Expansion and contraction
What is a period of consumption?
When the spending on goods and services rises/economy improves
What happens when an economy overheats?
the industry is working at full capacity because of the demand being greater than the supply
when did the crisis start?
February 27, 2007 with the fall of stock prices in China
Where did it originate?
The United Estates
What aftermath did the great recession of 2008 cause?
Housing prices increased, then fell, due to the subprime mortgage crisis. ...
Banks went into crisis. ...
The stock market plummeted, erasing wealth. ...
Troubled Assets Relief Program (TARP) offered assistance. ...
The American Recovery and Reinvestment Act (ARRA) fueled growth.
What Happens after a period of consumption?
The Economy Falls
Economic Crisis
Why would the government reduce the amount of economic activity by raising taxes?
to cool down the economy
Who is to blame for it?
The main culprit was financial regulation and supervision
Which financial instruments commonly came to be called Toxic Assets?
Mortgage-Back Securities
What was the consequence in terms of employment?
Doubling the unemployment rates in some countries and decreasing the amount of jobs available
How is it called a long-lasting recession?
Deppresion/Slump
Name some banks that collapsed because of this crisis
Douglas national bank
Hume Bank
ANB Financial NA
First Integrity Bank
What was the name given to this crisis
The Great Recession
Did the financial system collapse?
yes, the stock market declined unstabilizing interest rates