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Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
Financial meltdown in usa
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Financial meltdown in usa

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SPENTREP F10 Special Report Financial Meltdown in the USA

SPENTREP F10 Special Report Financial Meltdown in the USA

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  • 1. Mark Alexander A. Salvador SPENTREP F10 Financial Meltdown in USA
  • 2. The Story
    • Major Events of the Decade
      • Dot-com Bubble
      • 9/11 Attacks
      • Afghan and Iraq Wars
    • Effects on the Markets
      • Slashed Interest Rates
    • The China Factor
      • Joined the WTO
      • Massive shift of global manufacturing to the nation
      • Low-cost Chinese goods flooded markets
  • 3. The Story
    • Global Demand for Oil Boosted
    • US Trade Deficit
    • Investment Outlet was the USA
      • Investors looked for safe-haven investments such as US Treasuries
    • Subprime Mortgage
      • A type of mortgage that is normally given to borrowers with low credit ratings.
      • Since the borrower has a lower rating, a conventional mortgage is not offered because the lender views the borrower as having a larger than average risk of defaulting.
      • Lenders often charge higher interest rates on subprime mortgages in order to compensate for carrying more risk.
  • 4. The Story
    • Wall Street Produces Complex Securities
    • Individual Loans could be Securitized
    • Lenders could Originate Loans, Resell and Use the Proceeds to Make More Loans
    • Home Buying Spree
      • Low Borrowing Costs
      • Easy Access to Credit
    • Making Significant Returns through Buying and Selling
  • 5. The Story
    • Benefits
      • Produced Jobs
      • House Becomes Largest Asset
      • Liquid
    • Signs of the Bubble Burst
      • Declining House Prices
      • High Interest Rates
      • Mortgages Could Not be Paid
      • Defaults
      • Markets of Mortgage-Backed Securities Shut Down
  • 6. Effects of the Fiasco
    • Money Stopped Flowing
    • Banks Began Reporting Losses on their Mortgage-backed Holdings
    • Banks Shrank from Doing Business with Each Other
    • Insolvencies and Bailouts
      • Bear Stearns
      • Fannie Mae & Freddy Mac
      • Lehman Brothers
      • AIG
    • Effects
      • Unemployment
      • Government Deficits
  • 7. Effects of the Fiasco
    • Effects (continued)
      • High Prices
      • Cost on Welfare
      • Depreciation of Currencies
    • Philippines and the Rest of Asia
      • Emerging Economies Performed Better
      • Benefits of a Conservative Banking System
      • High Population Fuelled Consumption
      • Currency Appreciated
      • USD Lost Some Purchasing Power
      • Local Goods and Services Became Expensive
  • 8. In Relation to Entrepreneurship
    • The need to be updated
    • Greed is cancer
  • 9.
    • THE END
    • Thank You!
  • 10. Bibliography
    • Muinchau, Wolf. The Meltdown Years: The Unfolding of the Global Economic Crisis . United States of America: McGraw-Hill, 2010.
    • Zandi, Mark M. Financial Shock: a 360 look at the subprime mortgage implosion and how to avoid the next financial crisis . New York: FT Press, 2009.
    • “ Definition of Subprime Mortgage.” Investopedia . 23 February 2011 < http://www.investopedia.com/terms/s/subprime_mortgage.asp >.
    • “ Ireland, Greece, Spain, Portugal: a Same European ‘Peripheral’ Problem?” Ireland after Nama. 26 February 2011 < http://irelandafternama.wordpress.com/2010/11/24/ireland-greece-spain-portugal-a-same-european-%E2%80%98peripheral%E2%80%99-problem/ >.
  • 11. Bibliography
    • “ The Lesson of Dubai: The Crisis is not Over.” Time. 26 February 2011 < http://www.time.com/time/business/article/0,8599,1943392,00.html >
    • “ Q&A: Greece’s Financial Crisis Explained.” CNN. 26 February 2011 < http://edition.cnn.com/2010/BUSINESS/02/10/greek.debt.qanda/index.html >
    • “ The Fuel that Fed the Subprime Meltdown.” Investopedia. 23 February 2011 < http://www.investopedia.com/articles/07/subprime-overview.asp >
  • 12. Bibliography
    • “ US Subprime Market.” Economy Watch. 26 February 2011 < http://www.economywatch.com/us-subprime/ >
    • “ What Caused the Subprime Mortgage Crisis.” About.com. 24 February 2011 < http://useconomy.about.com/od/criticalssues/tp/Subprime-Mortgage-Crisis-Cause.htm >

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