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      <title>Timeline: Credit crunch to downturn by Shiloh Oh</title>
      <link>https://padlet.com/osh0214/gznvyacpcxqm</link>
      <description>a severe shortage of money of credit</description>
      <language>en-us</language>
      <pubDate>2016-02-17 11:48:59 UTC</pubDate>
      <lastBuildDate>2024-04-30 13:48:16 UTC</lastBuildDate>
      <webMaster>hello@padlet.com</webMaster>
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         <title>Vocabulary </title>
         <author>shkurkin_ilya</author>
         <link>https://padlet.com/osh0214/gznvyacpcxqm/wish/95507492</link>
         <description><![CDATA[<div>1.&nbsp;<strong>Credit Crunch</strong>&nbsp;-&nbsp; a severe shortage of money or credit<br>2.&nbsp;<strong>Sub - prime mortgage</strong>&nbsp;- a type of mortgage that is normally made out to borrowers with lower credit ratings.<br>3.&nbsp;<strong>To bolster</strong>&nbsp;- to support or improve something or make it stronger.&nbsp;<br><em>Ex. The US Federal Bank and the European Central Bank tries&nbsp;</em><strong><em>to bolster the money markets.</em></strong><strong><br></strong>4.&nbsp;<strong>Favourable terms -&nbsp;</strong>a favourable price is cheap or reasonable.<br>Ex.<em>&nbsp;The US Federal Bank and the European Central Bank make funds available for banks to borrow&nbsp;</em><strong><em>on more favourable terms.</em></strong><br>5.&nbsp;<strong>Liquidity Crisis</strong>&nbsp;- A negative financial situation characterised by a lack of cash flow.<br>6.&nbsp;<strong>To stay afloat</strong>&nbsp;- having enough money to ​pay what you ​owe:</div><div>Ex.&nbsp;<em>Many ​small businesses are ​struggling to&nbsp;</em><strong><em>​stay</em></strong><em>&nbsp;</em><strong><em>afloat.</em></strong><em><br></em>7.&nbsp;<strong>bail out something/someone -</strong>&nbsp;to help someone or something such as a ​plan or ​company, esp. by giving or ​lending:</div><div><em>Ex. Congress passed a $15 ​billion Aid ​package to bail out the ​airlines.<br>8.&nbsp;</em><strong><em>To&nbsp;</em></strong><strong>have/get&nbsp; a stake in something -&nbsp;</strong>to have something at risk in something; to have a financial or other interest in something.&nbsp;<br><em>Ex. I&nbsp;</em><strong><em>have a stake in that company</em></strong><em>. I want it to make a profit.</em>&nbsp;<em>I don't&nbsp;</em><strong><em>have a stake in it</em></strong><em>, so I don't care.&nbsp;<br>Ex. In return for its investment, the government expects&nbsp;</em><strong><em>to get a stake in the banks.<br></em></strong>9.&nbsp;<strong>To ease</strong>&nbsp;- to make or ​become less ​severe, ​difficult, ​unpleasant, painful.&nbsp;<strong><br></strong><em>Ex.&nbsp;</em><strong><em>To ease the ​problem&nbsp;</em></strong><em>of ​overcrowding, new ​prisons will be&nbsp; built.<br>Ex. To cut in interest rates in an effort to ease the crisis.<br>10.&nbsp;</em><strong>Takeover -&nbsp;</strong>a ​situation in which a company gets ​control of another ​company by ​buying enough of ​its shares.</div>]]></description>
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         <pubDate>2016-02-17 12:01:19 UTC</pubDate>
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      <item>
         <title>Main Timeline</title>
         <author>osh0214</author>
         <link>https://padlet.com/osh0214/gznvyacpcxqm/wish/95508023</link>
         <description><![CDATA[]]></description>
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         <pubDate>2016-02-17 12:05:45 UTC</pubDate>
         <guid>https://padlet.com/osh0214/gznvyacpcxqm/wish/95508023</guid>
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         <title>Financial Crisis: how it happened</title>
         <author>yinayayy39</author>
         <link>https://padlet.com/osh0214/gznvyacpcxqm/wish/95510893</link>
         <description><![CDATA[<div>US banks give high-risk loans to people with poor credit histories, which have led to sub-prime mortgage problem. This crisis bundle up loans, bonds and assets or CDOs and sold on to investors globally.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide1.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide1.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure><br>Falling house prices and rising interest rates lead to high numbers of people who cannot repay their mortgages. Investors suffer losses, making them reluctant to take on more CDOs. Credit markets freeze as banks are reluctant to lend to each other, not knowing how many bad loans could be on their rivals' books.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide2.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide2.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure><br><br></div><div>The impact of the sub-prime mortgage crisis is quickly shown to have implications beyond the United States. Losses are felt by investment banks as far afield as Australia. Firms cancel sales of bonds worth billions of dollars, citing market conditions<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide3.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide3.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure></div><div><br><br></div><div>The US Federal Bank and the European Central Bank tries to bolster the money markets by making funds available for banks to borrow on more favourable terms.<br>Interest rates are also cut in an effort to encourage lending.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide4.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide4.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure></div><div>But the short-term help does not solve the liquidity crisis - or availability of cash for banks - as banks remain cautious about lending to each other.<br>A lack of credit - to banks, companies and individuals - brings with it the threat of recession, job losses, bankruptcies, repossessions and a rise in living costs.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide5.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide5.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure></div><div><br><br></div><div>UK bank Northern Rock seeks an emergency loan to stay afloat, prompting a "run" on the bank, as worried customers withdraw £2bn. The bank is later nationalised. In the US, the near-collapse of Bear Stearns leads to a crisis of confidence in the financial sector and the end of investment-only banks.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide6.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide6.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure></div><div><br><br></div><div>Seeking a long-term solution, the US government agrees a $700bn bail-out that will buy up Wall Street's bad debts in return for stake in the banks. The US government plans to borrow the money from world financial markets and hopes it can sell the distressed assets back once the housing market has stabilised.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide7.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide7.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure><br><br></div><div>The UK government launches its own bail-out, making £400bn extra capital available to eight of the UK's largest banks and building societies in return for preference shares in them. In return for its investment, the government expects to get a stake in the banks - although exactly how much is not quite clear yet.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide8.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide8.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure><br><br></div><div>Economies around the world are affected by the credit crunch. Governments move to nationalise banks from Iceland to France. Central banks in the US, Canada and some parts of Europe take the unprecedented step of co-ordinating a half-point percent cut in interest rates in an effort to ease the crisis.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide9.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide9.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure><br><br><br></div><div>Economies around the world are affected by the credit crunch. Governments move to nationalise banks from Iceland to France. Central banks in the US, Canada and some parts of Europe take the unprecedented step of co-ordinating a half-point percent cut in interest rates in an effort to ease the crisis.<figure class="attachment attachment-preview" data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:220,&quot;url&quot;:&quot;http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide10.gif&quot;,&quot;width&quot;:466}" data-trix-content-type="image"><img src="http://news.bbc.co.uk/nol/shared/bsp/hi/dhtml_slides/08/financial_crisis/img/slide10.gif" width="466" height="220"><figcaption class="caption"></figcaption></figure></div>]]></description>
         <enclosure url="" />
         <pubDate>2016-02-17 12:30:04 UTC</pubDate>
         <guid>https://padlet.com/osh0214/gznvyacpcxqm/wish/95510893</guid>
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