U.S. Financial Crisis of 2007-2010 Research Paper Starter - eNotes

U.S Financial Crisis of 2007-2010 Whilescholars, 's, w

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
rows Navigate Study Guide U.S. Financial Crisis of 2007-2010 While scholars, economists and leaders continue to compare the 2007­2010 recession to the Great Depression of the 1930's, it is clear that the 2007­2010 financial crisis had a profound impact on a number of key industrial sectors as well as individual consumers. This paper will an overview of the root causes of the financial crisis and discuss efforts to foster a long­term recovery. Keywords: American International Group (AIG); Housing Bubble; Mortgage­ backed Securities; Recession; Repurchase Agreement; Subprime Lending; Troubled Asset Relief Program (TARP); Unemployment Overview Not long after the start of the Great Depression, famed economist John Maynard Keynes was asked by a reporter if any event like it had occurred before. "Yes," he answered, "it was called the Dark Ages, and it lasted 400 years" (www.Anecdotage.com). While the Great Depression did not last nearly as long as the Dark Ages, it did have an indelible impact on American history. The Depression changed the relationship between the government and the free market, leading President Franklin D. Roosevelt to adopt Keynes's ideal of government intervention in a time of crisis. It also forced upon Americans the notion of self­subsistence, as all family members sought work wherever it could be found, regardless of the location of a job or its suitability, in order to survive and rebuild from the economic collapse. The Great Depression remains one of the most significant events in modern U.S. history. Since it came to an end during World War II, political leaders in the decades that followed took great steps to implement measures to protect against a recurrence. Entrepreneurs also took great pains to safeguard their businesses in the event of another Depression. Even those whose lives are more than two generations removed from the Depression look back on it in fear, comparing any economic downturn to that devastating period.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
In 2007, the global economy began to suffer a series of events that would lead to a staggering economic recession that many dubbed the worst economic period since the Depression. This recession brought corporate and financial industry giants to the brink of failure, resulting in millions of job layoffs and forced property losses for countless businesses and homeowners. While scholars, economists and leaders continue to compare this recession with the Great Depression, it is clear that the relatively short recession of 2007­2010 had a profound impact on a number of key industrial sectors as well as consumers themselves. This paper will look at the root causes of the financial crisis and discuss efforts to foster a long­term recovery. Further Insights Depression or Recession?
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern