Lessons from the Financial Crisis Causes, Consequences, and Our Economic Future

by Quail, Rob

• ISBN13: 9780470561775
• ISBN10: 0470561777
• eBook ISBN(s): 9780470622391
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-06-08
• Publisher: Wiley
• More Book Details

Summary

The world's best financial minds help us understand today's financial crisisWith so much information saturating the market for the everyday investor, trying to understand why the economic crisis happened and what needs to be done to fix it can be daunting. There is a real need, and demand, from both investors and the financial community to obtain answers as to what really happened and why.Lessons from the Financial Crisis brings together the leading minds in the worlds of finance and academia to dissect the crisis. Divided into three comprehensive sections-The Subprime Crisis; The Global Financial Crisis; and Law, Regulation, the Financial Crisis, and The Future-this book puts the events that have transpired in perspective, and offers valuable insights into what we must do to avoid future missteps. Each section is comprised of chapters written by experienced contributors, each with his or her own point of view, research, and conclusions Examines the market collapse in detail and explores safeguards to stop future crises Encompasses the most up-to-date analysis from today's leading financial mindsWe currently face a serious economic crisis, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through the current situation and learn from our mistakes.

Author Biography

Robert W. Kolb is the Frank W. Considine Chair of Applied Ethics and Professor of Finance at Loyola University, Chicago. Before this, he was the assistant dean, Business and Society, and director, Center for Business and Society, at the University of Colorado at Boulder and department chairman at the University of Miami. Kolb has authored over twenty books on finance, derivatives, and futures, as well as numerous articles in leading finance journals.

Table of Contents

Overview of the Crisis

Leverage and Liberal Democracy

A Property Economics Explanation of the Global Financial Crisis

Of Subprimes and Sundry Symptoms: The Political Economy of the Financial Crisis

The Political Economy of the Financial Crisis of 2008

The Global Financial Crisis of 2008: What Went Wrong?

The Roots of the Crisis and How to Bring It to a Close

Enron Rerun: The Credit Crisis in Three "Easy" Pieces

The Global Crisis and Its Origins

Four Paradoxes of the 2008/2009 Economic and Financial Crisis

Understanding the Subprime Financial Crisis

Causes and Consequences of the Financial Crisis

The Origins of the Financial Crisis

Ten Myths about Subprime Mortgages

The Financial Crisis: How Did We Get Here and Where Do We Go Next? New Evidence on How the Crisis Spread among Financial Institutions

A Decade of Living Dangerously: The Causes and Consequences of the Mortgage, Financial and Economic Crises

Making Sense of the Subprime Crisis

Miraculous Financial Engineering or "Legacy" Assets?

The Making and Ending of the Financial Crisis of 2008?

The Subprime Mortgage Problem: Causes and Likely Cure

Sequence of Asset Bubbles and the Global Financial Crisis

Borrowers

The Past, Present, and Future of Subprime Mortgages

FHA Loans and Policy Responses to Credit Availability

The Single-Family Mortgage Industry in the Internet Era: Technology Developments and Market Structure

Speed Kills? Mortgage Credit Boom and the Crisis

Subprime Mortgages: What Have We Learned from a New Class of Homeowners

Fannie Mae and Freddie Mac: Privatizing Profit and Socializing Loss

The Process of Securitization

A Primer on the Role of Securitization in the Credit Market Crisis of 2007

Incentives in the Originate-to-Distribute Model of Mortgage Production

Did Securitization Lead to Lax Screening? Evidence from Subprime Loans

Tumbling Tower of Babel: Subprime Securitization and the Credit Crisis

The Incentives of Mortgage Servicers and Designing Loan Modifications to Address the Mortgage Crisis

The Contribution of Structured Finance to the Financial Crisis

Problematic Practices Of Credit Rating Agencies: The Neglected Risks Of Mortgage-Backed Securities

Did Asset Complexity Trigger Ratings Bias?

The Pitfalls of Originate-to-Distribute in Bank Lending

Risk Management and Mismanagement

Behavioral Basis of the Financial Crisis

Risk Management Failures During the Financial Crisis

The Outsourcing of Financial Regulation to Risk Models

The Future of Risk Modeling

What Happened to Risk Management During the 2008-09 Financial Crisis?

Risk Management Lessons from the Global Financial Crisis for Derivative Exchanges

The Problem of Regulation

Regulation and Financial Stability in the Age of Turbulence

The Financial Crisis of 2007-09: Missing Financial Regulation or Absentee Regulators?

The Demise of the UK's Northern Rock and Large U.S. Financial Institutions: Public Policy Lessons

Why Securities Regulation Failed to Prevent the CDO Meltdown

Curbing Optimism in Managerial Estimates through Transparent Accounting: The Case of Securitizations

Basel II Put on Trial: What Role in the Financial Crisis ?

Credit Rating Organizations, Their Role in the Current Calamity, and Future Prospects for Reform

Global Regulation for Global Markets?

Financial Regulation, Behavioral Finance, and the Global Financial Crisis: In Search of a New Regulatory Model

Institutional Failures

Why Financial Conglomerates Are at the Center of the Financial Crisis

Corporate Governance and the Financial Crisis: A Case Study from the S&P 500

Secondary-Management Conflicts

The Financial Crisis and the Systemic Failure of Academic Economics

Rating Agencies: Facilitators of Predatory Lending in the Subprime Market

Disclosure's Failure in the Subprime Mortgage Crisis

The Federal Reserve, Monetary Policy, and the Financial Crisis

Federal Reserve Policy and the Housing Bubble

The Greenspan and Bernanke Federal Reserve Role in the Financial Crisis

The Risk Management Approach to Monetary Policy: Lessons from the Financial Crisis of 2007-2009

Reawakening the Inflationary Monster

The Transformation of the Federal Reserve System Balance Sheet and its Implications

Implications of the Crisis for Our Economic Systems

Systemic Risk and Markets

The Transmission of Liquidity Shocks During the Crisis

Counterparty Risk, Impact on Collateral Flows, and Role for Central Counterparties

Credit Contagion from Counterparty Risk

International Dimensions of the Financial Crisis

Only in America? When Housing Boom Turns to Bust

The Equity Risk Premium amid a Global Financial Crisis

Australia's Experience in the Global Financial Crisis

Collapse of a Financial system: An Icelandic Saga

Iceland's Banking Sector and the Political Economy of Crisis

The Sub Prime Crisis: Implications for Emerging Markets

Financial Solutions and Our Economic Future

The Long-Term Cost of the Financial Crisis

Coping with the Financial Crisis: Illiquidity and the Role of Government Intervention

Fiscal Policy for the Crisis

The Future of Securitization

Modification of Mortgages in Bankruptcy

The Shadow Bankruptcy System

Reregulating Fannie Mae and Freddie Mac

Would Greater Regulation of Hedge Funds Reduce Systemic Risk?

Regulating Credit Default Swaps

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