The recession in the United States was at the end of 2007. According to National Bureau of Economic, recession was defined as 'a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales'.
It has been named as the "Great Recession" which caused financial meltdown in the US and spread out quickly affecting almost every corner of the world, such as Europe and Asia. The great recession was seen as the worst economic downturn since the great depression that the world was in recession after World War II.
According to economists, this episode of great recession was resulted from a sudden busting of an 8 trillion-dollar housing bubble in the US. This episode of great recession has proven and shown the accuracy of Greenspan' prediction who was the former Federal Reserve Chairman predicting that US had one-third probability getting into recession at the end of 2007.
The US faced many severe problems including banks on the verge of bankruptcy, high record levels of public debt, a falling stock market, a plummeting dollar value, frozen money markets, and imminent threat of a recession. The global financial crisis was greatly affected by global imbalances, …show more content…
Although government had adjusted the inflation rate causing the economy grew 2.2% in 2009 Q3, 5.6% in 2009 Q4, and 2.7% in 2010 Q1, the unemployment rate had remained high. The unemployment rate had risen from 9.5% in June 2009 to 10.1% in October 2009. The unemployment rate fell back to 9.5% in June 2010. Disconnection between the demand and supply of workers was reflected in statistics such as the hiring rate, the layoff rate, and the unemployment rate, the given average number of job opening in April and May, the unemployed were expected about 10.4 million instead of 15
It has been named as the "Great Recession" which caused financial meltdown in the US and spread out quickly affecting almost every corner of the world, such as Europe and Asia. The great recession was seen as the worst economic downturn since the great depression that the world was in recession after World War II.
According to economists, this episode of great recession was resulted from a sudden busting of an 8 trillion-dollar housing bubble in the US. This episode of great recession has proven and shown the accuracy of Greenspan' prediction who was the former Federal Reserve Chairman predicting that US had one-third probability getting into recession at the end of 2007.
The US faced many severe problems including banks on the verge of bankruptcy, high record levels of public debt, a falling stock market, a plummeting dollar value, frozen money markets, and imminent threat of a recession. The global financial crisis was greatly affected by global imbalances, …show more content…
Although government had adjusted the inflation rate causing the economy grew 2.2% in 2009 Q3, 5.6% in 2009 Q4, and 2.7% in 2010 Q1, the unemployment rate had remained high. The unemployment rate had risen from 9.5% in June 2009 to 10.1% in October 2009. The unemployment rate fell back to 9.5% in June 2010. Disconnection between the demand and supply of workers was reflected in statistics such as the hiring rate, the layoff rate, and the unemployment rate, the given average number of job opening in April and May, the unemployed were expected about 10.4 million instead of 15