A Report on World Economic crisis Have the world economies revived from the crisis? Members: 1. 2. 3. 4. 5. N. Sesha Sathya Krishna N. Suganya Aswini Vishwanath J.R.Siddharth Elizabeth Thomas ASB-Bangalore 07.12.2012 1|Page Table of Contents: Abstract 3 I.Introduction 4 II.Economic Crisis in USA 4 2.1 Dot-Com Bubble 4 2.1.1 Overview 4 2.1.2 Making Bubble Bigger 5 2.1.3 The Burst 5 2.2 Housing Bubble 6 2.2.1 Initial phase of Housing Bubble 6 2.2.2 Wall-Street‘s plan 7 2.2.3 CDO
Premium Subprime mortgage crisis Dot-com bubble
------------------------------------------------- The Case of Northern Rock ------------------------------------------------- Table of Contents 1 Scope of Study 3 2 Introduction to the Northern Rock Debacle 3 2.1 Introduction to Northern Rock’s Business Model 4 3 Internal Analysis 7 3.1 Analysis of Northern Rock’s Balance Sheet 2006 7 3.1.1 Northern Rock’s Sources of Funding 7 3.1.2 Asset and Liability Maturity Mismatch 2006 8 3.1.3 Peer Group Ratio Comparison to Assess Northern
Premium Subprime mortgage crisis Asset Bank run
Asset-Liability Management “Asset-Liability Management (ALM) can be defined as the ongoing process of formulating‚ implementing‚ monitoring and revising strategies related to assets and liabilities to achieve an organization ’s financial objectives‚ given the organization ’s risk tolerances and other constraints”[1]. ALM also is known as balance sheet management. In banking activity the gap between assets and liabilities can bring some consequences where the following risks are arose
Premium Balance sheet Subprime mortgage crisis Asset
In the 1970s‚ the Bretton Woods System which oriented in US dollar went through a series of crisis and finally disintegrated in 1973.Under such condition‚ many countries started to utilize floating exchange rate system‚ thus led fluctuations among each countries’ exchange rates. This phenomenon brought high risks among international trades. The traditional financial tools and market can not satisfy the need of hedging any more. Hence‚ the derivatives came onto the market. In the first part of this
Premium Futures contract Subprime mortgage crisis Foreign exchange market
collapsed. Part III is about credit default swaps: definition‚ construction‚ and problems. Part IV is concerned on the regulation reform after AIG’s failure. Wall Street Crisis Speaking of the Wall Street crisis‚ people all know it proceed from subprime crisis. The relatively low interest rate prompts banks to issue large amount of housing loans. To transfer default risk embedded in those loans‚ investment banks package those loans and mortgages into student loans‚ car loans and credit card debt
Premium Collateralized debt obligation Subprime mortgage crisis Debt
crisis began in 2006 in the United States housing and related mortgage markets. Soon it spread to the entire U.S. economy and then to the rest of the world. In August 2007‚ the turmoil moved from the securitized U.S. mortgage markets to the interbank lending market‚ causing it to freeze up. Before long people became concerned about the extent and distribution of the mortgage related losses‚ market participants lost confidence in one another’s credit-worthiness‚ and the market that provides U.S. banks
Premium Central bank Federal Reserve System Monetary policy
The 1929 stock market crash and the subsequent ‘great depression’ was the biggest economic crisis that the world has experienced. The depth and length of the crisis and the suffering that it caused is legendary. Therefore when the global financial crisis struck in 2007‚ many rushed to proclaim that we were about to experience another depression on a similar scale‚ or at least what some have termed a ‘great recession’. This essay will compare and contrast the two economic crises to analyse the key
Premium Great Depression Wall Street Crash of 1929 Subprime mortgage crisis
packaged in securitizations by Wall Street and then sold off to private investors. So we bought a database that included these loans to try to get a handle on how bad the situation was. And it was pretty frightening what we saw‚ especially with the subprime market‚ these very‚ very steep payment [resets]. You had starter rates that were very high already‚ 8 or 9 percent. Then they would go up to 11‚ 12‚ 13 percent after two or three years. And they really weren ’t designed to be affordable after that
Premium Subprime mortgage crisis Bank Debt
large financial institutions‚ the bailout of banks by national governments‚ and downturns in stock markets around the world. Reasons that economists believe were behind the crisis are a lot‚ but they addressed the following as the most relevant; subprime lending‚ the housing bubble‚ easy credit conditions. These reasons are all directly related to the banking system. In my research‚ I want to prove how banking can be very fatal to economies and pinpoint ways to make it less threatening. Economy is
Premium Finance Bank Investment
Economic Recession of 2007 William Mwangi Class title and section Professor’s name Due date of Assignment: 26th August 2011. William Mwangi Economic crisis Class Professor’s name 24th August‚ 2011. Economic Recession of 2007: What caused it and what were the after effects? Can we predict another major recession? Thesis Statement: Although the recession that dates back in 2007 is still long and deep and surely has shown some recovery‚ the potential that it will completely
Premium Economics Inflation Unemployment