2008 recession
2008 recession study
KEY TAKEAWAYS
The Great Recession refers to the economic downturn from 2007 to 2009 after the bursting of the U.S. housing bubble and the global financial crisis.
The Great Recession was the most severe economic recession in the United States since the Great Depression of the 1930s.
In response to the Great Recession, unprecedented fiscal, monetary, and regulatory policy was unleashed by federal authorities, which some, but not all, credit with the subsequent recovery.
Understanding the Great Recession
The term "Great Recession" is a play on the term "Great Depression". An official depression occurred during the 1930s and featured a gross domestic product (GDP) decline of more than 10% and an unemployment rate that at one point reached 25%.
While no explicit criteria exist to differentiate a depression from a severe recession, there is a near consensus among economists that the downturn of the late-2000s, was not a depression. During the Great Recession, U.S. GDP declined by 0.3% in 2008 and 2.8% in 2009, while unemployment briefly reached 10%.
1
However, the event is unquestionably the worst economic downturn in the intervening years.
Causes of the Great Recession
According to a 2011 report by the Financial Crisis Inquiry Commission, the Great Recession was avoidable. The appointees, which included six Democrats and four Republicans, cited several key contributing factors that they claimed led to the downturn.
2
First, the report identified failure on the part of the government to regulate the financial industry. This failure to regulate included the Fed’s inability to curb toxic mortgage lending.
KEY TAKEAWAYS
The Great Recession refers to the economic downturn from 2007 to 2009 after the bursting of the U.S. housing bubble and the global financial crisis.
The Great Recession was the most severe economic recession in the United States since the Great Depression of the 1930s.
In response to the Great Recession, unprecedented fiscal, monetary, and regulatory policy was unleashed by federal authorities, which some, but not all, credit with the subsequent recovery.
Understanding the Great Recession
The term "Great Recession" is a play on the term "Great Depression". An official depression occurred during the 1930s and featured a gross domestic product (GDP) decline of more than 10% and an unemployment rate that at one point reached 25%.
While no explicit criteria exist to differentiate a depression from a severe recession, there is a near consensus among economists that the downturn of the late-2000s, was not a depression. During the Great Recession, U.S. GDP declined by 0.3% in 2008 and 2.8% in 2009, while unemployment briefly reached 10%.
1
However, the event is unquestionably the worst economic downturn in the intervening years.
Causes of the Great Recession
According to a 2011 report by the Financial Crisis Inquiry Commission, the Great Recession was avoidable. The appointees, which included six Democrats and four Republicans, cited several key contributing factors that they claimed led to the downturn.
2
First, the report identified failure on the part of the government to regulate the financial industry. This failure to regulate included the Fed’s inability to curb toxic mortgage lending.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.