The 2008 Recession: Zoellner Garten & Co.

In the last several years, as we have seen some of the major financial conglomerates collapse, when Wall Street carries some negative connotation, investors’ attention turns to the companies who work primarily with Main Street, specifically those folks who create capital and own assets. A lot of these businessess would not strike you as super wealthy, yet it is the small businesses that proved to be the most resilient during the hard economic times.

Max: Hi I’m Max Lessins. This is Crash Course for economics and today we’ll be discussing the Great Recession, focusing on the fiscal and monetary policies used to recover from the 2008 economic meltdown.

The good news is that small businesses have been doing better than the overall economy. During the past few years, they have overcome rough times and developed a resiliency that is serving them well. The bad news is that the rising

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

The recession of 2007-2009 played a great roll in how many companies in the United

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.

In the course American Global Context taught at Mount St. Mary’s University, eight significant historical events from 1898 to contemporary times are covered. These events range from the assassination of William McKinley to the Great Depression to Pearl Harbor. One of these events, the 9/11 terrorist attacks, occurred in the 21st century. If I had the ability to add another event that possesses historical significance it would also be from the 21st century. The Great Recession of 2008 is the event that I would pick as the ninth historical event. By looking at the details of what happened, what the recession revealed about America, and what changed as a result it is possible to understand the immense significance of the recession.

The unemployment rate has dropped dramatically, thanks to small businesses who have been adding more jobs than large businesses. Since January this year, ADP job numbers show that about 50% of total nonfarm private sector jobs came from small businesses. Credit union member business loans are small business loans. Undoubtedly credit unions continue to support the economy’s recovery. This year, SBA partnered with NCUA to expand small business lending through credit unions. And as of March this year, 377 credit unions reported having outstanding SBA loans totaling $1.4 billion. Putting SBA 7(a)

People are retiring later, adolescents are finding it difficult to get employed, and poverty rates are through the roof. Surely, these are not signs of a booming economy, but rather the opposite. Top notch economists have debated whether or not the American economy has improved over the years, but when one dives deep into research, he can see that the cornerstone of the United States’ economy is about to fail. Not only should the government take a step back from further disrupting the economy, but they should rather help find ways to grow it through producing goods in America and by supporting new businesses to decrease the unemployment rate. A team working for Goldman Sachs states that America is the best working economy in the world, but they didn’t do enough research. If the stock market is a success, it only shows big companies are doing well, not the new and smaller businesses. Furthermore, America should pay more attention to manufacturing goods in its own country in order to decrease the unemployment rate and help lower the amount of debt the United States owes.

Recession is termed as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. Based on the complete recession that took place few important points that I could gather in specific considering each type of recession are listed below. How it took place? Causes for it and what impact it had on the audience. Let me discuss about this in brief.

Ever since the Recession of 2008, the process of acquiring employment has become extremely challenging and exhausting. After months of searching, a significant amount of job seekers are willing to accept any job offers that will allow them to put food on the tables. If you follow the United States’ economic recovery, you probably know that there are about 10.5 million unemployed Americans and constant debates about how to create more jobs. What you may not know is that there are actually four million open jobs waiting to be filled. So how is it possible and who is there to blame?

Profitability tanked. Long-term managers and key employees left and opened competing companies to replicate the processes and culture they loved and thrived under at ServiceMaster. Thousands have been negatively impacted and the once great organization has never been the same. So, how do business owners avoid the crippling, death knell mistake of selecting the wrong buyer? It starts by asking some fundamental questions:

Second, small businesses, which have been operating for a while, need to consider the financing options through their future