{"product_id":"lessons-from-the-financial-crisis-isbn-9780470561775","title":"Lessons from the Financial Crisis","description":"\u003cp\u003eThe world's best financial minds help us understand today's financial crisis\u003c\/p\u003e \u003cp\u003eWith so much information saturating the market for the everyday investor, trying to understand why the economic crisis happened and what needs to be done to fix it can be daunting. There is a real need, and demand, from both investors and the financial community to obtain answers as to what really happened and why.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eLessons from the Financial Crisis\u003c\/i\u003e brings together the leading minds in the worlds of finance and academia to dissect the crisis. Divided into three comprehensive sections-The Subprime Crisis; The Global Financial Crisis; and Law, Regulation, the Financial Crisis, and The Future-this book puts the events that have transpired in perspective, and offers valuable insights into what we must do to avoid future missteps.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eEach section is comprised of chapters written by experienced contributors, each with his or her own point of view, research, and conclusions\u003c\/li\u003e \u003cli\u003eExamines the market collapse in detail and explores safeguards to stop future crises\u003c\/li\u003e \u003cli\u003eEncompasses the most up-to-date analysis from today's leading financial minds\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWe currently face a serious economic crisis, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through the current situation \u003ci\u003eand\u003c\/i\u003e learn from our mistakes.\u003c\/p\u003e \u003cp\u003eAcknowledgments xv\u003c\/p\u003e \u003cp\u003eEditor’s Note xvii\u003c\/p\u003e \u003cp\u003eIntroduction xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART I Overview of the Crisis 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1 Leverage and Liberal Democracy 3\u003cbr\u003e\u003ci\u003eGeorge Bragues\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e2 A Property Economics Explanation of the Global Financial Crisis 9\u003cbr\u003e\u003ci\u003eGunnar Heinsohn and Frank Decker\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e3 Of Subprimes and Sundry Symptoms: The Political Economy of the Financial Crisis 17\u003cbr\u003e\u003ci\u003eAshok Bardhan\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e4 The Political Economy of the Financial Crisis of 2008 23\u003cbr\u003e\u003ci\u003eRoger D. Congleton\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e5 The Global Financial Crisis of 2008: WhatWent Wrong? 31\u003cbr\u003e\u003ci\u003eHershey H. Friedman and Linda Weiser Friedman\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e6 The Roots of the Crisis and How to Bring It to a Close 37\u003cbr\u003e\u003ci\u003eJames K. Galbraith\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e7 Enron Rerun: The Credit Crisis in Three Easy Pieces 43\u003cbr\u003e\u003ci\u003eJonathan C. Lipson\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e8 The Global Crisis and Its Origins 51\u003cbr\u003e\u003ci\u003ePeter L. Swan\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e9 Four Paradoxes of the 2008–2009 Economic and Financial Crisis 59\u003cbr\u003e\u003ci\u003eJohn E. Marthinsen\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e10 Understanding the Subprime Financial Crisis 69\u003cbr\u003e\u003ci\u003eSteven L. Schwarcz\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART II Causes and Consequences of the Financial Crisis 77\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11 The Origins of the Financial Crisis 79\u003cbr\u003e\u003ci\u003eMartin N. Baily, Robert E. Litan, and Matthew S. Johnson\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e12 Ten Myths about SubprimeMortgages 87\u003cbr\u003e\u003ci\u003eYuliya Demyanyk\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e13 The Financial Crisis: How Did We Get Here and Where Do We Go Next? New Evidence on How the Crisis Spread Among Financial Institutions 95\u003cbr\u003e\u003ci\u003eJames R. Barth, Tong Li, Lu Wenling, and Glenn H. Yago\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e14 A Decade of Living Dangerously: The Causes and Consequences of theMortgage, Financial, and Economic Crises 103\u003cbr\u003e\u003ci\u003eJon A. Garfinkel and Jarjisu Sa-Aadu\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e15 Making Sense of the Subprime Crisis 109\u003cbr\u003e\u003ci\u003eKristopher S. Gerardi, Andreas Lehnert, Shane M. Sherlund, and Paul Willen\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e16 Miraculous Financial Engineering or Legacy Assets? 119\u003cbr\u003e\u003ci\u003eIvo Pezzuto\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e17 TheMaking and Ending of the Financial Crisis of 2007–2009 125\u003cbr\u003e\u003ci\u003eAustin Murphy\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e18 The SubprimeMortgage Problem: Causes and Likely Cure 133\u003cbr\u003e\u003ci\u003eRonald D. Utt\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e19 Sequence of Asset Bubbles and the Global Financial Crisis 139\u003cbr\u003e\u003ci\u003eAbol Jalilvand and A. G. (Tassos) Malliaris\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART III Borrowers 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20 The Past, Present, and Future of Subprime Mortgages 149\u003cbr\u003e\u003ci\u003eShane M. Sherlund\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e21 FHA Loans and Policy Responses to Credit Availability 155\u003cbr\u003e\u003ci\u003eDr. Marsha Courchane, Rajeev Darolia, and Dr. Peter Zorn\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e22 The Single-Family Mortgage Industry in the Internet Era: Technology Developments and Market Structure 163\u003cbr\u003e\u003ci\u003eForrest Pafenberg\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e23 Speed Kills? Mortgage Credit Boom and the Crisis 175\u003cbr\u003e\u003ci\u003eGiovanni Dell’Ariccia, Deniz Igan, and Luc Laeven\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e24 SubprimeMortgages:What We Have Learned From a New Class of Homeowners 181\u003cbr\u003e\u003ci\u003eTodd J. Zywicki and Satya Thallam\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e25 Rating Agencies: Facilitators of Predatory Lending in the SubprimeMarket 191\u003cbr\u003e\u003ci\u003eDavid J. Reiss\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART IV The Process of Securitization 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e26 A Primer on the Role of Securitization in the Credit Market Crisis of 2007 199\u003cbr\u003e\u003ci\u003eJohn D. Martin\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e27 Incentives in the Originate-to-DistributeModel of Mortgage Production 209\u003cbr\u003e\u003ci\u003eRobert W. Kolb\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e28 Did Securitization Lead to Lax Screening? Evidence from Subprime Loans 217\u003cbr\u003e\u003ci\u003eBenjamin J. Keys, Tanmoy Mukherjee, Amit Seru, and Vikrant Vig\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e29 Tumbling Tower of Babel: Subprime Securitization and the Credit Crisis 225\u003cbr\u003e\u003ci\u003eBruce I. Jacobs\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e30 The Incentives of Mortgage Servicers and Designing Loan Modifications to Address the Mortgage Crisis 231\u003cbr\u003e\u003ci\u003eLarry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang, and Eileen Mauskopf\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e31 The Contribution of Structured Finance to the Financial Crisis: An Introductory Overview 239\u003cbr\u003e\u003ci\u003eAdrian A.R.J.M. van Rixtel and Sarai Criado\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e32 Problematic Practices of Credit Rating Agencies: The Neglected Risks ofMortgage-Backed Securities 247\u003cbr\u003e\u003ci\u003ePhil Hosp\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e33 Did Asset Complexity Trigger Ratings Bias? 259\u003cbr\u003e\u003ci\u003eVasiliki Skreta and Laura Veldkamp\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e34 The Pitfalls of Originate-to-Distribute in Bank Lending 267\u003cbr\u003e\u003ci\u003eAntje Berndt and Anurag Gupta\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART V RiskManagement and Mismanagement 275\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e35 Behavioral Basis of the Financial Crisis 277\u003cbr\u003e\u003ci\u003eJ. V. Rizzi\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e36 Risk Management Failures During the Financial Crisis 283\u003cbr\u003e\u003ci\u003eDr. Michel Crouhy\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e37 The Outsourcing of Financial Regulation to Risk Models 293\u003cbr\u003e\u003ci\u003eErik F. Gerding\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e38 The Future of Risk Modeling 301\u003cbr\u003e\u003ci\u003eElizabeth Sheedy\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e39 What Happened to Risk Management During the 2008–2009 Financial Crisis? 307\u003cbr\u003e\u003ci\u003eMichael McAleer, Juan-Angel Jim´enez-Martin, and Teodosio P´erez-Amaral\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e40 Risk Management Lessons from the Global Financial Crisis for Derivative Exchanges 317\u003cbr\u003e\u003ci\u003eJayanth Varma\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART VI The Problem of Regulation 325\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e41 Regulation and Financial Stability in the Age of Turbulence 327\u003cbr\u003e\u003ci\u003eDavid S. Bieri\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e42 The Financial Crisis of 2007–2009: Missing Financial Regulation or Absentee Regulators? 337\u003cbr\u003e\u003ci\u003eGeorge G. Kaufman and A. G. Malliaris\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e43 The Demise of the United Kingdom’s Northern Rock and Large U.S. Financial Institutions: Public Policy Lessons 345\u003cbr\u003e\u003ci\u003eRobert A. Eisenbeis and George G. Kaufman\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e44 Why Securities Regulation Failed to Prevent the CDO Meltdown 355\u003cbr\u003e\u003ci\u003eRichard E. Mendales\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e45 Curbing Optimism in Managerial Estimates Through Transparent Accounting: The Case of Securitizations 361\u003cbr\u003e\u003ci\u003eStephen Bryan, Steven Lilien, and Bharat Sarath\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e46 Basel II Put on Trial: What Role in the Financial Crisis? 369\u003cbr\u003e\u003ci\u003eFrancesco Cannata and Mario Quagliariello\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e47 Credit Rating Organizations, Their Role in the Current Calamity, and Future Prospects for Reform 377\u003cbr\u003e\u003ci\u003eThomas J. Fitzpatrick IV and Chris Sagers\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e48 Global Regulation for GlobalMarkets? 383\u003cbr\u003e\u003ci\u003eMichael W. Taylor and Douglas W. Arner\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e49 Financial Regulation, Behavioral Finance, and the Global Financial Crisis: In Search of a New RegulatoryModel 391\u003cbr\u003e\u003ci\u003eEmilios Avgouleas\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART VII Institutional Failures 401\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e50 Why Financial Conglomerates Are at the Center of the Financial Crisis 403\u003cbr\u003e\u003ci\u003eArthur E. Wilmarth\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e51 Corporate Governance and the Financial Crisis: A Case Study from the S\u0026amp;P 500 411\u003cbr\u003e\u003ci\u003eBrian R. Cheffins\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e52 Secondary-Management Conflicts 419\u003cbr\u003e\u003ci\u003eSteven L. Schwarcz\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e53 The Financial Crisis and the Systemic Failure of Academic Economics 427\u003cbr\u003e\u003ci\u003eDavid Colander, Michael Goldberg, Armin Haas, Alan Kirman, Katarina Juselius, Brigitte Sloth, and Thomas Lux\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e54 FannieMae and FreddieMac: Privatizing Profit and Socializing Loss 437\u003cbr\u003e\u003ci\u003eDavid Reiss\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e55 Disclosure’s Failure in the SubprimeMortgage Crisis 443\u003cbr\u003e\u003ci\u003eSteven L. Schwarcz\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART VIII The Federal Reserve, Monetary Policy, and the Financial Crisis 451\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e56 Federal Reserve Policy and the Housing Bubble 453\u003cbr\u003e\u003ci\u003eLawrence H. White\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e57 The Greenspan and Bernanke Federal Reserve Roles in the Financial Crisis 461\u003cbr\u003e\u003ci\u003eJohn Ryan\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e58 The Risk Management Approach to Monetary Policy: Lessons from the Financial Crisis of 2007–2009 467\u003cbr\u003e\u003ci\u003eMarc D. Hayford and A. G. Malliaris\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e59 Reawakening the Inflationary Monster: U.S. Monetary Policy and the Federal Reserve 475\u003cbr\u003e\u003ci\u003eKevin Dowd and Martin Hutchinson\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e60 The Transformation of the Federal Reserve System Balance Sheet and Its Implications 483\u003cbr\u003e\u003ci\u003ePeter Stella\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART IX Implications of the Crisis for Our Economic Systems 493\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e61 Systemic Risk and Markets 495\u003cbr\u003e\u003ci\u003eSteven L. Schwarcz\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e62 The Transmission of Liquidity Shocks During the Crisis: Ongoing Research into the Transmission of Liquidity Shock Suggests the Emergence of a Range of New Channels During the Credit Crisis 501\u003cbr\u003e\u003ci\u003eNathaniel Frank, Brenda Gonz´alez-Hermosillo, and Heiko Hesse\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e63 Credit Contagion From Counterparty Risk 509\u003cbr\u003e\u003ci\u003ePhilippe Jorion and Gaiyan Zhang\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART X International Dimensions of the Financial Crisis 517\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e64 Only in America? When Housing Boom Turns to Bust 519\u003cbr\u003e\u003ci\u003eLuci Ellis\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e65 The Equity Risk Premium Amid a Global Financial Crisis 525\u003cbr\u003e\u003ci\u003eJohn R. Graham and Campbell R. Harvey\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e66 Australia’s Experience in the Global Financial Crisis 537\u003cbr\u003e\u003ci\u003eChristine Brown and Kevin Davis\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e67 Collapse of a Financial System: An Icelandic Saga 545\u003cbr\u003e\u003ci\u003eTryggvi Thor Herbertsson\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e68 Iceland’s Banking Sector and the Political Economy of Crisis 551\u003cbr\u003e\u003ci\u003eJames A. H. S. Hine and Ian Ashman\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e69 The Subprime Crisis: Implications for Emerging Markets 559\u003cbr\u003e\u003ci\u003eWilliam B. Gwinner and Anthony B. Sanders\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART XI Financial Solutions and Our Economic Future 569\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e70 The Long-Term Cost of the Financial Crisis 571\u003cbr\u003e\u003ci\u003eMurillo Campello, John R. Graham, and Campbell R. Harvey\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e71 Coping with the Financial Crisis: Illiquidity and the Role of Government Intervention 579\u003cbr\u003e\u003ci\u003eBastian Breitenfellner and Niklas Wagner\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e72 Fiscal Policy for the Crisis 587\u003cbr\u003e\u003ci\u003eAntonio Spilimbergo, Steven Symansky, Olivier Blanchard, and Carlo Cottarelli\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e73 The Future of Securitization 595\u003cbr\u003e\u003ci\u003eSteven L. Schwarcz\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e74 Modification ofMortgages in Bankruptcy 601\u003cbr\u003e\u003ci\u003edam J. Levitin\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e75 The Shadow Bankruptcy System 609\u003cbr\u003e\u003ci\u003eJonathan C. Lipson\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e76 Reregulating FannieMae and FreddieMac 617\u003cbr\u003e\u003ci\u003eDwight M. Jaffee\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e77 Would Greater Regulation of Hedge Funds Reduce Systemic Risk? 625\u003cbr\u003e\u003ci\u003eMichael R. King and Philipp Maier\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e78 Regulating Credit Default Swaps 633\u003cbr\u003e\u003ci\u003eHouman B. Shadab\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIndex 641\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eROBERT W. KOLB\u003c\/b\u003e is the Frank W. Considine Chair of Applied Ethics and Professor of Finance at Loyola University, Chicago. Before this, he was the assistant dean, Business and Society, and director, Center for Business and Society, at the University of Colorado at Boulder and department chairman at the University of Miami. Kolb has authored over twenty books on finance, derivatives, and futures, as well as numerous articles in leading finance journals.    \u003c\/p\u003e\u003cp\u003e\u003cb\u003eKOLB SERIES IN FINANCE\u003c\/b\u003e Essential Perspectives  \u003c\/p\u003e\u003cp\u003eWith so much information saturating the market, it has been difficult for both financial professionals and those in the academic community to gain a firm understanding of why the recent economic crisis occurred and what needs to be done to fix it. There is a real need, and demand, from both finance professionals and scholars to obtain answers as to what really happened and why. \u003c\/p\u003e\u003cp\u003eThat's why Robert Kolb—one of today's most respected academics and Editor of the Robert W. Kolb Series in Finance—has created \u003ci\u003eLessons from the Financial Crisis.\u003c\/i\u003e Consisting of contributed chapters from leading minds in the worlds of finance, government, and academia, \u003ci\u003eLessons from the Financial Crisis\u003c\/i\u003e dissects this devastating crisis and offers a valuable look at what we must do to avoid future missteps. \u003c\/p\u003e\u003cp\u003ePage by page, this timely guide puts the events that have transpired in perspective and skillfully details why it began and how it developed as well as its effect on people, implication for our economy, and the broader ramifications for our society. With each contributor bringing his or her own unique insights into this dilemma, you'll gain a firm understanding of the issues that lie at the heart of the recent financial crisis. \u003c\/p\u003e\u003cp\u003eTopics touched upon along the way include: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eParticular institutional problems that were revealed in the crisis\u003c\/li\u003e \u003cli\u003eThe role of borrowers, especially subprime borrowers, in fomenting the crisis\u003c\/li\u003e \u003cli\u003eThe failures of modern risk analysis and management, and how these essential disciplines can be improved\u003c\/li\u003e \u003cli\u003eThe securitization process and how a new way of originating mortgages affected the mortgage market and the broader financial crisis\u003c\/li\u003e \u003cli\u003eRegulatory, systemic, and other solutions that can be implemented to avert future problems\u003c\/li\u003e \u003cli\u003eAnd much more\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWe currently face a serious economic situation, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through these tough times \u003ci\u003eand\u003c\/i\u003e learn from our mistakes.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989524562149,"sku":"NP9780470561775","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470561775.jpg?v=1761784456","url":"https:\/\/k12savings.com\/es\/products\/lessons-from-the-financial-crisis-isbn-9780470561775","provider":"K12savings","version":"1.0","type":"link"}