Crash Course Economics #12: 2008 Collapse

Shortness of supply; supply that is less than the demand.

A long-term loan that is paid in installments. such as, homes.

Why did the housing market bubble pop?

Why did investors "buy" into the housing market.

the largest market where stocks are bought and sold.

Theory in that a government spend more funds on military equipment rather than on basic needs

When one person takes on more risk because the burden is on someone else.

How did lenders get more mortgages into the market place.

Practice of offering variable rate mortgages to desperate borrowers.

Father of Capitalism

Economic interdependence of economies across the world

All of the following are actions taken by the Government to fix housing issue EXCEPT.......

All of the following are responsible for the housing crisis...EXCEPT!

A mortgage meant for people with low credit and has higher interest rates.

When a policy has the opposite effect of its original purpose.

The value of a person, business, or government measured in money, machinery, buildings, goods, or other tangible items.

To fail to pay on a mortgage, causing foreclosure.

Taking Illiquid assets(mortgages) and transform them into securities.

Financial institutions are too important to let fail.FORD/BANKS

This is a condition that exists when the demand for a good, service, or resource is greater than the supply.