Global Financial Crisis- Cause, Response, Future?

Descrição

Global Business Environment (Q3 - Financial Crisis) Mapa Mental sobre Global Financial Crisis- Cause, Response, Future?, criado por edcashell em 06-05-2013.
edcashell
Mapa Mental por edcashell, atualizado more than 1 year ago
edcashell
Criado por edcashell mais de 11 anos atrás
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Resumo de Recurso

Global Financial Crisis- Cause, Response, Future?
  1. Cause
    1. Lenders
      1. Giving 100% percent mortgages (av. 99.3%)
        1. NINJA No Doc loans
        2. Individuals
          1. Demand for housing
            1. Seen as a good investment
            2. US Federal Reserve
              1. Rates @ 1%
                1. Regulations relax on Leverage
                2. Investment Banks
                  1. GS knowingly sold toxic CDOs and bought CDS against them
                  2. Rating Agencies
                    1. AAA ratings to CDO and RMBS
                    2. Investors
                      1. Demand for CDO
                        1. Belief that CDOs were less risky
                          1. Raghuram Rajan 2005 - Has Financial Development Made the World Riskier?
                      2. Mortgage brokers
                        1. Pressure from banks to meet demand
                          1. mis-sold mortgages to fixed income
                          2. AIG
                            1. Credit Default Swaps
                              1. Bonuses for selling - short term cash on long term risk.
                              2. Europe - central banks covering up
                                1. Soverign Debt
                              3. Response
                                1. Deleverage
                                  1. Bailouts
                                    1. AIG
                                    2. Insolvent
                                      1. Lehman
                                      2. LTRO
                                        1. TARP
                                          1. US Fed pays $167 billion in bailouts
                                          2. Consumer Confidence drops
                                            1. China manufacturing hit
                                              1. 10 million migrant workers unemployed
                                              2. EU Unemployment hits10%
                                                1. More people on dole in Spain than living in Denmark
                                            2. Future
                                              1. market has fewer, larger banks
                                                1. Ireland - tracker mortgages means banks tied into losses for long term
                                                  1. Following 1929, congressional acts, repealed
                                                    1. More Bubbles
                                                      1. China 65 million vacant properties
                                                      2. Peak Oil
                                                        1. Increased Population, food shortages
                                                          1. Peter Schiff says power will be in Production \ Food

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