Questions tagged [financial-crises]

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Interventions during the current Corona crisis: Government credits

In the light of the current public health crisis caused by COVID-19, I would like to know more about how government or central bank interventions are supposed to influence and limit the economic ...
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What are the possible consequences of the Thomas Cook collapse regarding the world economy?

As reported by the media, Thomas Cook financially collapsed last week. Since then, hotels in tourist countries like greece or spain also collapsed, leaving several hundred to thousand people ...
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What are the indicators of a country being in a financial crisis

What are the indicators of a country being in a financial crisis? I would like to know both about the acute and recovery phase. I am trying to make a point to our company that we are not growing ...
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Have Bernanke, Geithner, Paulson, or the Fed ever responded to Laurence Ball's accusations about Lehman?

Ben Bernanke, Hank Paulson, and Timothy Geithner have repeatedly stated that they wanted to save Lehman Brothers but couldn't do so legally because Lehman didn't have enough collateral. Laurence Ball ...
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Understanding Mortgaged Backed Security during financial crisis

This is my understanding of the mortgage backed security.Banks will give loans to customers, and then they decide to sell the loans to investment banks and charge a fee with it to earn profit. Now the ...
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Was underestimation of the risk of Senior tranches partially responsible for the 2007-2008 subprime crisis?

I am trying to understand this explanation by Professor of Finance Andrew Lo of the 2007-2008 subprime crisis: Say we have two risky loans, P(default)=0.1 of USD 1000: SP1 and SP2. An intermediate ...
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Do states compete with each other when they emit debt?

Let's say that, for some reason (a crisis or similar), many first-world countries' states need to emit public debt to be able to pay the services the normally provide (pensions, health etc.). As I ...
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When is the pegged price equal to the market price

Suppose the government pegs an exhaustible resource, at a price $P^*$. I found out that the shadow price (initial price of the resource if government didn't peg) would be $$Q_t = ( \sigma i S_t )^\...