Floating topic
Late 2000s
Financial Crisis
Could it have been avoided?
George W. Bush
US President 2008
"We've got a big problem."
Dale Atkins
Market Edge 2006
"The National media is reporting a housing bubble. Don't believe it."
Anthony Hsieh
CEO Lending Tree 2006
"If you own your own home free and clear, people will often refer to you as a fool. All the money sitting there, doing nothing."
John Snow
Treasury Secretary 2005
"The idea that we're going to see a collapse in the housing market seems to me improbable".
Alan Greenspan
Federal Chairman 2003
"The notion of bubble bursting and the whole price level coming down seems to me as far as a national phenomenon, is really quite unlikely."
Impact
decline in governments budget
decline in consumption
decline in wealth
recession
high unemployment
less investment available
Causes
systemic crisis
Recession Europe (2011)
Sovereign debt crisis Europe (2010)
World Recession (2010)
boom and collapse of shadow banking system
worldwide banking crisis (October 2008)
incorrect pricing of risk
increased debt burden
Bank crisis US (March 2008)
weak and fraudulent underwriting practice
growth of the housing bubble
housing crisis US (2007)
huge increase of the subprime lending
easy credit conditions
new financial engineering instruments
