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The 2008 Economic Collapse

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After the great depression back in the 1930’s, America would think they would never run into an economic scare again, until 80 years later when the next big economic disaster would strike. The 2008 economic collapse would not only be triggered and felt by America, but the entire globe as well. You would think that the United States would have a fail-safe plan on defending off another economic crash, but they didn’t and had shown weakness. The 2008 economic collapse is usually refereed to as the global financial crises or the great recession. With the allegation of collapse from large financial institutions, and the bailout of banks by the government, began the second great depression. Many believe that we are still stuck in this recession and have not completed anything to get out of this situation that’s affecting our nation. I believe that the economic crash in 2008 was the finale building block towards a more structural society, political system, and government in the United States of America.
There are a vast amount of listed causes that lead to the 2008 economic collapse, but only a few really dealt the damage. The problems arrived over a period of time from 1995 to 2008. The first and main problems that lead to the economic collapse was sub prime mortgages. Sub prime mortgage is a certain kind of loan granted to people with poor credit histories, who which wouldn’t usually be qualified for conventional mortgages (Investopedia). These sup prime mortgages would backfire on banks across the nation resulting in huge financial loses. According to USA Today, “Housing crisis deepens. Banks and hedge funds that invested big in sub prime mortgages are left with worthless assets as foreclosures rise. The damage reaches the top echelo...

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...ate wealth (GovermentStatSheet). Since then the American political economy has grown, strengthened, and reinforced the future since the learning period of 2008. The great recession is proven to be a point in time when financial funds didn’t exist but the United States government has analyzed and can now predict identical causes and annihilate them before they arise again.

Works Cited
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Usatoday. "Timeline: Key Events in Financial Crisis." USA Today. Gannett, 09 Sept. 2013. Web. 16 May 2014.
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