Volatility of the 2008 Crisis
24 Pages Posted: 2 May 2016
Date Written: April 30, 2016
This paper will provide information on what happened in the financial crisis of 2008 and how to graph volatility outside of the option market. We will investigate the causes of the financial crisis, as well as some of the social inequalities that still exist today. We will explore household debt, deregulation, military expenditures, financial stimulus, and bailout packages. We will reference Timothy Giethner’s perspective on the 2008 financial crisis and how the recovery has been progressing as of 2012, in terms of civilian employment and GDP. Next we will investigate the stylized facts of the crisis and which markets should be reviewed. A study of the different markets is conducted using volatility, correlation and returns in three important trading markets — all volatility 3d graphing is performed using the Poseidon software.
Keywords: Financial Crisis, Volatility, Correlation, Stock Market, Household Debt, Deregulation, Military Expenditures, Financial Stimulus, Bailout Packages
JEL Classification: A1, B4, B41, C00, C19, C49, C53, C87, E37, G00, G19
Suggested Citation: Suggested Citation