The Great Recession

Prior to the financial crisis, the overall responsibility for financial oversight was divided among several different agencies. These agencies and their “varying rules and standards led to certain entities not being regulated at all, with others subject to less oversight than their peer

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.

Thank you for providing students the opportunity to explore their perspectives. In this reflection paper, I will summarize my comprehension of the Great Depression and Recession, react to readings and lectures and share my views of a remarkable article that I recently read. In today’s fast-paced world, students, similar to many Americans, do not have enough time in a day to notice the intensity of the economy in their ultimate satisfaction, happiness, and overall well-being.

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

Big banks in the middle 2000s were flourishing of the money made from selling the mortgages to big investors. While this was great when the banks were giving money to people who were reliable and were going to pay their mortgages every month. And when the investors were making such a hefty profit they wanted more. This is when Subprime mortgages were widely used, giving less reliable lower credit scores the opportunity to get homes. The banks knew that these people would not necessarily always be able to pay, which was the one of many mistakes (Crash Course.) The banks learned that while it did sometimes work out, the consequences of giving out too many unreliable mortgages can bring the whole nations economy down for the housing market has always been the pillar of the economy. The greed of the extremely wealthy continued to overpower the common sense of the

The Great Depression was a worldwide economic drop that lasted from 1929 to 1939. It was both the longest and most severe depression to be experienced in the Western world. Although the Depression first started in America, it spread to other country in the globe and resulted in a decline in net output, a severe unemployment rate, and a deflation in almost every country of the globe. But this didn’t just affect the economy of the world but it also affected the social and cultural aspects of the country especially the United States, where the Great Depression ranks only second to the Civil War as the gravest crisis in American history.

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.

The 2008 financial crisis should not be the last one readers will experience, but this paper would like to present a picture of how it unfolded and where went wrong, so that hopefully we can learn from it. This paper will address some post-crisis regulations and why regulators responded this way. It concludes that the key is to carry out reforms addressing the moral hazard issue deeply in our current financial system.

The Great Recession of 2008 was the biggest global financial crisis that the world witnessed after the Great Depression of the 1930s. Collapsing markets, failure of banks and drastic decrease in international trade were just some key characteristics of the great recession. It became clear after the collapse of the capitalist ideology enforced by United States that this was the end of America-centred age of globalization (Lecture 2). This paper will compare and contrast the key characteristics of the great recession and the great depression. It will also emphasize that the root causes of the financial collapse of 2008 were first, unfavourable macroeconomic factors such as increasing deficits in the current account of advanced countries and loose

(7) The repeal of Glass-Steagall Act contributed to the crisis, so is only normal to restore it. The banking system should be divided in two halves; speculative and underwriting, and commercial taxpayer-backed depository banks (Ritholtz, xxvi). (8) As Nixon Treasury Secretary George Shultz famously quoted, “If they are too big to fail, make them smaller” (Ritholtz, xxvi). By reducing the limit size of the behemoths of total U.S deposits, competition would increase leading the banking sector with more institutions decreasing bailouts. (9) In corporate structure, public firms along partnerships should be held responsible and liable for the losses. This will prevent partnerships, just like public firms to not act recklessly with their investor’s money.

This research paper will shed light upon the global economic crisis of 2008, which lasted till 2009. While discussing the global economic crisis of 2008, this paper will highlight some important aspects including what exactly caused the global economic recession of 2008, how it is associated with the recession that took place in 1930, how Saudi Arabia dealt with the global recession (2008) specifically and the impact of this recession on the economy of Saudi Arabia. Furthermore, it will discuss how the whole world dealt with the global recession, whether it was working collectively or individually and what alternative development strategies can Saudi Arabia pursue, while focusing mainly on Prince Mohammed bin Salman’s Saudi Vision 2030 and

Regulators are responsible for overseeing various components within the banking industry; however, one component that I was most interested in was capital adequacy requirements. I wanted to understand why capital requirements were created in the first place, how they had evolved over time and what role they played in the crisis. Lastly, I believe that capital requirements are a self-evident prevention method in inhibiting the collapse of banks due to risky lending. Therefore, with the creation of adequate capital requirements going forward, we could have one solution for a very complex problem.

Northern Rock, a bank in the United Kingdom, was one of the institutions negatively impacted early on during the global crisis (MacDonald & Mollenkamp, 2008; Shin, 2009). Although its failure was among the first signs of the global crisis in the United Kingdom, regulatory barriers were not in place early enough to stymie the resulting financial turmoil, and financial reform resulted (Enrich & Norman, 2010). The purpose of this essay is to outline the particulars of the Northern Rock debacle and then to review the reform of the Financial Services Authority, the main financial oversight entity in the United Kingdom during the period of the crisis.

At the same time, the regulators should be as transparent as possible and fully accountable. The accountability and transparency of the regulator will increase the credibility of the regulator and in-turn benefit the regulated entity. Types of Financial Regulation Financial regulation in a country can be done either by a single body called a single regulator or multiple bodies co-existing and working together or in a hierarchy of entities known as multiple regulators. A regulator whether single or multiple does not determine the economic standing of a country or its financial strength. Many developed countries of the world follow either the system of single regulation or multiple regulations. Often in times of economic crisis or financial boom in the country’s economy the government of the nation will review its regulatory system and choose to expand or close down some of its regulatory bodies.