What happened to the US economically in 2008?

The crisis rapidly spread into a global economic shock, resulting in several bank failures. Economies worldwide slowed during this period since credit tightened and international trade declined. Housing markets suffered and unemployment soared, resulting in evictions and foreclosures. Several businesses failed.

What economic problem happened in 2008?

financial crisis of 2007–08, also called subprime mortgage crisis, severe contraction of liquidity in global financial markets that originated in the United States as a result of the collapse of the U.S. housing market.

Was the US economy strong in 2008?

Real GDP fell at an 8.3 percent annual rate in the fourth quarter of 2008 and 5.1 percent in the first quarter of 2009. By end of 2009 the economy was growing at around a 3 percent rate, a massive reversal. The problem, of course, is that the recovery was not sustained and growth slid down again.

How long did the 2008 recession last in the US?

According to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the recession began in December 2007 and ended in June 2009, and thus extended over eighteen months.

Did the economy ever recover after 2008?

While the recession officially lasted from December 2007 to June 2009, it took many years for the economy to recover to pre-crisis levels of employment and output. Unemployment rose from 4.7% in November 2007 to peak at 10% in October 2009, before returning steadily to 4.7% in May 2016.

When did the US economy crash 2008?

The Great Recession refers to the economic downturn from 2007 to 2009 after the bursting of the U.S. housing bubble and the global financial crisis. The Great Recession was the most severe economic recession in the United States since the Great Depression of the 1930s.

What caused the real estate crash of 2008?

The stock market and housing crash of 2008 had its origins in the unprecedented growth of the subprime mortgage market beginning in 1999. U.S. government-sponsored mortgage lenders Fannie Mae and Freddie Mac made home loans accessible to borrowers who had low credit scores and a higher risk of defaulting on loans.