How a credit crisis can lead to a full-blown economic crisis

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1. One of your friends stated that the rating agencies have played a significant role in aiding and abetting the housing sector boom in the US prior to 2006. Do you agree? Please elaborate.

2. Explain how the housing sector crisis became a banking/financial sector crisis. Is it true that when the entire the banking sector is in crisis a credit crisis is unavoidable? Please elaborate.

3. Explain how a credit crisis can lead to a full-blown economic crisis.

4. Explain the similarities between the 1929 Great Crash and the 2008 Credit Crisis.

5. What are the lessons learned from the 2008 Credit Crisis? Please elaborate.

Text Book: Advanced Credit Risk Analysis and Management By Ciby Joseph.

Reference no: EM13924733

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