The Great Recession: Financial Analysis

The Great Recession was the general economic decline observed in world markets around the end of the first decade of the 21st century. The Great Depression was a severe worldwide economic depression in the 1930s.

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 Great Recession of 2007-2009 was one of the most economically disastrous events in American history. The housing market took a significant downturn during this period. People were not cautious when it came to their money and loans. Larger loans were given out to people, even to those with bad credit and low incomes. These large loans caused many homes to go through foreclosure since people were unable to pay off their mortgage debts. These debts were created by banks increasing the interest rates on the loans significantly in a short period. In 2008, foreclosures were up by eighty-two percent. This increase is significant because the previous percentage of foreclosures was at fifty-one percent from 2007. Unemployment skyrocketed, and people

From December 2007 to June 2009 the United States economy was confronted with its greatest challenge since the Great Depression. The financial crisis was so great that it was coined the term the Great Recession. Many factors contributed to the collapse of the U.S economy; such as, the financial crisis (2007–08), U.S. subprime mortgage crisis (2007–09), a shrinking Gross Domestic Product (GDP) growth rate and unpresented unemployment rates. A recent (2016) article in the Wall Street Journal entitled “Post-Recession Rethink: Growth Potential Dimmed Before Downturn” examines the economic aftermath of the Great Recession.

As the U.S. economy continues its struggle to climb out of a deep recession, personal loans remain very difficult to secure. Having shouldered much of the blame for the financial hardships that have befallen consumers across the nation, many banks now require potential borrowers to meet strict criteria for an approval. With the financial institutions being more selective about who they assist, Detroit locals like Ashley Wright are learning that consumers with excellent credit and decent paying jobs are the most likely to make the cut. "Getting an approval was definitely a journey," said Wright, who was in search of a personal loan to help out with school and living expenses. Wright found that a private bank was the best place to turn for

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 financial crisis that put our economy on a downhill rocky road is known as the Great Recession of 2008. The U.S. Governments resolution to one the biggest panics was revolved around multiple bailout and fiscal measures. The fight to pull our weakening economy out of a dark hole left the American people with hope of advancing what gets thrown their way. The many bailout programs implemented by the U.S. Government can only hold the economy together for so long until were up to our knees in debt.

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.

In December of 2007, The Great Recession began, and it did not end until July of 2009. It was the most prolonged recession since World War II. The Great Recession was intensely harsh in many aspects, after its length of action. The GDP fell 4.3% from its pinnacle in the fourth quarter of 2007 to the gutter in the second quarter of 2009, ending up being the most severe recession in the post-war time. The unemployment rate skyrocketed from 5% in December 2007 to 9.5% in June 2009, and the long-term unemployment rate doubled (US Bureau of Labor Statistics, 2012). The highest rate of unemployment was 10% in October 2009. The prices of homes fell roughly 30% from mid-2006 crest to mid-2009. From peak in October 2007 to its decline in March 2009,

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.

The Great Recession, beginning in 2007 and ending around 2009, caused some serious repercussions on the United States economic system and left millions of jobs and housing at a stand still. Though a couple big business and stockholding companies caused this decline in the U.S., those businesses were the ones experiencing little to no cost for their actions.

The 2008-2010 recession is a period when an economic decline was witnessed in major world markets. The U.S. was among the worst hence pressuring the Federal Reserve to make efforts towards evading further damages. The recession was characterized by a rise in both economic demand and asset prices. Other features of the recession included high cases of unemployment, slumping commodity prices, and a drop of international trade. To avoid a further economic decline, the Federal Reserve implemented various strategies that would help stabilize the nation. In cases of economic imbalances are viewed as the main cause of the recession. In response to the recession’s damages, the Federal Bank had the main task of restoring sanity,

When a government is faced with an economic downturn it has really has two options. The first option is to do nothing since periods of growth and decline are natural part of the economic cycle. However, if the decline appears to be more than just a general economic correction, then the second option comes into play. This second option is to enact various forms of legislation to help create an environment more acceptable to economic growth. The legislation can be industry specific, such as helping to increase home purchases, or more wide spread, like lowering of federal funds rate to help make the lending of money for all businesses more cost effective.

Wall Street was the responsible for the 2008 Great Recession. The took advantage of both the people and the system. Not only did the start the Great Recession in the U.S.A, but they also made it global because of the ability to trade worldwide. Wall Street investment banks though they were “too big to fail”. Because of this arrogant attitude they did not realize that they were causing a great problem throughout the world. And most important of all, it was Wall Street’s greed that ultimately brought about the Great Recession. Wall Street used poor decision making and invested in abad stocks. Once the Recession hit

During the recession of 2008 and the years that followed, jobs were very difficult to find for people. However, now that the recession of 2008 is dwindling and new jobs are being added to the economy, a labor shortage problem exists. Steve of explains, “the great conundrum of the U.S. economy today is that we have record numbers of working age people out of the labor ‎force at the same time we have businesses desperately trying to find workers, “ (Moore, 2015). The consequences of unfulfilled jobs in the US economy prevents companies from making money to insert into the