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2008 Financial Crisis – Causes and historical context

Tom Spencer

My friends and I walked out of the Big Short several years ago feeling like a group of global financial crisis experts. Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. Once the housing market began to collapse, mortgages defaulted, and MBS began to fail.

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Consultant Ninja: A Simple Question about the Credit Markets.

Consultant Ninja

A Simple Question about the Credit Markets. Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. But wouldnt that be a better market result than letting the sick banks keep their share?

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Political Greenwashing: US Exports Coal Pollution to Europe; What About China?

MishTalk

exports of power plant-grade coal to Germany have more than doubled since 2008. That’s because it shifts some pollution — and the burden for cleaning it — onto another other country’s balance sheet. This is a classic case of political greenwashing,” said Dirk Jansen, a spokesman for BUND, a German environmental group.

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FOMC Minutes and Economic Projections: Dissent in Both Directions

MishTalk

Minyanville Business and Market News. Balanced Budget Ammendment Sign the Balanced Budget Petition. China Financial Markets. Market Oracle. Market Ticker. Real Clear Markets. Following is a snip from the June 18-19, 2013 Minutes of the Federal Open Market Committee , released today. Daily Bell.

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Credit Equals Gold No.1

MishTalk

"Industrial and Commercial Bank of China, the world''s largest bank by assets, said on Thursday that it has no plans to use its own money to repay investors in a troubled off-balance-sheet investment product that it helped to market." Investors should have taken a hit. Certainly the promised 10% yield was too good to be true.

Banking 72
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Back in the Saddle, Just in the Nick of Time

MishTalk

Ally, whose defunct GMAC Mortgage unit was one of the biggest lenders of subprime mortgages in the run-up to the 2008 housing bust, will inch back into direct home loan originations next year, the bank’s Chief Executive Officer Jeffrey Brown said this week at a Goldman Sachs Group Inc. financial conference in New York.

Mercer 28
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Fed Study Shows "Persistent Fed Overoptimism about Economic Growth"; What Will They Do About It?

MishTalk

Since 2007, Federal Open Market Committee participants have been persistently too optimistic about future U.S. 2014) finds that one-year-ahead growth forecasts from the Federal Reserve Bank of New York and the European Central Bank from 2008 to 2012 exhibited substantial overoptimism, averaging 1.6 economic growth.

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