Question

Talk about the great recession between 2007-2009, in term

• How started
• The effect on the world economy
• The effect on the financial system in many world economies.

Answer 1

The financial crisis of 2007 is the breakdown of confidence which occurred between banks the year before the financial crisis of 2008. That has been triggered by the subprime mortgage crisis, exacerbated by the uncontrolled use of derivatives itself. This timeline includes the signs, causes and signs of an early warning breakdown. It also recounts the actions the U.S. has taken. Treasury and Federal Reserveto prevent a collapse in the economy. Despite these efforts, the financial crisis has brought the Great Recession to the fore.

The net worth of American households had declined in inflation-adjusted terms by about $17 trillion during the financial crisis, a loss of 26 per cent. In a 2018 report, San Francisco's Federal Reserve Bank found that the gross domestic product of the nation was about 7 percent smaller 10 years since the onset of the financial crisis than it would have been had the recession not happened, reflecting a loss of $70,000 in lifetime income for any American. Between 2007 and 2009, around 7.5 million jobs were lost, which represents a doubling of the unemployment rate, which was close to 10% in 2010

Recovery from the financial crisis and the Great Recession was hugely slow for most Americans. Those who suffered the most the millions of families who lost their homes , businesses, or savings; the millions of workers who lost their jobs and faced long-term unemployment; the millions who fell into poverty continued to struggle years after the worst of the upheaval had passed. Their situation was in marked contrast to that of the bankers who had helped create the crisis.

Moreover, no American CEO or other top executive has gone to prison or even been tried on felony charges — in sharp comparison to previous banking crises, such as the savings and loan debacle of the 1980s and Enron's collapse in 2001. Generally speaking, the primary executives of finance companies, as well as many very affluent Americans, had not suffered as much in comparison as lower- and middle-class people, and by 2010 they had largely regained their losses, although other average Americans had never regained