While the form of crises may change, their essence
remains the same (such as a cycle of abundant liquidity, rapid credit
growth, and a low-inflation environment followed by an asset-price
bubble). The current market turbulence began in mid-2000s when the
US economy shifted to imbalanced both internal and external
macroeconomic positions. We see two key causes of these problems
– loose US monetary policy in early 2000s and US government
guarantees issued on the securities by government-sponsored
enterprises what was further fueled by financial innovations such as
structured credit products. We have discovered both negative and
positive lessons deriving from this crisis and divided the negative
lessons into three groups: financial products and valuation, processes
and business models, and strategic issues. Moreover, we address key
risk management lessons and exit strategies derived from the current
crisis and recommend policies that should help diminish the negative
impact of future potential crises.
[1] J. Cheng, , M. Walsh, , S. Flax, "Demystifying the Credit Crunch : A
Primer and Glossary." Arthur D. Little. 2008. Available:
<http://www.privateequitycouncil.org/wordpress/wpcontent/
uploads/adl-pe-primer-fin-r2.pdf>.
[2] R. Chalupka, P. Teply, "Operational Risk Management and Implications
for Bank-s Economic Capital - A Case Study", IES Working Papers
No.14. Charles University, 2008. Available:
<http://ies.fsv.cuni.cz/default/file/download/id/8933>.
[3] ECB, EU Banking Sector Stability, 2007. Available:
<http://www.ecb.int/pub/pdf/other/eubankingsectorstability2007en.pdf>.
ISSN 1725-555.
[4] F. J. Fabozzi, V. Kothari, Introduction to Securitization. 1st ed. Oxford:
Wiley, 2008.
[5] F. J Fabozzi et al. Subprime Mortgage Credit Derivatives. Viley, 2008.
[6] IMF, Global Financial Stability Report: Containing Systemic Risks and
Restoring Financial Soudness. International monetary Fund: World
Economic and Financial Surveys, 2008. Available:
<http://www.imf.org/external/pubs/ft/gfsr/2008/01/pdf/text.pdf>.
[7] M. Mejstrik, M. Pecena, P. Teply. Basic Principles of Banking. Czech
Republic : Karolinum press, 2008.
[8] M. Rippel, , P. Teply, Operational Risk - Scenario Analysis : IES
Working Papers No. 15. Charles University, 2008. Available:
<ies.fsv.cuni.cz/default/file/download/id/8910>.
[9] S S. Roach, Pitfalls in a Post-Bubble World. Morgan Stanley. 2008
Available: <http://www.scribd.com/doc/5351746/Pitfalls-in-a-
PostBubble-World-Stephen-Roach-Morgan-Stanley>.
[10] P. Teply, The Truth About The 2008-2009 Crisis: A Hard Lesson for The
Global Markets. VDM Verlag, Germany, 2010.
[11] M. Zeleny, World financial crisis has long roots. Czech Business Weekly
No. 39, 2008 Available:
<http://web.fame.utb.cz/cs/docs/World_financial_crisis_has_long_roots.
pdf>.
[1] J. Cheng, , M. Walsh, , S. Flax, "Demystifying the Credit Crunch : A
Primer and Glossary." Arthur D. Little. 2008. Available:
<http://www.privateequitycouncil.org/wordpress/wpcontent/
uploads/adl-pe-primer-fin-r2.pdf>.
[2] R. Chalupka, P. Teply, "Operational Risk Management and Implications
for Bank-s Economic Capital - A Case Study", IES Working Papers
No.14. Charles University, 2008. Available:
<http://ies.fsv.cuni.cz/default/file/download/id/8933>.
[3] ECB, EU Banking Sector Stability, 2007. Available:
<http://www.ecb.int/pub/pdf/other/eubankingsectorstability2007en.pdf>.
ISSN 1725-555.
[4] F. J. Fabozzi, V. Kothari, Introduction to Securitization. 1st ed. Oxford:
Wiley, 2008.
[5] F. J Fabozzi et al. Subprime Mortgage Credit Derivatives. Viley, 2008.
[6] IMF, Global Financial Stability Report: Containing Systemic Risks and
Restoring Financial Soudness. International monetary Fund: World
Economic and Financial Surveys, 2008. Available:
<http://www.imf.org/external/pubs/ft/gfsr/2008/01/pdf/text.pdf>.
[7] M. Mejstrik, M. Pecena, P. Teply. Basic Principles of Banking. Czech
Republic : Karolinum press, 2008.
[8] M. Rippel, , P. Teply, Operational Risk - Scenario Analysis : IES
Working Papers No. 15. Charles University, 2008. Available:
<ies.fsv.cuni.cz/default/file/download/id/8910>.
[9] S S. Roach, Pitfalls in a Post-Bubble World. Morgan Stanley. 2008
Available: <http://www.scribd.com/doc/5351746/Pitfalls-in-a-
PostBubble-World-Stephen-Roach-Morgan-Stanley>.
[10] P. Teply, The Truth About The 2008-2009 Crisis: A Hard Lesson for The
Global Markets. VDM Verlag, Germany, 2010.
[11] M. Zeleny, World financial crisis has long roots. Czech Business Weekly
No. 39, 2008 Available:
<http://web.fame.utb.cz/cs/docs/World_financial_crisis_has_long_roots.
pdf>.
@article{"International Journal of Business, Human and Social Sciences:51803", author = "Petr Teply", title = "Exit Strategies from The Global Crisis", abstract = "While the form of crises may change, their essence
remains the same (such as a cycle of abundant liquidity, rapid credit
growth, and a low-inflation environment followed by an asset-price
bubble). The current market turbulence began in mid-2000s when the
US economy shifted to imbalanced both internal and external
macroeconomic positions. We see two key causes of these problems
– loose US monetary policy in early 2000s and US government
guarantees issued on the securities by government-sponsored
enterprises what was further fueled by financial innovations such as
structured credit products. We have discovered both negative and
positive lessons deriving from this crisis and divided the negative
lessons into three groups: financial products and valuation, processes
and business models, and strategic issues. Moreover, we address key
risk management lessons and exit strategies derived from the current
crisis and recommend policies that should help diminish the negative
impact of future potential crises.", keywords = "exist strategy, global crisis, risk management,corporate governance", volume = "4", number = "6", pages = "718-6", }