the replacement of government services with services provided by private firms
a rescue from financial difficulties
an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage
an estimate of the amount of credit that can be extended to a company or person without undue risk; an evaluation of the creditworthiness of an individual or business enterprise
the safety of a state or organization against criminal activity such as terrorism, theft, or espionage: "national security"
two or more successive quarters in which the economy shrinks instead of grows
the process by which mortgaged property enters into the possession of the mortgagee without right of redemption by the mortgagor, usually for reason of delinquency in mortgage payments
residential mortgage backed securities
type of bond commonly issued in American security markets;backed by mortgages on residential rather than commercial real estate
subprime mortgages or loans
granted to borrowers whose credit history is not sufficient to get a conventional mortgage-not able to maintain the repayment schedule, subprime lending means making loans that are in the riskiest category of consumer loans are are typically sold in a separate market from prime loans
Alan Greenspan's ideology and deregulation of the financial sector
opposed regulation of derivatives, the side bets that were at the core of the financial crisis, he believed that markets are always preferable to government, he wanted deregulation of derivatives; he told one individual that rules prohibiting fraud were not essential, because participants in the markets would discover fraud
a street in lower Manhattan, New York, where the Stock Exchange and major banks are situated regarded as the symbol of American finance, used to allude to the securities industry of the US
Collateralized Debt Obligation (CDO)
types of structured asset- backed security whose value and payments are derived from a portfolio of fixed-income underlying assets, these securities are split into different risk classes
Credit Default Swap (CDS) or derivatives
a swap contract and agreement in which the protection buyer of the CDS makes series of payments to the protection seller and, and then receives a payoff if a credit instrument experiences a credit event; form of reverse trading
Residential Mortgage Back Securities (RMBS)
banks began bundling mortgage loans together into pools known as residential mortgage backed securities, large institutional investors bought these, they included a diverse pool of mortgage loans and deemed safe investments; credit rating agencies gave them a tripe A rating, but the lending backs has a risk of default,
a large organization that is structured hierarchically to carry out specific functions
excessive bureaucracy, regulation or adherence to rules and formalities--costs are high
The passage, by Congress, of a spending bill specifying the amount of authorized funds that actually will be allocated for an agency's use
One of the 15 departments of the executive branch (State Treasury, Defense, Justice, Interior, Agriculture, Commerce, Labor, Heath, and Human Services, Home Security, Housing and Urban Development, Education, Energy, Transportation, and Veteran Affairs
In the federal government, an administrative unit that is directly accountable to the president.
Civil Service Commission
The initial central personnel agency of the national government, created in 1883
Civil Service Reform Act 1978
An act that abolished the Civil Service Commission and created two new federal agencies to perform its duties. To administer the civil service laws, rules, and regulations, the Act created the Office of Personnel Management.
"contracting" and "privatization"
The replacement of government services with services provided by private firms.
the act of freeing from regulation- removing constraints
An act passed in 1939 that restricted the political activities of government employees. It also prohibited a political group from spending more than $3 million in any campaign and limited individual contributions to a campaign committee to $5,000.
Independent Executive Agency
A federal agency that is not part of a Cabinet department but reports directly to the president.
Independent Regulatory Agency
An agency outside the major executive departments charged with making and implementing rules and regulations.
The act by which an industry being regulated by a government agency gains direct or indirect control over agency personnel and decision makers.
An agency of government that administers a quasi-business enterprise. These corporations are used when activities are primarily commercial.
The three-way alliance among legislators, bureaucrats, and interest groups to make or preserve policies that benefit their respective interests.
Pendleton Act (1883)
An act that established the principle of employment on the basis of merit and created the Civil Service Commission to administer the personnel service.
the right of appointing to office
The awarding of government jobs to political supporters and friends.
The selection, retention, and promotion of government employees on the basis of competitive examinations.
Laws requiring that existing programs be reviewed regularly for their effectiveness and be terminated unless specifically extended as a result of these reviews.
A model of bureaucracy developed by the German sociologist Max Weber, who viewed bureaucracies as rational, hierarchical organizations in which decisions are based on logical reasoning
A model of bureaucracy that views top-level bureaucrats as seeking to expand the size of their budgets and staffs to gain greater power.
A model of bureaucracy that compares bureaucracies to monopolistic business firms. Lack of competition in either circumstance leads to inefficient and costly operations.
A federal, state, or local government unit established to perform a specific function. Administrative agencies are created and authorized by legislative bodies to administer and enforce specific laws
A group of individuals or organizations-which may consist of legislators and legislative staff members, interest group leaders, bureaucrats, the media, scholars, and other experts-that supports a particular policy position on a given issue.
Someone who brings to public attention gross governmental inefficiency or an illegal action.