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Opening Statement - Department of Finance ( 4 June 2014)
Opening Statement - Department of Finance ( 4 June 2014)

... We will also be pointing to continuing developments in the United States where the Securities and Exchange Commission is advanced in its deliberations on how best to approach the regulation of Money Market Funds. It is looking at several different approaches but has already made clear that it sees c ...
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global property crash stress test scenario
global property crash stress test scenario

1Fiancial Market Research
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... they may seek to make money from their cash surplus by lending it via short term markets called money markets. There are a few companies that have very strong cash flows. These companies tend to be lenders rather than borrowers. Such companies may decide to return cash to lenders (e.g. via a share b ...
Minutes of the Federal Open Market Committee April 28-29, 2009
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Why are Housing Prices so Volatile? Income Shocks in a Stochastic
Why are Housing Prices so Volatile? Income Shocks in a Stochastic

... This paper investigates the transmission of income shocks to housing prices in a world where heterogeneous households face credit constraints in their attempt to climb the property ladder. The first contribution of the paper is to point out the determinant role of the income of young households in ...
rising inequality and the financial crises of 1929 and 2008
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Cost of Capital - North Carolina Petroleum & Convenience Marketers
Cost of Capital - North Carolina Petroleum & Convenience Marketers

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Zero-sum game
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Bubbles, Financial Crises, and Systemic Risk
Bubbles, Financial Crises, and Systemic Risk

NBER WORKING PAPER SERIES BUBBLES, FINANCIAL CRISES, AND SYSTEMIC RISK Martin Oehmke
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... economy that was affected by a bubble and spread the effects to other parts of the economy. Amplification mechanisms that arise during financial crises can either be direct (caused by direct contractual links) or indirect (caused by spillovers or externalities that are due to common exposures or th ...
NBER WORKING PAPER SERIES IS MONETARY POLICY EFFECTIVE DURING FINANCIAL CRISES?
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Download paper (PDF)

Global Financial Crisis: Causes, Impact, Policy Responses and
Global Financial Crisis: Causes, Impact, Policy Responses and

... environment with other factors such as lax lending standards, excessive leverage and underpricing of risk led to a crisis that quickly spread to global financial markets. In the case of India, there was no direct impact from the crisis as India had little exposure to toxic assets that afflicted West ...
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The role of regional factors in determining mortgage interest
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commercial / multifamily mortgage debt outstanding | q1 2016
commercial / multifamily mortgage debt outstanding | q1 2016

... The $18.2 billion increase in multifamily mortgage debt outstanding between the fourth quarter of 2015 and first quarter of 2016 represents a 1.7 percent increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase in their holdings of multifamily mortgage debt, an increase ...
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The Economy and Financial Markets
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Leaving home and housing prices. The experience of Italian youth
Leaving home and housing prices. The experience of Italian youth

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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.
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