We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Report of recent financial crisis and writing a report - Essay Example

Comments (0)
Report of the 2007-2008 Financial Crisis The global financial crisis of 2007–2008 is seemingly the worst financial crisis after the great economic depression of the 1930s. The financial crisis of 2007-2008 led to prolonged employment, unfavorable housing market, total collapse of large financial institutions, downturns in stock markets, and bailout of banks…
Download full paper
Report of recent financial crisis and writing a report
Read TextPreview

Extract of sample
Report of recent financial crisis and writing a report

Download file to see previous pages... The Big Short significantly explains the banking crisis of crisis of 2007–2008 by unfolding the events preceding the crisis, the actual crisis, and the characters involved (Lewis 1-5). Michael Lewis derives that a crazy, fabricated money machine, built on flawed mathematical models that most financial executives did not really understand the caused the crisis leading to loses of several trillion dollars through government bailouts. He establishes that in the late 1980s, Wall Street imagined that it could generate “bond-like” financial products from other debt-based income streams like home mortgages and credit cards. In this context, a bond represented an income stream based on borrowed money. As such, Wall Street designed mortgage bonds in form of stacked layers to enable everybody to access them. As a result, investors craving for higher returns on their money invested in the lower “tranches” while investors seeking lower returns invested in the higher tranches. Indeed, we can trace the 2008 financial crisis from the development of the mortgage derivatives (Lewis 21-27). With the help of ratings agencies, Wall Street turned subprime mortgages into exotic, toxic financial products that attracted huge turnovers through laundering and reselling. The subprime mortgages had higher risks attached to them but equally paid much higher interest rates designed for borrowers with lower credit worthiness. As a result, the demand for the subprime mortgages from Wall Street increased leading to increased motivation on the lender for additional subprime mortgages. In addition, marketing for the subprime mortgages increased considerably and more people took up the loans. Indeed, Michael Lewis argues that these financial instruments became opaque and complex everyday overshadowing the fact that their foundation lay on suspect loans that kept rising (Lewis 112-117). With more people willing to buy the subprime mortgages, the quality of the mortgagees decreased, the risk for Wall Street’s mortgage bonds increased, and it became harder to sell the bonds to investors. Unfortunately, as the unstable foundation of subprime mortgages became weaker and posed a greeter danger to the world economy, the chief executives of America’s premier banks did not foresee it. Indeed, government regulators and treasury officials also failed to identify the eminent danger. Nevertheless, some investors saw it and used the opportunity to make huge financial benefits from the financial crisis. However, Michael Lewis notes that Wall Street firms had the ability to hide the risk by making the idea complex and using the rating agencies. Actually, the rating agencies that included Moody’s and Standard & Poor’s  helped in giving risky ratings that equaled the US treasuries thus opening the financial market to many of CDO buyers. At this period, Americans bought the mortgages in large numbers without knowing that the mortgage demand emanated from their actions. Michael Lewis introduces one of the investors who sought to benefit from this financial crisis as Darwinian world of the bond market. He also introduces Michael Burry, who became obsessed with investing and started a fund with the family money. Lewis states that after studying the bond market in 2004, Dr. Burry became convinced ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Critically evaluate the reasons for the recent global financial crisis, in the light of the articles in reference and other rele
This view is a good one which will more or less be developed in this report. As far as establishing blame for the crisis, it may be perhaps be better to view the crisis as a business cycle because it is bound to occur again in spite of the current concern and efforts to set up corrective measures.
8 Pages(2000 words)Essay
The Recent Global Financial Crisis
The primary cause of the global recession could be addressed to the collapse that occurred in the sub-prime mortgage market in the United States (US) accompanied by turnaround of housing as reported by several other economies. The impact of the global economic crisis not only affected the financial institutions but the livelihood of almost everyone to some levels or the other (Shah, 2010).
6 Pages(1500 words)Essay
Report on the Current Financial Crisis
According to OECD, most countries pursue attractive policies that seek to ensure increased home ownership, which is considered as a way of helping to improve livelihood. This is also reaffirmed by Bloom and Schirm who assert that there was a large credit and housing bubble in US and Europe (37).
4 Pages(1000 words)Essay
Report relating to the recent financial crisis
The author contends that much of the damage that was done to the economy was as a result of the systematic undermining of the principles of good corporate management and the twisting of financial policies in ways that served the short-term interests of banking institutions and other connected players in the money market (Ferguson 26).
3 Pages(750 words)Essay
Financial Report
Use of hybrid systems where clean energy replaces, in part, hydrocarbon fuels is one of the major areas for future growth. Sustainable development means meeting the needs of the present without compromising the needs of future generations. In Canada, sustainable development is a government-wide commitment, and climate change is one of the current priorities.
26 Pages(6500 words)Essay
Report writing
onclusion and recommendations presented in an orderly manner (Hafren n.d: 1) – is “directed to interested readers in response to some specific purpose, aim or request” (Sharif 2009: 2). Written reports are vital to organizational efficiency: tool for decision-making, mode
2 Pages(500 words)Essay
Writing Report
This report will show how and why the current state of the firm can be improved by ICT and to briefly discuss predicted advancements in the field of public relations. Before moving ahead it is essential to understand the
6 Pages(1500 words)Essay
Advance Financial report
In addition, the paper will discuss the benefits and drawback of fair value accounting measurement compared with other measurements (historical cost, replacement cost, and deprival value) in enhancing the quality of
9 Pages(2250 words)Essay
Report Writing
The report is given to the audience in Chatham house (Royal Institute of International Affairs) as a speech by the author on 15th April 2009. The audience composed of various fossil fuels experts in a roundtable. Oil and natural gas are
6 Pages(1500 words)Essay
Report writing
As pointed out by Evesham & Media, success of school going children in their studies and ability to interact with peers is dependent to a very high percentage on their communications
4 Pages(1000 words)Assignment
Let us find you another Essay on topic Report of recent financial crisis and writing a report for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us