U.S. Economy and the Great Recession

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U.S. Economy and the Great Recession (outline) U.S. Economy and the Great Recession Background causes of the great recession and definition - The global recession refers to a severe contraction of liquidity, especially in the global financial markets. The crisis started in the year 2007 as a result of the bursting of the housing bubble in the US. Initially, there were successive reductions in the prime rates, which made it possible for the banks to issue mortgage loans at rates that were lower to millions of customers, most of who could not have qualified for them (Grusky, Western & Wimer, 2011). Effects of the great recession on the economy 1. Many people in the country lost their homes, jobs, and savings, the poverty rate in the United States increased, from 12.5 percent in 2007 to more than 15 percent in the year 2010.  Households headed by younger adults were the most affected as they lost a lot of wealth, most of which took a very long time to recover.

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