Baggrunden for den finansielle krise i USA, EU og Danmark 1990 – 2007

Julia Linda Roerup

Student thesis: Master thesis

Abstract

The reasons behind the financial crisis in the U.S., EU and Denmark 1990 – 2007 With this thesis I will examine how problems in the U.S. housing market could affect the European Union and Denmark, in such a degree as it has. I will look at the development in the financial market during the years of 1990 to 2007. During these years there was a rapid growth in the development of financial products and in globalisation of the financial market. The first part of the thesis describes securitization witch was the most common way to fund sub prime mortgages. This will give an understanding of how risk is transferred from the originator of the mortgage to investors from all over the world. The second part of the thesis looks at the development in the financial sector. There has been a period with low regulation and a belief in the market forces. The financial sector thrived in this environment and developed a lot of new products. Another strong force was the fast globalisation witch made the marketplace bigger. In the third section I will use models to describe the forces behind the changes and the consequences in the end. The fourth section looks at the monetary policies in the U.S., EU and Denmark in the years before the crisis. Interest rates have been kept low for long periods to help growth in the economies. For many years this method has been successful but it has also caused some of the problems the economy faces today. The last section will draw conclusions from the other sections and link them together. This explains how the different developments in the economy influent each other, both during the building up of a bubble and during a crisis. The combined forces make the end result much stronger than it would have been without interconnection.

EducationsMSc in Mathematics , (Graduate Programme) Final Thesis
LanguageDanish
Publication date2011
Number of pages118