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Deconstructing the Subprime Crisis

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In this Special Report, Knowledge@Wharton finds that the credit crisis was triggered when Wall Street alchemists, overeager borrowers and aggressive lenders let their eye for opportunity trump their nose for risk. New regulations might prevent a recurrence -- but so would diligent decision-making.

Channel: Education
Uploaded: November 30, 1999 at 12:00 am
Author: knowledgeatwharton

Length: 07:38
Rating: 5.00
Views: 8796

Tags: credit  crisis  deconstruction  downturn  Federal  housing  knowledgeatwharton  market  Reserve  stock  Subprime  

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Video Comments

ubuibiok (November 30, 1999 at 12:00 am)
Unfortunately, my studies on the recovery of the current Market recovery are starting to now bang up against my model of the "Baby Boomer" issues. My expected decline in Stock Market Value (BBSMV)is now way below the present forecast peek and with The FED adding Inflation at an alarming rate my answers to correct the problems are narrowing very fast. Just as I start to realize stability in 2010 we will hit the BBSMV on a down slide of housing prices again.
mikekruczkowski (November 30, 1999 at 12:00 am)
The crisis is far from over. But I have a feeling that it will succomb to a rebound in late 2009 after the new president gets settled in his office. By then the "bad loans" that have been originated in the past 4 years will have readjusted and either be written down or kept as performing assets. Finally, once the home prices find a bottom subprime loans will again become attractive business and alt a lenders will resurface a lot more cautious of course this time around.
d991 (November 30, 1999 at 12:00 am)
Anyone who thinks the credit crisis in financial markets is over or almost over is joking themselves.

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