2008 Recession

At the end of the 20th century, it was clear that the United States national economy was on a incline. The U.S began winning the worldwide arms race, holding 50% of the world weapons stockpile (Taylor 10). Capitalism, the main trademark of the United States economy, spread like a wildfire across the majority of the world (Taylor 10). To the uneducated ear, news like this sounds great; the United States is slowly taking over the world. However, this insane growth was actually poising the U.S. for an extreme downfall in the coming years of the early 21st century. The major downfall would come to be known as the worst recession in our history since the infamous Great Depression.

The United States is a country that over the years has relied on its economic stability to continue providing acceptable living for its citizens and continue its leadership of the free world. This country went through an economic depression which lasted several years throughout the 1920’s and the 1940’s but successfully recovered from it after World War II. An economic boom in the 1990’s during George Clinton’s Presidency the federal budget was managed to be balanced and helped increase the economic crisis of the United States. The recovery did not last long as the United Stated went through a huge recession during George Bush’s Presidency in what many experts called the “Great Recession” which affected many especially businesses and middle class citizens. Although today many consider the recession to be over the effects of it can still be felt today specially by many middle class families like my own. I come from a small family of three which includes my parents and me. My family comes from minimum wage salaries and have been part of same line of work for many years however, the amount of necessities the family can afford has definitely changed. For example, the amount of groceries you can buy nowadays with a $20 bill is much less than those of the 1990‘s. The price of gas has certainly gone up which has caused many companies to outsource jobs or close down. My dad was laid off his dream job due to budgets cuts while my mom’s working hours have been reduced. As a result my

The U.S. economy is currently experiencing its worst crisis since the Great Depression. The crisis started in the home mortgage market, especially the market for so-called “subprime” mortgages, and is now spreading beyond subprime to prime mortgages, commercial real estate, corporate junk bonds, and other forms of debt. Total losses of U.S. banks could reach as high as one-third of the total bank capital. The crisis has led to a sharp reduction in bank lending, which in turn is causing a severe recession in the U.S. economy.

During the great recession era that began in late-2007 and lasted until mid-2009, the labor market took a major loss. The reasons that caused the labor market to plummet during this time frame were due to unemployment, a decrease in income and lack of education. Despite the efforts from the government to help as much as possible, the labor market had taken the worst hit and was at its lowest since the last three decades. It is important for everyone to understand what a weak labor market can result in. In this paper, I will discuss these findings and what impact they had on the labor market to weaken it to such a low point.

In 2008, the housing market crashed and America fell into a recession. Many Americans lost their homes. Many investors lost large sums of money, and overall the economic recession hurt America as a whole. Today, we see that the stock market is more regulated than it was in 1929 with the Great Depression and 2008 with the Great Recession, but it is still not regulated as much as it previously was. In 1999, portions of the Banking Act of 1933, more commonly known as the the Glass-Stegall Act, were repealed. The repeal of the Glass-Stegall Act in 1999 sparked the Housing Crisis of 2005 and ultimately led to the Great Recession that America experienced in the 2000’s.

The single greatest problem facing America today would be the threat of a Recession in the stock market. Because if America goes in to Recession again the stock market will crash again. Then we would not need to worry about this stupid war because we will be broke.

The Great Recession inflicted abundant harm in the U.S. and global economy; 8.7 million jobs vanished (Center on Budget), 9.3 million Americans lost their homes (Kusisto), and the U.S. GDP fell below what the economy was capable to produce (Center on Budget). The financial crisis was unforeseen by millions and few predicted that the market would enter a recession. Due to the impact that the recession had, several studies have been conducted in order to determine what caused the recession and if it could have been prevented. Government intervention played a key role in the crisis by providing the bailout money that saved those “Too Big to Fail” institutions. Due to the amount of money invested in the bailout and the damage that the financial crisis had on the U.S. population, “Too Big to Fail Banks”, and financial regulation are two of the biggest focuses of the presidential candidates. Politicians might assure voters that change will occur, but is it to late for change to be efficient, are the financial institutions making the same mistakes that led to the financial crisis?

Several years ago the economy in the United States took a real turn for the worst. It was one of the biggest economical down falls in history. Many people lost their homes toforeclosure when they became unable to make their mortgage payments. There are many reasons that people suddenly became unable to make their payments. As the unemployment rate increased from 5% in December of 2007 to 10.01% in October of 2009 (Bureau of Labor Statistics) many people lost their jobs. Another cause was that people had entered into bad loans with interest only or ballooning payment loans these types of loans were very common lending practice. Then when the housing market crashed people found themselves upside down in their loans, meaning that they now owed two or three times the value of their home. These are among some of the reasons people lost their homes. Now that the economy is starting to turn around and the federal government has kept the interest rates low.Is there any hope for all these people that have lost their homes to recover and own a home again?

In the hyper competitive world of today’s mega corporations controlled by the sway of the stock market, giant old industrial era companies rule over the automobile market in the United States as well as large parts of the global automobile market. Companies such as General Motors, Chrysler, and Ford were at the center of it until the economic crisis now known as the Great Recession of the late 2000s. The whole market was declining in sales with General Motors and Chrysler taking the biggest hits while Ford only suffered decline comparable to foreign automakers’, Honda and Toyota, levels due to restructuring in prior years. However, the tipping point was edging closer to bankruptcy with General Motors and Chrysler that ultimately

Every American was impacted in some way or another during the 2008 recession. Whether one was worried about their bank closing its doors, their business closing up or filling for bankruptcy it changed the way Americans save and think. The recession personally affected me for my father works at one of the “big three” car companies. And the fear of being let go of or laid off was something that every person in the industry had to deal with. But it was just in the car industry that suffered, it was every industry. All the financial suffering was rooted in one of the most essential needs of every human being, housing.

As the U.S. economy continues its struggle to climb out of a deep recession, personal loans remain very difficult to secure. Having shouldered much of the blame for the financial hardships that have befallen consumers across the nation, many banks now require potential borrowers to meet strict criteria for an approval. With the financial institutions being more selective about who they assist, Detroit locals like Ashley Wright are learning that consumers with excellent credit and decent paying jobs are the most likely to make the cut. "Getting an approval was definitely a journey," said Wright, who was in search of a personal loan to help out with school and living expenses. Wright found that a private bank was the best place to turn for

The Great Recession in 2008 led to a huge crisis in the United States economy. This recession almost led to the entire collapse of the United States economy due to the constant unstable changes in legislation, regulation, along with the changes in fiscal and monetary policies. Furthermore, many economists believe that the increase of excess monetary and government irresponsibility led to the overall crisis in the mid to late 2000’s. Some economists believe that the oversupply of monetary contributed to the 2008 crisis due to low interest rate targets that were substantially below the monetary requirement. In this paper I will discuss the effects of the changes in monetary and fiscal policies that altered the economy in 2008 as well as the current and desired gross domestic product for the future United States economy.

A variety of events led to the event that would be known as the Great Recession. Blame is shifted around between the large Wall street banks, the federal government giving loans with very low to zero interest rate, and investors desperately wanting something to invest in. The large Wall street banks are to blame the most, as everything leads back to them. The origin starts of the recession starts earlier, in the late 90’s and early 2000’s.

A recession is full-proof sign of declined activity within the economic environment. Many economists generally define the attributes of a recession are two consecutive quarters with declining GDP. Many factors contribute to an economy's fall into a recession, but the major cause argued is inflation. As individuals or even businesses try to cut costs and spending this causes GDP to decline, unemployment rate can rise due to less spending which can be one of the combined factors when an economy falls into a recession. Inflation is the general rise in prices of goods and services over a period of time. Inflation can happen for reasons such as higher energy and production costs and that includes governmental debt.

The great recession of 2008 affected everyone around the world. The great Recession is considered the second worst economic crisis in American history, behind the Great Depression.