IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-10618-5_4.html
   My bibliography  Save this book chapter

Who Caused This Disaster?

In: Anatomy of a Financial Crisis

Author

Listed:
  • Marc Jarsulic

Abstract

The first three chapters have been devoted to understanding how the financial crisis developed. It has been argued that the house price bubble and the credit bubble that supported it created massive amounts of wildly overvalued mortgage-related assets and derivatives. While many of these assets and derivates were spread throughout the international financial system, large quantities were concentrated in the hands of several important and highly leveraged financial institutions. When the house price bubble collapsed, these assets lost much of their value and several key firms were made insolvent. Because information about the extent of the losses and their location was and remains limited, there was a general loss of confidence in and between financial institutions. For those firms unable to disguise or weather their losses, debt-holder runs followed quickly, forcing bankruptcy or government rescue.

Suggested Citation

  • Marc Jarsulic, 2010. "Who Caused This Disaster?," Palgrave Macmillan Books, in: Anatomy of a Financial Crisis, chapter 0, pages 91-123, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-10618-5_4
    DOI: 10.1057/9780230106185_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-10618-5_4. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.