in
your own words write about “credit rating agencies and the
financial crisis” and support it with real life example from any
financial market or institution
The credit or financial crisis 2007-2008 started in the U.S.
Many people in the U.S. have got mortgages and later they couldn't
pay back. These mortgage defaults caused many mortgage lending
banks and companies to lose significantly and go bankrupt. As a
result the housing prices started to fall causing a negative wealth
effect and fall in consumer spending. The crisis was spread almost
all of the countries in the world later. Why and how other
countries were affected by...
Describe the issue associated with credit rating agencies in the context of the global financial crisis.
Given the issues described in question 1, do you think we need credit rating agencies going forward? Why (not)?
Who/what do you blame for the financial crisis of 2007 - 2008
and the recession that followed? Do you agree with the TARP bailout
package? Was it necessary/smart? Share your views after reading
about it in chapter 14. Contribute 200 -300 words.
Since the credit crisis of 2008, the regulation of the entire
financial industry has been a prime focus of both federal and state
regulators. From your perspective, has regulation helped or hurt
the economy?
Prior to the Financial Crisis, rating agencies mistakenly rated
Mortgage Backed Securities (MBS) too high because:
Historically, mortgages have very low default rates.
The payments on the MBS’s were “insured” by credit default
swaps.
The agencies didn’t account for the increase in sub-prime
mortgages.
All of the above.
Fund from operations (FFO) of Pay Handle Ltd. Increased in
2011. In 2011 the total debt of the company remained unchanged,
while additional common shares were issued. Pay Handle Ltd.’s
ability to...
(1) What are credit ratings?
(2) Credit rating agencies such as Moody’s and Standard &
Poor’s use several factors to determine a company’s credit rating.
Please list any three factors that can play a role in determining a
company’s credit rating.
(3) Compared to companies with a poor credit rating such as D,
companies with good credit ratings such as AA or AAA have to pay
higher or lower interest to borrow money? Explain your answer.
The economic and financial crisis of 2008-2009 represents the
most serious economic downturn in the U.S. and the world since
1929. Review and discuss the Federal Reserve and its role in our
economy during this time including a discussion of our nation's
three main economic goals. Describe the historic monetary and
fiscal policy efforts undertaken by the U.S. Government and Federal
Reserve including both the traditional and non-traditional measures
to ease credit markets and stimulate the economy. Finally, relate
the...
The economic and financial crisis of 2008-2009
represents the most serious economic downturn in the U.S. and the
world since 1929. Review and discuss the Federal Reserve and its
role in our economy during this time including a discussion of our
nation's three main economic goals. Describe the historic monetary
and fiscal policy efforts undertaken by the U.S. Government and
Federal Reserve including both the traditional and non-traditional
measures to ease credit markets and stimulate the
economy.