Financial Turmoil Research Paper
The financial turmoil
Shivananda Venkata Reddy
Texas A & M
Date:02/22/2017
The causes of the next financial turmoil in the US
The economic crisis that engulfs the US started in early 2007 with the leading mortgage lending market. In the beginning, the indicators of the problems began with the abolition of high-risk purchase mortgages by Federal Loan Mortgage Corporation. In the second lender, New Century Financial Corporation risks filed for bankruptcy. 5 The crisis set in as the prices of housing fell, and many foreclosures increased drastically. The credit rating agencies downgraded their risks evaluation of financial instruments in the early 21st century. The risk restricted the issuer's capability of the commercial products …show more content…
In the recent past, the previous administration and the current administrators are formulating policies that are directly touching the financial market, trade, and regulations.2 The US economy accelerates at a slow rate during the second stint of the former President Obama. Debts, Republican aversion, and public spending are the measure of the future direction of the world most powerful nation. The trend in the politics shows that the Republicans are for relaxing debt limits while spending more on the social amenities. Since the era of Ronald Reagan, Bush and Obama, the formulation of the Keynesian fiscal stimulus implementation has not been possible 8. The deficit in the resulting unable to implement refers to as ‘supply-side economics.' Therefore, the causes of the future turmoil …show more content…
Akyüz Y. Policy Response to the Global Financial Crisis: Key Issues for Developing Countries. triplecrisis.com/wp-content/uploads/2010/03/AkyuzGEPSC.pdf May 15, 2009.
2. Bibow J. Global Imbalances, the U.S. Dollar, and how the crisis at the core of global finance spread to "self-insuring" emerging market economies. Levy Economics Institute Working Paper, No. 591. www.levyinstitute.org/pubs/wp_591.pdf June 13, 2010.
3. Cohan, William D. Why Wall Street Matters. https://www.ft.com/content/ce216134-e6c7-11e3-9a20-00144feabdc0 Feb 16, 2017
4. Eichengreen, Barry J. Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System www.unescap.org/sites/default/files/Book-Review-5-May-2012.pdf 2012
5. Gordon, Robert J. "Is U.S. Economic Growth Over? Faltering Innovation Confronts the Six Headwinds." https://ideas.repec.org/r/nbr/nberwo/18315.html 2012.
6. Harker, Patrick. "The U.S. Economy in 2017: Why Uncertainty Is the ‘Biggest Risk' The University of Pennsylvania. knowledge.wharton.upenn.edu/.../the-u-s-economy-in-2017-why-uncertainty-is-the-b. Jan 6, 2017.
7. Jorgenson, Dale W., Mun S. Ho, and Jon D. Samuels. "Economic Growth in the Information
Shivananda Venkata Reddy
Texas A & M
Date:02/22/2017
The causes of the next financial turmoil in the US
The economic crisis that engulfs the US started in early 2007 with the leading mortgage lending market. In the beginning, the indicators of the problems began with the abolition of high-risk purchase mortgages by Federal Loan Mortgage Corporation. In the second lender, New Century Financial Corporation risks filed for bankruptcy. 5 The crisis set in as the prices of housing fell, and many foreclosures increased drastically. The credit rating agencies downgraded their risks evaluation of financial instruments in the early 21st century. The risk restricted the issuer's capability of the commercial products …show more content…
In the recent past, the previous administration and the current administrators are formulating policies that are directly touching the financial market, trade, and regulations.2 The US economy accelerates at a slow rate during the second stint of the former President Obama. Debts, Republican aversion, and public spending are the measure of the future direction of the world most powerful nation. The trend in the politics shows that the Republicans are for relaxing debt limits while spending more on the social amenities. Since the era of Ronald Reagan, Bush and Obama, the formulation of the Keynesian fiscal stimulus implementation has not been possible 8. The deficit in the resulting unable to implement refers to as ‘supply-side economics.' Therefore, the causes of the future turmoil …show more content…
Akyüz Y. Policy Response to the Global Financial Crisis: Key Issues for Developing Countries. triplecrisis.com/wp-content/uploads/2010/03/AkyuzGEPSC.pdf May 15, 2009.
2. Bibow J. Global Imbalances, the U.S. Dollar, and how the crisis at the core of global finance spread to "self-insuring" emerging market economies. Levy Economics Institute Working Paper, No. 591. www.levyinstitute.org/pubs/wp_591.pdf June 13, 2010.
3. Cohan, William D. Why Wall Street Matters. https://www.ft.com/content/ce216134-e6c7-11e3-9a20-00144feabdc0 Feb 16, 2017
4. Eichengreen, Barry J. Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System www.unescap.org/sites/default/files/Book-Review-5-May-2012.pdf 2012
5. Gordon, Robert J. "Is U.S. Economic Growth Over? Faltering Innovation Confronts the Six Headwinds." https://ideas.repec.org/r/nbr/nberwo/18315.html 2012.
6. Harker, Patrick. "The U.S. Economy in 2017: Why Uncertainty Is the ‘Biggest Risk' The University of Pennsylvania. knowledge.wharton.upenn.edu/.../the-u-s-economy-in-2017-why-uncertainty-is-the-b. Jan 6, 2017.
7. Jorgenson, Dale W., Mun S. Ho, and Jon D. Samuels. "Economic Growth in the Information