THE US LED FINANCIAL HOUSING
CRISIS AND ITS GLOBAL
IMPLICATIONS
PRESENTED
BY
ABDERRAHMAN ROBANA (PhD)
CHAIR IN FINANCE & INVESTMENTS
ALFRED UNIVERSITY
NEW YORK
NEW-YORK
Union of Maghreb Banks
INTERNATIONAL CONFERENCE
TUNIS,TUNISIA
JULY-11-2008
Mortgage Financial Flows
Borrowing Under a Securitization Structure
Source FDIC
Quality of Prime and Sub-Prime
Mortgages Deteriorates
Housing Construction and Sales
Economic Growth and Employment
The Largest US Banks
Profits
$ BILLIONS
45
40
38.1
34.7
35
35.3
32.6
30
25
20
36.9
34
38
35.6
33.2
19.3
36.8
28.8
15
10
0.6
5
0
-5
1
2
3
4
1
2005
2
2006
Net Operating Income
3
4
1
2
3
2007
Securities and Other Gains/Losses, Net
4
1
2008
Unemployment Rate
Industrial Production
Inflation
US Consumer
Confidence
Consumer Activity
CAB/GDP-2007-2008(1Q)
US VS ADVANCED ECONOMIES
International Trade
Real Housing Prices
& Banking Crises
Real Equity Prices and Banking
Crises
Fed Policyy Changes
g in Federal Fund
Rates 2007-2008
Target Federal Funds Rate
Other Fed Reserve Actions
2008