Raízes da crise financeira dos derivativos subprime

Claudio Gontijo
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Claudio Gontijo: Face-UFMG

Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais

Abstract: This article analyses the roots of the financial crisis caused by the devaluation of the subprime mortgage derivatives, triggered by the reversion of the last cycle of residential constructions in the USA. It describes the process of securitization of the mortgage titles and the boost of the subprime sector, showing that the crisis became systemic due to (i) the insurance net that was set up in order to ensure a degree of investment to the securitized mortgages; (ii) the economic agents’ high degree of leverage; (ii) the dense speculative relations established with other instruments of the hedge market; (iv) the liberalization and deregulation of the financial markets. Finally, it discusses, although on a preliminary approach, whether the ongoing crisis can aptly be described as a “Minsky moment”.

Keywords: financial; markets (search for similar items in EconPapers)
JEL-codes: E44 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-ure
Date: 2008-12

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