In the United States, a recession is defined as "a significant decline in economic activity spread across the market, lasting more than a few months,…

Evidence: — • authority: 72

Accounting and the late 2000s financial crisis are the accounting methods that contributed to the 2008 financial crisis. There were many differing views on which parties were primarily responsible for the crisis. These include investment bankers, credit rating agencies, financial statement preparers, the US Federal Reserve, investors, loan originators, auditors, and borrowers among others. One of the parties identified was the role that accountants and specific accounting standards played in the crisis. The Causes of the Great Recession and "History of Fair Value Issues" provide more details of the specific causes. The key accounting issues were fair value accounting and the role of auditor…

Evidence: — • authority: 72

The Great Recession was a period of contraction in economies around the world (particularly in the western world and associated countries) that occurred from late 2007 to mid-2009, overlapping with the closely related 2008 financial crisis. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression of the 1930s. The Great Recession was caused by many weaknesses that slowly developed in the global financial system, along with a series of concurrent and triggering events that began with the bursting of the United States housin…

Evidence: — • authority: 88

The Bear's Lair: Index Credit Default Swaps and the Subprime Mortgage Crisis. During the recent financial crisis, ABX.HE index credit default swaps (CDS) on baskets of mortgage-backed securities became a benchmark used by financial institutions to mark their subprime mortgage portfolios to market. However, we find that prices for the AAA ABX.HE index CDS during the crisis were inconsistent with any reasonable assumption for mortgage default rates, and that these price changes are only weakly correlated with observed changes in the foreclosure performance of the underlying loans in the index, casting serious doubt on the suitability of the AAA ABX.HE index CDS as valuation benchmarks. We als…