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Oct 26, 2023 · The 2007-2008 financial crisis was caused by a confluence of many factors, including the Dotcom bubble burst, a low interest rate environment, financial products such as mortgage-backed...
In the innumerable discussions and debates about Asia’s financial turmoil, typically dated from the collapse of the Thai baht on July 2, 1997, the standard script includes an acknowledgment of a phe-nomenon called “moral hazard” (hereafter referred to as MH).
Nov 6, 2017 · The study argues that the lack of criminal prosecutions of key financial executives has been a key factor in creating moral hazard. Eight years after the Great Recession ended in the USA, the financial services industry continues to suffer from a crisis of trust with society. Practical implications.
- Noel Murray, Ajay K. Manrai, Lalita Ajay Manrai
- 2017
Thus, inadequate control of moral hazards often leads to socially excessive risk-taking – and excessive risk-taking is certainly a recurring theme in the current financial crisis. A topical example is the subprime scandal. In the old days, a bank would grant a mortgage with a view to holding it to maturity. If the mortgage
- 139KB
- 30
Abstract: The 2008 global financial crisis raises ethical as much as financial questions. Moral outrage centered on the imbalance between banks (too big to fail) profiting from excessive risk-taking in good times and taxpayers suffering the costs in bad times.
Feb 23, 2016 · The case study examines five crucial dimensions of the 2007–2009 financial crisis in the United States: (1) the devastating effects of the financial crisis on the U.S. economy; (2) the multiple causes of the financial crisis and panic; (3) the extraordinary efforts of government regulatory agencies to stem the financial freefall triggered by ...
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Jan 16, 2019 · Using US military personnel as a proxy for political support to local hosts, we find that moral hazard significantly contributes to financial instability. Increasing the number of US troops by one standard deviation above the mean raises the probability of experiencing a financial crisis by up to 13 percentage points.
