Product details

Product details
By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

2008 witnessed a catastrophe in the US financial market. Investment banks like Lehman Brothers went bankrupt, insurance companies like AIG had to be bailed out by the Federal Reserve, and the gloom shrouded the whole globe. Analysts attributed the catastrophe to the abundant use of financial derivatives. Many of them started quoting Warren Buffet's famous statement on derivatives 'Derivatives were time bombs both for the parties that deal in them and economic system'. But was the derivative the only reason for such a large scale financial disaster? Was it a consequence of the huge dependence on market dynamics? Was capitalism at a crossroads? Or did the US forget the lesson of the great depression and the subsequent legislations that Roosevelt introduced? Was it merely a consequence of proper check valves lacking in the US financial sector?
Location:
Other setting(s):
2008

About

Abstract

2008 witnessed a catastrophe in the US financial market. Investment banks like Lehman Brothers went bankrupt, insurance companies like AIG had to be bailed out by the Federal Reserve, and the gloom shrouded the whole globe. Analysts attributed the catastrophe to the abundant use of financial derivatives. Many of them started quoting Warren Buffet's famous statement on derivatives 'Derivatives were time bombs both for the parties that deal in them and economic system'. But was the derivative the only reason for such a large scale financial disaster? Was it a consequence of the huge dependence on market dynamics? Was capitalism at a crossroads? Or did the US forget the lesson of the great depression and the subsequent legislations that Roosevelt introduced? Was it merely a consequence of proper check valves lacking in the US financial sector?

Settings

Location:
Other setting(s):
2008

Related