derivatives in triggering the global financial crisis • Recommend the ways to control the OTC market in the future The origins of the global financial crisis There are several factors causing global financial crisis: 1. Growth of housing bubble & Subprime lending o particular advantage of low long-term interest rates was the US mortgage market. American households traditionally took out fixed-rate mortgages, often guaranteed by the government-sponsored enterprises, the GSEs. As rates
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Assignment 4 One of the driving goals of entrepreneurs is to start up a company, and then take it public through an IPO (initial public offering). Is the prospect of realizing great gains by going public that feeds the venture capital frenzy. During the dot-com glory days, many companies with no revenues – indeed, with prospect of revenues in the foreseeable future – went public and consequently made their investors very rich. The Washington Post article provided below offers a story of a company that has
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Published in The Hindu - Sunday Magazine on Oct 5, 2008 The bursting of the speculative bubble in the U.S. housing market has destroyed billions of dollars in investor wealth across the world, crippled the banking system, expunged close to a million jobs…and India has not been spared either. With banks failing by the day…definitely, these are uncertain times for the financial services industry. While many people who have lost their jobs, are faced with permanent shrinkage of their lifestyle, others
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SUBPRIME MORTGAGE CRISIS The U.S. subprime mortgage crisis was a set of events and conditions that led to the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. What is a subprime mortgage? A subprime mortgage is a type of loan granted to individuals with poor credit histories, who, as a result of their deficient credit ratings, would not be able to qualify
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“This existence of ours is as transient as autumn clouds. To watch the birth and death of beings is like looking at the movements of a dance. A lifetime is like a flash of lightning in the sky, rushing by, like a torrent down a steep mountain.” --Buddha IMPERMANENCE The Buddha saw life as a running stream. A trickle running inexorably downhill whose path is comprised of a series of unpredictable twists and turns which join together to create an illusion of steady flow when in reality every
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Case Analysis: The iPremier Company - Denial of Service Attack Matthew M. Lambert Introduction: The e-commerce landscape is littered with the remnants of companies that didn’t survive the meteoric dot com boom and subsequent bust that began in the late 1990s. iPremiere Company, however, was the exception to the rule. Created by two college students in 1996, the web-based company had solidified its business position as a top online retailer of high-end, luxury goods with $32 million in sales and
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As colleges weigh this year’s round of applications, high school seniors are not the only anxious ones. Just as nervously, colleges — facing a financial landscape they have never seen before — are trying to figure out how many students to accept, and how many students will accept them. Typically, they rely on statistical models to predict which students will take them up on their offers to attend. But this year, with the economy turning parents and students into bargain hunters, demographics
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Introduction WorldCom is a telecommunications company which was lead by CEO, Bernard Ebbers and CFO, Scott Sullivan. In 1999, WorldCom was not melting Wall Street’s revenue and earnings expectations, and it appeared that the coming year would produce more bad news. The CFO argued for setting realistic targets. However the CEO insisted that the company needed double digit growth, and pushed for aggressive targets. These aggressive targets were not supported by historical data or strategic assessments
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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0025-1747.htm Intellectual capital disclosure and intangible value drivers: an empirical study Philip Vergauwen Faculty of Applied Economic Sciences, Universiteit Hasselt, Hasselt, Belgium ICDs and intangible value drivers 1163 Received February 2007 Revised May 2007 Accepted May 2007 Laury Bollen Faculty of Economics and Business Administration, Department of Accounting and Information Management
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futures etc. In order to fully understand the devastation caused by this dilemma, we have to take focus on the core issues and identify the stream of events as they occurred and how they subsequently collapsed global financial markets. Housing Bubble Burst The global financial crisis began through the US sub-prime mortgage market. The past two decades leading up to the year 2005 had experienced phenomenal growth in terms of increases in housing prices. There was an abundance of capital flowing
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