The U.S. Subprime Mortgage Crisis

• Main Authors: Tzu-chan Ho, 何姿嬋
• Other Authors: Hsiao-yun Teng
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/12348325583398681417

碩士 === 國立中央大學 === 經濟學研究所 === 97 === The purpose of this thesis is to construct a complete road map of the U.S. subprime mortgage financial crisis. First we will describe the macroeconomic environment surrounding the initial stage of this event. Then, we want to unravel the propagation mechanism of this crisis step by step from several aspects. We will discuss the roles played by different institutions in many markets. The markets involved are housing market, credit market and short term & long term money market…etc. For institutions, we will focus on the lender, the mortgage broker, the investment bank, and the structured investment vehicle, etc. By sourcing logbooks of these events and rearranging them chronologically, we can better tell the causal relations among these related events. Furthermore, we are going to discuss how different financial institutions were affected and the various measures that the governments around the world have implemented to response to the disorder markets. From the study of this thesis, we are able to identify some problems which make the market operate disfunctionally. Especially in the “originate and distribute” business model, some moral hazard or interest of conflict problems have existed behind those market players. We are going to analyze them one by one in the thesis. In conclusions, we will present some recommendations to help improve the operation of the financial system in the future.