• An excess of liabilities over assets, of losses over profits, or of expenditure over income.
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| ||Referenced Terms|
| ||Hypothetication agreements: Are legal documents which define the pledging of collateral. A mortgage defines the collateral for a real estate loan or Note and a securities hypothecation agreement permits margin accounts and futures accounts by stating what is being pledged to cover positions, debit balances, or even Deficit balances. Generally, this document allows the owner to enjoy the usage of the property provided that no default occurs. In the event of a default the property can go to the creditor to satisfy the claim. The residual value, if any, would then go to the owner.|
| ||J curve: Theory that says a country's trade Deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.|
| ||To trade numbers: To trade securities based on the release of a new economic statistic (number), e.g., trading based on announcement of the latest number for the CPI, the U.S. trade Deficit, etc.|
| ||Related Terms|
| ||Budget deficit|
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