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Special Report on

Asset Bubbles and Systemic Risk

asset bubbles and systemic risk special research report Photo by
The Federal Reserve, in an attempt to paper over its soured relationship with the American people, has launched new features at its website, which includes programs for school teachers to explain to American children what the Federal Reserve does, as well as online videos, games , and speeches about � believe it or not � how to become a millionaire. You can view these features directly here . Welcome to FedVille , a friendly town built just for kids where there is something to learn around every ...
In its simplest form, a credit default swap is a bilateral contract between the buyer and seller of protection. The CDS will refer to a specified bond obligation of a “reference entity”, usually a corporation or government. The reference entity is not a party to the contract. The protection buyer makes quarterly premium payments—the “spread”—to the protection seller. If the reference entity defaults, the protection seller pays the buyer the par value of the bond in exchange for physical delivery of the bond, although settlement may also be by cash or auction. 1 2 A default is referred to as a " credit event " and ...
In 2002, a tall and skinny 14-year old girl competed in a dance contest in Vancouver, Canada. There she encountered a modeling agent, who asked her to consider going out for modeling jobs. Today, the 22-year-old Coco Rocha is celebrated as a “supermodel” (however little of its glamazon power the term retains these days), appearing on covers of Vogue and i-D magazines, on catwalks from Marc Jacobs to Prada, and as the star face for Dior, H&M, and Chanel. You might not recognize her name, but the chances are you’ve seen Coco Rocha in the past few years. Coco is what economists would call a winner in a “winner-take all market,” ... market research, surveys and trends
What's the Best Way to Pop a Bubble? « Truth on the Market
to Fama and French. I'm hesitant to post over Henry's important letter, particularly since TOTM was down yesterday and lots of folks may not have seen the letter. I'm doing so only because this post is a good follow-up to Henry's points about trading and market efficiency. If you haven't read Henry's letter, please do so forthwith!] Let’s get one thing straight: At the end of the day, our recent financial woes were primarily caused by the mispricing of assets. A housing bubble (or, more accurately, a number of local housing bubbles) emerged as home prices grew much faster than home ... market research, surveys and trends


Regulate OTC Derivatives by Deregulating Them
Not surprisingly, despite the $12 billion funneled to Gold- ..... less than 10 percent. All of this shows that big notional amount numbers do not ... economic ills, including asset bubbles and systemic risk. ... industry trends, business articles and survey research
Bubbles, Liquidity and the Macroeconomy
investor who buys $100 million worth of assets on 10 percent margin. ... value of the acquired asset declines temporarily to $95 million. ... macro-prudential systemic risk measures. Our approach recognizes that splitting one large, ... industry trends, business articles and survey research
Learning from Wall Street's failures
Mark Williams, a former Federal Reserve examiner who teaches finance at Boston University, recently authored the book “Uncontrolled Risk: Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial System.’’ He spoke with Globe reporter Beth Healy about the book and the financial crisis, as Congress tries to overhaul the laws governing banks and Wall Street. In your book, you examine the downfall of Lehman Brothers. Do you see this mainly as a work of history, or are the there lessons for the future in Lehman’s fate? I wanted to look at the themes around asset bubbles, and ... market trends, news research and surveys resources
Hoenig Says Fed Should Raise Benchmark Rate to 1%
July 7 (Bloomberg) -- Kansas City Federal Reserve Bank President Thomas Hoenig repeated his view the Fed should raise its target rate to 1 percent, even as some economic reports indicate the recovery is slowing. “I am not saying raise rates to very high levels, I am saying get it off zero,” Hoenig said today in an interview on Bloomberg Radio’s “The Hays Advantage,” with Kathleen Hays. “What I am advocating is a policy of shooting toward normality.” He said he didn’t think a “1 percent interest rate would be harmful to the economy.” Hoenig, 63, has been the sole policy ... market trends, news research and surveys resources


Liquidity Shocks, Systemic Risk, and Market Collapse
The literature on asset bubbles and asymmetric information applies most readily to .... participants due to their belief that the risk of systemic liquidity ... technology research, surveys study and trend statistics
Systemic Risk and the Federal Reserve
warning signs that the Fed missed” has validity, but begs the question of whether a systemic risk regulator would have missed them as well. Asset Bubbles ... technology research, surveys study and trend statistics
Markus Brunnermeier
    Predicting and measuring a financial institution's contribution to systemic risk that internalizes externalities and avoids procyclicality. Complexity in Financial Markets , with Martin Oehmke, slides . An Economic Model of the Planning Fallacy , with Filippos Papakonstantinou and Jonathan Parker, slides . Leadership, Coordination and Mission-Driven Management , with Patrick Bolton and Laura Veldkamp.     Winner of JP Morgan Prize for the best paper at the Utah Winter Finance Conference, 2008.    Overconfident leaders make more precise mission statement which ...
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The Eight Bubbles: What are the Numbers suggesting? | LinkedIn ...
There is a rising myth of the single bubble which suggests that The Great Unwind -- manifest as the global credit crunch -- is essentially about subprime mortgage default, a USD 1.5 trillion challenge. The truth is that there are as many as eight bubbles at play which are in the process of bursting, taking the form of deleverage on an unprecedented scale. Even 1929 pales in comparison. At a recent ATCA roundtable we posed the following questions for Socratic dialogue: I. If the Dow Jones Industrial Average has fallen from above 14,000 to below 9,000 as a result of the subprime mortgage bubble collapse, ie a 5,000+ points ...
What are now the latest happenings on some banks affected with the ...
The financial system is dealing with the worst housing meltdown since the Great Depression and is fending off an extraordinary number of body blows: the Bear Stearns debacle, the Washington Mutual bank failure, the takeover of Fannie Mae and Freddie Mac, the Lehman Bros. bankruptcy and the government's bailout of American Insurance Group and seemingly everyone on Wall Street. The events of the past few months have many people reeling. My e-mail inbox and the MSN Money message boards have been flooded with readers' questions about the financial crisis. Here are answers to some of those questions. How can I tell if my ...