Hello, I am looking for someone to write an essay on Discuss and analyse the recent credit crunch within an international finance perspective: include the events leading up to the c. It needs to be at

Hello, I am looking for someone to write an essay on Discuss and analyse the recent credit crunch within an international finance perspective: include the events leading up to the c. It needs to be at least 1000 words.

When this real estate bubble popped, and property prices plunged, many mortgage owners found themselves “underwater,” essentially owing more to the bank for the mortgage than the resale value of the property was worth. This increased the incentive to default on loans, perpetuating or worsening the cycle of losses in the banking sector. Yet, there were critical legislative changes related to the financial operation of investment banks that can be seen as a more fundamental root of the financial meltdown that occurred in 2008-9 with the passage of emergency Wall St. bailout bills in Congress. The repeal of the Glass-Steagall regulations that separated the speculative functions of stock, bond, and derivative trading from traditional banking led to the operation of large Wall Street investment banks such as Goldman Sachs, J.P. Morgan, and the Lehman Brothers as hedge funds. (Barth et al, 2000) This would technically not be a problem except for the fact that these entities received preferential treatment from the Federal Reserve in billions of dollars as well as a TBTF backstop of trading activities from the government, as evidenced by the bailout, TARP, etc. (Kaufman, 2008) The highly leveraged investment activities of the Lehman Brothers and other groups such as Bear Stearns was also being undertaken by large, TBTF banks such as the Bank of America, CITI, and even insurance firms such as AIG. (Karnitshnig et al, 2008) The catalyst for the meltdown as mentioned was primarily the bonds related to sub-prime mortgages that lost value, causing liquidity problems and margin calls for institutions that forced collective selling and a further lowering of prices. Since these companies were also market makers, a major prequel to the financial meltdown was what is colloquially known as the “quant wipeout” of 2007, where numerous computer trading programs managed by large hedge funds and other investment banks imploded as their trading strategies spiraled into deep losses. (The Curious Capitalist, 2007) As margin calls hit more and more financial institutions operating with leveraged investments, forced selling was cast into an environment where the market makers themselves were increasingly unable to be support buyers for prices. (Roubini, 2008) From this cycle of margin calls and forced selling into a declining market, the Wall Street icon investment bank the Lehman Brothers was finally forced into bankruptcy, and was not backstopped by the government, allowed to fail. This set off not only a huge round of financial panic, but even more forced selling of assets as the Lehman Brothers controlled an enormous share of the international investment market for corporate securities. The declining market prices spread through contagion from real-estate and sub-prime mortgage securities to nearly every asset class in commodities, equities, bonds, and derivatives.