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TED Video About The 2007-2008 Financial Crisis

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Many times, I have listened different speeches from my professors that have touched the topic about the 2007-2008 financial crisis, but I never fully understood how and why it happened. After watching the TED video that Dr. Daigle posted and some extra research I got a better idea about the recession and believe that now I am more knowledgeable on this topic. The Great Recession in 2008 began with the bursting of an 8 trillion-dollar housing bubble. As a result, the loss of wealth led to reductions in consumer spending. The financial market chaos, together with the consumption loss had triggered the bubble and had led to the collapse in the business investment. The consumer spending and business investment issues led to a massive job loss, which made the …show more content…

In 2008 and 2009, the U.S. labor market lost 8.4 million jobs, or 6.1% of all payroll employment. This was the most dramatic employment contraction (by far) of any recession since the Great Depression. By comparison, in the deep recession during the 80s, job loss was 3.1%, or only about half as severe (The State of Working America). The green light example in the video really helped me realize how people were tempted to get loans during the 2001-2003 years and as a normal person I believe I would have taken a bigger loan and bought a bigger house, since the interest rate was as low as 1%. Mr. Wesbury, the speaker in the video, made a very good comparison with the crisis during the late 70s and early 80s. The problem back in the early 70s was again the low interest rate and how people were buying and spending more than they could afford. Additionally, many individuals had been investing in the oil

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