2007 Recession

Understanding the Current Recession and Its Global Impact

Sahar Bahmani
Assistant Professor
prepare of Economic Development
College of Business Administration
Georgia Southern University
Statesboro, GA 30460

netmail: sbahmani@georgiasouthern.edu

ABSTRACT

The National vanity of Economic Research announced on declination 1, 2008 that the U.S. providence had entered into a recession in December of 2007. Since the announcement, the unemployment consider has continuously been rising, the stock market has crashed and real gross domestic product has plummeted. This paper discusses the source of the scotch recession. The primary cause of the current recession was the credit crisis caused by the collapse of the housing market. This query attempts to identify the causes of this collapse and why it resulted in such a arch and widespread recession. This research looks at four circumstantial causes of the housing bubble: low mortgage rates, low short interest rates, relaxed standards for mortgage loans, and irrational exuberance. This paper focuses on how the national brass began to intervene in the economy in peculiar ways, looking at each in depth.



The level of government intervention in the economy prevented an even more severe economic downturn and the long-term impact of the governments intervention lead be the increasing national debt. It is estimated how much longer the recession will last. It is forecasted how much higher the unemployment rate will rise. We also answer the question of when the economy will begin to recover and how strong that recovery will be. roughly importantly, we will look at how this recession has had a significantly negative impact on the global economy.

Introduction

The National Bureau of Economic Research announced on December 1, 2008 that the U. S. economy had entered a recession in December of 2007. The main economic indicators began to show an economy that was quickly beginning to fall apart. The unemployment rate...If you loss to get a full essay, order it on our website: Orderessay



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