Acronyms
A fundamental part of the market crash was banks lending out these to people who could not reliably pay them back.
This term refers to the total value of goods and services produced by a country. It dropped 4.3% during the financial crisis, the largest drop since WWII.
This national bank system helped preserve the economy through the financial crisis.
So Large It Must Succeed
This is a rating of how well you use and pay back credit.
A period of temporary economic decline. The market crash caused one of these from December 2007 to June 2009.
This term refers to banks that are such an significant part of the national and international economies that they cannot be allowed to shut down.
Disgusting Home Good
The term for a pool of mortgages packaged together for investors to purchase. Banks bundled up mortgages, concealing risk.
A reason for doing someting. In economics, this could be bonus pay or a tax break. In the financial crisis, profits to be made from selling and investing in markets around mortgages.
This Obama-era legislation followed Keynesian-style economic practice by increasing government spending to revitalize the economy in 2009.
Finance Scoring Organization
These organizations failed to label unreliable mortgages as risky investments.
An economic bubble refers to when the speculative value of an asset or market is well above its actual value (such as the housing bubble before the financial crisis). When the bubble “pops,” this happens.
The Troubled Assets Relief Program, in which the government originally allocated $700 billion to purchase toxic assets from banks, is also commonly known by this name.
Bothered Belongings Alleviation Package
This financial term is an agreement between two parties where the payout is based on future economic data. A CDS is a type of this, and the market for these increased the amount of wealth dependent on risky mortgages.
Celebrity chef and television host Anthony Bourdain explains this term using fish stew in the film “The Big Short.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which allowed more government supervision over banking activities, is widely considered the most comprehensive banking regulation since when?
Representative-Senator