Lessons from the crisis

A lot happened even before the perceived beginning of this crisis in 2007, so although the events are recent, I will give an overview from a US perspective of the period from 2001 to date, in our search for the lessons t
A lot happened even before the perceived beginning of this crisis in 2007, so although the events are recent, I will give an overview from a US perspective of the period from 2001 to date, in our search for the lessons to be learned. Much of it is probably familiar, but worth revisiting. I will break this necessarily simplified account into 3 stages: first, a look at the key factors that led to the increasing riskiness of US home mortgages; second, how those risks were transmitted as securities from US housing lenders to institutional investors around the globe; and third, how those risks led to huge losses and created a credit crunch that moved the impact from the financial economy to the real economy and produced a severe recession. Then we will have a factual foundation for deriving the lessons that ought to be taken away from this very expensive experience.
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Metadaten
Author:Kenneth E. Scott
URN:urn:nbn:de:hebis:30-72807
URL:http://www.ilf-frankfurt.de/uploads/media/ILF_WP_108.pdf
Parent Title (German):Working paper series / Johann-Wolfgang-Goethe-Universität, Institute for Law and Finance ; 108
Series (Serial Number):Working paper series / Johann-Wolfgang-Goethe-Universität, Institute for Law and Finance (108)
Publisher:Inst. for Law and Finance
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2009
Year of first Publication:2009
Publishing Institution:Univ.-Bibliothek Frankfurt am Main
Release Date:2009/12/03
Note:
The paper has been presented at the IMFS conference "The Financial Market Crisis - Causes, Remedies and Prevention" Goethe Universität Frankfurt, Oct. 22, 2009. Revised version of Oct.29, 2009.
HeBIS PPN:220235910
Institutes:Institute for Law and Finance (ILF)
Dewey Decimal Classification:340 Recht
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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