The Worst Economical Events Since The Great Depression
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One of the worst economical events since the Great Depression, the 2008 stock market crash was an occurrence that will go down in American history. This catastrophic event within the United States had many circumstances leading up to it that are monumental in of themselves. Effects of this crash left many people homeless, jobless, and most importantly, hopeless of ever recovering from such a devastating time. Just receiving a job interview was nearly impossible and getting food on the table was becoming harder and harder to many Americans. One thing is for sure and that is the 2008 stock market crash was extremely hard to go through but something even better to say you survived.
“People started to sell and they sold hard. It didn’t matter…show more content… The physiological aspect of the 2008 stock market crash also played a critical role in the downfall of the economy. If people are not confident with the stability of the economy then they are less likely to invest their money and increase the overall gross domestic product (Baker, Plunder and Blunder). This was a major problem during the crash and only made the hopes of a recovery even more distant. How do you re-instill hope in millions of people that are struggling to make it by? Why would people invest in the stock market when they can barely afford gasoline for their cars to get from point A to point B? These were critical questions being asked by professionals during the crash of 2008 that had no direct solution to them. People were out for themselves and the overall economy took a direct hit because of this.
“Confidence is the only thing holding up this giant house of cards” (Prechter).
During the time of recession, there were many contributing factors that lead to the overall fall of the stock market. The collapse of the housing market bubble is single handily the biggest determining factor in the 2008 stock market plunge (Fry, Ebsco). Mortgage and credit lenders were partaking in unethical business practices that were going unnoticed during this time. These lenders tend to focus on balancing the level of risk and return in the market but