1
Global economic downturn that devastated world financial markets as well as banking and real state industries
Great Recession
Consecuences of the recession
mortgage crisis, bank crisis, stock market plummeted
2009
Known as the longest period of economic decline since the Great Depression in the 1930s
Great Recession
What year did the great recession took place?
2008
President who signed the American Recovery and Reinvestment Act
Barack Obama
President who signed the Economic Stimulus Act into law
George W. Bush
Which act fueled growth?
The American Recovery and Reinvestment Act
Where did the recession affected more?
United States and Western Europe
The ______ plummeted, erasing wealth
Stock Market
Designed to provide liquidity to banks and hedge funds
Superfund
Banks stopped lending to each other in fear of being stuck with subprime mortgages
Bank Crisis
President who approved the Troubled Asset Relief Program
Bush
Purposes of the American Recovery and Reinvestment Act
Cutting taxes, assistance programs, creating jobs
How much money did the TARP Program provided
700 billion
Reduced the national target interest rate
Federal Reserve (Fed)
Allowed homeowners to refinance their mortgages to allow them to stay current on their payments
Homeowner Affordability and Stability Plan
___ of American families lost at least ___ of their wealth
1/4 ; 75%
Designed to generate new home sales and provide a boost to the economy
Increased loan limits for federal home loans
Encouraged banks to lower monthly mortgage payments for those facing foreclosures
Home Affordable Modification Program
High demand for "motrgage-backed securities" led to an increase in:
risky lending practices and housing market
Fed had reduced the target rate to ___ for the first time in history
0%
Supplied short-term credit to banks
Term Auction Facility (TAF)
Mortage lenders began to expand their definition of credit-worthy and extend mortgages to buyers with poor credit histories
Subprime Mortgage Crisis
Act that provided taxpayers with rebates, which they were encouraged to spend
Economic Stimulus Act