Gay Executive.com » Dictionary

Upside-Down Loans

Steven — Tue, 18 Mar 2008 15:45:35 +0000

Upside-Down Loans refer to loans on which the borrower owes more than the value of the asset for which the loan was used to purchase. Upside-down loans occur when the asset depreciates in value, or was overvalued when the buyer purchased the asset. While it’s common for auto loans with small down payments to be “upside-down” initially due to the large depreciation which occurs during a new cars first two years, an increasing number of home mortgages are now “upside-down” due in large part to the downturn in the housing market which has occurred over the past 9 months. The increasing number of “upside-down” mortgages has exacerbated the housing downturn as sub prime borrowers with increasing interest rates are unable to refinance as most lenders will not lend more than one hundred percent of the present value of a home.

Recession

Steven — Tue, 04 Mar 2008 05:24:04 +0000

A recession is a period of economic retraction; in macroeconomics it is defined as two or more consecutive quarters of decline in the Gross Domestic Product (GDP). Economists rely on the Business Cycle Dating Committee at the National Bureau of Economic Research (NBER) to officially declare recessions using more advanced metrics. This official designation is of limited value as it’s often declared several months after a recession has begun.

Six Sigma

Steven — Sat, 12 Jan 2008 10:38:00 +0000

Six Sigma is a highly disciplined approach to decision making that helps people focus on improving processes to make them as near perfect as possible. The term “Six Sigma” relates to the number of mathematical defects in a process. Six Sigma practitioners focus on systematically eliminating the defects so they can get as close to “zero defects” as possible.