people involved
This major investment bank collapsed in 2008 due to its exposure to mortgage-backed securities and risky mortgage-related investments.
Lehman brothers
This type of mortgage, often given to borrowers with poor credit, contributed to the housing bubble of the mid-2000s.
Subprime mortgages
This economic event, triggered by the collapse of the housing bubble, led to widespread job losses, a global recession, and massive financial instability.
Global Financial Crisis (GFC) of 2008
This type of mortgage requires the borrower to pay back both the principal and interest every month, making it the most common mortgage type.
fixed-rate mortgage
militant Islamist group that ruled Afghanistan from 1996 to 2001 and regained control in 2021, enforcing a strict interpretation of Sharia law.
Taliban
This Wall Street investment bank, once one of the largest in the U.S., was acquired by JPMorgan Chase during the financial crisis after it collapsed due to exposure to bad mortgage debt.
Bear stearns
This economic condition, where lenders offered loans with little regard for borrowers' ability to repay, was a major cause of the housing bubble in the 2000s.
Subprime lending
This government action, aimed at rescuing the U.S. banking system and stabilizing the economy, involved spending hundreds of billions of dollars to bail out financial institutions.
Troubled Asset Relief Program (TARP)
With this type of mortgage, the interest rate can change over time, usually in relation to a financial index, making the payment amounts unpredictable.
adjustable-rate mortgage (ARM)
founder of al-Qaeda and the mastermind behind the September 11, 2001, terrorist attacks in the United States.
Osama bin Laden
This major American mortgage lender, which had to be bailed out by the government in 2008, was one of the largest participants in the subprime mortgage market.
country wide financial
This was the primary factor that led to rapid increases in home prices, as more people could afford to borrow money to buy homes during the housing boom.
Low interest rates
This term refers to a situation where home prices drop significantly, causing a sharp increase in the number of homes being foreclosed upon.
foreclosure crisis
This type of loan was available to borrowers with lower credit scores, but it often had higher interest rates to reflect the increased risk.
subprime mortgage
a transnational militant organization founded by Osama bin Laden, responsible for numerous terrorist attacks, including 9/11.
Al-Qaeda
Bear Stearns was owned by which company during this time
Wall Street
This type of financial product, which pooled together a large number of home loans into a single security, helped spread the risks of subprime lending throughout the financial system.
Mortgage backed securities
As a result of the housing crisis, millions of people lost their homes, leading to an increase in this phenomenon, which peaked during the recession.
Homelessness
This is the minimum amount of money required to be paid upfront when purchasing a home, typically around 20% of the home’s purchase price.
down payment?
the president of Iraq from 1979 to 2003, whose regime was overthrown by the U.S.-led invasion during the Iraq War.
Saddam Hussein
This financial institution’s actions, particularly lowering interest rates after the 2001 recession, are often cited as a catalyst for the housing bubble of the mid-2000s.
Federal reserve
The aftermath of the housing bubble saw significant job losses in this industry, which includes the construction, mortgage lending, and real estate sectors.
housing or construction industry
chemical, biological, nuclear, or radiological weapons designed to cause large-scale destruction and loss of life.
WMDs