The Great Recession
Leading up to the Great Recession
In 2008 the USA suffered yet another economic crisis also known as the "Great Recession." During the Great Recession the housing market was affected the most. Mortgage defaults were causing banks to have a difficult time borrowing money from the money markets. As a result the banks had to reduce the number of loans they were giving out and reduce the number of mortgages.
Begining of the Great Recession
On September 29, 2008, the largest single day stock market crash in history occurred. Congress rejected a $700 billion bank bailout causing the Dow Jones to drop 777.68 points (6.98%) and $1.2 trillion was immediately obliterated. Six days later the Dow Jones dropped another 7.9% in a decline fueled by recession talk. In the week of October 6th, the Dow Jones dropped a nation-wrecking 18.1% and it didn't end there. In only 18 months, the market plunged 54% causing a loss of $16.4 trillion in household worth and over $2 trillion in retirement savings. Many people lost their homes or were unable to purchase a home. This led to a stalemate in moving and most people were stuck in their home or apartment or without a home.
End of the Great Recession
In February 2009, the stimulus bill was passed leading to $800 billion in government spending to get the markets back on the move. Some of the biggest investments went into unemployment insurance. Many argue this saved us, but many others say Bush's quick actions saved our banks from death. The Treasury bought risky mortgage bonds and Bush assured investors banks would be able to pay back their debts.
Above: In 2008 foreclosures skyrocketed and in early 2009 there wasn't much hope of improvement.
Below: George Bush took it into his responsibility to warn the country of the recession.