Crash Course Economics #12: 2008 Collapse

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

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

Why did investors "buy" into the housing market.

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

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

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

Why did the housing market bubble pop?

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!

Economic interdependence of economies across the world

Practice of offering variable rate mortgages to desperate borrowers.

To fail to pay on a mortgage, causing foreclosure.

How did lenders get more mortgages into the market place.

the largest market where stocks are bought and sold.

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

Father of Capitalism

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

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

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

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