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International Monetary Fund
The economy was going down and banks were not confident in lending people money at the time, this is a type of financial crisis called a bank run. It occurs when a large number of customers of a bank fear they will not get there money back, so they withdrew their deposits. International Fund -
Recession
The great recession was from an 8 trillion dollar housing bubble. The resulting loss of wealth created major cutbacks in consumer spending. As consumer spending and business investment dried up, people also began to lose jobs. Recession -
Sub-prime Housing Crisis and the Housing Bubble
Housing crisisHousing loans are put into larger groups and sold from smaller banks to larger banks. The groupings starting being labeled as “grade A” loans but they were in reality bad loans because all the good had been sold. People would stop paying their mortgage and eventually with all the money invested into this industry, it collapsed and caused a decline in the housing market which was considered to be the safest market at the time. This led into the 2009 recession. -
Government Shutdown of 2013
This was a combination of Obama’s affordable care act and the fact the US had hit its debt ceiling. Republicans did not want to raise the debt ceiling and did not support Obamacare so there was a long struggle between Republicans and Democrats over the money both of these things would cost. The government shutdown on October 1st and stayed shut-down until the 17 Government Shutdown -
Federal interest rate rises
Federal interest rateThe federal interest rate rose from a range of 0% to 0.25% to a range of 0.25% to 0.5%. Savers then could see a little more interest from their deposits in the bank. This is a sign that the economy is recovering from the great recession. The last rate increase hasn’t been since 2006. There should be more gradual increases in rates to come. -
The decrease in the price of oil
Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Oil Price lowers
