Theoretical and Applied Economics
No. 1 / 2011 (554)
Implications of Asymmetric Information in the Real Estate Crisis in US
Bucharest Academy of Economic Studies
Luciana PICIORUŞ
Bucharest Academy of Economic Studies
Cosmin Ionuţ IMBRIŞCĂ
Bucharest Academy of Economic Studies
Abstract. The economic crisis is now a common reality in most parts of the world, being translated in mass unemployment, collapse of the social system and an impressive number of bankruptcies. The paper focuses on the beginning of the recession in the American real estate sector by analyzing the implications of imperfect information and moral hazard as main factors that contributed to the deterioration of real estate market and also to accentuating the overall poor economic situation. In that context, asymmetric information served the interests of banks and other institutional speculators who made use of it in order to increase their profitability through market manipulation. The central aspect the paper underlines is the international contamination created by disguising toxic real estate actives and spreading them throughout the global economy through transactions with foreign business partners.
Contents
Considerations Regarding the Mix of Anticrisis Fiscal Policies in Romania
Women Entrepreneurship in the Western Romania. Research Results and Policy Recommendations
How to Improve Small and Medium-Sized Enterprises Profitability by Practicing an Efficient Human Resources Management
Time and Causality in the Economic Process – a Critical Approach Based on Consistency Criteria
The Reform of the National Public Policies Process under the Influence of Europeanization Changes in the Policy-Making in Romania on Institutional and Legislative Level
Re-modeling the Romanian Fiscal Policy under the Terms of the Economic Crisis
New Hypothesis on Service Management within the Global World
Current Economic and Financial Crisis – New Issues or Returning to the Old Problems? Paradigms, Causes, Effects and Solutions Adopted
Contributions of Agriculture to Economic Fluctuations in Romania
Foreign Direct Investments Expansion – Essential Globalization Factor
Implications of Asymmetric Information in the Real Estate Crisis in US
The Crowding out Effect on the Labor Market in Romania