National Foreclosure Settlement
... Principal write-downs for liens with higher LTV ratios generally receive less credit – thus where the property value is higher, the LTV ratio is more likely to be lower and within the higher credit percentage. A higher property value is also more likely to cause a requested modification to fail the ...
... Principal write-downs for liens with higher LTV ratios generally receive less credit – thus where the property value is higher, the LTV ratio is more likely to be lower and within the higher credit percentage. A higher property value is also more likely to cause a requested modification to fail the ...
NBER WORKING PAPER SERIES AND LIMITED RISK-SHARING IN GENERAL EQUILIBRIUM
... We summarize four key …ndings from the model. An economy-wide relaxation of collateral requirements generates a large boom in house prices relative to housing fundamentals. Existing studies of quantitative macro models with housing typically …nd that changes in …nancing constraints have surprisingl ...
... We summarize four key …ndings from the model. An economy-wide relaxation of collateral requirements generates a large boom in house prices relative to housing fundamentals. Existing studies of quantitative macro models with housing typically …nd that changes in …nancing constraints have surprisingl ...
NBER WORKING PAPER SERIES ON THE INCEPTION OF RATIONAL Behzad Diba
... probability that stockholders will gain utility from a strategy that involves selling shares now and never buying them back is zero. Accordingly, the transversality condition would not rule out such rational bubbles if stockholders ignore zero probability events. ...
... probability that stockholders will gain utility from a strategy that involves selling shares now and never buying them back is zero. Accordingly, the transversality condition would not rule out such rational bubbles if stockholders ignore zero probability events. ...
Causes, Effects and Regulatory Implications of Financial and
... crisis concerns the financial system and not so much macroeconomic, especially currentaccount, imbalances as had been thought initially. It is perhaps worth noting that many of the less acknowledged or more contentious issues that had been raised earlier in the crisis has since become more widely re ...
... crisis concerns the financial system and not so much macroeconomic, especially currentaccount, imbalances as had been thought initially. It is perhaps worth noting that many of the less acknowledged or more contentious issues that had been raised earlier in the crisis has since become more widely re ...
Morgan Creek Capital
... when he invested around £3,500 (about $800k today). In March, the company convinced the government to allow it to assume more of the national debt in exchange for its shares (sounds a little like QE here…), ironically beating a rival proposal from the Bank of England (they would get their chance to ...
... when he invested around £3,500 (about $800k today). In March, the company convinced the government to allow it to assume more of the national debt in exchange for its shares (sounds a little like QE here…), ironically beating a rival proposal from the Bank of England (they would get their chance to ...
Another view on the pricing of MBSs, CMOs and CDOs of ABSs
... number of parameters and the huge number of underlying processes prevent such a “brute force” approach. Note that this difficulty already appears with most synthetic corporate CDOs, ie, in the case of default risk only and without amortisation features. Using Zhou (2001), we can check the complexity ...
... number of parameters and the huge number of underlying processes prevent such a “brute force” approach. Note that this difficulty already appears with most synthetic corporate CDOs, ie, in the case of default risk only and without amortisation features. Using Zhou (2001), we can check the complexity ...
Modeling and forecasting electricity price jumps in the Nord Pool
... turbines and oil-fired plants together supply around 10% of the market, and only take about 20 min to start power generation, but have a comparatively high marginal cost of production, used typically for peak periods only. Wind power production supplies around 9% of electricity demand with an increa ...
... turbines and oil-fired plants together supply around 10% of the market, and only take about 20 min to start power generation, but have a comparatively high marginal cost of production, used typically for peak periods only. Wind power production supplies around 9% of electricity demand with an increa ...
Free Full Text ( Final Version , 893kb )
... The start of the credit crunch and its effect on the second home market The economic crisis which started in the United States (2007) affected many economies worldwide. The crisis was actually caused by the sub-prime mortgages granted in the USA. It was triggered by a huge rise in mortgage default a ...
... The start of the credit crunch and its effect on the second home market The economic crisis which started in the United States (2007) affected many economies worldwide. The crisis was actually caused by the sub-prime mortgages granted in the USA. It was triggered by a huge rise in mortgage default a ...
The Effect of Asset Selloffs on Overnight Interest Rates
... policies include large-scale asset purchases of, for example, mortgage-backed securities and Treasury securities. This action is commonly called “quantitative easing” (QE). QE affects the economy through changes in interest rates on long-term Treasury securities and other financial instruments (e.g. ...
... policies include large-scale asset purchases of, for example, mortgage-backed securities and Treasury securities. This action is commonly called “quantitative easing” (QE). QE affects the economy through changes in interest rates on long-term Treasury securities and other financial instruments (e.g. ...
“Carry Trade” Model of Commodity Prices
... both lower demand and higher supply contribute to a fall in oil prices. The same mechanisms apply to decisions about extracting minerals, logging forests, harvesting crops, etc. ...
... both lower demand and higher supply contribute to a fall in oil prices. The same mechanisms apply to decisions about extracting minerals, logging forests, harvesting crops, etc. ...
PDF
... This paper extends Verbrugge (2007a) by constructing, for the five largest cities in the United States, user costs and rents for the same structure, in levels (i.e., measured in dollars). The levels formulation is a major advantage, since – as stressed by Smith and Smith (2006) – one cannot use the ...
... This paper extends Verbrugge (2007a) by constructing, for the five largest cities in the United States, user costs and rents for the same structure, in levels (i.e., measured in dollars). The levels formulation is a major advantage, since – as stressed by Smith and Smith (2006) – one cannot use the ...
Financial Stability Report May 2010 Contents
... stability. This is reflected in the improvement in both the ‘global environment’ and ‘financial market conditions’ dimensions of the cobweb described in chapter 1. However, the recovery is uneven and fragile. The banking systems of Europe and the US in particular continue to face balance sheet press ...
... stability. This is reflected in the improvement in both the ‘global environment’ and ‘financial market conditions’ dimensions of the cobweb described in chapter 1. However, the recovery is uneven and fragile. The banking systems of Europe and the US in particular continue to face balance sheet press ...
Market liquidity and stress - Bank for International Settlements
... statements such as “ample liquidity is boosting asset prices”. One way of interpreting this is that market participants have sizeable liquid funds to invest, either because the share of particularly liquid assets (eg money and money substitutes) in their portfolios is high or because they can obtain ...
... statements such as “ample liquidity is boosting asset prices”. One way of interpreting this is that market participants have sizeable liquid funds to invest, either because the share of particularly liquid assets (eg money and money substitutes) in their portfolios is high or because they can obtain ...
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... There is now recognition that many boards have employed compensation arrangements that do not serve shareholders' interests. But there is still substantial disagreement about the scope and source of such problems and, not surprisingly, about how to address them.3 Their well-informed and timely book ...
... There is now recognition that many boards have employed compensation arrangements that do not serve shareholders' interests. But there is still substantial disagreement about the scope and source of such problems and, not surprisingly, about how to address them.3 Their well-informed and timely book ...
United States housing bubble
The United States housing bubble was an economic bubble affecting many parts of the United States housing market in over half of American states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case-Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is—according to general consensus—the primary cause of the 2007–2009 recession in the United States.Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble ""the most significant risk to our economy.""Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but the nation's mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble, with over half going to Fannie Mae and Freddie Mac (both of which are government-sponsored enterprises) as well as the Federal Housing Administration. On December 24, 2009, the Treasury Department made an unprecedented announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years despite acknowledging losses in excess of $400 billion so far. The Treasury has been criticized for encroaching on spending powers that are enumerated for Congress alone by the United States Constitution, and for violating limits imposed by the Housing and Economic Recovery Act of 2008.