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Subprime mortgages and the MBSs in generating and transmitting the global financial crisis

Author

Listed:
  • Michal Jurek

    (Poznan University of Economics, Poland)

  • Pawel Marszalek

    (Poznan University of Economics, Poland)

Abstract
The paper addresses numerous factors which generated and transmitted the 2007-2009 financial crisis, with the special attention paid to phenomena observed in the subprime mortgages and MBSs markets. The aim of the paper is to provide a critical survey which systematically examine the literature of those factors. The paper discusses the roots of the subprime crisis and characterizes briefly the most important milestones in the process of the crisis propagation. Then it presents analysis of the impact of the subprime and MBSs markets on the outburst of the global financial crisis provided by staff of selective international financial institutions and central banks. The special attention is paid to factors of crisis propagation after the subprime mortgage and MBSs markets collapse. Strict interdependencies among tall discussed factors are emphasized.

Suggested Citation

  • Michal Jurek & Pawel Marszalek, 2014. "Subprime mortgages and the MBSs in generating and transmitting the global financial crisis," Working papers wpaper40, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    • Handle: RePEc:fes:wpaper:wpaper40
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    References listed on IDEAS

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    Cited by:

    1. Eckhard Hein, 2015. "Causes and Consequences of the Financial Crisis and the Implications for a More Resilient Financial and Economic System: Synthesis of FESSUD Work Package 3," Working papers wpaper128, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    2. Hein, Eckhard, 2016. "Causes and consequences of the financial crisis and the implications for a more resilient financial and economic system," IPE Working Papers 61/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).

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    More about this item

    Keywords

    global financial crisis; subprime mortgages; structured credit products; risk exposure;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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