Great Recession Of 2008 Flashcards, test questions and answers

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What is Great Recession Of 2008?

The Great Recession of 2008 was an incredibly significant event in modern history. It had a profound effect on the world’s economy and left a lasting impact on many people’s lives. It officially began in December 2007 and lasted until June 2009, although its effects were felt for years afterward.The main cause of the recession was the bursting of the housing bubble that had built up through unsustainable mortgage practices such as subprime lending and adjustable rate mortgages brought on by deregulation. The crash in real estate prices caused banks to lose massive amounts of money, resulting in many businesses closing their doors and unemployment rates soaring to 10 percent nationally. As people struggled financially, consumer spending dropped significantly which further dragged down economic activity. In response to this crisis, governments around the world implemented stimulus packages including billions of dollars worth of tax cuts, increased government spending, bailouts for failing companies and financial institutions, as well as other measures designed to prevent further damage to their economies. These measures were relatively successful but it took time for them to take effect leading to continued economic suffering during this period. The Great Recession created long-term hardships for millions of people around the world due to job losses, business failures, home foreclosures and other financial disasters that stemmed from it. Many countries are still dealing with its lingering effects today while others have managed to fully recover thanks in large part to improved regulations put in place following the crisis that have helped strengthen their economies against future shocks like this one. All told however, there is no doubt that The Great Recession will continue to be remembered as one of the defining events that shaped our current era.