IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Core of a New Type of Crisis: Subprime Crisis

  • Anca Gabriela Ilie

    ()

    (Bucharest Academy of Economic Studies, Romania)

  • Oana Antonia Colibasanu

    ()

    (Bucharest Academy of Economic Studies, Romania)

  • Dan Dumitriu

    ()

    (Bucharest Academy of Economic Studies, Romania)

  • Roxana Sarbu

    ()

    (Bucharest Academy of Economic Studies, Romania)

Registered author(s):

    The quality of mortgage loans had been deteriorating since 2001, when interest rates were consistently below 3 per cent for several years. Housing prices dropped substantially since their high in 2006. This article examines the current credit crisis against the background of recent financial meltdowns in wealthy and emerging markets. We argue that securitisation involves various tensions between market participants and is based on several different criteria that gauge liquidity and creditworthiness. Most often, liquidity and credit enhancement are part of the deal. The problems in the subprime market led directly to the Fed Rescue, in which it guaranteed $30 billion, although Fed's authority over investment banks is murky. The United States had been experiencing subprime crisis, and that affect EU ’s policies on interest rates and exchange rates. The situation also influence Romanian creditors to study more closely a borrower's capability to pay the loan. The possible implications of the U.S. subprime crisis on EU's public equities, hot money, domestic credit, and exports are discussed in the following article.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2014-04-14/2150/je203220-20ilie20colibasanu20dumitriu20sarbu.pdf
    Download Restriction: no

    Article provided by Department of International Business and Economics from the Academy of Economic Studies Bucharest in its journal Romanian Economic Journal.

    Volume (Year): 12 (2009)
    Issue (Month): 32 ((2))
    Pages: 47-68

    as
    in new window

    Handle: RePEc:rej:journl:v:12:y:2009:i:32:p:47-68
    Contact details of provider: Postal: 6 ROMANA PLACE, 70167 - BUCHAREST
    Phone: 0040-01-2112650
    Fax: 0040-01-3129549
    Web page: http://www.rei.ase.ro/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:12:y:2009:i:32:p:47-68. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Radu Lupu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.