Share 2008 Housing Crisis
Save to Folder
Riddle: I'm a risky bet that banks regret, given to those with lots of debt. Definition: A loan given to borrowers with poor credit history and high risk of default.
Subprime Loan
Riddle: When you can't pay the bank what you owe, your house gets taken—off you go! Definition: Legal process where a lender takes ownership of a property due to missed payments.
Foreclosure
Riddle: I’m a loan with a home in tow—pay me monthly or face a foe. Definition: A loan used to purchase real estate, repaid over time with interest.
Mortgage
Riddle: My interest starts low but won’t stay that way, I’ll rise over time—what do you say? Definition: A mortgage with an interest rate that changes periodically.
Adjustable-Rate Mortgage (ARM)
Riddle: I’m like insurance—but kind of shady—on loans gone bad, I made bankers crazy. Definition: A financial contract that pays out if a borrower defaults on a loan.
Credit Default Swap
Riddle: Two quarters of shrinking GDP, I mark the fall of the economy. Definition: A period of economic decline, typically measured by two consecutive quarters of negative growth.
Recession
Riddle: When companies sink and can’t stay afloat, Uncle Sam throws them a vote—and a boat. Definition: Government financial support to prevent the failure of large institutions.
Bailout
Riddle: I grew with hype, inflated with glee—then popped and caused catastrophe. Definition: A rapid increase in home prices followed by a sudden collapse.
Housing Bubble
Riddle: When jobs are gone and paychecks cease, I rise and signal economic disease. Definition: The condition of being jobless and actively seeking work.
Unemployment
Riddle: I’m the cost of borrowing cash—too high or low, I cause a clash. Definition: The percentage charged for borrowing money.
Interest Rate
Riddle: I turn home loans into Wall Street fare—then crumble if those loans impair. Definition: Investment backed by bundled home loans.
Mortgage-Backed Security
Riddle: Prices go up and your dollar buys less—when I appear, you feel the stress. Definition: A general rise in prices, reducing purchasing power.
Inflation
Riddle: I’m the bank of banks, setting the tone, raising or cutting rates on a loan. Definition: The central banking system of the United States.
Federal Reserve
Riddle: I give a grade to financial trust—but in the crisis, I lost some must. Definition: Company that evaluates the credit risk of debt issuers.
Credit Rating Agency
