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    Financial Crisis of 2008 in The United States: A Conceptual Study

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    Financial Crisis of 2008 in The United States: A Conceptual Study

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    jaime orts
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    Financial Crisis of 2008 in the United States: A Conceptual Study

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    Financial Crisis of 2008 in The United States: A Conceptual Study

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    jaime orts

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    Crimson Publishers Review Article

    Wings to the Research

    Financial Crisis of 2008 in the United


    States: A Conceptual Study
    Orts Cardador Jaime*
    Department of Business Management and Marketing, University of Huelva, Spain

    ISSN: 2643-7066 Abstract

    th

    *Corresponding author:
    Jaime, Department of Business

    Submission:
    Keywords:
    Published:

    How to cite this article: Introduction

    Copyright@ This

    the

    provided that the original author and

    1
    COJTS.MS.ID.000592. 4(4).2023 2

    Antecedents

    th
    of

    Figure 1: Stock Index Down Jone´S Decline and the decline of the STOCK INDEX DOWN JONE´S during the
    economic crisis of 2008.

    Causes

    The revocation of the glass-stegall act and the


    introduction of the gramm-leach-bliley act

    The monetary politics

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 3

    Figure 2: The Derogation of the Glass-Stegall Act and the changes introduced by the Gramm-Leach-Billey.

    Figure 3: Bank Fusions in USA and the different fusions which are introduced in the U.S.A due to the derogation of
    the Glass-Stegall act

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 4

    Figure 4: Selected Assets of Commercial Banks, % Of Total and bank securities investments in three key categories
    of bank assets (loans and leases, government securities, and nongovernment securities).

    The introduction of the commodity futures


    modernization act

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 5

    Figure 5: Sub-prime mortgage originations and the rise in sub-prime mortgage originations since 2004.

    Figure 6: The securitization process and the securitization process in the context of the crisis of 2008.

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 6

    Figure 7: National Association of Home Builders (NAHB) housing market index and the fall of a 60% between 2005
    to 2009 in the National Association of Home Builders (NAHB) Housing Market Index.
    Table 1:

    Balance (millions of (provided by


    Tranche Selected Investors
    dollars) Standard and Poor´s)
    AAA

    AAA
    Senior

    AAA

    AAA

    AA

    BBB

    BB

    The government-sponsored entities

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 7

    the MBS started to have a rapid deterioration of the value of their

    under

    Consequence

    1
    It is an institution which was established during the Great Depression in 1934 in order to insure mortgages on single
    family homes, multifamily properties, residential care facilities, and hospitals.
    2
    Legal process in which the Government establish control and oversight of a Company to put in a solvent condition.
    3
    It is a conservator which take all actions necessary to put the companies in a solvent condition, which was established
    in July 2008 as GSEs regulator.

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 8

    Figure 8: Case-Shiller United States Home Price Index (HPI)and the fall of a 19% between 2005 to 2009 of the Case-
    Shiller United States Home Price Index (HPI).

    Figure 9: Prices of Aaa of Abx Index and the fall of a 30%, 60% and 70%, respectively, between 2007 to 2008 of the
    ABX index.
    Table 2: Levels of the Affordable Housing Goals for Fannie Mae and Freddie Mac since 1996 (Levels of the Affordable
    Housing Goals for Fannie Mae and Freddie Mac since 1996).

    Year
    Housing Goals

    Special affordable
    multifamily

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 9

    Home purchase subgoals

    Table 3: Troubled asset relief program (the consequences


    of the introduction of the Troubled Asset Relief Program).

    Gain/Loss
    ($ billions)
    Disbursed $ %
    Auto

    Banks

    Market

    Totals

    Conclusion

    References

    Copyright © Orts Cardador Jaime


    COJTS.MS.ID.000592. 4(4).2023 10

    Copyright © Orts Cardador Jaime

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