Unravelling the Credit Crunch

ISBN-13: 9781439802588 / Angielski / Miękka / 2009 / 328 str.

David S. J. Murphy

Opis

Fascinating Insight into How the Financial System Works and How the Credit Crisis Arose
Clearly supplies details vital to understanding the crisis Unravelling the Credit Crunch provides a clearly written, comprehensive account of the current credit crisis that is easily understandable to non-specialists. It explains how the financial system was drawn into the crunch and the issues that need to be addressed to prevent further disasters. To enable an understanding of the credit crunch, the author first examines the rules that constrain how financial institutions operate. He discusses how these institutions do business, what products were central to the development of the crunch, and how they behave. He thoroughly describes how financial institutions raise money and the legal and regulatory frameworks under which they operate. After exploring how the system works, the book illustrates how to change the rules to make financial disasters less likely. Focusing on the rules involved in the game of finance is essential if we want to figure out what happened that led to this financial debacle. This book shows us how the actions of many financial institutions, regulatory bodies, central banks, and investment managers adversely affected the entire financial system.

Recenzje

"The crisis is a bafflingly complex phenomenon. This complexity is considerably amplified by the incomprehensible jargon that most experts use to discuss it. This book is the first that I have seen to explain the many different aspects of the crisis in terms that everybody can understand. The coverage is excellent starting with why the crisis started in the housing sector, the role of the Federal Reserve, and so forth. The book also explains securitization, tranching, and many other technical aspects the reader needs to understand what happened. It provides historical context by discussing what happened in the 1930s and the 1990s in Japan. While the U.S. is naturally central, the effect of the crisis on other countries is also discussed. I highly recommend this book to everybody."
—Franklin Allen, Nippon Life Professor of Finance and Economics, The Wharton School of the University of Pennsylvania, Philadelphia, USA

Spis treści

Introduction. What Happened? Understanding the Slime: U.S. Residential Mortgages. Financial Assets and Their Prices. Liquidity and Central Banks. The Crash of 1929 and Its Legacy. Securitization, Tranching, and Financial Modeling. The Legacy Fails: Fannie, Freddie, and the Broker/Dealers in 2008. Structured Finance. Municipal Finance and the Monolines. The Rules of the Game: Accounting and Regulation. Changes and Consequences. Index.

O autorze

David Murphy is principal of rivast Consulting, a leading London risk management consultancy.