Articles on Subprime Mortgage Crisis

Subprime Mortgage Crisis: An Introduction

This article provides a basic introduction to the subprime mortgage crisis. It explains the magnitude as well as the main effects of the crisis.

Dot Com Bust: Starting Point of Subprime Mortgage Crisis

This article points out the relationship between dot com bubble burst and the subprime mortgage crisis. This article pays special attention to the interest rates cut by the Fed as the cause of economic chaos years later.

Political Incentive for Home Ownership

This article analyzes the US government act called “Community Reinvestment Act”. It also analyses how this act may have possibly been the cause of the subprime mortgage crisis. The debate for and against this point is summed up in the article.

The Case Of Freddie Mac, Fannie Mae and Ginnie Mae

This article presents the case of Freddie Mac, Fannie Man and Ginnie Mae which were government sponsored entities. These hybrid entities played a major role in bringing about the 2008 recession.

Advantages to Freddie Mac, Fannie Man and Ginnie Mae

This article explains the advantages that were bestowed upon Freddie Mac, Fannie Man and Ginnie Mae as a result of their charter. It also explains how these privileges created an unfair trading environment.

Types of Mortgages

This article explains the various types of mortgages from the point of view of the lender. It explains how lenders had a wide array of mortgages available to meet the needs of every borrower.

Types of Mortgages from Borrowers Point of View

This article lists down the various types of loans from the borrowers point of view. It also provides a commentary on the risks associated with each of these loans.

Mortgage Products - Negative Amortization & Home Equity Line of Credit

This article explains the concepts behind mortgage products like Negative Amortization and Home Equity Line of Credit. It also explains the dangers of using such products.

The New Mortgage Landscape

This article describes the new mortgage landscape i.e. how mortgages ceased to be an agreement between a borrower and lender and how a wide variety of third parties came to be involved.

The New Mortgage Landscape: Conflict of Interest

This article explains the conflicts of interest inherent in the new mortgage system. It explains why neither of the parties had an incentive to make responsible loans.

New Age Financial Securities - Mortgage Backed Securities & Credit Default Swaps

This article provides an introduction to the two most important types of securities used in the mortgage market i.e. mortgage backed securities and credit default swaps. The article also outlines the risks faced by these securities.

Collateralized Debt Obligations and Tranching

This article explains the rise of collateralized debt obligations (CDOs). It also explains how CDOs enabled investment bankers to meet different risk return profiles.

Benefits of Collateralized Debt Obligation (CDO’s)

In this article, the benefits of using the collateralized debt obligations (CDO’s) as well as the different types of collateralized debt obligations (CDO’s) have been explained.

Subprime Crisis: Problems Caused by Accounting

This article links the accounting policy i.e. mark to market with the subprime mortgage crisis. It explains how the crisis was not caused by this policy but was aggravated by its usage.

The Self Reinforcing Housing Loop

This article takes a look at the subprime mortgage crisis from the lens of the asset bubble theory. The idea is to find the feedback loop that was operating in those markets.

Integrated Financial Systems: Boon or Bane

This article explains in detail about the interconnectedness of the markets in today’s world. It explains how the various markets in the US and in the world are interconnected.

Credit Market Freeze - Causes and its Importance

This article explains the credit freeze. It differentiates the credit freeze from the subprime mortgage crisis and explains how this crisis was mitigated in 2008.

Mortgage Lending: Borrower Approach vs Collateral Approach

This article contrasts the borrower approach to lending with the collateral approach to lending and explains why the borrower approach is better.

How Reverse Mortgage Works ?

This article explains the concept of reverse mortgage. It lists down the common scenarios in which reverse mortgage is taken. Also, it gives a step-by-step explanation of the reverse mortgage process.

Reverse Mortgage: Pros and Cons

This article lists down the pros and cons of reverse mortgage loans. It also explains why this kind of loan is particularly suitable for some kind of people whereas it may not be a good idea for others.

The Big Bust Washington Mutual (WaMu)

This article explains the history of Washington Mutual (WaMu). It also details the bank’s foray into subprime mortgages and then its final downfall.

General Motors and the Subprime Crisis

This article provides details about the General Motors (GM) fall and bailout during the 2008 crisis. It explains the reasons for the fall as well as the measures that were taken to recover from it.

The Return of Subprime Mortgages

This article explains why subprime mortgage loans are back in America. It also lists some of the measures that are being taken by Bank of America to avoid a repeat of the 2008 fiasco.

The Big Subprime Bust

This article explains about the events which led to the beginning of the subprime meltdown. It lists down the chain of events that finally caused the catastrophe.

Executive Compensation and Sub-Prime Mortgage Crisis

This article explains the relationship between executive compensation and the actions of the CEOs during the subprime mortgage crisis. It also draws a link between the compensation format prevalent at that time and the trend of excessive risk taking during the same time.

The Big Fall: Lehman Brothers

This article details the history and the downfall of Lehman Brothers. It explains how the subprime mortgage crisis led to the downfall of this huge corporation.

The Big Fall: Bear Stearns

This article provides a historical overview of Bear Stearns business. It then explains the reason behind the collapse of this business and the takeover by JP Morgan.

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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to and the content page url.