Great Recession of 2008
Definition
The Great Recession of 2008 refers to a global economic downturn that occurred between 2007 and 2009. It was characterized by a severe financial crisis, decline in housing markets, and high unemployment rates.
Analogy
Imagine you're playing a video game on your phone and suddenly the game crashes, causing you to lose all your progress. That's what happened during the Great Recession - the global economy crashed, causing people to lose their jobs and homes.
Related terms
Subprime Mortgage Crisis: This term refers to the collapse of housing markets due to banks offering loans to borrowers who were not creditworthy.
Financial Derivatives: These are complex financial instruments derived from underlying assets such as mortgages or bonds.
Bailout: A bailout is when the government provides funds or financial support to prevent an institution or industry from collapsing.
"Great Recession of 2008" appears in:
Subjects (1)
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.