Copy and Edit

Global Financial Crisis- Cause, Response, Future?

Description

Global Business Environment (Q3 - Financial Crisis) Mind Map on Global Financial Crisis- Cause, Response, Future?, created by edcashell on 06/05/2013.
edcashell
Mind Map by edcashell, updated more than 1 year ago
edcashell
Created by edcashell over 11 years ago
92
1
0

Resource summary

Global Financial Crisis- Cause, Response, Future?
  1. Cause
    1. Lenders
      1. Giving 100% percent mortgages (av. 99.3%)
        1. NINJA No Doc loans
        2. Individuals
          1. Demand for housing
            1. Seen as a good investment
            2. US Federal Reserve
              1. Rates @ 1%
                1. Regulations relax on Leverage
                2. Investment Banks
                  1. GS knowingly sold toxic CDOs and bought CDS against them
                  2. Rating Agencies
                    1. AAA ratings to CDO and RMBS
                    2. Investors
                      1. Demand for CDO
                        1. Belief that CDOs were less risky
                          1. Raghuram Rajan 2005 - Has Financial Development Made the World Riskier?
                      2. Mortgage brokers
                        1. Pressure from banks to meet demand
                          1. mis-sold mortgages to fixed income
                          2. AIG
                            1. Credit Default Swaps
                              1. Bonuses for selling - short term cash on long term risk.
                              2. Europe - central banks covering up
                                1. Soverign Debt
                              3. Response
                                1. Deleverage
                                  1. Bailouts
                                    1. AIG
                                    2. Insolvent
                                      1. Lehman
                                      2. LTRO
                                        1. TARP
                                          1. US Fed pays $167 billion in bailouts
                                          2. Consumer Confidence drops
                                            1. China manufacturing hit
                                              1. 10 million migrant workers unemployed
                                              2. EU Unemployment hits10%
                                                1. More people on dole in Spain than living in Denmark
                                            2. Future
                                              1. market has fewer, larger banks
                                                1. Ireland - tracker mortgages means banks tied into losses for long term
                                                  1. Following 1929, congressional acts, repealed
                                                    1. More Bubbles
                                                      1. China 65 million vacant properties
                                                      2. Peak Oil
                                                        1. Increased Population, food shortages
                                                          1. Peter Schiff says power will be in Production \ Food
                                                          Show full summary Hide full summary

                                                          Want to create your own Mind Maps for free with GoConqr? Learn more.

                                                          Similar

                                                          Market attractiveness assessment and entering- How would you enter a market?
                                                          edcashell
                                                          South Africa
                                                          edcashell
                                                          The First, Second, Third and Fourth Crusades
                                                          adam.melling
                                                          Sailmaker
                                                          julieshirlaw
                                                          P2 Radioactivity and Stars
                                                          dfreeman
                                                          EBW: Onderwerp 1, Gr7 (KABV)
                                                          mvloch
                                                          GCSE Maths Symbols, Equations & Formulae
                                                          livvy_hurrell
                                                          2.1.4 Data Representation
                                                          Lavington ICT
                                                          Denary, Binary and Hexadecimal
                                                          Samuel Leonard
                                                          Část 3.
                                                          Gábi Krsková
                                                          Two years and no baby
                                                          Zahra Habeeb
                                                          Browse Library