Toward the end of the decade, Wall Street investment firms began hiring PhDs in mathematics and physics to create incredibly complex algorithms capable of modeling elements of the stock and futures markets. In most cases, the creators of these algorithms knew next to nothing about the financial industry, and the executives who employed them knew (literally) nothing about the mechanisms their firms had begun to rely on for their trading strategy. Destabilization of the Home Mortgage Industry: In the early 1970s, stock analysts at Salomon Brothers, another Wall Street investment firm, developed a new kind of security based on home mortgages, called mortgage-backed securities. In principle, this allowed the conversion of illiquid (i.e. non- tradable) assets like the debt represented by home mortgages to be converted into a tradable commodity for profit. This new form of commercial transaction evolved into incredible levels of complexity after the widespread incorporation of mathematical algorithm-based trading and powerful computers within the investment banking and securities industry. By the end of the 20th century, billions of dollars were being traded on securities whose value lay in the combined debt owed by millions of individual homeowners. However, at roughly the same time, deregulation of the entire financial services sector fundamentally changed the age-old relationship that had always secured the home mortgage, since its inception. Specifically, prior to deregulation, banks, other lending institutions, and mortgage brokers had a vested interest in ensuring that they avoided extending credit to unqualified borrowers whose income, credit history, and available collateral indicated a low risk of default. Once deregulation allowed banks to sell off their mortgage debt to third parties instead of retaining them (and the risks associated with default) on their books, the incentive...
The immense profitability of mortgage backed securities generated intense momentum to issue as many mortgages as possible, in addition to myriad other forms of consumer debt. Millions of Americans took possession of homes they could not afford, many of whom refinanced every year, taking money out of the closing, by virtue of rapidly increasing home values caused by the mortgage lending spree. The industry became proliferated with "stated income" and no documentation ("no doc") mortgages that were also known as "liar loans" because everyone involved in the initial mortgage transaction fraudulently misrepresented financial information.
Economic Growth and Happiness Economic Growth Can Lead to Healthier and Happier Societies More Availability of Goods Higher Income Increase in Tax Revenues and Better Welfare Programs. Increase in Purchasing Power Technological Advancement Health Industry Benefits Business Sector Benefits General Benefits Reflective statement Economic Growth Can Lead To Healthier and Happier Societies Economic growth has long been termed as the precursor to any society's success, and in this paper, we shall be looking at various aspects of economic growth that are directly
Economic Globalization Has the 2008 financial meltdown in the U.S. And the ongoing economic crisis in Europe have practically ended the era of economic globalization? Following the financial crisis that marred the U.S. economy along with other global economies as well as the ongoing Eurozone debt crisis, there have been projected concerns that this predicament would end economic globalization. The purpose of this paper is to assess this claim. Going by Immanuel
Book of Job There is a fair amount of controversy surrounding the book of Job along with various controversies about who wrote it. Some scholars maintain that Job did live in the time of Moses, and that the book was written by him; others disagree and maintain that the book was written by Elihu or Isaiah. Since so much of the book focuses on the idea of "wisdom" and comparable
Book Of Job and the Questions of Suffering The Book of Job and the Question of Suffering The religions of the ancient near East were mostly polytheistic. Its history spans more than two millennia, from the Bronze Age to the early Iron Age. There are various sub-religions that make up these religions of the ancient near east they include; Assyro-Babylonian religion, Canaanite religion, Egyptian religion, Minoan religion and many more. These religions
Though the Bible was written chronologically depending on time some mistakes were made in reference to that time but the mistakes are negligible the message are compatible from one to another from the Book of Genesis to the last book of Revelation. There 8 accepted books of the Bible namely; Historical, Poetical, Major Prophets, Minor Prophets, The Gospels New Testament Historical, Epistles and the Prophetic Book Revelation. http://www.christianity.com/Christian%20Foundations/The%20Bible/11528149/ According to Christian foundation,
BUSINESS AND TECHNICAL WRITING Business and Technical Writing: Summary of Three SourcesBusiness asks for formal communication, which entails official and technical writing. The basis of writing should be founded on learning what is relevant to the topic and who has explored the topic before the business writer himself. Literature, theory, and social research are three fundamental that lay the groundwork for business and technical writing.The literature review is important since
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