A report on Great Recession

World map showing real GDP growth rates for 2009; countries in brown were in a recession.
A bank run at a branch of the Northern Rock bank in Brighton, England, on September 14, 2007, amid speculation of problems, prior to its 2008 nationalisation.
U.S. residential and non-residential investment fell relative to GDP during the crisis
U.S. households and financial businesses significantly increased borrowing (leverage) in the years leading up to the crisis
US household debt relative to disposable income and GDP.
U.S. Changes in Household Debt as a percentage of GDP for 1989–2016. Homeowners paying down debt for 2009–2012 was a headwind to the recovery. Economist Carmen Reinhart explained that this behavior tends to slow recoveries from financial crises relative to typical recessions.
Housing price appreciation in selected countries, 2002–2008
Securitization markets were impaired during the crisis.
Several major U.S. economic variables had recovered from the 2007–2009 Subprime mortgage crisis and Great Recession by the 2013–2014 time period.
U.S. Real GDP – Contributions to Percent Change by Component 2007–2009
Public Debt to GDP Ratio for Selected European Countries – 2008 to 2011. Source Data: Eurostat
Relationship between fiscal tightening (austerity) in Eurozone countries with their GDP growth rate, 2008–2012
Slovenian anarchist anti-fascist protest due to the great recession.
Sydney's financial district at night. Throughout the Great Recession, the Australian economy remained resilient and stable.
The anti-austerity movement in Spain, May 2011
Federal Reserve Holdings of Treasury and Mortgage-Backed Securities
Bank bailouts in the United Kingdom and in the United States in proportion to their GDPs.

Period of marked general decline, i.e. a recession, observed in national economies globally that occurred between 2007 and 2009.

- Great Recession
World map showing real GDP growth rates for 2009; countries in brown were in a recession.

46 related topics with Alpha

Overall
The leverage ratio, measured as debt divided by equity, for investment bank Goldman Sachs from 2003-2012. The lower the ratio, the greater the ability of the firm to withstand losses.

Deleveraging

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At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm.

At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm.

The leverage ratio, measured as debt divided by equity, for investment bank Goldman Sachs from 2003-2012. The lower the ratio, the greater the ability of the firm to withstand losses.
U.S. households and financial businesses began de-leveraging in the years following the subprime mortgage crisis.

This is mainly because the continuing rising of government debt, due to the Great Recession, has been offsetting the deleveraging in the private sectors in many countries.

The building in Cambridge, Massachusetts that contains the NBER main offices.

National Bureau of Economic Research

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American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community".

American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community".

The building in Cambridge, Massachusetts that contains the NBER main offices.
The building in Cambridge, Massachusetts that contains the NBER main offices.

In September 2010, after a conference call with its Business Cycle Dating Committee, the NBER declared that the Great Recession in the United States had officially ended in 2009 and lasted from December 2007 to June 2009.

The G20 in Washington, D.C.

2008 G20 Washington summit

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The 2008 G20 Washington Summit on Financial Markets and the World Economy took place on November 14–15, 2008, in Washington, D.C., United States.

The 2008 G20 Washington Summit on Financial Markets and the World Economy took place on November 14–15, 2008, in Washington, D.C., United States.

The G20 in Washington, D.C.
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G20 leaders and delegates attend the Summit on Financial Markets and the World Economy Saturday at the National Building Museum in Washington, D.C. on November 15, 2008.
Working sessions of the G20 heads of states and governments.
President Bush and the other summit leaders at a working dinner in the East Wing of the White House.

In connection with the G7 finance ministers on October 11, 2008, United States President George W. Bush stated that the next meeting of the G20 would be important in finding solutions to the economic crisis.

Romania

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Country located at the crossroads of Central, Eastern, and Southeastern Europe.

Country located at the crossroads of Central, Eastern, and Southeastern Europe.

Neacșu's letter from 1521, the oldest surviving document written in Old Romanian
Skull from the Peștera cu Oase (the oldest known remains of Homo sapiens in Europe).
Maximum territorial extent of the Kingdom of Dacia during Burebista's reign (early 40s BC.)
Ruins of sanctuaries at Sarmizegetusa Regia (Dacia's capital during the reigns of Burebista and Decebalus)
Gutthiuda, or the land of the Gothic-speaking Thervingi, and the neighbouring tribes (370s AD)
Vlad III of Wallachia (also known as Vlad the Impaler), medieval ruler of Wallachia
Changes in Romania's territory since 1859
Alexandru Ioan Cuza was the first Domnitor (i.e. Prince) of Romania (at that time the United Principalities of Wallachia and Moldavia) between 1862 and 1866
Late 19th century ethnic map of Central Europe depicting predominantly Romanian-inhabited territories in blue. Hungarians are marked in yellow and Germans in pink.
King Carol I of Romania with his nephew Ferdinand I of Romania and great-nephew Carol II of Romania
Romania's territorial losses in the summer of 1940. Of these territories, only Northern Transylvania was regained after the end of World War II.
American B-24 Liberator flying over a burning oil refinery at Ploiești, as part of Operation Tidal Wave on 1 August 1943. Due to its role as a significant supplier of oil to the Axis, Romania was a prime target of Allied strategic bombing in 1943 and 1944.
King Michael I of Romania was forced to abdicate by the Communists in late December 1947, concomitant with the Soviet occupation of the country
Nicolae Ceaușescu ruled Romania as its communist leader from 1965 until 1989
The Romanian Revolution of 1989 was one of the few violent revolutions in the Iron Curtain that brought an end to communist rule
An anti-Communist and anti-FSN rally in Bucharest (1990)
Romania saw large waves of protests against judicial reforms during the 2017–2019 Romanian protests
Romania joined the European Union in 2007 and signed the Treaty of Lisbon
Romania joined NATO in 2004 and hosted its 2008 summit in Bucharest
Topographic map of Romania
Diplomatic missions of Romania
Romania is a noteworthy ally of the United States, being the first NATO member state that agreed to support increasing its defence spending after the 2017 Trump–Iohannis meeting at the White House
Romanian marine troopers during a combined Dutch–Romanian exercise at Vadu beach
Romanian Mircea Geoană, Deputy Secretary General of NATO
A proportional representation of Romania exports, 2019
The CEC Palace is situated on Bucharest's Victory Avenue
The Bucharest Stock Exchange Palace, situated in the capital's historical city centre
Dacia Duster concept at the Geneva Motor Show (2009)
Romania's road network
Graph depicting Romania's electricity supply mix as of 2015
Romanians in Romania by counties (Ethnic maps 1930–2011)
Ethnic map of the Kingdom of Romania based on the 1930 census data
Map of Romanian language frequency as spoken in Romania by districts (according to the 2011 census)
Map highlighting the use of the Romanian language worldwide, both as a native and as a foreign language
The University of Bucharest was opened in 1864
The Colțea Hospital in Bucharest completed a $90 million renovation in 2011.
Sibiu was the 2007 European Capital of Culture and 2019 European Region of Gastronomy
Timișoara was designated the European Capital of Culture in 2021 but will hold this title in 2023 due to COVID-19 postponement
Christmas market in Bucharest

However, Romania's development suffered a major setback during the late-2000s' recession leading to a large gross domestic product contraction and a budget deficit in 2009.

Worldwide Occupy movement protests on 15 October 2011

Occupy movement

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International populist socio-political movement that expressed opposition to social and economic inequality and to the lack of perceived "real democracy" around the world.

International populist socio-political movement that expressed opposition to social and economic inequality and to the lack of perceived "real democracy" around the world.

Worldwide Occupy movement protests on 15 October 2011
Occupy protesters with "We are the 99%" signs in Bennington, Vermont
Protesters with the "99%" t-shirts at Occupy Wall Street on 17 November 2011 near the New York City Hall.
The General Assembly meeting in Washington Square Park, New York City, on 8 October 2011
Assembly hand signals
Protesters rallying near New York police headquarters, with St. Andrew's Church in the background
A crowd of protestors in Congress Square, Ljubljana, Slovenia, on 15 October 2011
Green party leader Caroline Lucas discussing green economics with occupiers at London's Bank of Ideas on 6 December 2011
"Occupy DC" sign and tents in downtown Washington, D.C. October, 2011
Occupy Portland Prayer Vigil, November 2012
Mashtots Park activists protesting in front of the city hall of Yerevan, Armenia
The Occupy Sydney camp in February 2012
Protesters occupy the roof of the National Congress of Brazil in Brasília on 17 June 2013.
An Occupy Montreal demonstration on 15 October 2011
Tents at the Occupy Buffer Zone camp in Nicosia
Occupy Berlin protests on 15 October 2011, pictured in front of the Reichstag
Occupy Rotterdam on 22 October 2011 in front of the Beurs-World Trade Center
The Occupy Auckland protest camp in Aotea Square, Auckland, on 16 November 2011
The Occupy Dame Street camp in Dublin, Republic of Ireland
Some of the protesters have styled themselves as.
Julian Assange speaks at the Occupy London protests outside the cathedral in the City of London on 15 October 2011.
A tent at the Occupy London encampment in the City of London
An anarchist occupation of parliament square
Occupy Edinburgh protesters in St Andrew Square, Edinburgh
One of the marches to the Port of Oakland during the 2011 Oakland General Strike on 2 November 2011
Zuccotti Park closed to overnight camping on 15 November 2011

However, after the Great Recession which started in 2007, the share of total wealth owned by the top 1% of the population grew from 34.6% to 37.1%, and that owned by the top 20% of Americans grew from 85% to 87.7%.

U.S. Securities and Exchange Commission

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Independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929.

Independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929.

Joseph P. Kennedy Sr, the inaugural Chairman of the SEC
U.S. Securities and Exchange Commission headquarters in Washington, D.C., near Union Station

According to former SEC employee and whistleblower Darcy Flynn, also reported by Taibbi, the agency routinely destroyed thousands of documents related to preliminary investigations of alleged crimes committed by Deutsche Bank, Goldman Sachs, Lehman Brothers, SAC Capital, and other financial companies involved in the Great Recession that the SEC was supposed to have been regulating.

South Korea

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Country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea.

Country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea.

The name Korea is derived from Goguryeo, also known as Koryŏ, one of the Three Kingdoms of Korea.
Changdeok Palace, one of the Five Grand Palaces built during the Joseon Dynasty and another UNESCO World Heritage Site
The War Memorial of Korea, built in remembrance of the Korean War (1950–1953)
Between 1962 and 1994, the South Korean economy grew at an average of 10% annually, fueled by annual export growth of 20%, in a period called the Miracle on the Han River.
President Park Chung-hee played a pivotal role in rapidly developing South Korea's economy through export-oriented industrialization.
President Kim Dae-jung, the 2000 Nobel Peace Prize recipient for advancing democracy and human rights in South Korea and East Asia and for reconciliation with North Korea, was sometimes called the "Nelson Mandela of Asia."
South Korea became the first non-G7 chair of the G-20 when it hosted the 2010 Seoul summit.
Topography of South Korea
Jeju Island is a UNESCO World Heritage Site.
Cheonggyecheon river is a modern public recreation space in downtown Seoul.
Separation of powers and the election system of South Korea
The National Assembly of South Korea
Population pyramid of South Korea in 2021
Koreans in traditional dress
Seoul National University is considered to be the most prestigious university in South Korea.
KAIST main campus in Daejeon
Dialects of the Korean language
Buddha's Birthday celebration in Seoul
Development of life expectancy in North Korea and South Korea
Former Secretary-General of the United Nations (2007–2016), Ban Ki-moon
The Joint Security Area
North Korean leader Kim Jong-un and South Korean President Moon Jae-in shake hands inside the Peace House
South Korean president Moon Jae-in meets with Russian president Vladimir Putin
Liancourt Rocks have become an issue known as the Liancourt Rocks dispute.
President Moon Jae-in and U.S. President Joe Biden having lunch on 21 May 2021, on the Oval Office Patio of the White House
ROKN Sejong the Great, a King Sejong the Great -class guided-missile destroyer built by Hyundai Heavy Industries
The South Korean-developed K2 Black Panther, built by Hyundai Rotem
ROKAF FA-50, a supersonic combat aircraft developed by Korea Aerospace Industries
ROKS Dokdo, the lead ship of the, built by Hanjin Heavy Industries
Haeundae Beach in Busan
A 3D OLED TV made by Korean LG Display, the world's largest LCD and OLED maker
Naro-1 at the launch pad
Albert HUBO, developed by KAIST, can make expressive gestures with its five separate fingers.
A musician playing a gayageum
A blue and white porcelain peach-shaped water dropper from the Joseon Dynasty in the 18th century
Namdaemun
Bulguksa, a UNESCO World Heritage Site
Bibimbap
BTS, one of the most successful K-pop groups
Psy became an international sensation with "Gangnam Style" in 2012.
Seoul Sports Complex, Korea's largest integrated sports center
Sajik Baseball Stadium in Busan. Baseball is one of the most popular sports in South Korea.
Taekwondo, a Korean martial art and Olympic sport

Its economic growth rate reached 6.2 percent in 2010 (the fastest growth for eight years after significant growth by 7.2 percent in 2002), a sharp recovery from economic growth rates of 2.3% in 2008 and 0.2% in 2009 during the Great Recession.

If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity

Credit default swap

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Financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event.

Financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event.

If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity
If the reference bond defaults, the protection seller pays par value of the bond to the buyer, and the buyer transfers ownership of the bond to the seller
Composition of the United States 15.5 trillion US dollar CDS market at the end of 2008 Q2. Green tints show Prime asset CDSs, reddish tints show sub-prime asset CDSs. Numbers followed by "Y" indicate years until maturity.
Proportion of CDSs nominals (lower left) held by United States banks compared to all derivatives, in 2008Q2. The black disc represents the 2008 public debt.
Sovereign credit default swap prices of selected European countries (2010-2011). The left axis is basis points, or 100ths of a percent; a level of 1,000 means it costs $1 million per year to protect $10 million of debt for five years.

The European sovereign debt crisis resulted from a combination of complex factors, including the globalisation of finance; easy credit conditions during the 2002–2008 period that encouraged high-risk lending and borrowing practices; the 2007–2012 global financial crisis; international trade imbalances; real-estate bubbles that have since burst; the 2008–2012 global recession; fiscal policy choices related to government revenues and expenses; and approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socialising losses.

Debt deflation

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Theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation, causing people to default on their consumer loans and mortgages.

Theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation, causing people to default on their consumer loans and mortgages.

There was a renewal of interest in debt deflation in academia in the 1980s and 1990s, and a further renewal of interest in debt deflation due to the financial crisis of 2007–2010 and the ensuing Great Recession.

2008 European Union stimulus plan

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On 26 November 2008, the European Commission proposed a European stimulus plan (also referred to as the European Economic Recovery Plan) amounting to 200 billion euros to cope with the effects of the global financial crisis on the economies of the members countries.

On 26 November 2008, the European Commission proposed a European stimulus plan (also referred to as the European Economic Recovery Plan) amounting to 200 billion euros to cope with the effects of the global financial crisis on the economies of the members countries.

It aims at limiting the economic slowdown of the economies through national economic policies, with measures extended over a period of two years.