2008 Crash

1. Mortgages whose interest rates change periodically
7. assessment of how safe or risky a financial product is
10. Product that is made up of thousands of mortgages and sold to investors
11. the potential for a failure or crisis in one or more parts of the financial system to spread and cause widespread disruption to the entire system
12. wrongful or criminal deception intended to result in financial or personal gain
13. Investment bank that the government let fail and go bankrupt in 2008
14. Taking private companies and putting them under government control
16. Government organization to regulate the stock market

2. Loan to consumers for the purpose of buying a house
3. loans awarded to households that are not always financially sound
4. Betting that an investment product will go down or fail
5. Investment instrument that people can use to give cash now, and receive it all plus interest at a later date
6. Way to offset ones risk in a financial product. Insurance for investments
8. Unsold portions of MBS that are bundled together into a new product that investors can buy
9. lack of incentive to guard against risk because one is protected from its consequences
15. Insurance company that had over $100 billion dollars in credit default swaps to pay if Mortgage Bonds failed