Causes Of The Recession Of 2008 Essay

Better Essays

Haley Strother
Craig Jumper
Causes of the Recession of 2008 During the 2008 Recession, Horowitz painted a bleak picture by stating “…small luxuries seemed almost necessities in happier economic times. But no more for lots of folks...the murky financial outlook and recession fears are factors”. The 2008 Recession resulted in the collapse of the robust US economy and affected most of its citizens. It also had a domino effect, as economies of other countries of the world suffered from this phenomenon. The 2008 Recession is mainly related to the 2007-08 financial crisis and subprime mortgage crisis, both of which severely distressed the American economy and then global economies. Although the impact and timing of economic decline varied from one nation to another, the 2008 Recession refers to the period of financial shortfalls in the US and world markets starting from the late 2000s and continuing till the early 2010s. Since there was shortage of valuable assets in the market economy, cash crunch, and other major financial problems, several business sectors underperformed, trade imbalances were there, consumers’ buying potential reduced, debt levels increased, unemployment levels amplified, prices of petroleum and other key commodities augmented, and so forth. As a result, nearly all sections of the population were affected by this recession and it took a number of years to recover. As above-mentioned, the recession had its origins in the property

Get Access