Impact Of The Sub Prime Crisis

1687 Words Aug 14th, 2014 7 Pages
Impact of the U.S sub-prime financial crisis in US.
The impacts in USA were Real gross domestic product (GDP) began contracting, Rise in Unemployment rate, Housing investments fell, Housing prices fell, Stock Markets prices fell, Net worth of US housings and non-profit organizations fell, rise in the national debt percentage, decline in manufacturing and trade.
• The Real gross domestic product (GDP) began shrinking in the third quarter of 2008 and did not return to growth until Q1 2010.
• The unemployment rate rose from 5% in 2008 pre-crisis to 10% by late 2009, then steadily declined to 7.6% by March 2013
• Residential private investment (mainly housing) fell from its 2006 pre-crisis peak of $800 billion, to $400 billion by mid-2009 and has remained depressed at that level.
• Housing prices fell approximately 30% on average from their mid-2006 peak to mid-2009 and remained at approximately that level as of March 2013. This led to foreclosures.
• Stock market prices, as measured by the S&P 500 index, fell 57% from their October 2007 peak of 1,565 to a trough of 676 in March 2009.
• The net worth of U.S. households and non-profit organizations fell from a peak of approximately $67 trillion in 2007 to a trough of $52 trillion in 2009, a decline of $15 trillion or 22%.
• U.S. total national debt rose from 66% GDP in 2008 pre-crisis to over 103% by the end of 2012.
• Industrial production was down by 11 % in the United States

Hence the subprime crisis hit hard on the nation…
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