Et framework til at vurdere fremtidens potentialer for bobler i den finansielle verden

Jesper Sehested Jensen

Student thesis: Master thesis

Abstract

This report there will form the basis for a new framework to evaluate how the future looks like in relation to financial related bubbles. The report starts with a review of previous financial bubbles in the history, from the tulip bubble in Holland 1634until the IT bubble in 2001. In the different bubbles over time, a series of commonality repeats, herding, over optimism, new era mentality etc. With the historical knowledge of bubbles the financial crisis of 2007 will be reviewed. This will be done with a thorough review of the events leading up to the crises where the financial sectors were creative in the execution of CDO and the misleading information that lay behind. Additionally, there will also be looked at the collapse of Lehmann Brother, and how it affects the market. With this knowledge, the report will subsequently explain the idea behind the framework. An analysis of the society and the financial sector today forms the basis for this framework. This analysis looks at the interest problems that exist in the financial sector. The financial sector currently has a major impact on everyone's daily life, and therefore also achieved a certain form of power over society. The term Too Big To Fail, is just one example showing which power has been achieved. In addition, the financial sector has grown in size and plays a part in the lives of many people. These people have an incentive to keep the system running as long as possible and preferably without any rules. We cannot attribute all the problems on the financial sector, because we are all part of the problem. Politician, opinion leaders and individuals share responsibility for the problems that exist. All the above are humans and can be influenced by the outside world and of our history. Therefore all the problems cannot be solved, but we can be aware of them. Based on the analysis the picture of the framework is not a bright future. Although the future does not look bright, we are still in a situation where we have possibilities to improve this if we want to. However, this requires that everyone agree to help and not just misplace there responsibility. There is light ahead if we all take action.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages91