Limitations of the study 25 5. Implication of the Discussion 26 References 28 1. RESEARCH METHODOLOGY 1.1 Chapter Introduction Research is not just the process of gathering information but it is answering the unanswered questions or creating something which is not currently existing (Goddard and Melville, 2004). In simple words research refers to the search of knowledge. Thus it can be defined as the systematic and scientific search for significant information on a definite topic. It involves defining and redefining a problem, preparing hypothesis or recommending solutions; collecting, analysing and evaluating the data; making inference and reaching conclusions and lastly the conclusions are to be judged properly to determine whether the conclusion fits to the hypothesis (Kothari, 2009). The present study deals with the factors that caused the Subprime Mortgage Crisis. The study focuses on the roles of the mortgage-backed securities on the bank leverage. In order to conduct this research proper research method has been designed. This chapter introduces the background of the research, objectives of the study, problem and issues in the research and the theoretical framework used in the research. Apart from these the study also sheds light on the methodology used, justifies the methodology, research philosophies, sampling techniques and instruments used to collect data. Finally the study also explicates on the ethical side of the study. 1.2 Justification of Methodology The main objective of the study is to do an analysis on the causes of Subprime Mortgage Crisis and the effects it has caused on the global economy. In this context the study focuses on analysing the case studies on Lehman Brother and Northern Rock. At the same time it also focuses on the other cause like housing price index. In order to achieve the objectives, the study uses only qualitative research approach. The study heavily relies upon the secondary data and not on primary data. Primary data results from firsthand observation and experience whereas secondary data results from what others have observed or experienced. Secondary data are easily available and are cheap as compared to primary data (Guffey and Loewy, 2009). The secondary data are collected using newspaper, journals, electronic sources, books and magazines. Whereas primary data can be collected using the questionnaire. To meet these requirements, the study an extensive collection of only secondary data is required, which makes application of qualitative methodology obligatory. 1.3 Research objectives The primary objective of the research is to find the causes and effects of the subprime mortgage crisis that occurred in the year 2008. In order to successfully accomplish the study, an imperative understanding about the philosophical context of the research is necessary. Dainty (2007) emphasizes that while conducting research constructing an orientation and philosophical position towards the research is important. McCallin (2003) suggests that reviewing the philosophical background and considering the paradigm of inquiry should be done at an early stage of the research.
Causes for the 2007-2008 Subprime Mortgage Crisis; the role of mortgage-backed securities on the bank leverage TABLE OF CONTENTS 1. RESEARCH METHODOLOGY 4 1.1 Chapter Introduction 4 1.2 Justification of Methodology 4 1.3 Research objectives 5 1.3.1 Positivism 6 1.3.2 Interpretivism 6 1.4 Qualitative Research 7 1.5 Quantitative Research 8 1.7 Instruments used 8 1.8 Time Horizon 9 1.8.1 Cross-sectional study 9 1.8.2 Longitudinal Study 9 1.9 Data Collection Method 10 1.9.2 Secondary Data 10 1.10 Method of Analysis 10 1.11 Ethical Considerations 11 2…
The ‘artificial’ demand led to a bubble in the housing sector that subsequently burst once the Fed raised interest rates, paving the way for a series of delinquencies. Buoyed by the booming housing market, banks granted loans to subprime borrowers who under ‘normal’ conditions, would have been rejected.
A comparison will then be made to ascertain the reasons for variations in any of results obtained as the price of crude oil varies. Analysis of liquidity, solvency, asset anagement and leveraging results will form part of this process.The research will provide undisputable evidence to support the proposed hypothesis.
The filing of bankruptcy by Lehman Brothers proved to be an unprecedented move which shook the financial industry worldwide. It was September 15, 2008, when Lehman Brothers ultimately filed for bankruptcy protection. It has been recorded to be one of the largest bankruptcy cases in the history of United States.
This research study has been designed to discuss the possible reasons behind the filing for bankruptcy by Lehman Brothers in the year 2008, with a special reference to agency problems in the company that might have contributed to its collapse.
As a result a large number of commentators have sought to point the finger at various activities undertaken in the global financial markets. Derivatives are one. Warren Buffett notably called derivatives instruments “weapons of mass financial destruction”.
est Rates 28 2.7 Financial Stability and Monetary Policy 28 2.8 Minsky’s Theory on Financial Crises 29 Chapter 3 - Model Outline 34 3.1 Greenspan’s Articulation 34 3.2 Taylor’s Articulation 41 3.3.Time Series Properties and Co Integration Issues 45 Before proceeding to the estimation, the time series properties of the dependent and independent variables are checked out.
Would Islamic financial system be able to prevent the current global financial crisis? The global financial crisis of 2008 is largely attributed to the vulnerability to risk in the capitalist financial systems and an inherent lack of discipline in its investment and lending practices.1 Islamic banking and finance on the other hand, is described as more risk averse and highly disciplined in its investment and lending policies and practices.2 Studies comparing the performance of Islamic banks and conventional banks during the 2008 global financial crisis suggests that Islamic banks were more efficient,3 more profitable or more stable.4 Rawshan argues however, that Islamic banks were largely avo
30 Findings from Review of Literatures in a Broad Approach 33 Background and Recent Trends 33 Practices and Key Issues in CMO Processing 34 The Transformation of the US Banking and Mortgage Markets 37 Securitization and the Mortgage Market 37 The Evolution of Financial Exploitation 38 Balanced Discussions and Alternative Viewpoints 41 Identified Research Gaps 42 Conclusion of Review 44 Summary 46 Chapter 3: Research Methods and Design 50 Introduction 50 Research Method and Design Appropriateness 50 Appropriation of Research Design with the Study Concerned 52 Population, Sampling and Data Collection Procedures and Rationale 53 Appropriateness, Reliability and Validity of the Instruments Selec
The effect of the U.S. Subprime Crisis to the China commercial banks in 2008-2013.
The sub-prime mortgage crisis that originated in the United States of America basically started from August 2007 and had transformed the financial markets around the world.
42 pages (10500 words)Dissertation
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