derek-thomas/squad-v1.1-t5-question-generation huggingface dataset:
The term financial innovation refers to the ongoing development of financial products designed to achieve particular client objectives, such as offsetting a particular risk exposure (such as the default of a borrower) or to assist with obtaining financing. Examples pertinent to this crisis included: the adjustable-rate mortgage; the bundling of subprime mortgages into mortgage-backed securities (MBS) or collateralized debt obligations (CDO) for sale to investors, a type of securitization; and a form of credit insurance called credit default swaps (CDS). The usage of these products expanded dramatically in the years leading up to the crisis. These products vary in complexity and the ease with which they can be valued on the books of financial institutions.

Question: What term refers to the ongoing development of financial products? Question: What is an example of financial innovation pertinent to the financial crisis? Question: What is the financial innovation that bundles subprime mortgages? Question: What is the abbreviation for a form of credit insurance called credit default swaps? Question: What happened to the usage of financial innovation products in the years leading up the financial crisis?
CDO issuance grew from an estimated $20 billion in Q1 2004 to its peak of over $180 billion by Q1 2007, then declined back under $20 billion by Q1 2008. Further, the credit quality of CDO's declined from 2000 to 2007, as the level of subprime and other non-prime mortgage debt increased from 5% to 36% of CDO assets. As described in the section on subprime lending, the CDS and portfolio of CDS called synthetic CDO enabled a theoretically infinite amount to be wagered on the finite value of housing loans outstanding, provided that buyers and sellers of the derivatives could be found. For example, buying a CDS to insure a CDO ended up giving the seller the same risk as if they owned the CDO, when those CDO's became worthless.

Question: What was the estimated value of CDO issuance in Q1 2004? Question: What was the estimated value of CDO issuance at it's peak in Q1 2007? Question: When did the issuance of CDO peak? Question: What was the estimated value of CDO issuance in Q1 2008? Question: What percent of CDO assets were subprime and other non-prime mortgage debt in 2007?
This boom in innovative financial products went hand in hand with more complexity. It multiplied the number of actors connected to a single mortgage (including mortgage brokers, specialized originators, the securitizers and their due diligence firms, managing agents and trading desks, and finally investors, insurances and providers of repo funding). With increasing distance from the underlying asset these actors relied more and more on indirect information (including FICO scores on creditworthiness, appraisals and due diligence checks by third party organizations, and most importantly the computer models of rating agencies and risk management desks). Instead of spreading risk this provided the ground for fraudulent acts, misjudgments and finally market collapse. In 2005 a group of computer scientists built a computational model for the mechanism of biased ratings produced by rating agencies, which turned out to be adequate to what actually happened in 2006–2008.[citation needed]

Question: Which products created more complexity in the financial markets? Question: What effect did the introduction of innovative financial products have on a single mortgage? Question: What did institutions rely more on as increasing distance from underlying assets occurred? Question: What is a type of indirect information that financial institutions and investors used to judge the risk? Question: In what year did a group of computer scientists build a model for ratings produced by rating agencies that turned out to be accurate for what happened in 2006-2008?
The pricing of risk refers to the incremental compensation required by investors for taking on additional risk, which may be measured by interest rates or fees. Several scholars have argued that a lack of transparency about banks' risk exposures prevented markets from correctly pricing risk before the crisis, enabled the mortgage market to grow larger than it otherwise would have, and made the financial crisis far more disruptive than it would have been if risk levels had been disclosed in a straightforward, readily understandable format.

Question: What is the incremental compensation required by investors for taking on addition risk called? Question: What is a measurement of pricing of risk? Question: According to several scholars, what prevented markets from correctly pricing risk before the crisis? Question: What was the outcome of the financial crisis since risk levels were not adequately disclosed? Question: How should risk levels have been disclosed according to several scholars?
For a variety of reasons, market participants did not accurately measure the risk inherent with financial innovation such as MBS and CDOs or understand its impact on the overall stability of the financial system. For example, the pricing model for CDOs clearly did not reflect the level of risk they introduced into the system. Banks estimated that $450bn of CDO were sold between "late 2005 to the middle of 2007"; among the $102bn of those that had been liquidated, JPMorgan estimated that the average recovery rate for "high quality" CDOs was approximately 32 cents on the dollar, while the recovery rate for mezzanine CDO was approximately five cents for every dollar.

Question: What are the reasons market participants did not understand the impact financial innovation products would have? Question: What did market participants fail to measure accurately? Question: How much did banks estimate was the value of CDOs sold between late 2005 to the middle of 2007? Question: How much did JPMorgan estimate was the average recovery rate for high quality CDOs that had been liquidated? Question: How much did JPMorgan estimate was the average recovery rate for mezzanine CDOs that had been liquidated?
Another example relates to AIG, which insured obligations of various financial institutions through the usage of credit default swaps. The basic CDS transaction involved AIG receiving a premium in exchange for a promise to pay money to party A in the event party B defaulted. However, AIG did not have the financial strength to support its many CDS commitments as the crisis progressed and was taken over by the government in September 2008. U.S. taxpayers provided over $180 billion in government support to AIG during 2008 and early 2009, through which the money flowed to various counterparties to CDS transactions, including many large global financial institutions.

Question: What firm insured obligations of various financial institutions using credit default swaps? Question: What does the abbreviation CDS stand for? Question: What did AIG receive for promising to pay Party A in the event that Party B defaulted? Question: When did the government take over AIG? Question: How much money did taxpayers provide in government support to AIG during 2008 and early 2009?
As financial assets became more and more complex, and harder and harder to value, investors were reassured by the fact that both the international bond rating agencies and bank regulators, who came to rely on them, accepted as valid some complex mathematical models which theoretically showed the risks were much smaller than they actually proved to be. George Soros commented that "The super-boom got out of hand when the new products became so complicated that the authorities could no longer calculate the risks and started relying on the risk management methods of the banks themselves. Similarly, the rating agencies relied on the information provided by the originators of synthetic products. It was a shocking abdication of responsibility."

Question: What happened to financial assets that made them harder to value? Question: Who reassured investors by showing the risk of complex financial innovation products was actually less than they proved to be? Question: Who commented that the super-boom got out of hand when products became so complicated that risk could not be accurately calculated? Question: When authorities could no longer calculate the risks of complex financial innovation products, who did they rely on for information? Question: Who did rating agencies rely on for information to rate financial innovation products?
Despite the dominance of the above formula, there are documented attempts of the financial industry, occurring before the crisis, to address the formula limitations, specifically the lack of dependence dynamics and the poor representation of extreme events. The volume "Credit Correlation: Life After Copulas", published in 2007 by World Scientific, summarizes a 2006 conference held by Merrill Lynch in London where several practitioners attempted to propose models rectifying some of the copula limitations. See also the article by Donnelly and Embrechts and the book by Brigo, Pallavicini and Torresetti, that reports relevant warnings and research on CDOs appeared in 2006.

Question: Who published "Credit Correlation: Life After Copulas" in 2007? Question: The volume "Credit Correlation: Life After Copulas" summarizes a 2006 conference held by what firm in London? Question: What did the volume "Credit Correlation: Life After Copulas" propose models to rectify? Question: When did relevant warnings and research on CDOs appear in an article by Donnelly and Embrechts? Question: What year did the book by Brigo, Pallavicini and Torresetti report warnings and research on CDOs?
In a June 2008 speech, President and CEO of the New York Federal Reserve Bank Timothy Geithner—who in 2009 became Secretary of the United States Treasury—placed significant blame for the freezing of credit markets on a "run" on the entities in the "parallel" banking system, also called the shadow banking system. These entities became critical to the credit markets underpinning the financial system, but were not subject to the same regulatory controls. Further, these entities were vulnerable because of maturity mismatch, meaning that they borrowed short-term in liquid markets to purchase long-term, illiquid and risky assets. This meant that disruptions in credit markets would make them subject to rapid deleveraging, selling their long-term assets at depressed prices. He described the significance of these entities:

Question: Who was President and CEO of the New York Federal Reserve Bank in June 2008? Question: What year did Timothy Geithner become U.S. Treasury Secretary? Question: In a June 2008 speech, Timoty Geithner placed blame for credit market freezing on which system? Question: What is the "parallel" banking system also called? Question: What is the term defined as being vulnerable by borrowing short-term in liquid markets to purchase long-term illiquid and risky assets?
The securitization markets supported by the shadow banking system started to close down in the spring of 2007 and nearly shut-down in the fall of 2008. More than a third of the private credit markets thus became unavailable as a source of funds. According to the Brookings Institution, the traditional banking system does not have the capital to close this gap as of June 2009: "It would take a number of years of strong profits to generate sufficient capital to support that additional lending volume." The authors also indicate that some forms of securitization are "likely to vanish forever, having been an artifact of excessively loose credit conditions."

Question: When did the securitization markets supported by the shadow banking systems start to close down? Question: When did the securitization markets supported by the shadow banking system nearly shut-down completely? Question: How much of the private credit markets become unavailable as a source of funds? Question: What is the firm who reported that the traditional banking system does not have capital to close the gap as of June 2009? Question: How many years would of strong profit would it take to generate enough capital to support additional lending?
Economist Mark Zandi testified to the Financial Crisis Inquiry Commission in January 2010: "The securitization markets also remain impaired, as investors anticipate more loan losses. Investors are also uncertain about coming legal and accounting rule changes and regulatory reforms. Private bond issuance of residential and commercial mortgage-backed securities, asset-backed securities, and CDOs peaked in 2006 at close to $2 trillion...In 2009, private issuance was less than $150 billion, and almost all of it was asset-backed issuance supported by the Federal Reserve's TALF program to aid credit card, auto and small-business lenders. Issuance of residential and commercial mortgage-backed securities and CDOs remains dormant."

Question: What economist testified to the Financial Crisis Inquiry Commission in January 2010? Question: In January 2010, what markets did Mark Zandi testify about that remain impaired and investors anticipate more loan losses? Question: What was the value of CDOs at their peak in 2006? Question: What was the private issuance of CDOs in 2009? Question: Almost all of the asset-backed issuance in 2009 was supported by what Federal Reserve program?
Rapid increases in a number of commodity prices followed the collapse in the housing bubble. The price of oil nearly tripled from $50 to $147 from early 2007 to 2008, before plunging as the financial crisis began to take hold in late 2008. Experts debate the causes, with some attributing it to speculative flow of money from housing and other investments into commodities, some to monetary policy, and some to the increasing feeling of raw materials scarcity in a fast-growing world, leading to long positions taken on those markets, such as Chinese increasing presence in Africa. An increase in oil prices tends to divert a larger share of consumer spending into gasoline, which creates downward pressure on economic growth in oil importing countries, as wealth flows to oil-producing states. A pattern of spiking instability in the price of oil over the decade leading up to the price high of 2008 has been recently identified. The destabilizing effects of this price variance has been proposed as a contributory factor in the financial crisis.

Question: Following the collapse in the housing bubble, what happened to a number of commodity prices? Question: How much did the price of oil increase from early 2007 to 2008? Question: What did the price of oil began doing when the financial crisis began to take hold in late 2008? Question: What is one of the reasons experts believe contributed to the volatilaty in oil prices in 2008? Question: Consumers tend to have less money to spend on other goods, when the price of which commodity is higher?
In testimony before the Senate Committee on Commerce, Science, and Transportation on June 3, 2008, former director of the CFTC Division of Trading & Markets (responsible for enforcement) Michael Greenberger specifically named the Atlanta-based IntercontinentalExchange, founded by Goldman Sachs, Morgan Stanley and BP as playing a key role in speculative run-up of oil futures prices traded off the regulated futures exchanges in London and New York. However, the IntercontinentalExchange (ICE) had been regulated by both European and U.S. authorities since its purchase of the International Petroleum Exchange in 2001. Mr Greenberger was later corrected on this matter.

Question: Who was the former director of the CFTC that testified before the Senate Committee on Commerce, Science, and Transportation on June 3, 2008? Question: Who did Michael Greenberger erronesously name as a key player in speculative run-up of oil futures? Question: Who founded the Atlanta-based Intercontinental Exchange? Question: Where are regulated future exchanges located? Question: Who purchased the International Petroleum Exchange in 2001?
Feminist economists Ailsa McKay and Margunn Bjørnholt argue that the financial crisis and the response to it revealed a crisis of ideas in mainstream economics and within the economics profession, and call for a reshaping of both the economy, economic theory and the economics profession. They argue that such a reshaping should include new advances within feminist economics and ecological economics that take as their starting point the socially responsible, sensible and accountable subject in creating an economy and economic theories that fully acknowledge care for each other as well as the planet.

Question: Who is one of the feminist economists that believe the financial crisis revealed a crisis of mainstream economics and call for a complete reshaping of the economy? Question: Feminist economists Ailsa McKay and Margunn Bjornhold believe that the financial crisis and response reveal a crisis of ideas in this? Question: What do economists McKay and Bjornholt want to occur in the economy, economic theory, and economics profession? Question: According to feminist economists McKay and Bjornholt, would type economics should be included in a reshaping?
Current Governor of the Reserve Bank of India Raghuram Rajan had predicted the crisis in 2005 when he became chief economist at the International Monetary Fund.In 2005, at a celebration honouring Alan Greenspan, who was about to retire as chairman of the US Federal Reserve, Rajan delivered a controversial paper that was critical of the financial sector. In that paper, "Has Financial Development Made the World Riskier?", Rajan "argued that disaster might loom." Rajan argued that financial sector managers were encouraged to "take risks that generate severe adverse consequences with small probability but, in return, offer generous compensation the rest of the time. These risks are known as tail risks. But perhaps the most important concern is whether banks will be able to provide liquidity to financial markets so that if the tail risk does materialise, financial positions can be unwound and losses allocated so that the consequences to the real economy are minimised."

Question: Who was the current Governor of the Reserve Bank of India that predicted the crisis in 2005? Question: When did Raghuram Rajan become chief economist the the International Monetary Fund? Question: In 2005, where did Rajan deliver a controversial paper that was critical of the financial paper? Question: What was the name of Raghuram Rajan's controversial paper delivered in 2005? Question: What are risks called that generate severe adverse consequences with small probability but generous compensation the rest of the time?
The financial crisis was not widely predicted by mainstream economists except Raghuram Rajan, who instead spoke of the Great Moderation. A number of heterodox economists predicted the crisis, with varying arguments. Dirk Bezemer in his research credits (with supporting argument and estimates of timing) 12 economists with predicting the crisis: Dean Baker (US), Wynne Godley (UK), Fred Harrison (UK), Michael Hudson (US), Eric Janszen (US), Steve Keen (Australia), Jakob Brøchner Madsen & Jens Kjaer Sørensen (Denmark), Kurt Richebächer (US), Nouriel Roubini (US), Peter Schiff (US), and Robert Shiller (US). Examples of other experts who gave indications of a financial crisis have also been given. Not surprisingly, the Austrian economic school regarded the crisis as a vindication and classic example of a predictable credit-fueled bubble that could not forestall the disregarded but inevitable effect of an artificial, manufactured laxity in monetary supply, a perspective that even former Fed Chair Alan Greenspan in Congressional testimony confessed himself forced to return to.

Question: Who was one of the only mainstream economist to predict the financial crisis? Question: What did Raghuram Rajan speak of? Question: Who credit 12 heterodox economists with predicting the crisis in his research credits? Question: How did the Austrian economic school regard the crisis? Question: Which former Fed Chair confessed in Congressional testimony to being forced to return to lax monetary supply?
A cover story in BusinessWeek magazine claims that economists mostly failed to predict the worst international economic crisis since the Great Depression of the 1930s. The Wharton School of the University of Pennsylvania's online business journal examines why economists failed to predict a major global financial crisis. Popular articles published in the mass media have led the general public to believe that the majority of economists have failed in their obligation to predict the financial crisis. For example, an article in the New York Times informs that economist Nouriel Roubini warned of such crisis as early as September 2006, and the article goes on to state that the profession of economics is bad at predicting recessions. According to The Guardian, Roubini was ridiculed for predicting a collapse of the housing market and worldwide recession, while The New York Times labelled him "Dr. Doom".

Question: Which magazine ran a cover story claiming that most economists failed to the the financial crisis? Question: The financial crisis of 2007 was the worst economic crisis since which crisis that occurred in the 1930s? Question: Which school at University of Pennsylvania examined in their online business journal why economists failed to predict the crisis? Question: Which economist did the New York Times state warned of a crisis as early as September 2006? Question: What was economist Roubini called by the New York Times for predicting a collapse of the housing market?
Stock trader and financial risk engineer Nassim Nicholas Taleb, author of the 2007 book The Black Swan, spent years warning against the breakdown of the banking system in particular and the economy in general owing to their use of bad risk models and reliance on forecasting, and their reliance on bad models, and framed the problem as part of "robustness and fragility". He also took action against the establishment view by making a big financial bet on banking stocks and making a fortune from the crisis ("They didn't listen, so I took their money"). According to David Brooks from the New York Times, "Taleb not only has an explanation for what’s happening, he saw it coming."

Question: Who wrote the 2007 book The Black Swan? Question: What did Nassim Nicholas Taleb warn about for years prior to the financial crisis of 2007? Question: What did Nassim Nicholas Taleb make a fortune on by making a big financial bet? Question: What journalist from the New York Times stated his believe in Nassim Nicholas Taleb?
Market strategist Phil Dow believes distinctions exist "between the current market malaise" and the Great Depression. He says the Dow Jones average's fall of more than 50% over a period of 17 months is similar to a 54.7% fall in the Great Depression, followed by a total drop of 89% over the following 16 months. "It's very troubling if you have a mirror image," said Dow. Floyd Norris, the chief financial correspondent of The New York Times, wrote in a blog entry in March 2009 that the decline has not been a mirror image of the Great Depression, explaining that although the decline amounts were nearly the same at the time, the rates of decline had started much faster in 2007, and that the past year had only ranked eighth among the worst recorded years of percentage drops in the Dow. The past two years ranked third, however.

Question: Who is the market strategist that believes distinctions exist between the current crisis and the Great Depression? Question: How much did the Dow Jones average fall during a period of 17 months? Question: What was the percentage the Dow Jones fell in the Great Depression? Question: Who was the chief financial correspondent of The New York Times in March 2009?