Changes

Wealth levels plunged worldwide. Stock markets in other major countries fell even faster than in the United States.  Most companies worldwide reported reduced sales and sharply reduced profits, as banks refused to lend and consumers refused to spend, fearing the worst.   

Wealth levels plunged worldwide. Stock markets in other major countries fell even faster than in the United States.  Most companies worldwide reported reduced sales and sharply reduced profits, as banks refused to lend and consumers refused to spend, fearing the worst.   

A series of emergency measures enacted by the Federal Reserve (on its own authority) and Congress after heavy prodding by presidents Bush and Obama resulted in trillions of dollars in loans, banking bailouts and guarantees, a half-trillion new stimulus spending and a third of a trillion in tax cuts, but by mid-March 2009 the outlook remained bleak as the economy continued downward.  Therefore the Federal Reserve announced yet another trillion dollar plan on March 18, this one to buy $300 billion in Treasury bonds, and $750 billion in mortgage-backed securities. The idea was to keep mortgage rates low in the hope people will start buying houses again, but the problem was that the prices were falling, so that if a person bought a $500,000 house in 2009 it would be worth $400,000 a year later, despite the Fed's intervention.

A series of emergency measures enacted by the Federal Reserve (on its own authority) and Congress after heavy prodding by presidents Bush and Obama resulted in trillions of dollars in loans, banking bailouts and guarantees, a half-trillion [[new stimulus spending]] and a third of a trillion in tax cuts, but by mid-March 2009 the outlook remained bleak as the economy continued downward.  Therefore the Federal Reserve announced yet another trillion dollar plan on March 18, this one to buy $300 billion in Treasury bonds, and $750 billion in mortgage-backed securities. The idea was to keep mortgage rates low in the hope people will start buying houses again, but the problem was that the prices were falling, so that if a person bought a $500,000 house in 2009 it would be worth $400,000 a year later, despite the Fed's intervention.

In the first quarter of 2009 (January 1 to March 30), GDP fell sharply in major countries compared to the fourth quarter of 2008.  In the US GDP was down 6.3%.

In the first quarter of 2009 (January 1 to March 30), GDP fell sharply in major countries compared to the fourth quarter of 2008.  In the US GDP was down 6.3%.

Major export countries saw their markets shrink. Exports from Japan were down 41% (quarter one 2009 versus 2008), Germany 32%, China 20% and U.S. 22%.

Major export countries saw their markets shrink. Exports from Japan were down 41% (quarter one 2009 versus 2008), Germany 32%, China 20% and U.S. 22%.

Major  countries began experimenting again with Keynesian stimulus packages, including the US ($787 billion), Europe (EU, $634 billion), China ($586 billion), and Japan ($486 billion), but no positive results were reported<ref>http://online.wsj.com/article/SB10001424052748704476104575439172480870774.html?mod=googlenews_wsj</ref><ref>[http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS11300000&years_option=specific_years&include_graphs=true&to_month=1&from_month=2 United States Department of Labor], Bureau of Labor Statistics. Data extracted on: July 19, 2010 (4:31:11 PM).</ref>  Central banks (such as the Federal Reserve in the U.S.) cut interest rates to nearly zero for half a decade, but few businesses borrowed money to expand employment or meet current operating expenses.

Major  countries began experimenting again with Keynesian stimulus packages,<ref>[http://online.wsj.com/article/SB10001424053111904716604576544500632493510.html Why the Stimulus Failed, ''Wall Street Journal'', September 8, 2011. </ref> including the US ($787 billion), Europe (EU, $634 billion), China ($586 billion), and Japan ($486 billion), but no positive results were reported<ref>http://online.wsj.com/article/SB10001424052748704476104575439172480870774.html?mod=googlenews_wsj</ref><ref>[http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS11300000&years_option=specific_years&include_graphs=true&to_month=1&from_month=2 United States Department of Labor], Bureau of Labor Statistics. Data extracted on: July 19, 2010 (4:31:11 PM).</ref>  Central banks (such as the Federal Reserve in the U.S.) cut interest rates to nearly zero for half a decade, but few businesses borrowed money to expand employment or meet current operating expenses.

==Indicators down==

==Indicators down==