Understanding Economy Speak
Don't know a CDO from a LIBOR? Make sense of economic-crisis lingo with this handy glossary.
Asset-backed Commercial Paper
Asset-backed Commercial Paper (ABCP) is short-term corporate debt that is backed by assets such as real estate, autos and other commercial assets.
Asset-backed Commercial Paper (ABCP) is short-term corporate debt that is backed by assets such as real estate, autos and other commercial assets.
Bank Failures
Banks are the safest place to keep your cash. Nevertheless, bank failures happen from time to time. This page discusses bank failures in general and what you should expect if your bank goes under.
Banks are the safest place to keep your cash. Nevertheless, bank failures happen from time to time. This page discusses bank failures in general and what you should expect if your bank goes under.
Bear Market
The definition of a bear market in the stock market.
The definition of a bear market in the stock market.
Bull Market
Definition of the bull market in a stock market.
Definition of the bull market in a stock market.
CDO's (Collateralized Debt Obligations)
CDO's, or Collateralized Debt Obligations, are sophisticated financial tools that repackage individual loans into a product that can be sold on the secondary market.
CDO's, or Collateralized Debt Obligations, are sophisticated financial tools that repackage individual loans into a product that can be sold on the secondary market.
COBRA
The Consolidated Omnibus Budget Reconciliation Act (COBRA) set forth regulations that give employees and their families, who lose their health benefits because of unemployment, the right to choose to continue group health benefits provided by their group health plan. These health care benefits may be extended for limited periods of time under certain circumstances according to the COBRA regulations.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) set forth regulations that give employees and their families, who lose their health benefits because of unemployment, the right to choose to continue group health benefits provided by their group health plan. These health care benefits may be extended for limited periods of time under certain circumstances according to the COBRA regulations.
Credit Default Swaps
Credit default swaps are a form of insurance for bonds and mortgage-backed securities.
Credit default swaps are a form of insurance for bonds and mortgage-backed securities.
Dow Jones Averages
The Dow is actually the Dow Jones Industrial Average. There is also a Dow Jones Transportation Average and a Dow Jones Utility Average, bot h of which indicate the health of the U.S. economy.
The Dow is actually the Dow Jones Industrial Average. There is also a Dow Jones Transportation Average and a Dow Jones Utility Average, bot h of which indicate the health of the U.S. economy.
Employment
How the government measures and reports on employment.
How the government measures and reports on employment.
Failed Institution Protection
Sometimes financial institutions fail. If your money - a savings account, 401k, or investment account - is with a failed firm, you might wonder if it’s safe. Will you lose everything? For most people, the answer is no. Let’s look at the safeguards in place to protect your money when a financial institution fails.
Sometimes financial institutions fail. If your money - a savings account, 401k, or investment account - is with a failed firm, you might wonder if it’s safe. Will you lose everything? For most people, the answer is no. Let’s look at the safeguards in place to protect your money when a financial institution fails.
Federal Depost Insurance Corporation (FDIC)
A profile of the FDIC, how the FDIC insurance protects your money, and how it protects the U.S. economy.
A profile of the FDIC, how the FDIC insurance protects your money, and how it protects the U.S. economy.
Federal Funds Rate
How the Federal Reserve uses the Fed Funds Rate to regulate the economy, and why stock market analysts watch it like a hawk.
How the Federal Reserve uses the Fed Funds Rate to regulate the economy, and why stock market analysts watch it like a hawk.
Federal National Mortgage Association (FNMA)
Fannie Mae is a government-sponsored entity that provides a secondary market for home mortgages.
Fannie Mae is a government-sponsored entity that provides a secondary market for home mortgages.
Federal Reserve System
Description of the Federal Reserve System and how it affects the U.S. economy.
Description of the Federal Reserve System and how it affects the U.S. economy.
GDP and GDP Growth Rate
Defines the difference between GDP and the GDP growth rate, and how both are used.
Defines the difference between GDP and the GDP growth rate, and how both are used.
Hedge Funds
Defines hedge funds and hedge fund managers and differentiates the difference between hedge funds and mutual funds.
Defines hedge funds and hedge fund managers and differentiates the difference between hedge funds and mutual funds.
HOPE NOW
A description of the HOPE NOW program and how it can help homeowners avoid foreclosure.
A description of the HOPE NOW program and how it can help homeowners avoid foreclosure.
Interest-only Loan
A definition of an interest-only loan, in which the borrower's monthly payment goes only towards the interest.
A definition of an interest-only loan, in which the borrower's monthly payment goes only towards the interest.
Interest Rates
Basic primer on interest rates, including Fed Funds rate, Treasury Notes, and mortgage rates. Explains how rates affect the economy and your life. Discusses future rate trends, and the impact of an inverted yield curve.
Basic primer on interest rates, including Fed Funds rate, Treasury Notes, and mortgage rates. Explains how rates affect the economy and your life. Discusses future rate trends, and the impact of an inverted yield curve.
Irrational Exuberance
Why investors create a stock market bubble.
Why investors create a stock market bubble.
Money Market Funds
Explains what money market funds are and how money markets affect the U.S. economy.
Explains what money market funds are and how money markets affect the U.S. economy.
LIBOR Rates
The LIBOR rate is that interest rate that banks charge each other.
The LIBOR rate is that interest rate that banks charge each other.
Mark to Market
Mark to market is a way of a valuing assets at their current price.
Mark to market is a way of a valuing assets at their current price.
Mortgage-backed Securities
Defines how mortgages are packaged to be sold on the secondary market.
Defines how mortgages are packaged to be sold on the secondary market.
Preferred Stock
Preferred stock pays interest like a bond but also can increase in value like a stock.
Preferred stock pays interest like a bond but also can increase in value like a stock.
Recession
When a good economy turns bad.
When a good economy turns bad.
Secondary Mortgage Market
How mortgages are sold by the banks to investors.
How mortgages are sold by the banks to investors.
Securities and Exchange Commission
A profile of the U. S. Securities and Exchange Commission
A profile of the U. S. Securities and Exchange Commission
Stock Market Correction
The difference between a stock market correction and a stock market crash.
The difference between a stock market correction and a stock market crash.
Treasury Department
A profile of the Treasury Department and how it affects the U.S. economy.
A profile of the Treasury Department and how it affects the U.S. economy.