According to investopedia, “ The sharp decline in economic activity during the 2000s, which is generally considered the largest downturn since the Great Depression. The term “Great Recession” applies to both the U.S. recession – officially lasting from December 2007 to June 2009- and the ensuing global recession in 2009. The economic slump began when the U.S. housing market went from boom to bust and large amounts of mortgage-backed securities and derivatives lost significant value.” The Recession resulted with an economy screaming for help and an economy that needed to make action quickly so that we could recover as soon as possible. Many economists like Ben Bernanke, think that this 2008 Recession had months that were even worst than the Great Depression back in 1929. The main difference between the Great Depression in 1929 and the Great Recession in 2008 is simply the way that the Feds acted to the policies; in 1929 Feds decided to go by the central banks and by helping with monetary policy. Even though this Recession started mostly in the United States, it spread through other countries as well, like Europe. The Recession lead to unemployment increasing, rising poverty, falling incomes, jobless people, real state market collapsed, credit crisis, collapse in market confidence, banks like Lehman Brothers went to bankruptcy and many other problems arise. I’m going to talk about how the Great Recession in 2008 started, the several people who contributed to the start of the Great Recession, and how did we recover.
First, there are several reasons why the Great Recession in 2008 started. Everything started when banks were having too much money supply; the banks were d...
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...e economic policies that are good. These alterations announced a boom-bust cycle, which really does not help the economy recovery at least at a faster pace. According to the article, “A host of other jobs measures contributed to the economic recovery, including the extensions of unemployment insurance, the payroll tax cut and other tax cuts for business investment and hiring. The auto industry bailout is also mentioned as part of the broader policy response that put the U.S. economy back on track, as well as investments in social safety net programs that helped keep millions of Americans out of poverty”(Shiddiqui, “The U.S. Recovered From The Recession Faster Than Every Country But Germany.”) Also, enforcing strong monetary and fiscal policies helped us revive from that hole. Even though this is not all of the reasons why we are recovering, these are just some.
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