2008 Financial Crisis by: Jonathan nannoshi

Background Information-- The 2008 Financial Crisis was an event like no other for many Americans living during this time. It is named one of the worst economic disaster since the 1929 Great Depression. George W. Bush was in office during this Financial plummet. There are many causes that led up to this event including the subprime mortgage, a backing crisis, the American International Group Bank (AIG), and the Lehman Brothers bankruptcy claim. All of these things had a big effect on the way this crisis took place. Signs of this crisis began in 2007, and throughout 2008 major problems began to occur.

The Impact on History. There were many negative affects from this financial crisis. Because of the large amounts of institutions that have failed, stock markets dropped worldwide. Consumers wealth significantly declined in the trillions of dollars witch was the cause of less economic activity, then leading to less economic stimulation. Real estate prices began to plummet and have to make a comeback afterwards. A damaged investor confidence caused the global stock markets to suffer during this period and the time after it.

Representation of a failing institution

The People Who were Affected by This Crisis. This economic crisis mostly affected American home, property owners, and investors. Most of the population was affected some way or another. The world banks started to cut interest rates. Many developing countries that were seeing quick economic growth began to slowdown and return back to how they were without United States aid.

"The US economy has been spending too much and borrowing too much for years and the rest of the world depended on the US consumer as a source of global demand."
"Stand together, Stop Foreclosures, Stop Evictions"

Future Events and Changes in Society. A prolonged mass unemployment also caused less economic stimulation. The rebound of employment was slow causing this to affect the society. This led to the Great Recession of 2008 up to 2012. Problems also led to the European Soviet Debt Crisis. The real estate market began to suffer because of the housing bubble. The public workforce is shrunk by more than a 650,000 people.

Just a representation of what most peoples wallets looked like during this time.

The Reason This Event is Meaningful Today. Many people study these dramatic events like the Great Depression of the 1930s and the 2008 Financial Crisis to try to find a pattern in witch this happen to try to avoid any future events like it. The fact that small shocks sometimes carry large effects is why these shocks want to be avoided. This particular crisis has taught the population to be better prepared and constantly look for any signs that are similar to past ones.

For more information check out this video below.

MLA CITATIONS "Gain & pain." Commonweal, vol. 143, no. 16, 2016, p. 5. U.S. History in Context, link.galegroup.com/apps/doc/A466298499/UHIC?u=catholiccenhs&xid=f3899c1f. Accessed 29 Apr. 2017.

Giraldez, Arturo. "Forging Capitalism: Rogues, Swindlers, Frauds, and the Rise of Modern Finance." The Historian, vol. 78, no. 4, 2016, p. 757+. World History in Context, link.galegroup.com/apps/doc/A476561167/WHIC?u=catholiccenhs&xid=51022ada. Accessed 29 Apr. 2017.

"Selfish banks should be fittingly punished." London Evening Standard [London, England], 21 Nov. 2016, p. 39. Global Issues in Context, link.galegroup.com/apps/doc/A470910217/GIC?u=catholiccenhs&xid=fc6faaed. Accessed 29 Apr. 2017.

"Real estate a shelter when markets go sour; Couple buys income-producing properties after losing money in dot-com bust and 2008 financial crisis." Globe & Mail [Toronto, Canada], 10 Dec. 2015, p. B12. World History in Context, link.galegroup.com/apps/doc/A437060971/WHIC?u=catholiccenhs&xid=842a295f. Accessed 29 Apr. 2017.

Credits:

Created with images by Glyn Lowe Photoworks. - "Reykjavik - Harpa is a Concert Hall and Conference Centre - Iceland" • Shoes on Wires - "West Lawn - Tinged with Regret" • Fibonacci Blue - "Rally to demand more accountability from the banking industry" • FolsomNatural - "ODCempty51"

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