Econ

Q&A: the subprime meltdown econ test?

Posted on by admin

Question by taylah.: the subprime meltdown econ test?
i have a test on the subprime meltdown need to know these key words just basically their defiinition and the role they play in a meltdown….
the fed
the prime rate
alan greenspan
NASDAQ bubble
ben bernanke
subprime loan
FICO
liquidity
equity
types of subprime loans
adjustable rate (ARM – balloon)
securities
SEC-securities exchange commission
dervatives
securitization
diversifying risk
off balance sheet entities
TARP
troubled assets
taxpayer protection
making homes affordable plan
office of financial stability
ARRA (the stimulus) – discription
keynesian economics
supply side economics – reaganomics – milton friedman)

Best answer:

Answer by Bored Goblin
“the fed” are the upper-class people, who benefitted by ripping off the “the hungry” during the crisis.

you can look up other terms here: http://wikipedia.org

What do you think? Answer below!

Share on Tumblr
Share on Myspace Share

Econ: Securitization?

Posted on by

Question by Zoey Hockey: Econ: Securitization?
What role did securitization play in the recession.

Best answer:

Answer by Jim G
Secularization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).
This is highly risky for all your available money to be tied up in times like this recession.

Know better? Leave your own answer in the comments!

Share on Tumblr
Share on Myspace Share