Mortgages
A loan used to buy a house
This happened when home prices rose very quickly and unsustainably.
What is a housing bubble?
Banks lost money because people who borrowed money couldn't finish ________ on time or at all.
What are mortgage payments?
Millions of Americans lost these during the crisis.
What are jobs?
These risky home loans were given to people with poor credit.
What is a Subprime loan?
People believed home prices would always do this.
What would increase/go up?
This major investment bank collapsed in 2008.
What is Lehman Brothers?
Many families lost these after foreclosure.
What are homes?
When a borrower cannot make payments, the bank may take back the house through this process.
What is a foreclosure?
When too many people stopped paying mortgages, housing prices did this.
What crashed/fell?
The government gave banks money to prevent economic collapse; this was called a _____.
What is a bailout?
The crisis spread around the world, causing this type of economic slowdown.
What is a recession?
Banks earned this extra money when people paid back loans.
What is interest?
This term describes when many homes are repossessed by banks.
What is a foreclosure?
Banks approved too many risky loans because they wanted more of this. This was known as ______.
What is profit/money?
People became afraid to spend money, causing businesses to do this.
What is close/shut down?
Many mortgage payments suddenly increased because they had this type of changing interest rate.
What is an adjustable-rate mortgage?
The crisis began mainly in this economic sector.
What is the housing market/real estate?
Fear about failing banks caused this market to crash.
What is the stock market?
The 2008 Financial Crisis is considered the worst economic crisis since what historical event?
What is the Great depression?