Name: Financial English Vocabulary - Global Economic Crisis
Uploaded: 2020-07-03T02:31:08.000Z
Duration: 10 min 16 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

you're watching Video vocab by business English part dot com The global economic meltdown The news today is full of stories about the financial crisis and recession.

The complex problems behind this crisis have given rise to a whole new vocabulary.

So today we're going to explore the language you've been hearing every day in the news.

First we'll hear a short article introducing the vocabulary.

Then we'll go over each word in detail with some example sentences to show how you can use the words At the end of the video, you'll have a chance to review and practice your new vocabulary.

The global economic meltdown that has led to a worldwide recession started with a credit crunch in the U.

This tightening of credit, particularly loans between banks, was in turn related to problems with subprime mortgages.

The banks had bought and sold a securities known a CDO.

The US government's first response to the economic crisis was to bail out the banks with TARP short for troubled asset relief program.

TARP was aimed at helping banks get rid of some of the now toxic assets they were holding.

Now we'll go through each word in detail with some example sentences to show you how the vocabulary can be used.

Meltdown, financial meltdown, economic meltdown.

The term meltdown is used in economics to describe a severe and often sudden deterioration of financial institutions or assets, resulting in huge financial loss.

The financial meltdown in the United States is the worst economic crisis since the stock market crash of 1929.

Experienced a meltdown in sales as rumors of their possible bankruptcy grew.

Recession, recession a recession is a period of economic decline.

Economists usually define a recession as two or more quarters of negative economic growth.

Many people are blaming the increased unemployment rate on the current recession.

Also known as the credit squeeze or credit crisis.

The credit crunch describes a situation where banks reduce the availability of loans or credit to customers as well as other banks due to the increased risk of not being repaid.

The credit crunch has moved the banks to tighten the conditions required to obtain a loan or line of credit.

Subprime mortgage subprime mortgage, a mortgage is a loan for a house or property.

Subprime refers to the low credit worthiness of the borrower.

So a subprime mortgage is a housing loan given to people with poor credit histories.

Due to our low credit rating, we can only qualify for a subprime mortgage securities securities.

A security is a certificate of ownership for stocks, bonds or other financial assets.

Stocks and bonds are two types of securities that are traded on the stock exchange.

The term securitization refers to the process by which an institution, usually a bank, turn something into a security which is then assigned a value and traded.

The securitization of subprime mortgages helped initiate the credit crunch.

These are securities backed by a variety of fixed income assets, usually packages of mortgages with different levels of risk.

When the subprime crisis intensified, many mortgage backed CDOs became toxic.

Financial bailout, Financial bailout in everyday language.

To bail a person out means to help someone out of a difficult situation.

A financial bailout is an act of giving financial assistance to a failing business to save it from collapse, Theo U.

S government has recently funded a huge bailout of the banking industry.

S auto industry has recently been bailed out by the Government Troubled Asset Relief Program, or TARP, also known as the Wall Street bailout bill.

Top was an attempt to strengthen the financial sector by buying toxic assets and equity or shares from major financial institutions.

The public has started questioning the benefits of TARP due to the massive cost and behavior of the banks.

Toxic assets, toxic debt, toxic means, poisonous or harmful toxic assets are high risk debts that are unlikely to be repaid to lenders.

The toxic assets held by banks have severely affected their balance sheets.

Now it's your turn to practice some of the words we have studied in this episode you'll hear a Siris of sentences with the word blanked out or replaced with a B Repeat the whole sentence.

But say the missing would, for example, if you here.

Despite the credit, uh, they managed to get a mortgage at reasonable rates.

You should say, despite the credit crunch, they managed to get a mortgage at reasonable rates.

GM experienced a in sales as rumors of their possible bankruptcy grew.

GM experienced a meltdown in sales as rumors of their possible bankruptcy grew due to our low credit rating, we can Onley qualify for ah mortgage answer due to our low credit rating.

Weaken Onley qualify for a subprime mortgage Bank balance sheets have been severely affected by the amount of assets they're holding.

Bank balance sheets have been severely affected by the amount of toxic assets they're holding.

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