Characteristics Of A Recession : The Great Recession

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The Great Recession was a hard time for most of the country. The economy had dropped so low that it was the largest drop since the Great Depression. People were not only losing their jobs but also their homes due to the fact that they could no longer afford their payments. People cut back on spending all together and in turn that affected a lot of businesses. Characteristics of a recession are defined as by the U.S. Bureau of Labor, “A general slowdown in economic activity, a downturn in the business cycle, a reduction in amount of goods and services produced and sold” (U.S. Bureau Of Labor). This hard time for millions of Americans lasted for 18 months and it created a lot of damage and that is why it has been deemed ‘The Great Recession’. Our country may not be considered in a state of recession any more but people are still being affected by this and are slowly trying to be back on their feet. Starting back from the very beginning, before the crisis hit rock bottom, the real problem started in the late 1990’s when the government stressed the importance of national homeownership. People were starting to take out loans and purchase homes in the early 2000’s because the qualifications weren’t as strict as they had previously been. According to an article on businessweek.com, “It promoted paper-thin downpayments and pushed for ways to get lenders to give mortgage loans to first-time buyers with shaky financing and incomes” (Coy). This had a lot to due with the fact that

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