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Mortgage crisis(Leadership)(Result)
Defaults on subprime mortgages rose up to 93%. Banks that had money invested in mortgage-backed securities realized their investments were worthless. Bush administration announced a 5 year freeze on mortgage rates for some subprime borrowers facing the threat of default. This is a leadership deficit because the government did not step in to fix this issue until 2007.
http://content.time.com/time/specials/2007/article/0,28804,1686204_1690170_1691015,00.html -
Fed innovated to Replace a Failed Banking System(Savings) (Fiscal)
Federal Reserve Chairman Ben Bernanke allowed Fed to shore up failed financial system. Made short term loans to cash-strapped banks. Lowered interest rates by buying $800 million in mortgage-backed securities. This event is a savings deficit because people were taking loans out of banks that did not have the savings or money to give out those loans.
https://www.thebalance.com/top-ten-economic-issues-in-2008-year-in-review-3305686 -
Stock Market Crashes(Trade) (Result)
By the end of 2008 the Dow was down by 34%. It fell 25% in December alone. Reached its low of 46% decline on November 20th. This can be categorized as a trade deficit because the US was importing more than exporting, causing the DOW and GDP to drop and crash the market.
https://www.thebalance.com/top-ten-economic-issues-in-2008-year-in-review-3305686 -
Great recession ends(Leadership) (result)
GDP fell 4.3%, largest decline in a postwar era. House prices fell 30%. The Us made fiscal stimulus programs that included government spending and tax cuts. Some programs were the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009. This event is a leadership deficit because the leaders did not make stimulus acts until after the economy started to recover.
http://www.federalreservehistory.org/Events/DetailView/58 -
Government Shutdown(Budget)(fiscal)
Shutdown over Congressional budget standoff. Cost of lost in productivity totalled up to $2 billion. Created a large drop in consumer confidence that has been the pattern ever since the shutdown. Consumer confidence index dropped from 72.4 to 70.4 in October. This is a budget deficit because the US government ran out of money.
http://www.cheatsheet.com/stocks/10-most-important-economic-events-of-2013.html/?a=viewall -
Drop in Oil Prices(savings) (result)
June 2014 there was a 40% drop in oil prices in the US. It turned out to be an economic benefit greater than the largest tax reduction in the history of the world. Each american household saved thousands of dollars. American consumers will have billions of additional dollars to spend on goods and services and stimulate the economy. This is not a savings deficit, it helped the economy and the american people save money.
http://grantmassie.com/2014-the-six-most-important-economic-events-week-1/
