Saturday, November 15, 2008
Sub-prime mortgage bubble glossary
The sub-prime mortgage bubble and the ongoing financial crisis has spawned a whole new genre of vocabulary. First came the alphabet soup of mortgage and derivative products - ARM, ABS, CDS, CDOs, CMOs, CLOs, and many other permutations! Then when the bubble burst came the rationalization and blame game in the form of securitization, moral hazard, deleveraging, too big to fail etc. Here and here are two excellent elaborations of the "too big to fail" hypothesis. Forbes has an A-Z of the financial crisis. I am waiting for the next big book release - A Glossary of the sub-prime bubble!