Crash Course Economics #12: 2008 Collapse

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

Why did the housing market bubble pop?

the largest market where stocks are bought and sold.

Economic interdependence of economies across the world

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

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

How did lenders get more mortgages into the market place.

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

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.

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

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

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

Practice of offering variable rate mortgages to desperate borrowers.

To fail to pay on a mortgage, causing foreclosure.

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

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

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

Father of Capitalism

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