Skip to main content
Indietro

Federal Reserve Policies during the 2007-2009 Recession definitions

I pulsanti di controllo sono stati cambiati in modalità "navigazione".
1/14

Termini in questo insieme (14)

  • Mortgage-Backed Securities
    Bundles of home loans sold as investments, mixing low and high-risk mortgages, whose value collapsed as defaults rose.
  • Subprime Loans
    High-risk mortgages given to borrowers with poor credit, often bundled with safer loans to mask their risk.
  • Investment Banks
    Financial institutions holding large positions in mortgage-backed securities, heavily impacted by the real estate crash.
  • Discount Loans
    Short-term, low-interest funds provided by the Fed to banks for liquidity, unusually extended to investment banks during the crisis.
  • Treasury Securities
    Highly reliable government debt instruments exchanged by the Fed for troubled assets to stabilize bank balance sheets.
  • Liquidity
    The ease with which banks can access cash or assets to meet short-term obligations, crucial during financial turmoil.
  • Bear Stearns
    A major investment bank whose collapse was prevented by a Fed-facilitated acquisition to avoid widespread panic.
  • Fannie Mae
    A government-sponsored enterprise taken over by the Fed to support the mortgage market and restore confidence.
  • Freddie Mac
    A public entity involved in mortgage purchasing, placed under federal control to stabilize housing finance.
  • Lehman Brothers
    A large investment bank allowed to fail, highlighting the risks of government bailouts and moral hazard.
  • Moral Hazard
    A situation where protection from losses encourages riskier behavior, as seen when bailouts are expected.
  • Troubled Asset Relief Program
    A government initiative providing funds to banks in exchange for ownership stakes, aiming to restore financial stability.
  • Partial Ownership
    Government acquisition of equity in banks as a condition for financial support during the crisis.
  • Great Recession
    A severe economic downturn from 2007 to 2009, mitigated by aggressive and unprecedented Federal Reserve actions.