CEU Electronic Theses and Dissertations, 2008
| Author | Vaitukevich, Mikhail Yuryavich |
|---|---|
| Title | EMERGING OF THE SUBPRIME MELTDOWN: FROM ROCKETING HOUSING PRICES TO FALLING FINANCIAL INDICES |
| Summary | This paper examines the actions of the key players in the context of the crisis transformation from meltdown of the U.S. subprime market to international shortage of available liquidity. The research examines the reasons of the financial meltdown such as reckless usage of risky financial innovations, low level of state control of the sector, predatory lending practices and information asymmetry of risk distribution between loan originators and investors. It is concluded that current banking practices should be reconsidered and major financial agents require further investment education to eliminate the information asymmetry which lead to inaccurate risk evaluation. Finally, observing the transition of the crisis to the European continent it is claimed that certain backwardness in adopting of innovative financial instruments appeared beneficial for such emerging market as Russia and created the environment attractive for foreign direct investment inflow. |
| Supervisor | Julius Horvath |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2008/vaitukevich_mikhail.pdf |
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