Great Recession
2008 financial crisis
The Great Recession was the severe global economic downturn that followed the 2008 financial crisis, triggered by the collapse of the U.S. housing market and subsequent banking failures.
It was the most significant economic contraction since the Great Depression, marked by widespread unemployment, foreclosures, and government bailouts of major financial institutions.
Many families never fully recovered from the Great Recession.
Defunct investment bank
- Merrill LynchMajor American brokerage
- AIGGlobal insurance conglomerate
- Fannie MaeFederal mortgage corporation
- Freddie MacSecondary mortgage market corporation
TARP · bailout · Paulson · Dodd-Frank · subprime · credit crunch · quantitative easing · Federal Reserve
Lacking paid employment
- layoffsMass job eliminations
- furloughsTemporary work absences
- unemployment ratePercentage without jobs seeking work
- workforce reductionCutting employee headcount
job losses · unemployment benefits · claims · underemployment · downsizing · displaced workers · labor market · hiring freeze
High-risk housing debt
- foreclosureLender seizes mortgaged property
- housing bubbleUnsustainable property price surge
- underwaterBelow the surface
- adjustable-rateRate that changes periodically
property values · default · negative equity · short sale · loan modification · homeownership · predatory lending · robo-signing
Rapid decline in share prices
- bear marketProlonged securities decline
- Dow JonesStock market benchmark
- S&P 500Major stock market index
- sell-offRapid mass divestiture
volatility · panic selling · meltdown · retirement accounts · 401k · investor confidence · circuit breakers · flash crash
Crisis transmission between economies
- eurozone crisisEuropean monetary union turmoil
- sovereign debtMoney governments owe creditors
- austerityEnforced economic stringency
- IMFGlobal economic assistance organization
currency crisis · European Central Bank · emerging markets · cross-border · G20
Lehman Brothers
Defunct investment bank
- Merrill LynchMajor American brokerage
- AIGGlobal insurance conglomerate
- Fannie MaeFederal mortgage corporation
Freddie Mac · TARP · bailout · Paulson · Dodd-Frank · subprime · credit crunch · quantitative easing · Federal Reserve · stimulus
jobless
Lacking paid employment
- layoffsMass job eliminations
- furloughsTemporary work absences
- unemployment ratePercentage without jobs seeking work
job losses · workforce reduction · unemployment benefits · claims · underemployment · downsizing · displaced workers · labor market · hiring freeze · wage stagnation
subprime mortgages
High-risk housing debt
- foreclosureLender seizes mortgaged property
- housing bubbleUnsustainable property price surge
- underwaterBelow the surface
adjustable-rate · property values · default · negative equity · short sale · loan modification · homeownership · predatory lending · robo-signing · housing crash
stock market crash
Rapid decline in share prices
- bear marketProlonged securities decline
- Dow JonesStock market benchmark
- S&P 500Major stock market index
sell-off · volatility · panic selling · meltdown · retirement accounts · 401k · investor confidence · circuit breakers · flash crash · market bottom
financial contagion
Crisis transmission between economies
- eurozone crisisEuropean monetary union turmoil
- sovereign debtMoney governments owe creditors
- austerityEnforced economic stringency
IMF · currency crisis · European Central Bank · emerging markets · cross-border · G20
- 2000siPhone, Wii, MySpace, YouTube, Hurricane Katrina
- Modern AmericaCOVID-19, pandemic, 9/11, Iraq War, Afghanistan War
- modern economicsGDP, GDP growth, inflation, interest rates, monetary policy
- 2000s History9/11, September 11, Iraq War, Afghanistan War, Arab Spring
- 2009 EventsH1N1, swine flu, Slumdog Millionaire, stimulus package
- financial crisesfinancial collapse, bank run, economic collapse, bank failure, bank failures
Great Recessioneconomic boom
Sustained period of growth
expansion · prosperity · economic growth · bull market · growth
Great RecessionRoaring Twenties
Prosperous 1920s era
dot-com boom · Gilded Age · Jazz Age · post-war boom · Wirtschaftswunder
great, recess, recession, recede, recessed, receding, recessional, recessionary, recessionals