Are Short Sellers Informed? New Evidence from Short Sales on Financial Firms During the Recent Subprime Mortgage Crisis

2009 ◽  
Author(s):  
Ming Liu ◽  
Tongshu Ma ◽  
Yan Zhang
Keyword(s):  
Short Sales ◽  
Subprime Mortgage ◽  
Short Sellers ◽  
Financial Firms ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
New Evidence

scholarly journals Lessons Learned in Management, Marketing, Sales, and Finance Incentive Practices a Decade after the Subprime Mortgage Crisis

2017 ◽  
Vol 12 (3) ◽  
pp. 19
Author(s):  
Jason Earl Thomas
Keyword(s):  
The United States ◽  
Real Estate Market ◽  
Lessons Learned ◽  
Secondary Markets ◽  
Subprime Mortgage ◽  
Financial Firms ◽  
The Great Depression ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
Home Values

The subprime mortgage crisis was the most devastating financial crisis since the Great Depression. The steady rise of housing purchases and seemingly limitless increase in home values drew many investors to the United States real estate market. The business growth in this sector was so compelling that financial firms created new secondary markets that were perceived as diversifying risk, which in turn prompted lenders to create innovative funding vehicles and loose and fast loan qualification processes. The federal government was ill prepared to deal with this shift in the financial world to market-based demand, and the results were disastrous. Lenders embraced predatory lending practices, borrowers with bad credit overextended themselves beyond their means, and foreclosures occurred at startling rates as home values plummeted, resulting in a world-wide economic depression. Ten years later, we reflect on the events that led up to and caused the subprime mortgage crisis for lessons learned to improve management, marketing, and finance incentive practices.

Consuming Passions, Wasted Efforts

2017 ◽  
Author(s):  
Judith Hamera
Keyword(s):  
Las Vegas ◽  
Consumer Credit ◽  
Pivotal Role ◽  
Child Molestation ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
Michael Jackson

This chapter examines Michael Jackson’s fiscal travails from 2002 to the release of This Is It in 2010, reading coverage of his consumption, debt, and attempts at recovery as racialized public melodrama. It begins with a scene of Jackson shopping in Las Vegas taken from Living with Michael Jackson, viewed through both the emerging consumer credit bubble and the temperance melodrama The Drunkard. It then turns to the ways testimony about Jackson’s finances, particularly his debts, played a pivotal role in his child molestation trial, reproducing a financialized melodramatic racial dialectic that emerged again in the subprime mortgage crisis. It concludes by reading parallels between accounts of Jackson’s physical wasting on the set of This Is It and that of the compulsively dancing child in Hans Christian Andersen’s tale “The Red Shoes.” Both represent the process of disciplining past excesses through redemptive contraction as US austerity rhetoric reached a crescendo.

scholarly journals CONTAGION AND DOWNSIDE RISK IN THE REIT MARKET DURING THE SUBPRIME MORTGAGE CRISIS

2015 ◽  
Vol 19 (1) ◽  
pp. 42-57 ◽  
Author(s):  
Ming-Chi CHEN ◽  
Hsiu-Jung TSAI ◽  
Tien-Foo SING ◽  
Chih-Yuan YANG
Keyword(s):  
Stock Returns ◽  
The United States ◽  
The European Union ◽  
Subprime Mortgage ◽  
Crisis Period ◽  
Contagion Effects ◽  
Mortgage Crisis ◽  
Systematic Risks ◽  
Subprime Mortgage Crisis ◽  
Capm Beta

This study empirically tests the contagion effects in stock and real estate investment trust (REIT) markets during the subprime mortgage crisis by using daily stock- and REIT-markets data from the following countries and international bodies: the United States, the European Union, Japan, Hong Kong, Singapore, Australia, and the global REIT market. We found a significant and positive dynamic conditional correlation (DCC) coefficient between stock returns and REIT returns. The results revealed that the REIT markets responded early to market shocks and that the variances were higher in the post-crisis period than in the pre-crisis period. Evidence supporting the contagion effects includes increases in the means of the DCC coefficients during the post-crisis period. The Japanese and Australian REIT markets possess the lowest time-varying downside systematic risks. We also demonstrated that the “DCC E-beta” captures more significant downside linkages between market portfolios and expected REIT returns than does the standard CAPM beta.

scholarly journals SUBPRIME MORTGAGE CRISIS IN THE UNITED STATES IN 2007–2008: CAUSES AND CONSEQUENCES (PART I)

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 85-118 ◽  
Author(s):  
Vaidotas Pajarskas ◽  
Aldona Jočienė
Keyword(s):  
United States ◽  
Federal Reserve ◽  
The United States ◽  
Mortgage Market ◽  
Subprime Mortgage ◽  
Market Expansion ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Government ◽  
The Impact

The main purpose of this article is to determine which factors and how contributed to the subprime mortgage crisis in the United States in 2007–2008, what their causal links and effects on the markets and the whole economy were, and to assess what actions could have been taken by the Federal Reserve and the Government in order to mitigate or prevent the consequences of subprime mortgage crisis and housing bubble. In order to obtain the research results, the authors performed a qualitative analysis of the scientific literature on the course of events and their development that led to the subprime mortgage crisis, and focused on the insufficiently regulated home mortgage market expansion, the impact on the subprime mortgage crisis of financial innovations and financial engineering, poorly evaluated systemic risks and policy undertaken by both the U.S. Government and the Federal Reserve before and after the crisis. The quantitative research focused on two main parts: firstly, analysis of the dependence between the causes of subprime mortgage crisis and the consequences, using a statistical and regression analysis, and secondly, an alternative path the Government and the Federal Reserve could have taken in their policy actions and the results they could have produced. The authors believe that the results of the research could give useful guidelines to the central bankers and government officials on how to make long-term decisions that can help in preparing for the financial distress, mitigating the consequences when the crisis strikes, accelerating the recovery and even preventing the crisis it in the future. The second part of the qualitative research will appear in the next issue of the journal.

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