The Recession Of The United States Essays

1506 Words Oct 9th, 2016 7 Pages
Introduction: The United States has faced many triumphs and adversities since the start of the 1900’s. From the Great Depression, to the terrorist attacks on September 11, 2001, and finally to the financial crisis that started in 2008. There were many other trials that the United States encountered between that time span that affected growth. These misfortunes affected the economy, meaning they affected gross domestic product, sales, employment, and the overall economy. In this report, I will take a closer look into some these crises to determine just how greatly the economy was affected. The three-periods that will be the focus are the months that followed 9/11 and the 2008 financial crisis. Lastly, we will focus on the economic conditions as of 2013 to see if they improved from the 2008 financial crisis. One of the main tools that will be used will be the yield curves from these three times periods, which indicates the yield spot rates of bonds and their maturity.
Comparison of 10/21/01 to 12/01/08: I chose 10/21/01 and 12/01/08 to look at the yields for these days to see how the market reacted after those adversities, especially following the attacks on the Twin Towers. Starting with the comparison of the yield curves, I will look at the 1yr, 10yr, and 20yr yields of the above dates. The one year yield of a U.S treasury on 10/2101 was around 3.25% compared to a yield of 0.5% on 12/01/08. That tells us that investors on these dates were not very optimistic about the state…

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