A meltdown is a sever and often sudden deterioration of financial insititutions or assets, resulting in huge financial loss.

A recession is a period of economic decline.

Usulally defined as two or more quarters of negative economic growth.

Also known as the credit squeeze or credit crisis.

A situation where banks reduce the availability of loans or credit to customers, due to the increased risk of not being repaid.

A mortgage is a loan for a house or property.

Subprime refers to the poor credit rating of the borrower.

A housing loan given to people with poor credit histories.

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

The process of turning assets into securities, which are then assigned a value and traded.

Securities backed by a varity of fixed income assets, usually packages of mortgages.

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

Providing financial assistance to a failing business to saveit from collapse.

T.A.R.P is an attempt to strengthen the financial sector by buying toxic assets from the banks.

Toxic means poisonous or harmful.

Toxic assets are high-risk debts that are unlikely to be repaid to lenders.

To provide new funds to a company to help improve its stability and ability to function normally.

Used by governments to improve the stability of banks affected by the credit crunch.

Cash or assets that can be quickly turned into cash.

A group of markets where lenders, usually banks, are matched whit other institutions that want to borrow money.

Some econimists believe that when an economy goes into recession, it is possible to stumulate, or encourage, growth by spending public money.

Money injected into the economy in order to stumulate and encourage spending.

A growth pattern that combines a higher productivity level with the sustainable consumption of raw materials.