Although this can't be summed up in a sentence, paragraph, chapter, or even a book, there were a number of important events that caused and/or fueled the crisis. First, over several years, consumer and corporate borrowing reached record levels due to low interest rates and friendly borrowing conditions. This led to a significant expansion in corporate growth from personal spending. In this expansionary cycle, many individuals and corporations were lent money they should not have been, which led to a massive amount of supply in the new-issue securities markets, most notably the mortgage market and the credit markets. People were buying new homes at record rates, and companies were completing a record number of deals.
However, as demand from investors for these new types of assets evaporated and the economy slowed, a massive amount of new supply that had not yet been sold (new mortgages, LBOs, etc.) was stuck in the system. These new deals were then sold at a discount (or never even sold at all), thus depressing market values. Furthermore, this oversupply and the effects of the slowing economy led to increased consumer defaults on mortgages, increased corporate defaults on loans and bonds, massive write-downs by financial institutions, and significant losses in the financial markets.
The true difference between this and other cycles was the record amount of consumer and corporate leverage, as well as the creation of significant investor value that led to a period of insatiable demand and new innovative financial products. However, once the demand slowed in 2007, the markets were left to deal with the repercussions.
This question is designed to demonstrate how much research you’ve done on the firm as well as to see if you might be a good "fit. " To get further information about a particular firm, you should read recent press stories and visit its web site.
This question does not mean: “Tell me about your life history, beginning with where you were born, how many pounds you weighed at birth, where you went to elementary school, and what your relationships are with your parents and siblings. ” Instead, what it really means is: “Tell me more about you as a person.
This is question you are almost guaranteed to receive in any interview. And although you may think it's a softball question—one easily answered by spouting out a few facts gleaned from a Google search—this couldn't be further from the truth.
We’re under no illusions that this post is the first to address the question of what makes a “good” junior associate (given that a quick Google search will reveal numerous identical-sounding pieces). What makes this post different is the simplicity of our suggestions that can help you from Day One.
Greetings to all the aspiring entrepreneurs out there. Very recently we spoke about some common habits of the most successful entrepreneurs, and as promised, this time we’re going to tackle some of the biggest challenges new entrepreneurs face, along with effective strategies to overcome them.