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The Great Recession Essay

1287 Words6 Pages

Introduction: background info with thesis
The Great Recession was a global economic crisis that began in 2008 and lasted for several years. It was triggered by several factors, including the collapse of the housing market, the failure of major financial institutions, and a global credit crisis which ultimately led to widespread financial instability, a decline in consumer spending, and job losses. The effects of the economic crisis were also experienced worldwide, with other countries undergoing significant economic contraction, rising unemployment, and financial market turmoil. Governments and central banks responded with a range of policy measures, including fiscal stimulus, monetary easing, and financial regulation reforms, to stabilize …show more content…

The housing market bubble was fueled by a rise in subprime lending, which allowed people with poor credit to take out mortgages they couldn't afford. As housing prices began to fall, many borrowers defaulted on their loans, leading to widespread foreclosures and a collapse in the value of mortgage-backed securities. This had a ripple effect throughout the financial system, causing many banks and financial institutions to fail or require government bailouts. The resulting financial instability led to the global economic downturn and widespread job losses. People around the nation responded to this economic crisis in a variety of ways, depending on their circumstances at the time. Many people who lost their jobs or homes as a result of the recession experienced significant financial hardship and struggled to make ends meet. Some people turned to government assistance programs, such as unemployment benefits and food stamps, to help them get by. Others took on additional work or went back to school to improve their job prospects. Many people also became more cautious with their spending and saving habits, as the recession highlighted the importance of financial stability and preparedness. Also in response to the recession, leaders around the world implemented a range of policy measures to stabilize the economy and prevent a repeat of the crisis. These measures included fiscal stimulus packages, monetary easing, and financial regulation reforms. In the United States, the government passed the American Recovery and Reinvestment Act, which provided funding for infrastructure projects, tax cuts, and social programs. Also, the Federal Reserve applied various monetary policy measures, including lowering interest rates and executing quantitative

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