An Analysis of the Financial Crisis of 2008.docxVIP

下载本文档

20
0
约2.89万字
约 13页
2017-01-05 发布于贵州
举报
版权申诉

An Analysis of the Financial Crisis of 2008.docx

1、原创力文档（book118）网站文档一经付费（服务费），不意味着购买了该文档的版权，仅供个人/单位学习、研究之用，不得用于商业用途，未经授权，严禁复制、发行、汇编、翻译或者网络传播等，侵权必究。。
2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。如您付费，意味着您自己接受本站规则且自行承担风险，本站不退款、不进行额外附加服务；查看《如何避免下载的几个坑》。如果您已付费下载过本站文档，您可以点击这里二次下载。
3、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等，请点击“版权申诉”（推荐），也可以打举报电话：400-050-0827(电话支持时间：9:00-18:30)。
4、该文档为VIP文档，如果想要下载，成为VIP会员后，下载免费。
5、成为VIP后，下载本文档将扣除1次下载权益。下载后，不支持退款、换文档。如有疑问请联系我们。
6、成为VIP后，您将拥有八大权益，权益包括：VIP文档下载权益、阅读免打扰、文档格式转换、高级专利检索、专属身份标志、高级客服、多端互通、版权登记。
7、VIP文档为合作方或网友上传，每下载1次，网站将根据用户上传文档的质量评分、类型等，对文档贡献者给予高额补贴、流量扶持。如果你也想贡献VIP文档。上传文档

AnAnalysisoftheFinancialCrisisof2008AnAnalysisoftheFinancialCrisisof2008

An Analysis of the Financial Crisis of 2008: Causes and Solutions*AbstractThis research evaluates the fundamental causes of the current financial crisis. Closefinancial analysis indicates that theoretical modeling based on unrealistic assumptions ledto serious problems in mispricing in the massive unregulated market for credit defaultswaps that exploded upon catalytic rises in residential mortgage defaults. Recentacademic research implies solutions to the crisis that are appraised to be far less costlythan a bailout of investors who made poor financial decisions with respect to creditanalysis. JEL: G11, G12, G13, G14________________________________________________________________________*by Austin Murphy, Professor of Finance, Oakland University, SBA, Rochester, MI48309-4493 (248-370-2125; jamurphy@).1An Analysis of the Financial Crisis of 2008: Causes and SolutionsThe financial crisis in 2008 is of such epic proportions that even astronomicalamounts spent to address the problem have so far been insufficient to resolve it. Besidesthe well-publicized $700 billion approved by Congress, the Federal Reserve hasattempted to bail out institutions and markets with about $1.3 trillion in investments invarious risky assets, including loans to otherwise bankrupt institutions and collateralizeddebt obligations like those backed by subprime mortgages that are defaulting at rapidrates (Morris, 2008). A further $900 billion is being proposed in lending to largecorporations (Aversa, 2008), making a total of nearly $3 trillion in bailout money so far,without even counting the massive sum of corporate debts guaranteed by the U.S.government in the last year. An analysis of the fundamental causes of this “colossalfailure” that has put “the entire financial system… at risk” (Woellert and Kopecki, 2008)is warranted in order to both solve the problem and avoid such events in the future.Root Cause of the Crisis: Mispricing in the Massive Credit Default Swaps MarketMany blame defaulting mo