The world''s best financial minds help us understand today''s financial crisis With so much information saturating the market for the everyday investor, trying to understand why the economic crisis happened and what needs to be done to fix it can be daunting. There is a real need, and demand, from both investors and the financial community to obtain answers as to what really happened and why. Lessons from the Financial Crisis brings together the leading minds in the worlds of finance and academia to dissect the crisis. Divided into three comprehensive sections-The Subprime Crisis; The Global Financial Crisis; and Law, Regulation, the Financial Crisis, and The Future-this book puts the events that have transpired in perspective, and offers valuable insights into what we must do to avoid future missteps. * Each section is comprised of chapters written by experienced contributors, each with his or her own point of view, research, and conclusions * Examines the market collapse in detail and explores safeguards to stop future crises * Encompasses the most up-to-date analysis from today''s leading financial minds We currently face a serious economic crisis, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through the current situation and learn from our mistakes.

InhaltsangabeWith so much information saturating the market, it has been difficult for both financial professionals and those in the academic community to gain a firm understanding of why the recent economic crisis occurred and what needs to be done to fix it. There is a real need, and demand, from both finance professionals and scholars to obtain answers as to what really happened and why. That's why Robert Kolb--one of today's most respected academics and Editor of the Robert W. Kolb Series in Finance--has created Lessons from the Financial Crisis. Consisting of contributed chapters from leading minds in the worlds of finance, government, and academia, Lessons from the Financial Crisis dissects this devastating crisis and offers a valuable look at what we must do to avoid future missteps. Page by page, this timely guide puts the events that have transpired in perspective and skillfully details why it began and how it developed as well as its effect on people, implication for our economy, and the broader ramifications for our society. With each contributor bringing his or her own unique insights into this dilemma, you'll gain a firm understanding of the issues that lie at the heart of the recent financial crisis. Topics touched upon along the way include: * Particular institutional problems that were revealed in the crisis * The role of borrowers, especially subprime borrowers, in fomenting the crisis * The failures of modern risk analysis and management, and how these essential disciplines can be improved * The securitization process and how a new way of originating mortgages affected the mortgage market and the broader financial crisis * Regulatory, systemic, and other solutions that can be implemented to avert future problems * And much more We currently face a serious economic situation, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through these tough times and learn from our mistakes.

Leseprobe

Part 1. Overview of the Crisis. Chapter 1. Leverage and Liberal Democracy (George Bragues). Chapter 2. A Property Economics Explanation of the Global Financial Crisis (Gunnar Heinsohn and Frank Decker). Chapter 3. Of Subprimes and Sundry Symptoms: The Political Economy of the Financial Crisis (Ashok Bardhan). Chapter 4. The Political Economy of the Financial Crisis of 2008 (Roger D. Congleton). Chapter 5. The Global Financial Crisis of 2008: What Went Wrong? (Hershey H. Friedman and Linda Weiser Friedman). Chapter 6. The Roots of the Crisis and How to Bring It to a Close (James K. Galbraith). Chapter 7. Enron Rerun: The Credit Crisis in Three "Easy" Pieces (Jonathan C. Lipson). Chapter 8. The Global Crisis and Its Origins (Peter L. Swan). Chapter 9. Four Paradoxes of the 2008/2009 Economic and Financial Crisis (John E. Marthinsen). Chapter 10. Understanding the Subprime Financial Crisis (Steven L. Schwarcz). Part 2. Causes and Consequences of the Financial Crisis. Chapter 11. The Origins of the Financial Crisis (Martin N. Baily, Robert E. Litan, and Matthew S. Johnson). Chapter 12. Ten Myths about Subprime Mortgages (Yuliya Demyanyk). Chapter 13. The Financial Crisis: How Did We Get Here and Where Do We Go Next? New Evidence on How the Crisis Spread among Financial Institutions (James R. Barth, Tong Li, Wenling Lu, and Glenn Yago). Chapter 14. A Decade of Living Dangerously: The Causes and Consequences of the Mortgage, Financial and Economic Crises (Jon Garfinkel and Jarjisu Sa-Aadu). Chapter 15. Making Sense of the Subprime Crisis (Kristopher Gerardi, Andreas Lehnert, Shane M. Sherlund and Paul Willen). Chapter 16. Miraculous Financial Engineering or "Legacy" Assets? (Ivo Pezzuto). Chapter 17. The Making and Ending of the Financial Crisis of 2008? (Austin Murphy). Chapter 18. The Subprime Mortgage Problem: Causes and Likely Cure (Ronald D. Utt). Chapter 19. Sequence of Asset Bubbles and the Global Financial Crisis (Abol Jalilvand and A.G. Malliaris). Part 3. Borrowers. Chapter 20. The Past, Present, and Future of Subprime Mortgages (Shane M. Sherlund). Chapter 21. FHA Loans and Policy Responses to Credit Availability (Marsha Courchane, Rajeev Darolia, and Peter Zorn). Chapter 22. The Single-Family Mortgage Industry in the Internet Era: Technology Developments and Market Structure (Forrest Pafenberg). Chapter 23. Speed Kills? Mortgage Credit Boom and the Crisis (Giovanni Dell'Ariccia, Deniz Igan, and Luc Laeven). Chapter 24. Subprime Mortgages: What Have We Learned from a New Class of Homeowners (Todd Zywicki and Satya Thallam). Chapter 25. Fannie Mae and Freddie Mac: Privatizing Profit and Socializing Loss (David J. Reiss). Part 4. The Process of Securitization. Chapter 26. A Primer on the Role of Securitization in the Credit Market Crisis of 2007 (John D. Martin). Chapter 27. Incentives in the Originate-to-Distribute Model of Mortgage Production (Robert W. Kolb). Chapter 28. Did Securitization Lead to Lax Screening? Evidence from Subprime Loans (Benjamin J. Keys, Tanmoy Mukherjee, Amit Seru, and Vikrant Vig). Chapter 29. Tumbling Tower of Babel: Subprime Securitization and the Credit Crisis (Bruce I. Jacobs). Chapter 30. The Incentives of Mortgage Servicers and Designing Loan Modifications to Address the Mortgage Crisis (Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang, and Eileen Mauskopf). Chapter 31. The Contribution of Structured Finance to the Financial Crisis (Adrian van Rixtel and Sarai Criado). Chapter 32. Problematic Practices Of Credit Rating Agencies: The Neglected Risks Of Mortgage-Backed Securities (Phil Hosp). Chapter 33. Did Asset Complexity Trigger Ratings Bias? (Vasiliki Skreta and Laura Veldkamp). Chapter 34. The Pitfalls ...