American capitalism, subprime crisis, regulation, capitalism, securization, crisis, depreciation, derivative asset, banking sector, subprime loans, risk mortgage, USA United States of America, IMF International Monetary Fund, Europe, Anglo-Saxon capitalism
The subprime crisis of 2007 is one of the major crises of the 20th century, along with the crisis of 1929, was unprecedented. The economic consequences have been disastrous and have largely contributed to the weakening of the banking sector, which then has to take drastic measures in order to be able to recover its economy and its business model. Indeed, in this crisis, the actions of the banks were at the origin of the crisis, its spread and its intensification at the international level. At the beginning of 2007, the first warnings emerged, culminating in the collapse of Lehman Brothers in September 2008. From then on, the banking crisis was followed by a financial crisis with strong economic and social consequences.
[...] Indeed, even if a speculative trend is clearly linked to the excesses of securitization, it is nevertheless necessary to explain and take into account the many cyclical issues, and in particular the rise in interest rates, which led to the curbing of subprime mortgages and then to the financial crisis that followed. Conclusion: Thus, through the banking crisis of 2007, which was followed by a financial crisis, it became apparent that the role of the securitization of derivatives called subprime was major, particularly through the various excesses and the numerous risks taken by all market participants in a desire for maximum profits. [...]
[...] (2015), The Evaluation of the Subprime Crisis and the Limits of Speculative Capitalism, openedition journals Zumello C. [...]
[...] Explanation of the role of the drift of derivatives securitization in the crisis due to lack of regulation In the context of the 2007 subprime crisis, the securitization technique played a major role by relying on the securitization of large-scale receivables. It is worth recalling the mechanism of securitization, which is based on the ability to transform illiquid debts such as bank loans, in the case of the subprime crisis, into bonds that are then made available on the bond market. [...]
[...] A model that should be studied in support of the work carried out in order to measure the real impact of the measures taken and thus compare the different research carried out on the subject. References: Calmès Théoret R., Racicot F., (2016), Securitization in the United States and Canada, La Revue des Sciences de Gestion 2016/4 (N° 280), pages 21 to 34, Éditions Direction et Gestion Plane M. and Pujals (2009), Les banques dans la crise, Revue de l'OFCE 2009/3 (n° 110), Éditions OFCE, pages 179 à 219 International Monetary Fund: "Global Financial Stability Report," April 2009. ECB Monthly Bulletin, April 2009. Van Der Yeught M. [...]
[...] The hypothesis adopted here is that the subprime crisis is not an unprecedented and isolated phenomenon in the history of Anglo-Saxon capitalism. On the contrary, under specific features, the recurrent characteristics of the crises of speculative capitalism are revealed, that is to say, of a form of capitalism animated by the maximization of profits generated by the movement of prices, such as it emerged in the eighteenth century in England and has largely globalized on the American model.5 Thus, through the theory put forward, securitization would then be only a support that has made it possible to strengthen an already entrenched capitalism, thus generating a crisis that had to be inevitable and coming to reproduce the excesses of the past. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
