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2008 Financial Crisis – Causes and historical context

Tom Spencer

Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. MBS were being used as collateral for interbank trading, thus essentially underpinning the entirety of the financial system in the US. We were shocked, how could no one have seen the collapse coming?

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The age old tale of financial crises

Tom Spencer

In the midst of the panic, individuals attempt to withdraw funds from the banking system and, as rumours circulate that banks may not have enough money to repay deposit holders, a bank run ensues. Post-failure balance sheets show that Lehmann Brothers actually had twenty billion dollars of assets in excess of its debts.

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How the Great Recession Changed Banking

Harvard Business

It may feel as though the financial system hasn’t changed much in the decade since the downturn, but it has. Most of the regulation was meant to safeguard the financial system, and the taxpayers who had to bail it out, from another crisis. Many other financial firms including AIG, Fannie Mae, and Freddie Mac needed bail outs.

Banking 28
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Why Apple Is Getting into the Energy Business

Harvard Business

Many commercial and industrial buildings have rooftops, parking structures, and unused land that can host systems that are significantly larger and cheaper than residential systems. B operated the same way as A, with no special control. billion square feet of space that is usable for solar, enough to power 14% of U.S.

Energy 28
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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

This has been labelled the “second phase of global liquidity”, to differentiate it from the pre-crisis phase, which was largely centred on banks expanding their cross-border operations. Historical evidence shows that this rarely happens following a balance sheet recession. Financial cycles differ from business cycles.

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China Cash Crunch Eases, For How Long? Three Things China Needs to Avoid; When can Beijing Truly move to Market-Determined Interest Rates?

MishTalk

The certificates of deposits will push banks closer to an operating environment in which rates are deregulated and are also aimed at improving the circulation of cash in the country’s interbank market. Advocates have called for such a system for years, saying it is the cornerstone of further financial reform.

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The 3 Company Crises Boards Should Watch For

Harvard Business

That is, someone does the wrong thing while trying to do the right thing, and organizational systems fail to catch it and contain it. Their operating environment changes in a way they don’t recognize, or they take on a project that they believe is within their capability but isn’t. Shortcomings in Self-Governance.

Company 28