What is the Great Recession?
The Great Recession describes the prolonged slump in economic activity during the late 2000s, and is widely acknowledged as being the most devastating downturn since the Great Depression of 1929. The financial meltdown began when the US housing market crashed, the ripples of which were felt far and wide.
Where have you heard about the Great Recession?
The scale of the global recession varied from country to country, and some even avoided it altogether, but in the UK GDP fell sharply between 2008 and 2009. During this time many well-known companies folded, including Woolworths and MFI, while unemployment soared and manufacturing output slumped.
What you need to know about the Great Recession...
Exposure to sub-prime mortgages was the catalyst that crippled many global investment banks, and famously led to the collapse of Lehman Brothers. This triggered a widespread crisis in the financial markets as trillions was wiped off the value of investments. The Federal Reserve in the US and Bank of England in the UK took emergency action to bail out banks to protect people’s savings and restore market confidence.
In the US, the Great Recession officially ended in June 2009, but the repercussions of the financial crisis were still being felt around the world years later.