Great Recession

Extracted Attributes

• Type

  Economic Recession, Financial Crisis

• Severity

  Most severe economic and financial meltdown since the Great Depression

• Primary Cause

  Bursting of the U.S. housing bubble

• Global Duration

  Late 2007 to Mid-2009

• Secondary Cause

  Subprime mortgage crisis

• U.S. GDP Decline

  4.3%

• U.S. Official Duration

  December 2007 to June 2009 (19 months)

• U.S. Unemployment Peak

  10%

• Affected Regions (Severely)

  North America, South America, Europe

• Affected Regions (Less Impacted)

  China, India, Indonesia, Oceania

Timeline

• Successive decreases in the prime interest rate enabled banks to issue subprime mortgage loans to a broader range of customers. (Source: Britannica)

  2001

• The United States housing bubble began to burst, leading to falling housing prices. (Source: Wikipedia)

  2005

• The value of mortgage-backed securities held by investment banks declined, marking the subprime mortgage crisis phase. (Source: Wikipedia, Summary)

  2007-08

• The Great Recession officially began in the United States. (Source: Wikipedia, Summary)

  2007-12

• Several investment banks collapsed or were bailed out due to the financial crisis. (Source: Wikipedia, DBPedia)

  2008-09

• The Great Recession officially ended in the United States. (Source: Wikipedia, Summary)

  2009-06

• The global economic downturn concluded. (Source: Wikipedia, Summary)

  2009

• The Dow Jones Industrial Average recovered to its pre-recession levels. (Source: The Motley Fool)

  2013

• Unemployment rates in the U.S. remained high until this year. (Source: The Motley Fool)

  2015

Great Recession

The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009, overlapping with the closely related 2008 financial crisis. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression. The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2012. When housing prices fell and homeowners began to abandon their mortgages, the value of mortgage-backed securities held by investment banks declined in 2007–2008, causing several to collapse or be bailed out in September 2008. This 2007–2008 phase was called the subprime mortgage crisis. The combination of banks being unable to provide funds to businesses and homeowners paying down debt rather than borrowing and spending resulted in the Great Recession. The recession officially began in the U.S. in December 2007 and lasted until June 2009, thus extending over 19 months. As with most other recessions, it appears that no known formal theoretical or empirical model was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecast probabilities, which were still well under 50%. The recession was not felt equally around the world; whereas most of the world's developed economies, particularly in North America, South America and Europe, fell into a severe, sustained recession, many more recently developing economies suffered far less impact, particularly China, India and Indonesia, whose economies grew substantially during this period. Similarly, Oceania suffered minimal impact, in part due to its proximity to Asian markets.

Web Search Results

• Great Recession - Wikipedia

  The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009, overlapping with the closely related 2008 financial crisis. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression. [...] The combination of banks being unable to provide funds to businesses and homeowners paying down debt rather than borrowing and spending resulted in the Great Recession. The recession officially began in the U.S. in December 2007 and lasted until June 2009, thus extending over 19 months. As with most other recessions, it appears that no known formal theoretical or empirical model was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecast [...] Under the technical definition, the recession ended in the United States in June or July 2009. Journalist Robert Kuttner has argued that 'The Great Recession' is a misnomer. According to Kuttner, "recessions are mild dips in the business cycle that are either self-correcting or soon cured by modest fiscal or monetary stimulus. Because of the continuing deflationary trap, it would be more accurate to call this decade's stagnant economy The Lesser Depression or The Great Deflation."

• Great Recession: Definition, Causes, and Effects | The Motley Fool

  What was the Great Recession? ----------------------------- The Great Recession -- also called the financial crisis or the subprime mortgage crisis -- refers to the global economic downturn between 2007 and 2009. The U.S. officially entered a recession in December 2007, and that downturn didn't come to an end until June 2009. Spanning about 18 months, it was the longest recession since the Great Depression. During that time, U.S. GDP fell 4.3% -- the biggest drop since the Great Depression. [...] While most recessions last less than a year and a half, the Great Recession was more severe than average. As the worst economic and financial crisis since the Great Depression, it earned the moniker of the Great Recession. Here's a closer look at this devastating recessionthat left a lasting impact on the financial, banking, and housing markets. Image 5: Concerned man and woman sit across from the table of a woman presenting an electronic tablet Image source: Getty Images. [...] The Great Recession from 2007-09 saw GDP fall 4.3%, the biggest drop since the Great Depression. Deregulation in the 2000s and excessive risk by banks were major causes of the financial crisis. Post-recession, it took the Dow until 2013 to recover, while unemployment remained high until 2015. Investor Alert: Our 10 best stocks to buy right now ›

• Great Recession | Causes, Effects, Statistics, & Facts - Britannica

  Great Recession, economic recession that was precipitated in the United States by the financial crisis of 2007–08 and quickly spread to other countries. Beginning in late 2007 and lasting until mid-2009, it was the longest and deepest economic downturn in many countries, including the United States, since the Great Depression (1929–c. 1939). [...] The financial crisis, a severe contraction of liquidity in global financial markets, began in 2007 as a result of the bursting of the U.S. housing bubble. From 2001 successive decreases in the prime rate (the interest rate that banks charge their “prime,” or low-risk, customers) had enabled banks to issue mortgage loans at lower interest rates to millions of customers who normally would not have qualified for them (see subprime mortgage; subprime lending), and the ensuing purchases greatly [...] the European Union, the European Central Bank, and the International Monetary Fund (IMF) and resulted in the imposition of painful austerity measures. In all the countries affected by the Great Recession, recovery was slow and uneven, and the broader social consequences of the downturn—including, in the United States, lower fertility rates, historically high levels of student debt, and diminished job prospects among young adults—were expected to linger for many years.

• Great Recession: What It Was and What Caused It - Investopedia

  The term “Great Recession” is a play on the term “Great Depression” of the 1930s, when gross domestic product (GDP) declined more than 10% and unemployment hit 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 2007–2009 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%. ### Important [...] NoNo Flores / Investopedia ## What Was the Great Recession? The Great Recession was the sharp decline in economic activity that started in 2007. The economic slump began when the U.S. housing market went from boom to bust, and large amounts of mortgage-backed securities (MBS) and derivatives plummeted in value. ### Key Takeaways ## Understanding the Great Recession [...] The Great Recession lasted from roughly 2007 to 2009 in the U.S., although the contagion spread around the world, affecting some economies longer. The root cause was excessive mortgage lending to borrowers who normally would not qualify for a home loan, which greatly increased risk to the lender. Lenders were willing to take this risk, as they could simply package the loans into an instrument they sold, passing the risk on to investors.

• [PDF] 15 The Financial Crisis and the Great Recession

  2.2 The Great Depression and the Great Recession Compared Calling the period after the financial crisis the “Great Recession” invites comparison with the other “great” economic downturn of the past century, the Great Depression. What makes the Great Recession different from previous recessions is the duration of the downturn. During most of the twentieth century, after about 1940, a recession was an almost predictable busi-ness cycle downturn followed, after a few quarters, by a solid economic

• Instance Of

  Q176494

The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred between 2007 and 2009. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression. One result was a serious disruption of normal international relations. The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2012. When housing prices fell and homeowners began to abandon their mortgages, the value of mortgage-backed securities held by investment banks declined in 2007–2008, causing several to collapse or be bailed out in September 2008. This 2007–2008 phase was called the subprime mortgage crisis. The combination of banks unable to provide funds to businesses, and homeowners paying down debt rather than borrowing and spending, resulted in the Great Recession that began in the U.S. officially in December 2007 and lasted until June 2009, thus extending over 19 months. As with most other recessions, it appears that no known formal theoretical or empirical model was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecast probabilities, which were still well under 50%. The recession was not felt equally around the world; whereas most of the world's developed economies, particularly in North America, South America and Europe, fell into a severe, sustained recession, many more recently developed economies suffered far less impact, particularly China, India and Indonesia, whose economies grew substantially during this period. Similarly, Oceania suffered minimal impact, in part due to its proximity to Asian markets.