2008 Recession

1.Specify the exact duration and severity of the 2008 recession
*The great second recession, and the aftermath of the events will never be ignored. The antecedent events of 2008 were highly questionable, as to why they transpired. As of present day, the United States is still amongst a financial slump. Again, the rippling effects in the recession of 2008 are still felt both near and far. We as American, never believed that such a financial atrocity would ever occur yet again after the financial issues that the United States observed in the 1930’s. The National Bureau of Economic Research indicated the the actual recession of 2008 took place in December of 2007 (Isidore, 2008). The York Times released a statement in September of 2010, “The
The downfall that many if not all bank and lending institutions faced, catapulted the economy dramatically. The previous lending habits of these institutions show a direct correlation with the credit bubble that occurred from 2001 until 2007. The results of these lending habits were experienced not only in the United States, but worldwide issues began to surface. Though, many believe that the final factor may have been the “bursting” of the U.S housing bubble. The housing “burst” causing many individuals to default on their mortgages. The National Bureau of Economic Research stated that, “while large on an absolute scale, are modest relative to the $8 trillion lost in U.S. stock market wealth between October 2007 and October 2008” ("The National Bureau of Economic Research"). Additionally, In Deciphering the Liquidity and Credit Crunch 2007-2008 (NBER Working Paper No.14612), Markus Brunnermeier describes how those lesser and larger losses were linked and shows how economic mechanisms amplified losses in the mortgage market into broad dislocation and turmoil in the financial market” (Brunnermeier,2009,pp 77-100). Yes, the depression did in fact begin in 2008, however, the actions that occurred in the aforementioned time period were notable confounding influences on the depression of 2008. Other causation factors include the collapse of Lehman Brothers. Yes, this financial institution is based in the United Stated, yet their demise, as The Economist indicated that, “ In September 2008 almost brought down the world’s financial system” ("The Economist", 2013). The saving grace for Lehman Brothers, was that they were to “large” to fail. The monetary and fiscal abilities of the United States tax payers prevented the less than favorable quote “buddy-can-you-spare-a-dime” depression” ("The Economist", 2013). The United States practices further