The Past
In 2008, What changed with homeownership ? Why is that a problem?
The home went from shelter to an investment- it is a problem because now it meant people's wealth was tied to something that went up and down.
What was TARP? 2 years later, what was the outcome?
Toxic Asset Relief Program , it actually made a $50 B profit
What is a short sale?
A bank selling a property below what is owed on the mortgage to get the property off their books
What is a lien?
A debt that must be paid before a property may be sold
What is an economic indicator?
What is the jobless claims report?
A report that is used to help predict the future
A report that reports the number of new jobless people in the US
What are subprime loans? What are liar loans?
Loans written to people with poor credit scores
when the bank allows you to say how much income you have and they don't verify it.
What is a bailout ? How much money was used?
When the government gives businesses loans or grants so they don't go bankrupt $775 B
What is a home equity loan
borrowing money using the part of the mortgage you have paid off as collateral
What is a quitclaim deed?
A quick way to convey a property where the current owner gives up their ownership of the property.
What is a mutual fund?
What does CPI predict?
many people doing long term investing in many stocks.
Inflation
What was the false belief about house prices?
That prices would always go
What is upward mobility?
The ability of people in society to grow wealth
What does amortization mean
How a loan is decomposing as more is paid off.
What is the difference between flood insurance and homeowners?
Unlike most events, homeowners does not cover floods. It must be purchased separately.
What is a high money supply indicative of?
What is the Gross Domestic Product?
light inflation which stimulates the economy
The total of all products and services within a country
In September 2008, What was the decision that was made about the Economy?
The only way to avoid a depression would be massive stimulus
What was the occupy Wall St. movement?
People angry with Wall St for gambling with their house/financial life protested banks and the government bailout
What are points
1% of the total loan charged by the bank for processing the mortgage
What is valuation?
A town's process of assessing house values for the purpose of taxation.
What is the Consumer Credit Report?
What can be learned from the existing homes report?
More credit means more spending for a better economy.
Sales are up -raises house prices and promotes the building of homes
What are Fannie and Freddie?
Government programs that guarantee home loans
Who did the financial crisis bring to power?
According to the film, Donald J. Trump
What is earnest money
money offered to prove the devotion of the buyer to purchasing a property.
What is a deed covenant?
A restriction permanently placed on a property.
How can building permit signal a better economy?
What is the definition of a durable good
People investing in the future, spending leads to strong economy.
A durable good is designed to last at least 3 years