The Great Recession Of 2008-9 - 1850 Words

The Great Recession of 2008-9 was the deepest and longest capitalist economic slump since the Great Depression of 1929-32. The recent financial crisis is known as the â€Å"Great Recession† of 2008-9. Its downturn was sparked by the collapse of the US housing market. In 2006, the prices of home began to rise and the banks began to encourage potential homebuyers to take out larger loans. There were lower interest rates at the time, and this seemed like a good idea for most individuals who were searching for a new home. Then, in mid-2007, the interest rates began to rise. The values of the homes decreased and the amount of money a house was worth declined significantly. Many homeowners were stuck with large loans, increasingly high interest rates, and a decreased price of their home. Many homeowners went into foreclosure or were evicted. This eventually led to large financial institutions and banks to become bankrupt, which lead to an overall fall in the US economy. Stocks dropp ed, consumer spending declined significantly, and companies began to go out of business (Athanasiu, 43). This financial crisis has impacted the economy tremendously during that period. Businesses have been drastically impacted, as have the lives of workers in the United States. Many articles have been published about different aspects of the recession. One question that has not been completely addressed is how the Great Recession has affected small business and unemployment rates. The reason for addressingShow MoreRelatedThe Great Recession Of 20081123 Words   |  5 Pages The Great Recession of 2008 Debra Turner ECON 102 Professor, Shahrokh American Public University September 26, 2015 â€Æ' The Great Recession of 2008 Recession is a significant decline in real GDP, real income, employment, industrial production, and wholesale/retail sales, which last more than a few months. (Economic recession, n.d.) 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It is from manyRead MoreResearch Paper on the Recession of 2007-20091672 Words   |  7 Pages| Research Paper on the Recession of 2007-2009 | Cynthia Funes | | American Government 2301 | 9:40-11:40 A.M. | Mr. Jacobs June 28, 2011 | Everybody in the United Stated was affected by the recession that began in December of 2007 and spanned all the way to June 2009. Even though the recession is over, many people are still being affected by it and have still not been able to recover from the great recession. â€Å"The recent recession features the largest decline in output, consumptionRead MoreFrom Reagan to Obama: Turning Points in Presidencies1070 Words   |  4 Pages history; and b) the great recession beginning in 2008 had a devastating impact on the American economy, on consumers, on housing and more. Barack Obama was elected to the presidency in the fall of 2008, beating Republican U.S. Senator John McCain. The New York Times argued that Obamas victory †¦amounted to a national catharsis a repudiation of a historically unpopular Republican president (George W. Bush) and the foreign and domestic policies of Bush (Nagourney, 2008). Obamas popularity wasRead MoreAustralia s Economic Success And Growth Rates1699 Words   |  7 PagesAustralia is also one of the few countries in the world that was essentially unaffected by the Great Recession during 2008 and 2009, because of the intuitive financial stimulus decision made by Australia’s policymakers after predicting economic collapse only five months before the recession’s conception (Barrett 9). Because of Australia’s economic success and ability to dodge the effects of the financial crisis of 2008, its currency, the AUD, or Australian Dollar, has driven the exchange rate to AmericanRead MoreThe Growth And Pe ak Stage Of A Business Cycle1498 Words   |  6 Pagesitself. These stages are growth, peak, recession and a trough or depression. These cycles repeat themselves over and over through out time in the business world. The growth and peak stage of a business cycle are when companies are building and providing great products and services. This is also the period when jobs are most abundant and harder to fill because job positions are in demand. After the peak stage a risky point in time follows which is the recession stage. During this time people tend to