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Study sets matching "financial crisis"

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Study sets matching "financial crisis"

17 terms
Financial crisis
credit crunch
economic meltdown
financial bailout
mortgage
restricción crediticia
crisis económica
rescate financiero
hipoteca
credit crunch
restricción crediticia
economic meltdown
crisis económica
43 terms
Financial Crisis
household, 7, 8, 12
two million, 15, 70
Ireland, Spain, 23, 12, 22, Goldman Sa…
Goldman Sachs, deficit
"The post-crisis U.S. recession officially ended in June 2009…
"more than ___ ___ homes were foreclosed upon in the United S…
"In the nations most severely affected by the European debt c…
___ ___ helped the Greek government to mask the true extent o…
household, 7, 8, 12
"The post-crisis U.S. recession officially ended in June 2009…
two million, 15, 70
"more than ___ ___ homes were foreclosed upon in the United S…
17 terms
financial crisis
to downsize
to be made redundant
to be laid off
to reduce (working hours)
to make (a company or organization) smaller by eliminating st…
to be fired/ to get fired (e.g. unstable economy, bad company…
to be made redundant (not your fault)
to cut down on, to make smaller
to downsize
to make (a company or organization) smaller by eliminating st…
to be made redundant
to be fired/ to get fired (e.g. unstable economy, bad company…
34 terms
Financial Crisis
turbulance on the market
volatility of the market
sharp and sophisticated people
the greatest brains in the world
turbulencje na rynku
chwiejność rynku
mądrzy, obyci w świecie ludzie
największe umysły świata
turbulance on the market
turbulencje na rynku
volatility of the market
chwiejność rynku
15 terms
Financial Crisis
How Does Securitization add value?
What type of financial assets can be s…
Special purpose entities (SPEs)
What happens with the transfer of an a…
1)Bundling large number of asset-backed securities reduces ri…
Assets that generate steady future payment streams
are most often part of the securitization. It is a legal cond…
The transferor surrenders control over the transferred assets…
How Does Securitization add value?
1)Bundling large number of asset-backed securities reduces ri…
What type of financial assets can be s…
Assets that generate steady future payment streams
22 terms
Financial Crisis
Financial Globalization
Human Resources
Non Human Resources
Capital
increasing global linkages created through cross-border finan…
all forms of labor and skill used to produce goods and services
all resources other than human resources such as machines and…
a category of non human resources comprises all machines, imp…
Financial Globalization
increasing global linkages created through cross-border finan…
Human Resources
all forms of labor and skill used to produce goods and services
28 terms
Financial Crisis
of common purchases are made on impuls…
household do not have a buget
of american live to paycheck to paycheck
of american spend more than they earn
50%
57%
61%
40%
of common purchases are made on impuls…
50%
household do not have a buget
57%
10 terms
Financial Crisis
Euro Crisis
Asian Financial Crisis 97-98
Sovereign Debt Crisis
Global Financial Crisis
-imbalances of excessive gov't spending from borrowing from c…
-large current account deficit b/c import exceed export... -CA d…
-Excess debt by sovereign gov't to domestic and foreign lende…
CAUSES... -US-China co-dependence expands bubble '00-'07... -china…
Euro Crisis
-imbalances of excessive gov't spending from borrowing from c…
Asian Financial Crisis 97-98
-large current account deficit b/c import exceed export... -CA d…
Financial Crisis
turbulance on the market
volatility of the market
sharp and sophisticated people
the greatest brains in the world
turbulencje na rynku
chwiejność rynku
mądrzy, obyci w świecie ludzie
największe umysły świata
turbulance on the market
turbulencje na rynku
volatility of the market
chwiejność rynku
11 terms
financial crisis
imprudent
mortgage
foreclosure
adjustable
leichtsinnig, unbesonnen
Verpfändung, Pfandbrief, Hypothek
Zwangsvollstreckung
regulierbar,verstellbar, anpassungsfähig
imprudent
leichtsinnig, unbesonnen
mortgage
Verpfändung, Pfandbrief, Hypothek
32 terms
Financial crisis
تجاهل / يتجاهل
صندوق النقد الدولي
تحذيرات
بوقوع
To ignore
IMF
Warnings
Occurrence
تجاهل / يتجاهل
To ignore
صندوق النقد الدولي
IMF
14 terms
Financial Crisis
Adverse Selection
Monetary Union
Floating Exchange Rate
Theory of Optimal Currency Area
occurs when there's a lack of symmetric information prior to…
A currency union (also known as monetary union) involves two…
different from floating exchange rate regime. set by the fore…
In economics, an optimum currency area (OCA), also known as a…
Adverse Selection
occurs when there's a lack of symmetric information prior to…
Monetary Union
A currency union (also known as monetary union) involves two…
37 terms
Financial Crisis
Assets
Bear Market
Bond
Bull Market
property owned by a person or company, regarded as having val…
a market in which prices are falling, encouraging selling.
a debt investment in which an investor loans money to an enti…
a market in which share prices are rising, encouraging buying.
Assets
property owned by a person or company, regarded as having val…
Bear Market
a market in which prices are falling, encouraging selling.
9 terms
Financial Crisis
Angela Merkel
Financial Contagion
Trade Imbalances
Austerity
Chancellor of Germany... Led Europe through the financial crisis…
GIIPS governments fell due to their integrated financial mark…
Trade surplus - export more than you import... Trade deficit - i…
An EU policy of reducing government budget deficits through s…
Angela Merkel
Chancellor of Germany... Led Europe through the financial crisis…
Financial Contagion
GIIPS governments fell due to their integrated financial mark…
23 terms
financial crisis
Run begins
Fed's First Response
Northern Rock
TAF
August 9, 2007: the run begins in the form of increased hairc…
Mid-August 2007: the Fed's first response is to increase stan…
September 14, 2007: Northern Rock is unable to refinance secu…
December 2007: Fed creates Term Auction Facility (TAF) to add…
Run begins
August 9, 2007: the run begins in the form of increased hairc…
Fed's First Response
Mid-August 2007: the Fed's first response is to increase stan…
19 terms
Financial Crisis
Traditional Mortgage
Securitization
Mortgage Backed Securities
Freddie Mack and Fannie May
person deposits $ in bank at low R, bank lends $ to another p…
mortgages sold to institutions that bundles them together and…
safe for investors because it is a pool of risks; efficient w…
bundled smaller mortgages but insured buyer against nonperfor…
Traditional Mortgage
person deposits $ in bank at low R, bank lends $ to another p…
Securitization
mortgages sold to institutions that bundles them together and…
16 terms
Financial Crisis
1. Investors bought mortgage backed se…
mortgage
default
mortgage backed securities
2008 Financial Crisis
a house loan
failure to make payments
take several loans and bundle them together so that investors…
1. Investors bought mortgage backed se…
2008 Financial Crisis
mortgage
a house loan
6 terms
Financial Crisis
large national debt
Percentages of Budget
Couldn't Declare Partial Bankruptcy
Attempt to Gain Money in 1786
caused by massive war costs and mishandling of money
-50% to interest payments... -25% to military... -6% to the king an…
-was because the king was too weak... -would declare France ille…
had to try increase taxes
large national debt
caused by massive war costs and mishandling of money
Percentages of Budget
-50% to interest payments... -25% to military... -6% to the king an…
21 terms
Financial crisis
crisis
crises
investor
lending crisis
válság
válságok
befektető
hitelválság
crisis
válság
crises
válságok
47 terms
Financial Crisis
Alan Greenspan
G20
Types of Financial Crisis
Banking Crisis
-Chairman of Fed, kept interest rate low for too long and enc…
Based almost everyone for the crisis
1. Banking Crisis (recent) ... 2. Market Crisis (Russian debt de…
Those that originate in the banking sector
Alan Greenspan
-Chairman of Fed, kept interest rate low for too long and enc…
G20
Based almost everyone for the crisis
17 terms
Financial Crisis
Financial Crisis
Basic Activity of banks
Problems when banks lose liquidity
Bank Run
A significant disruption in the flow of funds from lenders to…
take in deposits and make loans creating a liquidity mismatch…
they have to sell illiquid funds which is expensive but that'…
the processes by which depositors who have lost confidence in…
Financial Crisis
A significant disruption in the flow of funds from lenders to…
Basic Activity of banks
take in deposits and make loans creating a liquidity mismatch…
11 terms
Financial Crisis
Belief that housing prices would conti…
who are the three groups of people bla…
bad incentives/dishonest behavior (fin…
Policies (government is to blame)
-homeowners borrowed a lot... -rating agencies built this into t…
-individuals... -government... -financial sector
-originate to sell mortgage loans(reduced incentive to screen…
-had good intentions but unintended consequences... -tried to en…
Belief that housing prices would conti…
-homeowners borrowed a lot... -rating agencies built this into t…
who are the three groups of people bla…
-individuals... -government... -financial sector
18 terms
Financial Crisis
main cause
causes
funny loans were seen as less risky be…
oil tanker analogy
bad risk management
low interest rates... housing bubble... funny loans... securitization…
low interest rates
fed reserve compartmentalize
main cause
bad risk management
causes
low interest rates... housing bubble... funny loans... securitization…
9 terms
The Financial Crisis
2007 Mortgage Crisis
Takeover in GSE
2008 Housing & Economic Recovery Act
2008 Troubled Asset Relief Program
- Delinquencies and foreclosures increased rapidly in the sub…
- Paid obligations the GSEs owed ... - Kept money flowing to bac…
- Problem: Collapse of the Secondary Mortgage Market... - Takeo…
- Bailout of financial institutions... - Problem: Collapse of t…
2007 Mortgage Crisis
- Delinquencies and foreclosures increased rapidly in the sub…
Takeover in GSE
- Paid obligations the GSEs owed ... - Kept money flowing to bac…
46 terms
Financial crisis
Conventional monetary policy is a tool…
Why would the Fed choose to reduce the…
Why did the Fed undertake large-scale…
How did purchasing Treasury and GSE mo…
A
B
B
C
Conventional monetary policy is a tool…
A
Why would the Fed choose to reduce the…
B
18 terms
Financial Crisis
Where did French forces suffer crushin…
Although France lost much of her overs…
What was France unable to do at the Tr…
As well as exposing French soldiers to…
North America... India
Martinique... Guadeloupe
Recover most of her lost possessions
Through loans brokered by finance minister Jacques Necker
Where did French forces suffer crushin…
North America... India
Although France lost much of her overs…
Martinique... Guadeloupe
16 terms
The Financial crisis of 2008
1.)The crisis brings together homeowne…
2.) The homeowners and investors are b…
3.) Traditionally investors bought
4.)After 09/11 and the dot com bubble…
investors (money)
by the financial system
government bonds
lowers interest rates to 1%
1.)The crisis brings together homeowne…
investors (money)
2.) The homeowners and investors are b…
by the financial system
43 terms
Financial Ministers and Financial Crisis
Turgot (appointed soon after Louis cam…
Turgot inherited debts from two wars,…
Debts inhereited by Turgot monetary va…
Date Necker published the Compte Rendu
1775
War of Austrian Succession (1740-48) and the 7 Years War (175…
1.2 billion livres
1781
Turgot (appointed soon after Louis cam…
1775
Turgot inherited debts from two wars,…
War of Austrian Succession (1740-48) and the 7 Years War (175…
11 terms
Class 13-Financial Crisis
Fannie and Freddie
The markets leading up to the crisis
Investors leading up to the crisis
Investment Banks leading up to the cri…
created to purchase mtgs from banks, package into pools, sell…
1. Low interest rates post Tech Bubble.... 2. Housing demand, go…
1. massive amounts of money from international markets.... 2."To…
1. Competed with Fannie and Freddie.... 2. Created MBS & CDOs.... 3…
Fannie and Freddie
created to purchase mtgs from banks, package into pools, sell…
The markets leading up to the crisis
1. Low interest rates post Tech Bubble.... 2. Housing demand, go…
45 terms
2008 Financial Crisis
Derivatives
Credit Default Swap
Risk
Bond
privately held negotiable contract between two parties, a sec…
a type of derivative/insurance involving a third party, i.e.…
the degree of uncertainty associated with the return on an as…
a loan to a government or corporation in return for a promise…
Derivatives
privately held negotiable contract between two parties, a sec…
Credit Default Swap
a type of derivative/insurance involving a third party, i.e.…
53 terms
Financial Crisis Test 1
Franklin Delano Roosevelt
Herbert Hoover
Robert Rubin
Lawrence Summers
Democratic president who created the New Deal to counter the…
31st; a globally experienced engineer, believed strongly in t…
70th Secretary of Treasury during Clinton Administration; in…
Treasury Secretary after Rubin; major role in deregulation of…
Franklin Delano Roosevelt
Democratic president who created the New Deal to counter the…
Herbert Hoover
31st; a globally experienced engineer, believed strongly in t…
92 terms
Global Financial Crisis
Interest rate
The worst financial crisise since the…
Contributed to
Decline in the consumer wealth
банковский процент, процентная ставка
Наихудший (наитяжелейший) кризис со времён Великой депрессии(…
поспособствовал
Спад покупательской способности
Interest rate
банковский процент, процентная ставка
The worst financial crisise since the…
Наихудший (наитяжелейший) кризис со времён Великой депрессии(…
22 terms
Global Financial Crisis - Economics
Globalization
Contagion
Sub-Prime
Credit Crisis
The spread of market changes, good or bad, from one regional…
Borrowers with a bad credit history
Globalization
Contagion
The spread of market changes, good or bad, from one regional…
12 terms
Financial Crisis of 2008 Quiz
What is the name of the Insurer that w…
What investment bank's Chapter 11 fili…
What happened to Freddie Mac and Fanni…
What was the total cost of the bank ba…
AIG
Lehman Brothers Holding Inc.
They were seized by the government
$700 billion
What is the name of the Insurer that w…
AIG
What investment bank's Chapter 11 fili…
Lehman Brothers Holding Inc.
11 terms
The Financial Crisis 2008: adjectives
awry
contrite
dismayed
inevitable
when s.th is irregular or goes wrong
feeling or expressing regret or remorse
full of distress / disappointment
certain to happen; unavoidable
awry
when s.th is irregular or goes wrong
contrite
feeling or expressing regret or remorse
12 terms
The Financial Crisis 2008: nouns
ascendance
a bank-run
a betrayal
coffers
to have superiority, supremacy; domination
mass withdrawals from a bank due to the fear of the clients,
an act of disloyalty
Government funds or finances
ascendance
to have superiority, supremacy; domination
a bank-run
mass withdrawals from a bank due to the fear of the clients,
20 terms
Financial Crisis: Banking and Response
Pick 1 Global Macro issue to explain:…
Causes and Consequences of Financial C…
Alan Greenspan
Ben Bernanke
YOU CAN FIND THESE ANSWERS IN THE BOOK
- The housing market declined... The housing slump set off a cha…
- Fed Chair who lowered rates after 9/11... - Federal Reserve Bo…
- Fed Chair during financial crisis... - An American economist a…
Pick 1 Global Macro issue to explain:…
YOU CAN FIND THESE ANSWERS IN THE BOOK
Causes and Consequences of Financial C…
- The housing market declined... The housing slump set off a cha…
14 terms
Financial Crisis Terms
risk averse
risk neutral
risk lover
investment
not wanting to take risk
indifferent to risk
prefer risk
spending on the supplies that builds capital stock... spending…
risk averse
not wanting to take risk
risk neutral
indifferent to risk
28 terms
Financial Crisis Terms
Asset-backed Security
Bond
Capital
Central Bank
A security whose value and income payments are derived from a…
A debt security that promises to make payments periodically f…
The wealth cash or other financial asset used to maintain a b…
An institution designed to oversee the banking system and reg…
Asset-backed Security
A security whose value and income payments are derived from a…
Bond
A debt security that promises to make payments periodically f…
9 terms
Chapter 5- Financial Crisis
tax farming
compte rendu
aristocratic revolt
taxation by representation
the collection of royal taxes by individuals on behalf of the…
Jacques Necker's 'national account' which hid the true nature…
the privileged orders resisted the royal government's attempt…
taxes that have been discussed and approved by the elected re…
tax farming
the collection of royal taxes by individuals on behalf of the…
compte rendu
Jacques Necker's 'national account' which hid the true nature…
11 terms
Class 13-Financial Crisis
Fannie and Freddie
The markets leading up to the crisis
Investors leading up to the crisis
Investment Banks leading up to the cri…
created to purchase mtgs from banks, package into pools, sell…
1. Low interest rates post Tech Bubble.... 2. Housing demand, go…
1. massive amounts of money from international markets.... 2."To…
1. Competed with Fannie and Freddie.... 2. Created MBS & CDOs.... 3…
Fannie and Freddie
created to purchase mtgs from banks, package into pools, sell…
The markets leading up to the crisis
1. Low interest rates post Tech Bubble.... 2. Housing demand, go…
21 terms
Chapter 12- Financial Crisis
Asset-price bubble
Credit boom
Credit default swaps
Credit spread
Occur when asset prices in the stock and real estate markets…
A lending spree in which financial institutions expand their…
Financial insurance contracts that provide payments to holder…
The difference between the interest rate on loans to househol…
Asset-price bubble
Occur when asset prices in the stock and real estate markets…
Credit boom
A lending spree in which financial institutions expand their…
18 terms
Chapter 9 Financial Crisis
Initiation of Financial Crisis
Financial Liberation
Financial Innovation
Credit Boom
Occurs when there is huge amounts of uncertainty, increased i…
When restrictions on the banks are reduced on on the financia…
When a new type of investment is placed into the market such…
Rapid increase in loaning and such which maximizes the amount…
Initiation of Financial Crisis
Occurs when there is huge amounts of uncertainty, increased i…
Financial Liberation
When restrictions on the banks are reduced on on the financia…
9 terms
Ch 16: Financial Crisis
irrational expectations
leverage
herd instinct
recency effect
the price of an asset can become so inflated that it is uncle…
the practice of using borrowed money to pay for investments
may push investors to buy because everyone else is
a cognitive bias that causes humans to overvalue recent exper…
irrational expectations
the price of an asset can become so inflated that it is uncle…
leverage
the practice of using borrowed money to pay for investments
14 terms
Asian financial crisis, adjustment and recovery
government guarantees and lending boom…
structural weaknesses in financial sec…
rapid capital account liberalization,…
massive capital outflow, denied rollov…
structural weakness in financial sectors
structural problems behind financial crisis
vulnerability in external sector
중간 결론 of structural weakness in financial sectors and vulnera…
government guarantees and lending boom…
structural weakness in financial sectors
structural weaknesses in financial sec…
structural problems behind financial crisis
16 terms
Financial Crisis Review
Mortgage Backed Securities
Adjustable Rate Mortgages
Credit Default Swaps (CDO'S)
De-Regulation
A type of asset-backed security that is secured by a mortgage…
A type of mortgage in which the interest rate paid on the out…
A credit default swap is a particular type of swap designed t…
Bills, Attitudes changed in order to make getting a mortgage…
Mortgage Backed Securities
A type of asset-backed security that is secured by a mortgage…
Adjustable Rate Mortgages
A type of mortgage in which the interest rate paid on the out…
18 terms
Unit 4: Financial Crisis
Investment Bank
Hedge Fund
Rating Agencies
Fannie Mae and Freddie Mac
financial intermediary that underwrites, acts as intermediary…
aggressively managed portfolio of investments that uses advan…
companies that assess creditworthiness of debt securities and…
- purchase and guarantee mortgages through secondary mortgage…
Investment Bank
financial intermediary that underwrites, acts as intermediary…
Hedge Fund
aggressively managed portfolio of investments that uses advan…
16 terms
Financial crisis vocab
Mortgage Backed Securities-
Adjustable Rate Mortgages-
Credit Default Swaps-
De-Regulation-
a type of asset-backed security that is secured by a mortgage…
rate of interest is adjusted periodically to reflect market c…
Financial contract where a buyer of corporate debt attempts t…
The reduction of government power on the banks to increase co…
Mortgage Backed Securities-
a type of asset-backed security that is secured by a mortgage…
Adjustable Rate Mortgages-
rate of interest is adjusted periodically to reflect market c…
23 terms
Financial Crisis Review
Glass-Steagall Act
NINA Loans(No income No asset)
27%/20% down rules
Greenspan's Interest Rates
An act the U.S. Congress passed in 1933 as the Banking Act, w…
DEFINITION of 'No Income / No Asset Mortgage - NINA'... A type o…
Putting at least 20% down on a home ensures that the buyer ac…
Kept interest rates very low which eventually helped contribu…
Glass-Steagall Act
An act the U.S. Congress passed in 1933 as the Banking Act, w…
NINA Loans(No income No asset)
DEFINITION of 'No Income / No Asset Mortgage - NINA'... A type o…
12 terms
Asian Financial Crisis
Types of factors in the AFC
Structural Weaknesses
Weak financial system
Lack of transparency and disclosure
1. Structural Weakness... 2. Short term factors... 3. Trigger factors
- Premature Financial Liberalization... - Lack of transparency a…
Thailand... - weak levels of regulatory supervision and poor int…
- non- competitive provision of funds... - high level of crony c…
Types of factors in the AFC
1. Structural Weakness... 2. Short term factors... 3. Trigger factors
Structural Weaknesses
- Premature Financial Liberalization... - Lack of transparency a…
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