Your assignment is to assess the Credit Crises:
Following the abrupt increase in home prices between 2004--2006, many financial institutions raised their holdings of mortgages and mortgage backed securities whose performance was based on the timely mortgage payment paid by house owners.
In 2007--2009, mortgage default increased and there was excess supply of homes. By January 2009, at least 10% of American homeowners were either behind on their mortgage payment or had defaulted on their mortgage. Many of the financial institutions that originated mortgages suffered major losses.
Your group should cover the following topics: (more details in Madura Textbook p. 23)
1. The Impact of Lehman Brother's bankruptcy on Individual wealth.
2. Impact of credit crises on US Financial market liquidity.
3. Impact of credit crises on Dubai Financial market.
4. Impact of credit crises on commercial banks versus Islamic Banks.
5. Role of central banks in the credit crises.