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The U.S. residential housing market collapse illustrates the consequences of ignoring risk while funding mortgage borrowing. Collateral over-valuation was a foundational piece of the crisis. Over the past few decades, secondary markets, securitization, policy and psychology increased the flow of...
Persistent link: https://www.econbiz.de/10013115763
Beginning in mid-2007, the worldwide monetary emergency immediately transformed from the bursting of the housing bubble rise in the US to the most noticeably awful recession the world has seen for more than six decades. Through a top to bottom survey of the emergency regarding the causes,...
Persistent link: https://www.econbiz.de/10012920260
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In the United States and the European Union (EU), political incentives to oppose cross-border banking have been strong in spite of the measurable benefits to the real economy from breaking down geographic barriers. Even a federal-level supervisor and safety net are not by themselves sufficient...
Persistent link: https://www.econbiz.de/10011382232
Consumer insolvency is a topic that has gained much prominence in the context of the financial crisis on both sides of … quite different approaches: the UK, Ireland, Germany, France and Spain. Since there is no law on consumer insolvency in … which bankruptcy procedures are the most appropriate. After a short presentation of each insolvency procedure, the …
Persistent link: https://www.econbiz.de/10013157783
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Real estate markets are frequently affected by growth and contraction cycles. Given the social and economic impacts of changes on real estate prices, the understanding of these cycles is crucial from a socio-economic perspective, but also, and more importantly, from a public policy view. The...
Persistent link: https://www.econbiz.de/10014289715
Against the background of recent house price increases in several European countries, the OeNB organized a workshop entitled "Are House Prices Endangering Financial Stability? If So, How Can We Counteract This?" It was held in Vienna on October 9 and 10, 2014. The workshop contributions...
Persistent link: https://www.econbiz.de/10010460858
This paper investigates the diversification benefits of indirect real estate investments in market downturns. We model the dependence structure between REITs and traditional assets by using a mixed-copula framework within a regime switching model. The Clayton copula dominates in the mixture. We...
Persistent link: https://www.econbiz.de/10013114228
This paper argues that the stock market crash of 2008, triggered by a collapse in house prices, caused the Great Recession. The paper has three parts. First, it provides evidence of a high correlation between the value of the stock market and the unemployment rate in U.S. data since 1929....
Persistent link: https://www.econbiz.de/10013119812