distribution of wealth and the way the rich use their money to make more money. Target No. 1 in the protests is the epitome of capitalism: the banking industry, and the governments that bailed out the banks with taxpayers' money during the last financial crisis. The protesters began to occupy Zuccotti Park at the end of Wall Street in mid-September. When we visited in October the number of blue tents pitched in the park was still growing. To me the scene looked like a disaster zone. Sitting in front of a
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FINC 6016 Financial Instruments and Markets Final Exam Guide * The final exam for FINC6016 Financial Instruments and Markets will be held on Thursday, November 13, 2014 at 1:50 pm. Please check the location for your specific exam on the Sydney Student section of the University of Sydney website. Note that there are multiple venues for the final exam due to the large class size – you may not have the same room as other students in the class. * The final exam is worth 50% of your total
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ADMAP REVIEW OF THE MOVIE – INSIDE JOB Rohan Rambhia | PGP-10-155 Inside Job is an exemplary recount of how administrator’s role when exploited to form risky administrative strategies by means of faulty processes lead to a crisis of the stature of the recession of 2008. It is a comprehensive documentary which narrates the history of the collapse, not only going into great, informative depth about the risk-based strategies that put the global economy on the line, but looks back to the rise
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the financial crisis. Background of Iceland: Iceland had a stable environment and it was a complete structure of a modern economic society. Its population was 320,000 with a GDP of $13 billion. Gylfi Zoega Professor of Economics at the University of Iceland said that, “A fine location for families to live happily.” In 2000, Iceland’s government began a policy of deregulation. This set up the basis for the banks to upload debts when the foreign companies were accumulated. As the crisis unfolded itself
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appreciation/depreciation, rate manipulation, if one currency is fixed (pegged) to the value of another currency, interest rates & inflation and speculation. 3. Identify factors that contributed to the recent global financial crisis. Explain the implications of this crisis for global political economy. Some of the contributing factors where: • Global economic imbalance • US economic regulatory regime that led to a mishandling of imprudent lending practices. • Myopic ideology that promoted
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caused by three main contributing factors; first, a toxic sub-prime mortgage market engineered by the financial industry; second, government’s failure of regulatory enforcement of the financial industry and Wall Street; and third, a collusive relationship between business leaders and government officials elected to curtail the same crisis they helped create. The financial collapse of 2008 resulted from a toxic sub-prime mortgage market engineered by an out-of-control industry that led to its inevitable
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The US Financial Crisis and Bangladesh The devastation left by the recent financial crisis can easily be compared with the natural disasters that visit Bangladesh so often. Lehman Brothers is no more; Merrill Lynch and Bear Stearns suffered a huge loss and forced to sell themselves; AIG, Frannie Mae, and Freddie Mac sought refuge in nationalization. USA’s last two investment banks Goldman Sachs and Morgan Stanley threw their towel and converted themselves to holding companies. The investment banking
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THE SUBPRIME CREDIT CRISIS AND CONTAGION IN FINANCIAL MARKETS Francis A. Longstaff∗ Abstract. We conduct an empirical investigation into the pricing of subprime assetbacked CDOs and the resulting contagion effects on other markets. Using data for the ABX indexes of subprime CDO prices, we find strong evidence of contagion effects. In particular, we find that contagion effects spread first from lower-rated ABX indexes to higher-rated ABX indexes, and then from the subprime markets to the Treasury bond
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end to the era of investment banking on Wall Street. Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by short-selling subprime mortgage-backed securities. The firm initially avoided large subprime write downs, and achieved a net profit due to significant losses on non-prime securitized loans being offset by gains on short mortgage positions. In the early 20th century, Goldman was a player in establishing the initial
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in history. Lehman’s demise was attributed to their aggressive investment strategy and significant exposure to the subprime mortgage market. As the housing bubble grew, Lehman Brothers acquired several mortgage lenders, some of the acquired firms frequently made loans to home buyers without full documentation (Jeffers 2011). When consumers began defaulting on mortgages and market conditions began to unravel, Lehman as well as many other banks faced huge losses. The write down of debt securities
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