Describe the sub-prime crisis in early September 2008. What
caused the financial crisis? What is the key role of CDS in the
crisis? Based on the credit risk valuation model we discussed in
the class, what has been under-estimated by AIG when pricing
CDS?
Since the stock market crash of 1929, what is the
average return (in %) the stock market has risen?
_____________________________.
(This is the complete question )
What are 5 financial innovations and deregulations that led to the
financial crisis in 2008? What are 5 policy responses by the
Federal Reserve and the U.S. Government and Treasury department
that helped us to get out of the financial crisis? Who are the
winners and losers?