Fair Valuation Issues and the Subprime Mortgage Debacle： Could Generally Accepted Accounting Principles Underlying the Historical Cost Method Have Prevented the Crisis？

There are three primary methodologies employed to determine real estate value in the appraisal industry： the cost approach, the sales approach and the income approach. The definition of market value is defined as： ＂a type of value, stated as an opinion that includes a set of assumptions concerning the market＂. Unfortunately, untrained and unlicensed appraisers provided opinions using primarily the sales approach or market data approach and virtually ignored the other two methodologies. The ensuing game of ＂Can You Top This＂ resulted in creating an out-of-control real estate market driven by unregulated fiduciaries as appraisers.

Subprime Mortgage Crisis and the Exchange Rate Channel: Evidence from Six Countries of the Zone Euro-Med

This article proposes to assess the impact of the subprime mortgage crisis on the exchange rate channel in 6 countries of the Euro-Med zone. To do this, our analysis is based on three evaluation methods that allow us to conclude that the exchange rate channel is better evaluated by the non-linear approach of the countries studied. Thus, the depreciation of the exchange rate adopted by the countries of the Med zone did worse macroeconomic stability and economic convergence.

Rural Financial Innovation in China Viewed from Subprime Mortgage Crisis

The root causes of subprime crisis are analyzed based on the introduction of the definition and features of subprime mortgage loans:firstly,a loose financial supervision and regulation environment leads to weak risk awareness;secondly,the highly complex financial products enlarge the risk. Taking into account that our rural finance is characterized by vast territory,scattered distribution of population,small economic scale and insufficient mortgage,it is pointed out that rural finance has different development rules and patterns from urban finance. On the basis of introducing that there is an insufficient amount of formal finance in our rural finance and our informal finance is under a long-term suppression,the great significance of financial innovation to rural finance is discussed:firstly,it effectively increases financial supply;secondly,it gradually regulates and develops the informal finance. The enlightenment of subprime crisis to our rural financial innovation is explored:firstly,financial innovation is the driving force of rural financial development;secondly,to strengthen risk awareness is a prerequisite for financial innovation;thirdly,a flexible and effective supervision and regulation system is an effective approach to preventing financial risks.

Roles of Financial Innovation and Information Technology:Lessons from US Sub-prime Mortgage Crisis and Its Implications for China

The mortgage loan has evolved from a local lending instrument into a major global security and its role is unparallel to other financial instruments in the process of financial globalization. This paper explains how technology and financial innovation transformed the mortgage loan from a local security into a premier global security traded worldwide. It examines the fundamental flaws of this process and why it does not work in regards to mortgage lending and the re-securitization products that were created through financial innovation. The findings show that regulation was unable to keep pace with financial innovation, which created an environment where actors in the financial service sector were able to behave geographically irresponsibly by using information asymmetries to their advantage by par- ticipating in moral hazard activities and engaging in other immoral and unethical business practices that were centered around localized geography, which ultimately contributed to the global financial crisis. It also examines the roll of financial innovation in regard to the Lehman Brothers Mini-Bond in Hung and its role as a driving force behind China＇s newly emerging shadow banking sector. It concludes with a policy recommendation and its implication for China＇s continued economic development.

Theoretical analyses of stock correlations affected by subprime crisis and total assets: Network properties and corresponding physical mechanisms

In the field of statistical mechanics and system science, it is acknowledged that the financial crisis has a profound influence on stock market. However, the influence of total asset of enterprise on stock quote was not considered in the previous studies. In this work, a modified cross-correlation matrix that focuses on the influence of total asset on stock quote is introduced into the analysis of the stocks collected from Asian and American stock markets, which is different from the previous studies. The key results are obtained as follows. Firstly, stock is more greatly correlated with big asset than with small asset. Secondly, the higher the correlation coefficient among stocks, the larger the eigenvector is. Thirdly, in different periods, like the pre-subprime crisis period and the peak of subprime crisis period, Asian stock quotes show that the component of the third eigenvector of the cross-correlation matrix decreases with the asset of the enterprise decreasing.Fourthly, by simulating the threshold network, the small network constructed by 10 stocks with large assets can show the large network state constructed by 30 stocks. In this research we intend to fully explain the physical mechanism for understanding the historical correlation between stocks and provide risk control strategies in the future.

Cross-correlation matrix analysis of Chinese and American bank stocks in subprime crisis

In order to study the universality of the interactions among different markets, we analyze the cross-correlation matrix of the price of the Chinese and American bank stocks. We then find that the stock prices of the emerging market are more correlated than that of the developed market. Considering that the values of the components for the eigenvector may be positive or negative, we analyze the differences between two markets in combination with the endogenous and exogenous events which influence the financial markets. We find that the sparse pattern of components of eigenvectors out of the threshold value has no change in American bank stocks before and after the subprime crisis. However, it changes from sparse to dense for Chinese bank stocks. By using the threshold value to exclude the external factors, we simulate the interactions in financial markets.

he U.S. Mortgage Crisis

The financial crisis of 2008 left the U.S. economy in a state of severe recession, which is still being felt all over. This has also left the government in a frantic condition to rebuild the financial markets from the bottom up. What started out with excessive bank lending on mortgages lead to the mortgage crisis and a ripple effect on the economy. The cancer has spread globally, affecting every major marketplace and all the major states in the U.S.. Our economy is still very fragile because of this crisis, but eventually we will recover in a few years time to achieve robust economic growth. Long standing cultural pressures in the United States maintained that home ownership was necessary to be a part of the American Dream, and this cultural stance was reinforced by Clinton in 1994, when he enacted a program to raise home ownership to more than two-thirds of all adults. With the tacit blessing of the Federal Government, many mortgage companies sprung up, that catered to those in lower income brackets, offering them the mortgages that many did not have the financial sophistication to understand and deliver. Coupled with the skyrocketing costs of property taxes, insurance, and maintenance costs, many homeowners found themselves unable to pay their mortgages. The whole industry tanked, causing displacement of people and increased unemployment. The lenders of these mortgages sold the notes to investment bankers, and they were sold as high-quality investment grade securities. The major rating agencies were complacent in this tactic, causing rapid default rates on these mortgages; many commercial and investment banks got caught in this crisis. The prices of homes continue to decline, and many homeowners find themselves under water on their mortgages. It was found that in 2010, the U.S. government was responsible for nine out of every ten mortgages issued, which caused further problems with Fanny Mae and Freddie Mac. The crisis is still continuing, with no end in sight. The analysis was based on the data analysis and readings from the journal, as well as various Wall Street commentaries.

The Construction of Community Under the Subprime Crisis in Sunset Park

In Sunset Park,the contemporary American writer Paul Auster reveals the political,economic and social problems that have surfaced in America in the wake of the 9/11 incident.Focusing on the image of people on the edge of the city,the author describes how they rebuild their lives after illegally living in an abandoned apartment in Sunset Park,using the art and the community as a spiritual refuge to seek comfort and heal wounds,reconstruct self-identity,and fight against the unfair society.This article analyzes the characteristics of the community in the novel Sunset Park,to interpret its functions,and to show the healing power of a caring community.

Implications of the U.S.Financial Crisis for the Development of China's Telecom Sector

The financial turbulence caused by the U.S.subprime crisis has a far-reaching impact on the global financial system and economic development.Based on an in-depth analysis of the cause of U.S.subprime crisis and its effects on China and global economy,in combi-nation with the current status of China's telecom sector,this article puts forward policy suggestions for the de-velopment and regulation of China's telecom sector.

The global crisis and its impact on China's economy

The outbreak of the subprime mortgage crisis is a historic event,marking the end of the excessive consumption model and laissez-faire capitalism.It also marked the collapse of the old economic structure,ushering in a period of dramatic adjustment and turbulence.For the next few years,China may suffer a significant drop in domestic and foreign demand as well as industrial growth rate.The subprime mortgage crisis has reduced resident income expectancy,therefore slashing people's spending on entertainment,tourism,education,communication,etc.However,in the long term,China has huge potential for economic growth.In order to reduce the risks and seize the opportunities,we need to take positive measures to stimulate domestic demand,accelerate economic restructuring,and maintain stable and rapid economic growth.

Global Financial Crisis： Systemic Failure and the Underlying Knowledge Gap

Recently, global financial crisis or meltdown rocked the international financial market. This havoc was the result of the reckless use of financial derivatives that received spontaneous patronization from the financial whiz, but it is strange to discover that those proponents of market economy embarked on policy that was purely Keynesian in principle. The episode started in August 2007 with the collapse of subprime mortgage market and reached its climax during August 2008. Central banks in many countries of the western world intervened in the market to pump additional fund to give buoyancy in the credit market. The crisis encapsulated with the queer idea of financial instruments and multiple origins related to subprime mortgage left its trail in both developed and developing countries. Thus, an elaborate analysis of the causal link among various innovative instruments highlighting a mismatch between academic doctrine and real-life perspective and the inadequacy of the institutional arrangements supposed to tame the volatility of the market may be a useful guide to financial analysts and policy planners. The purpose of this paper is to highlight systemic gaps in the meltdown and redefine the contour of macroeconomics most appropriate to weather such catastrophe in the future.

美国是如何应对次贷危机的?

“次贷危机”后美国政府出台了一系列措施,比较成功地化解了危机。他山之石,可以攻玉,美国应对“次贷危机”的举措为我国应对当下的房地产问题提供了有价值的借鉴。本文在简要介绍危机产生的原因、过程和经济后果的基础上,着重介绍和评述美国应对房地产危机的关键举措,包括问题资产救助计划、金融救援计划、非常规货币政策、直接救助金融机构、金融监管体系改革。以期能从中获得经验教训,服务于监管部门的政策制定,更好地防范与化解中国面临的房地产风险。

证券化金融创新与“次级债”危机的道德风险机制

次级按揭贷款及按揭贷款证券化是美国在上世纪80年代两大金融创新。一般认为,引发全球金融动荡的"次级按揭贷款危机"根源是全球性流动性过剩、过度的融资套利和松弛的风险控制所致。值得关注的是金融创新机制内含的道德风险和自循环机制,并由此对我国按揭贷款市场发展的启迪作用。

沪深美港股市的动态相关性研究--兼论次级债危机的冲击

本文使用动态相关系数(DCC-MVGARCH)模型,研究了2000年至今中国内地股市和中国香港股市与美国股市之间的动态相关关系,并对以美国2007年爆发的次级债危机为代表的重大事件对市场间关联程度的冲击进行了分析。研究结果发现,由于开放程度和宏观政策等不确定因素的影响,中国内地股市和中国香港股市与美国股市之间的相关关系存在结构性变化,两地市场对重大事件冲击的反应程度也存在显著差别。

华尔街金融风暴的前因后果

由美国"次贷蝴蝶"扇起的国际金融风暴来势之猛、波及面之广、对实体经济的影响之深超出各方预期。本文主要分析本次国际金融危机产生的原因、传导机制,及对全球和中国经济的影响,总结这次危机的经验教训,提出中国应在贯彻"保增长、扩内需、调结构、标本兼治"基本思想的基础上,利用财政货币政策有效启动内需;公平分配,提高社会消费水平;解决农户和农村中小企业贷款抵押担保难问题,促进农村经济发展,扩大内需;采取措施保持房地产市场稳定健康发展。

次贷危机对亚洲股市尾部极值风险传导的影响研究

本文针对股市日收益率序列的自相关、波动聚集性和杠杆效应等典型事实特征,首先运用AR(1)-GJR(1,1)模型捕获各股指收益率的标准残差序列;在此基础上,应用极值理论构建边缘分布模型,并运用时变Symmetrized Joe-Clayton Copula函数估计股市间的尾部极值动态相依系数;最后结合格兰杰因果检验的结果,对比分析了美国次贷危机爆发后,股市间极值风险传导强度以及风险传导方向的变化,从而得到次贷危机对亚洲股市尾部极值风险传导效应的影响作用。

金融危机对我国劳动力就业的影响

现阶段,由美国次贷危机引发的金融危机席卷全球,在全球经济一体化背景下,我国自然无法置身事外。金融危机对我国的影响表现在方方面面,其中对劳动力就业的冲击是最重要的问题之一。在现阶段的就业问题中,大学生就业和农民工返乡成为最为重要的两个方面。要应对金融危机对我国劳动力就业的影响,缓解就业压力,需要中央、地方政府、企业和个人的密切配合,从多方面入手寻求解决问题的根本途径。

次贷危机对中国实体经济的影响渠道实证研究

本文使用2006—2009年中国976500条企业层面的微观数据考察了次贷危机对中国实体经济的影响,识别了次贷危机对企业经营绩效影响的两种渠道:贸易渠道和金融渠道。实证研究发现,次贷危机对危机前行业出口依存度越高的企业的利润和销售增长具有显著的负面影响,同时对危机前行业财务状况越脆弱的企业的利润和销售增长具有显著的负面影响,表明次贷危机对中国实体经济影响的贸易渠道和金融渠道是存在的,该结论经过一系列的稳健性检验后仍然成立。进一步的研究发现次贷危机对不同规模、不同所有制、不同地区和不同行业企业绩效的影响渠道是有差异的,具有明显的指向性特征。

次贷危机对中国股市影响的实证分析——基于中美股市的联动性分析

为了揭示次贷危机引发的金融风暴对我国内地股市的冲击大小,本文基于中美股市的联动性,采用时变t-Copula模型测算次贷危机对内地股市的影响程度。结果显示,次贷危机加剧了我国内地股票市场的震荡,不过次贷危机对内地股市冲击的程度并不高,而且次贷危机爆发后对内地股市的影响呈阶段性的变化;结果也显示香港股票市场在危机的传染中扮演着重要的作用,由次贷危机引发的美国股市的剧烈震荡易于通过香港股票市场传导至内地股票市场。