Mortgage Crisis: Should the Government Bail Out Borrowers in Trouble?

2014 ◽  
pp. 49-72
Author(s):  
Marcia Clemmitt
Keyword(s):  
Mortgage Crisis ◽  
The Government ◽  
Bail Out

scholarly journals SUBPRIME MORTGAGE CRISIS IN THE UNITED STATES IN 2007–2008: CAUSES AND CONSEQUENCES (PART I)

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 85-118 ◽  
Author(s):  
Vaidotas Pajarskas ◽  
Aldona Jočienė
Keyword(s):  
United States ◽  
Federal Reserve ◽  
The United States ◽  
Mortgage Market ◽  
Subprime Mortgage ◽  
Market Expansion ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Government ◽  
The Impact

The main purpose of this article is to determine which factors and how contributed to the subprime mortgage crisis in the United States in 2007–2008, what their causal links and effects on the markets and the whole economy were, and to assess what actions could have been taken by the Federal Reserve and the Government in order to mitigate or prevent the consequences of subprime mortgage crisis and housing bubble. In order to obtain the research results, the authors performed a qualitative analysis of the scientific literature on the course of events and their development that led to the subprime mortgage crisis, and focused on the insufficiently regulated home mortgage market expansion, the impact on the subprime mortgage crisis of financial innovations and financial engineering, poorly evaluated systemic risks and policy undertaken by both the U.S. Government and the Federal Reserve before and after the crisis. The quantitative research focused on two main parts: firstly, analysis of the dependence between the causes of subprime mortgage crisis and the consequences, using a statistical and regression analysis, and secondly, an alternative path the Government and the Federal Reserve could have taken in their policy actions and the results they could have produced. The authors believe that the results of the research could give useful guidelines to the central bankers and government officials on how to make long-term decisions that can help in preparing for the financial distress, mitigating the consequences when the crisis strikes, accelerating the recovery and even preventing the crisis it in the future. The second part of the qualitative research will appear in the next issue of the journal.

Will CLT bail out the bogged down ELT in Bangladesh?

English Today ◽  
2008 ◽  
Vol 24 (3) ◽  
pp. 16-24 ◽  
Author(s):  
M. Obaidul Hamid ◽  
Richard B. Baldauf
Keyword(s):  
Foreign Language ◽  
Human Resource Development ◽  
Communicative Competence ◽  
National Curriculum ◽  
Communicative Language Teaching ◽  
Drop Out ◽  
Tertiary Level ◽  
English Learning ◽  
The Government ◽  
Bail Out

ABSTRACTRural failure in English learning and the socioeconomics of ELT. Over 24 million children learn English as a second/foreign language in primary and secondary schools in Bangladesh. These children start learning the language as a required subject in Grade 1 and continue learning it (if they don't drop out) until Grade 12, and later at the tertiary level. Officially, they are taught English communicatively using Communicative Language Teaching (CLT) methodology, as it was envisaged that CLT would develop learners' ‘communicative competence’, and thereby strengthen the human resource development efforts of the Government of Bangladesh (NCTB, 2003). Nearly a decade has passed since CLT was first introduced in the national curriculum. It now seems appropriate to ask to what extent has it developed learners' competence and improved the declining standards of English in the country (Rahman, 1991).

Gas price crash will compound Bolivia’s economic woes

2020 ◽  
Keyword(s):  
Oil Prices ◽  
Gdp Growth ◽  
Santa Cruz ◽  
Content Type ◽  
Export Prices ◽  
The Government ◽  
Remittance Flows ◽  
Gas Price ◽  
Bail Out ◽  
Gas Pressures

Subject Gas pressures. Significance The fall in world oil prices, on which Bolivia’s natural gas export prices are predicated, further exacerbates the challenges facing an economy already affected badly by the COVID-19 lockdown and a reduction in likely remittance flows. The administration of interim President Jeanine Anez is looking for increased assistance from multilateral credit agencies, but this can only partly mitigate what promises to be a severe downturn in GDP growth. Impacts The COVID-19 shutdown will only gradually be lifted, starting later this month. The government will be unable to bail out companies likely to go bankrupt in the hydrocarbons sector. Santa Cruz will be the department hardest hit by the combination of COVID-19, lower oil prices and fewer remittances.

Strategic and Innovative Actions of the Government During the Financial Crisis

2019 ◽  
pp. 352-370 ◽  
Author(s):  
Seçil Şenel
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Financial Crises ◽  
Social Problems ◽  
Government Intervention ◽  
Crisis Period ◽  
Mortgage Crisis ◽  
Economic Depression ◽  
The Government

Financial crises cause significant economic and social problems for the countries. Many companies stop their operations and a lot of people lose their jobs. Especially after the globalization, there is an increase in the number of financial crises. Because of this aspect, governments try to implement necessary actions to prevent the crisis. In this scope, government intervention to the market during the crisis period is a much-debated concept. The aim of this chapter is to identify the success of government intervention in the market in crisis period. For this purpose, three different financial crises are analyzed, which are 1929 Economic Depression, 2001 Turkish Economic Crisis, and 2008 Global Mortgage Crisis. As a result, it is identified that when government intervene into the market in crisis period, the countries can much easily overcome the crisis. Therefore, it is recommended that strategic and innovative actions should be taken by the government in case of economic crisis, such as increasing liquidity level and implementing new regulations.

scholarly journals European Harmonization Versus National Constitutional Sovereignity – On the Example of the Measures to Contain the Crisis of the Common European Currency

2015 ◽  
Vol 5 (1) ◽  
pp. 66-82
Author(s):  
Ra Jochen Becker
Keyword(s):  
European Commission ◽  
Hedge Funds ◽  
Financial Industry ◽  
The North ◽  
Stop Sign ◽  
European Court ◽  
Budgetary Control ◽  
The Government ◽  
Maastricht Criteria ◽  
Bail Out

Abstract The Eurozone Crisis is not just a monetary and economic challenge. It is as well the first tremendous challenge of the European Community and as well the national institutions and constitutions of the member states not only within the Eurozone. On one side the European Commission, the European Parliament and the ECB with its endeavours to safeguard and stabilize the single currency EURO within the Eurozone, to support the suffering countries in the south (PIIGS) with its struggle against speculative hedge funds, to render financial relief measures to those countries and its financial industry. Irrespective the fact governments and citizens within that countries, less appear to appreciate or honor that measures (Troika, Financial checks and budgetary control) as efficient help to stabilize but condemn as form of European paternalism and patronage. On the other hand the countries and its citizenship especially in the north of the Eurozone to set a stop sign to the EU and the ECB. Therefore they stress the Maastricht criteria and cite the Art 125 of the TEU, which prohibits one nation to stand for or to be liable for the Government debts of another nation (no bail out). Especially in the German perspective the demarcation line appears to run along between the European Commission, European Central Bank and European Court on the European side and the Bundesverfassungsgericht, the Bundesbank on the national German side. Each of the institutions feels to be bound to its origin functions and principles and save the respective constitution and the task rendered by that constitution. For a better understanding it is essential to get aware of and to reinforce the constitutional role which the Grundgesetz awarded to the Bundesverfassungsgericht and the Bundesbank and the German citizenship placing their confidence in these institutions. Es soll konkret das Verhältnis zur Nichtbeistandsklausel No-Bail-out Klausel Art 125 AEUVertrag, den Europäischen Fiskalpakt / dem ESFS, ESM / dem OMT-Programm der EZB, möglichen Entwicklung des EU zur Haftungs- und Transferunion mit einem zukünftigen Haftungsautomatismus der Mitglieder, der Unterscheidung von gemeinsamer Währungspolitik und nationaler Wirtschaftspolitik, der drohenden Vergemeinschaftung von Staatsschulden einzelner EU-Länder, die Budgethoheit des nationalen Parlaments als freie Entscheidung über die Verwendung des nationalen Haushaltes untersucht werden. Mit allen diesen Fragen mussten sich das höchste Deutsche und Europäische Gericht in jüngster Vergangenheit intensiv beschäftigen.

scholarly journals Subprime mortgage crisis in the United States in 2007–2008: causes and consequences (part II)

Ekonomika ◽  
2015 ◽  
Vol 94 (1) ◽  
pp. 7-41 ◽  
Author(s):  
Vaidotas Pajarskas ◽  
Aldona Jočienė
Keyword(s):  
United States ◽  
Federal Reserve ◽  
Quantitative Research ◽  
The United States ◽  
Mortgage Market ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Government ◽  
The Impact

This is the second part of the qualitative and quantitative research on the subprime mortgage crisis in the United States in 2007–2008. The main purpose of this research is to determine the factors and how they contributed to the subprime mortgage crisis, what their causal links and effects on the markets and the whole economy were, and to assess what actions could have been taken by the Federal Reserve and the Government in order to mitigate or prevent the consequences of the subprime mortgage crisis and the housing bubble. In order to obtain the results, the authors performed a qualitative analysis of the scientific literature on the course of events and their development that led to the subprime mortgage crisis and focused on insufficiently regulated home mortgage market expansion, the impact on subprime mortgage crisis of financial innovations and financial engineering, poorly evaluated systemic risks and policy undertaken by both the U.S. Government and the Federal Reserve before and after the crisis. The quantitative research focused on two main parts: firstly, the analysis of dependencies between the causes of subprime mortgage crisis and the consequences using the statistical and regression analysis; secondly, an alternative path the Government and the Federal Reserve could have taken in their policy actions, and the results they could have produced have been explored. The authors believe that the results of the research could give useful guidelines to the central bankers and government officials on how to make long-term decisions that can help in preparing for the financial distress, mitigating the consequences when the crisis strikes, accelerating the recovery and even preventing the crisis in the future.

Greece's voters may reject Syriza tactics out of fear

2015 ◽  
Keyword(s):  
Prime Minister ◽  
Sufficient Time ◽  
Content Type ◽  
Step Down ◽  
The Government ◽  
Bail Out ◽  
The Eu

Significance The referendum is nominally a vote on the bail-out proposals of the EU and IMF. Yet Tsipras also wants Greece's creditors to respond to the latest Greek offer, submitted on June 30, in which his government went a long way towards the institutions' proposals. The prime minister is thus asking Greek voters to reject an earlier version of a plan that he later came largely to accept with minor amendments, such as postponing the implementation of pension cuts. With the referendum also now a vote of confidence in Tsipras, Greece faces its biggest challenge since the 1974 restoration of democracy. Impacts The referendum will not meet basic democratic standards of allowing sufficient time for organisation and setting voters a clear question. A 'yes' vote would restart talks on new conditional funding, on the basis of the June 25-27 package. However, Tsipras would have lost legitimacy and has said he would step down. After a 'no', the government would call for talks to start afresh, but the creditors could refuse owing to a breakdown of trust.

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