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Causes of the 2008-2009 Economic Downturn

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Please help, I need to write about Two Main Causes for the Great Recession 2008/2009. The Instructor wants a clear main argument and are not just telling the storyline of events that took place .

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Solution Summary

The solution provides a concise discussion of the causes of the 2008-2009 Economic downturn and the 2008-2013 Great Recession that affected economies all over the world. Two main causes are elucidated in the discussion as fundamental to the cause of the economic downturn. Resources are listed for further exploration of the topic.

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Great Recession: Causes

Beginning in the late 2008, the global credit crunch that began in 2007 led to what is now referred to as the great recession from 2008-2013. Pettinger (2013) explains, "The recession began after the 2007/08 global credit crunch and has led to a prolonged period of low growth and rising unemployment. In particular, the great recession highlighted problems within the Eurozone and, unlike the US, Europe has experienced a double dip recession." There are a number of factors that has been pointed to be the causes of the recession, both indirect and direct. In the US, the argument was weighed to be the initial subprime mortgage crisis as was evidence by the number of people made homeless due to the crisis. Tie this to international trade imbalances and lax lending standards that ballooned household debt and real-estate bubbles that have been burst due to these (largely because of lack of regulations of non-depository financial institutions and problematic government housing policies in the US), it was, in many experts' mind, inevitable to have led to a recession. ...

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Xenia Rochelle Jones, MA, PhD (IP)
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  • MPhil/PhD (IP), Open University, Milton Keynes, UK
  • MA, Open University, Milton Keynes, UK
  • Certificate, Geva Ulpan (via Universita Tel Aviv)
  • BA, University of the Philippines
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