The 2008 Recession Affected The Global Economy

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With the after effects of the stock marketing falling in 2008, and less investments involving risk and the GDP falling. This is when the economy began turning internationally. With imports, exports and foreign investment falling along with the combination of employment and production being cut back this recession affected the global economy. The unemployment rate in the United States began to skyrocket as well. Below is a graph depicting the unemployment rate in the United States during the 2008 recession. This graph data is from Oregon Economic Crisis Analysis. With lower rats of employment the United States Federal Reserve needed monetary policy to stimulate the economy. With many individuals loosing their jobs primarily in the housing sector the spiral continued through other sectors. It was not only builders and contractors who lost their jobs. The housing and development market affects many other markets. Builders affect the pluming, wood, furniture, lighting, electricity, and supplier’s side of the market as well. With builders and developers loosing their business, going bankrupt, not getting investments they left their suppliers without payments. This caused unemployment in many other sectors of the economy. This lead to many individuals without jobs, and the job market tightening down, which lead to decreases in both savings and spending in the United States money market. With many unemployed and the market reaching The Great Recession as many economist call it, the Federal Reserve started to step in to try and save the economy and some of the economic crises that were occurring. The Federal Reserve began to buy many financial assets from banks who were in trouble by these lenders and suppliers who had loans the... ... middle of paper ... ... http://www.economist.com/news/schoolsbrief/21584534-effects-financial-crisis-are-still-being-felt-five-years-article http://spectator.org/articles/42211/true-origins-financial-crisis http://economix.blogs.nytimes.com/2009/02/25/deflation-1929-vs-today/?_php=true&_type=blogs&_r=0 http://oregoneconomicanalysis.com/2012/09/24/checking-in-on-financial-crises-recoveries/ http://www.economist.com/news/schoolsbrief/21584534-effects-financial-crisis-are-still-being-felt-five-years-article http://www.britannica.com/EBchecked/topic/1484264/The-Financial-Crisis-of-2008-Year-In-Review-2008 http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%9308#Subprime_lending http://en.wikipedia.org/wiki/Great_Recession

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