The Recession Of The United States And United Kingdom

1839 Words Oct 29th, 2015 8 Pages
The Great Recession of 2007-2012, of which several countries are still recovering, including the United States and United Kingdom, shows great similarity to the Japanese Recession of the 1990s. However, by taking a closer look and identifying the causes of both we become aware of the differences that make them not so similar after all. The Great Recession had a domino effect beginning in the United States with the fault of subprime mortgages creating a housing bubble. Whereas Japan’s fault lies with the increasing land prices due to investment, in which created a land bubble that eventually would burst. With the United States and Japan holding high ranks on the Top 10 Exporters in 2014, United States 2nd and Japan 4th, a recession shows that a financial struggle as big as they both faced would effect a country’s economy to a dangerous extent.

Previous to the 2007 Great Recession, there was a housing boom within several countries including the United Stated and United Kingdom due to the low interest rates. This resulted in the increase of home ownership within the United States. (Buckley, 2011) As of March 2007, subprime mortgages had been estimated at a whopping sum of $1.3 trillion within the United States. Kathleen Lamont Matriculation No. 150011785at the time was investin in land within Japant spread throughout europe d with Subprime mortgages were increasing in popularity within banks in America and were beginning to storm across the sea to Europe. Mortgages of…
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