The Great Recession of 2008

The Great Recession - Elizabeth Christy Culture Instructor Dr Domingo Negron MBA 683-D4B1 Project Management Benedictine University Great

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Elizabeth Christy Culture 3/15/11 Instructor Dr. Domingo Negron MBA 683-D4B1 Project Management Benedictine University Great Depression 2008 The U.S. recession that began in December 2007 is the longest and deepest since the one experienced in 1981-1982; the acceleration in jobs lost, continued deleveraging, a reduction in exports, tight credit conditions, lack of confidence and declining consumer net worth will continue to stifle economic growth for at least the next two quarters (SmartMoney Retrieved, 2010-11-12). The Scandinavian and Japanese crises resulted from the bursting of asset bubbles, which rendered banking systems dysfunctional. U.S. home prices have dropped by at least a cumulative 25 percent and appear headed to descend 20 percent further (aei.org Retrieved, 2010-11-13). Major U.S. equity markets have dropped by more than 50 percent. Arguably, these huge wealth
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losses are more damaging to the global economy than the sharp drop in output and goods prices that occurred during the early years of the Great Depression (aei.org Retrieved, 2010-11-13). Sweden's approach to its financial crisis was transparent, preemptive, and systematic, Sweden began its program with a "bank support guarantee" approved by its parliament, and in December 1992 after a year of sharp economic contraction and sharply falling bank shares (SmartMoney 2010-11-12). All but the shareholders of banks were protected, no upper limit on
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This note was uploaded on 11/02/2011 for the course ECONOMY G123/EC100 taught by Professor Melissa during the Spring '10 term at Rasmussen College.

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The Great Recession - Elizabeth Christy Culture Instructor Dr Domingo Negron MBA 683-D4B1 Project Management Benedictine University Great

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