The subprime mortgage crisis and the possible effects on supplier integration strategies
by Alan D. Smith
International Journal of Services and Operations Management (IJSOM), Vol. 6, No. 1, 2010

Abstract: The subprime mortgage crisis and the subsequent credit crunch have raised prices and reduced the availability of credit in markets worldwide. This paper will attempt to define and determine the causes of the subprime crisis, as well as the possible effects that it may have on the horizontal and vertical integration strategies of companies operating in the USA. Although some optimistic analysts believe that credit markets will stabilise by the end of 2008 or 2009, even this group felt that there will not be a return to the liberal spending practices that defined the years leading up to the credit crunch of late 2007. The vast majority of financial analysts reviewed for this research project felt that there is a persistent downturn of the credit marketplace, perhaps implying that a more dramatic change in supply-demand relationships (increasing rates for the demand of oil-based energy sources coupled with a much smaller increase in the supply of such energy) has resulted in the largest shift in pricing of risk and debt in the shortest period of time ever experienced in loan markets, thus indicating a true shift in the financial markets of which there is no return.

Online publication date: Mon, 30-Nov-2009

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services and Operations Management (IJSOM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com