Friday, October 9, 2009: 9:00 AM
Regulatory and Economic Factors Determining the Sub-Prime Mortgage Outcome
Abstract:
This paper addresses regulatory and economic factors which the authors contend have determined the sub-prime mortgage outcome. Preliminary questions addressed in paper include de-regulation, globalization, normal business cycles and the unbalanced free market; also, from the legal perspective, the use of contracts and debt instruments and regulatory oversight of these legal tools are presented as significant factors. The methodology includes analysis of select historical data from 1938 to current that attempts to compare institutional regulation or intervention with transparency in less controlled markets and business cycles. The paper concludes with development of model preventative solutions using combined legal and economic analyses.
Abstract:
This paper addresses regulatory and economic factors which the authors contend have determined the sub-prime mortgage outcome. Preliminary questions addressed in paper include de-regulation, globalization, normal business cycles and the unbalanced free market; also, from the legal perspective, the use of contracts and debt instruments and regulatory oversight of these legal tools are presented as significant factors. The methodology includes analysis of select historical data from 1938 to current that attempts to compare institutional regulation or intervention with transparency in less controlled markets and business cycles. The paper concludes with development of model preventative solutions using combined legal and economic analyses.