Mortgage the charging of real (or personal) property by a debtor to a creditor as security for a debt

Leverage use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable

Foreclosure the process of taking possession of a mortgaged property as a result of the mortgagor’s failure to keep up mortgage payments.

Housing Bubble is a run-up in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future.

Assets Bubble/Assets When the prices of securities or other assets rise so sharply and at such a sustained rate that they exceed valuations justified by fundamentals, making a sudden collapse likely — at which point the bubble “bursts”.

Interest Rates the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

 

Federal Reserve is the central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system.

Goods Merchandise; wares; tangible products that satisfy human wants.

Assets property owned by a person or company, regarded as having value and available to meet debts

CDO (collateralized debt obligations) is so-called because the pooled assets – such as mortgages, bonds and loans

home equity/home equity loans is a type of loan in which the borrower uses the equity of his or her home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education.