additional information. Table of Contents: 1. 2. 3. 4. Contents Memorandum of Transmittal Executive Summary Analytical Report on the documentary ’Inside Job’ a. Introduction 5. 6. 7. 8. Part (i): "How we got here?" c. Part (ii): "The Bubble" d. Part (iii): "The Crisis" e. Part (iv): "Accountability" f. Part (v): "Where are we now?" Biblography Appendix Glossary Index b. Executive Summary Inside Job is a documentary by Charles Ferguson‚ about the causes of the global financial crisis
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that the documentary goes into many of the causes of the financial crises. Topics include corrupted politics‚ the housing bubble‚ wall-street executives and systematic corruption by the financial institutions. The documentary is split into five parts: Part 1: How we got here? – Explains the history behind bank deregulation. Part 2: The bubble (2001-2007)-Analyzes the housing bubble‚ credit default swaps and subprime mortgages. Part 3: The crisis- Shows the effect of the financial crisis. Describes
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5% to normal rate 20%. Spending is greater than revenue because of higher compensation of government employees‚ social benefit‚ interest on the public debt‚ subsidies and gross fixed capital formation. Ireland also exposed to problem of property bubble. The residential and commercial property markets went into a severe slump with both sales and property values collapsing. The property developers are currently suffering from substantial over-supply of property‚ much still unsold. Many Irish property
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Did subprime mortgage loans contribute to the housing bubble? Why did the bubble burst? What were the consequences of the housing bust to borrowers‚ loan originators‚ and MBS and CDO holders? Did subprime mortgages contribute to the U.S. financial crisis of 2008? 4. How did Federal legislation concerning mortgage loans affect Countrywide Financial Corporation’s (CFC) business strategy? Did the government’s encouragement of subprime mortgages have an impact on the company’s number of loan originations
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also predicted the burst of the IT bubble. The title of this book was first used in a speech given by Alan Greenspan‚ the Federal Reserve Board Chairman at the American Enterprise Institute in the 1990s. Nowadays‚ it is used to describe the unreasonable behavior of the stock market; this phrase perfectly matches with the phenomenon observed in subprime loans. In this book‚ Shiller proposed 12 structural factors that contributed to the boost of the real estate bubble‚ which were also similar factors
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turndown is in 2008. But what caused this economic turndown? First‚ we will look the house market. Since many people thought the house price won’t go down‚ they buy houses with different mortgage‚ which they couldn’t afford. In 2006‚ the bubble burst as housing prices started to decline. This caught many homeowners off guard‚ who had taken loans with little money down. As they realized they would lose money by selling the house for less than their mortgage‚ they foreclosed. But the recession
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It started in 2007‚ to June 2009 this was the longest economic tragedy since World War II. The real estate market was a disaster waiting to happen. The housing bubble was the issue that affected half of the U.S. housing market it declined
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Negotiation – Cameron’s Swede Dream At present‚ Sweden is the most talked about European economic model. Not affected by the world financial crisis‚ the country grew at almost 4 per cent last year‚ nearly six times faster than Britain. Nicknamed the Nordic tiger‚ Sweden continues to invest in welfare while other countries can no longer afford it. Even normally conflicting parties are attracted to this model: the Left because of high taxes and government spending‚ the Right due to profitable
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incentives in the UK‚ such as a long-term trend of increasing housing prices‚ are important factors which accelerated the process of a financial crisis (Lahart‚ 2014). What is more‚ the decreasing price of houses is a direct factor in the disappearance of mortgage-related security requirement (Taff‚ 2003). As an obvious example‚ declines in family spending and business investment which lead to a higher real estate debt and a sharply decreasing of housing price (Lahart‚ 2014). There is no denying that both
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MBA 6410 Project Part 1 The Financial Accelerator and the Flight to Quality One puzzle that has long plagued business cycle analysis is the existence of large fluctuations in aggregate economic activity that arise from what seem to be small shocks. This anomaly is what motivated the research into the financial accelerator. The financial accelerator is a possible explanation for these disproportional fluctuations. Changes in the credit market amplify and spread the initial shocks. This is explanation
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