Using simulations, we show that the probability of default and losses given default of subprime mortgage loans are small in comparison to their interest rates. The implication is that these loans are profitable for risk neutral efficient banks. As subprime mortgages remain a good investment even...

This paper provides an alternative interpretation to the financial crisis of 2007-2009 that relies upon “toxic” financial deepening defined as proliferation of financial derivatives. This reduces social capital and trust. The final outcome is that distrust makes financial markets fragile...

Using simulations, we show that the probability of default and losses given default of subprime mortgage loans are small in comparison to their interest rates. The implication is that these loans are profitable for risk neutral efficient banks. As subprime mortgages remain a good investment even...

This paper presents a proposal for a regional differentiation of Italian pensions. It is divided into five sections. The first two are introductory. In the third section, I consider pensions based upon contributions by employers and employees (Disability, Old Age and Survivorship pensions). Both...

Our purpose is to reconsider Vicarelli's main contributions on the international financial crisis and its impact on the international distribution of income in the period from Fifties to Seventies of the last century. Vicarelli used a unifying approach that integrates four levels of analysis....

The paper deals with financial and demographic factors influencing the Italian residential building sector during the next decades. In particular, it is shown that, due to the reduction of public pensions coverage, many elderly people will enjoy inadequate incomes. Housing partnership and...

Using simulations, we show that the probability of default and losses given default of subprime mortgage loans are small in comparison to their interest rates. The implication is that these loans are profitable for risk neutral efficient banks. As subprime mortgages remain a good investment even...