In 2008 the housing bubble in the united states crashed, it created the biggest decline in the housing market since The Great Depression. To this day, people can still feel the effects from the crash. The crash can be attributed to the greed and stupidity of bankers, and some of the highest levels of leadership in this country. Negative impacts were seen around the world, but the biggest ones felt in the US were: Massive spikes in unemployment, increases in foreclosures and
Unemployment
The housing market hit its peak in 2006 and from there began the crash. At that time, the unemployment rate in the country was at 4.6%, the lowest it had been since 2000. Most analysts give the crash a timeframe of 2007-2008, however, unemployment rates continued …show more content…
A CNN report written during the crash said “U.S. foreclosure filings spiked by more than 81% in 2008 and they’re up 225% compared to 2006” Christie (2009). There were an estimated 10 million home foreclosed on during the recession and some economists believe the country is still repairing the damage to this day.
Rise of Suburban Poverty
In the peak of the 2008 crash there was an extreme rise in poverty among suburban areas. This was due to the fact that the residents of those areas couldn’t afford their mortgages after the crash, and were forced to leave. As a result, the once prosperous neighborhoods were financially unappealing. This led to businesses failing and an increase in crime and poverty in those areas. Semuels (2015) wrote of one specific case where Atlanta’s population of poor people in suburban areas had grown by 159%. This can be seen across the country as the shift from city to suburban poverty continues to this day.
Conclusion
The economic crisis in 2008 was the largest the country had seen since the great depression. While some believe that it could have been prevented if people had simply paid attention, everyone is in agreement that the country is still rebuilding to this day. It can be seen in the neighborhoods, and the fact that unemployment has just returned to the numbers before the
Unemployment
The housing market hit its peak in 2006 and from there began the crash. At that time, the unemployment rate in the country was at 4.6%, the lowest it had been since 2000. Most analysts give the crash a timeframe of 2007-2008, however, unemployment rates continued …show more content…
A CNN report written during the crash said “U.S. foreclosure filings spiked by more than 81% in 2008 and they’re up 225% compared to 2006” Christie (2009). There were an estimated 10 million home foreclosed on during the recession and some economists believe the country is still repairing the damage to this day.
Rise of Suburban Poverty
In the peak of the 2008 crash there was an extreme rise in poverty among suburban areas. This was due to the fact that the residents of those areas couldn’t afford their mortgages after the crash, and were forced to leave. As a result, the once prosperous neighborhoods were financially unappealing. This led to businesses failing and an increase in crime and poverty in those areas. Semuels (2015) wrote of one specific case where Atlanta’s population of poor people in suburban areas had grown by 159%. This can be seen across the country as the shift from city to suburban poverty continues to this day.
Conclusion
The economic crisis in 2008 was the largest the country had seen since the great depression. While some believe that it could have been prevented if people had simply paid attention, everyone is in agreement that the country is still rebuilding to this day. It can be seen in the neighborhoods, and the fact that unemployment has just returned to the numbers before the