THE DEVELOPMENT AND IMPLICATIONS OF THE U.S. SUBPRIME CRISIS

Hetes Roxana (), Miru Oana () and Crâsneac Alexandru
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Hetes Roxana: Universitatea de Vest din Timișoara, Facultatea de Economie și de Administrare a Afacerilor
Miru Oana: Universitatea de Vest din Timișoara, Facultatea de Economie și de Administrare a Afacerilor
Crâsneac Alexandru: Universitatea de Vest din Timișoara, Facultatea de Economie și de Administrare a Afacerilor

Annals of Faculty of Economics, 2010, vol. 1, issue 2, 742-747

Abstract: The changing characteristics of the international financial systems starting from the second half of 2007 came as no surprise. Looking at the events in a synthetic manner, the main factors that led to the triggering and amplification of the crisis can be identified in the dramatic increase of new and more complex financial instruments, with increasing lack of transparency, in the conflicts of interest between market participants, in the imprudent lending practices in the financial services industry, in the deficiencies of rating agencies, together with the excessive confidence in the market's self regulation, the unrealistically low risk attributable to certain investments and, the inability to respond to early warning signals or to learn from the lessons of the previous crises.

Keywords: crisis; subprime loans; securitization; rating agencies (search for similar items in EconPapers)
JEL-codes: G01 G10 G15 G21 (search for similar items in EconPapers)
Date: 2010
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