14. The Economic Collapse of 2008

  1. James R. Flynn

Published Online: 8 AUG 2012

DOI: 10.1002/9781118314999.ch14

How to Improve Your Mind: Twenty Keys to Unlock the Modern World

How to Improve Your Mind: Twenty Keys to Unlock the Modern World

How to Cite

Flynn, J. R. (2012) The Economic Collapse of 2008, in How to Improve Your Mind: Twenty Keys to Unlock the Modern World, Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781118314999.ch14

Publication History

  1. Published Online: 8 AUG 2012
  2. Published Print: 27 JUL 2012

ISBN Information

Print ISBN: 9781119944768

Online ISBN: 9781118314999

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Keywords:

  • the economic collapse of 2008;
  • market analysis, applying knowledge to current events;
  • AAA credit rating in the commercial world, an assessment;
  • law of assessment inflation, driving out negative;
  • law of assessment and grades, higher grades not meaning much;
  • grades as currency, high inflation, still buying self-esteem/good;
  • law of assessment inflation and securities;
  • investor influx and housing, outrunning demands for housing;
  • collapse of housing boom, mortgage debt transformation/multiplication;
  • CDOs dropping in value, subprime mortgages and debts

Summary

This chapter contains sections titled:

  • The Law of Assessment Inflation

  • The Law of Assessment Inflation and Grades

  • The Law of Assessment Inflation and Securities

  • The Housing Boom

  • Multiplication I

  • Multiplication II

  • Multiplication III

  • The House Comes Tumbling Down

  • The Rating Agencies

  • The Balance of Power Between Rating Agencies and the Banks

  • Who has an Incentive to Reinterpret the Message?

  • Why the Insiders did not Care