essentials
what was the time frame
2007-2009
why was unemployment rate so low?
companies fell/went bankrupt, and the housing market crash.
why couldn’t people repay the mortgage loans
interest increased.
gov paid dealers $4500 when a customer traded in an old vehicle for a more fuel efficient one to boost sales.
cash for clunkers (CARS)
worst downturn in economics since when?
The great depression
presidents during this time
George W Bush was just leaving and Barrack Obama was just elected into office
what was the lowest rate in this recession?
10%
explain default
failure to make payment on mortgage loan
to stimulate econom. Tax cuts loan guarantees and government spending to focus on financial assistance education, healthcare, and small businesses
american recovery and reinvestment act
what was the decline in the GDP?
3.8%
another name for the 2008 financial crisis
The Great Recession
avg # of jobs lost per month.
700,000
explain foreclosure
when you lose your house due to default
to stabilize financial institutions for banks and insurers.
TARP
how many people were forced to foreclose on their home.
10 million