The worst financial crisis in the United States since the Great Depression and the current period we are in. It occurred during the first decade of the 21st century (core years lasted from 2007-2010) and was marked by rampant job losses, high unemployment, collapse of the real estate market, Wall Street losses, and the closing of numerous banks. The national unemployment rate was as high as 10% in 2010.
It was triggered by foreclosures and a collapse of the real estate market in
Florida in 2007. Fannie Mae and Freddie
Mac, two large
government subsidized mortgages lenders, later fell under heavy scrutiny by many members of Congress. It also created a national credit
crunch that resulted in new
government regulations that tightened lending standards and changed the rules for nearly every
bank. All of a sudden, even
people with nearly spotless credit found it hard to get a loan on anything. Wall Street stocks fell by nearly 50% in 2009.
The GR also changed the political clout in Washington when Republicans became the majority party in the House of Representatives, after the 2010 midterm elections sent many Democrats home. Things havent improved very much as the Great Recession is still ongoing and many Americans are still out of
work. It will take many years for the housing market to recover, and probably longer for the jobs return to pre-recession levels.
