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 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.
| 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 / Johann-Wolfgang-Goethe-Universität, Institut 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: | Universitätsbibliothek Johann Christian Senckenberg |
| 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: | Wissenschaftliche Zentren und koordinierte Programme / Institute for Law and Finance (ILF) |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 34 Recht / 340 Recht |
| Licence (German): |  Deutsches Urheberrecht |
