What Is The Rise Of The United Stats Economy From 1995 To 2000

The late 1990’s into the early 2000’s was a time of great economic success that took a turn for the worst as the war against terrorism began. In America, the economy was at its peak especially on Wall Street until September 11th 2001. The attacks that occurred on September 11th deeply affected America. The attacks caused the Dow to drop tremendously along with causing the recession to deepen. America was led into of the biggest government spending periods in a long time. The cost to fund the war along with to rebuild the economy held a toll on all Americans. America had to dig itself out of a hole. Unlike the economy, technology was on the rise. Many new inventions such as wireless internet, mobile devices, and new forms of social media were created.

During the early 2000 's, the United States housing market experienced growth at an unprecedented rate, leading to historical highs in home ownership. This surge in home buying was the result of multiple illusory financial circumstances which reduced the apparent risk of both lending and receiving loans. However, in 2007, when the upward trend in home values could no longer continue and began to reverse itself, homeowners found themselves owing more than the value of their properties, a trend which lent itself to increased defaults and foreclosures, further reducing the value of homes in a vicious, self-perpetuating cycle. The 2008 crash of the near-$7-billion housing industry dragged down the entire U.S. economy, and by extension, the global economy, with it, therefore having a large part in triggering the global recession of 2008-2012.

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

911 startled America in 2001, the Dow Jones rapidly declined from 11,500 to 8000 and NASDAQ from 5000 to 3,800. In 2002/03 the dot com bubble hit dragging the Dow to about 5000 and the Nasdaq to about 2,500.

One of the factors that led to the mortgage crisis was the housing bubble. It started in 2001 and climaxed in 2005. A housing bubble is characterized by rapid increase in the value of real estate properties to an extent that

In the U.S., a housing bubble began to emerge just after the turn of the 21st century. In these years, the economy was in great shape, interest rates were low, and consumers were ready to buy, which drove up real

Prior to the terrorist attacks on September eleventh, the United States economy was stable and the majority of Americans were satisfied with the country. The Prosperity of the 1990s was due to low inflation and low unemployment rate, along with a payroll increase beginning in 1992 and concluding in 2000 (Wikipedia). However, economic uncertainty arose in the 1990s mostly due to the Asian crisis, which led to suspicion of a bubble, and in 2000 the NASDAQ crashed(Wikipedia). According to Pew Research Center, the years leading up to 2000, the majority of the public and elites in America saw globalization as a benefit to the United States Economy. The rise of China as a global power of the world was seen as an important problem that needed to be controlled. Overall the economy in the decade before 9/11 was positive, with no major

The housing bubble went into full effect by December of 2007, and is seen to be the leading cause of the Great Recession. With the lowering of interest by mortgage associations, lead to those who had poor credit to obtain a mortgage. Those

The Great Recession, December 2007 through June2009 marks an unstable 18 months for the United States’ economy, that countless amounts of people won’t forget. The housing and bank markets during the recession were not recouping much money off loans and low interest rates, which cause both markets to nearly crash. This caused many Americans to lose their jobs and the unemployment rates to reach the highest numbers since the Great Depression. But ever since 2009, the economy has been an on slow but steady track up to being what it once was.

The 1990 to 2000 population increase was the largest in American history. The population growth of 32.7 million people between 1990 and 2000 represents the largest census-to-census increase in American history.2 The previous record increase was 28.0 million people between 1950 and 1960, a gain fueled primarily by the post-World War II baby boom (1946 to 1964). Total decennial population growth declined steadily in the three decades following the 1950s’ peak before rising again in the 1990s. The 1990s economic boom in the United States was an extended period of economic prosperity, during which GDP increased continuously for almost ten years (the longest recorded expansion in the history of the United States). It commenced after the end of the

In December 2007, the United States experienced a time of rising unemployment and declining GDP (gross domestic product) that lasted until 2009. This period was dubbed the Great Recession due to the severity of the negative impacts. The U.S. National Bureau of Economic Research defines a recession as a “period of at least two consecutive quarters of declining levels of economic activity” (Krabbenhoft), and during the time span between 2007 and 2009 GDP decreased by 3.5 percent and unemployment rate increased more than 5 percent. The gross domestic product indicates the total value of goods and services produced over a period of time, so production and consumer spending decreased drastically. The government attempted to alleviate the unemployment rate and increase economic growth by creating what’s known as a multiplier effect. The multiplier effect occurs when there is an increase in final income from the increase in spending from the initial stimulus. Consumer expenditures make up 70 percent of GDP, and

This recession happened sometime after Obama was in office. This recession started in Dec. Of 2007 and lasted until the mid of year of 2009. Many people lost their jobs and maybe even their homes through this period of recession. This recession lasted for an 18- months! This was the most slowest time besides the great depression in our American history. During this period this country's nation GDP shrank from 4.5 to 5 percent! Capitalism a love story examines this very financial collapse/relapse this country experienced.

effectively encouraged frivolous spending and heavy borrowing allowing people to live beyond their means. Low interest rates also increased the discount value of assets and therefore increased their value. This created a house price boom in the UK and US. It was in the US that this twined with high levels of borrowing created the subprime lending market, whereby individuals with poor or no credit history borrowed vast subs of money to buy

So what happened in the 90s? First, the unemployment averaged just 5.7 percent. The stock market returned 18 percent a year for the decade. Inflation was tame. And the federal government actually ran surpluses for a few years. Because of this the economy was off to a good start.

None of these explanations, however, is capable of fully explaining the housing bubble. From 1997 to 2006 nominal U.S. housing prices rose 188%. By mid-2009, however, housing prices had fallen by 33% from peak. As the United States attempts to rebuild its housing finance system, it is of paramount importance to understand what caused the housing bubble. Until we understand how and why the housing bubble occurred, we cannot be certain that a reconstructed housing finance system will not again produce such a devastating bubble. As you can see there are numerous theories and explanations for the bubble. Without getting too deep