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Financial Crisis of 2008

200 bytes added, 16:46, 23 December 2008
It's unclear that this is the worst since 1933; most countries are going through slowdowns rather than outright negative growth
{{move|Recession of 2008}}
The '''Financial Crisis of 2008''' is an ongoing worldwide financial crisis that almost all many observers believe is the worst the world has seen since 1933 with the [[Great Depression]]. The National Bureau of Economic Research, a private organization that follows its own standards as set by eminent economists such as [[Milton Friedman]], has declared that the peak of the last expansion took place in December 2007, and the overall economy has been in decline ever since.<ref>See "Text of the NBER's statement on the recession and FAQ's" [http://www.usatoday.com/money/economy/2008-12-01-recession-nber-statement_N.htm ''USA Today'' Dec 1, 2008]. "The U.S. economy entered a recession in December 2007, a committee of economists at the private National Bureau of Economic Research said," at [http://www.marketwatch.com/news/story/US-recession-began-December-2007/story.aspx?guid={7DCF90E4-D61A-4014-83CE-45E938CD632C} Rex Nutting] - MarketWatch</ref> The economic difficulties will probably be officially classified as a [[recession]] when the next quarterly data is released as it is believed that there will have been another quarter of negative growth.
Negative economic news has spread outward from financial institutions to depress housing, construction, automobiles, retail sales, state and local government, and other sectors. In recent months governments across the world have spent huge sums of money to reverse the crisis, but thus far the results have been inconclusive and the declines continue. The U.S. government provided cash bailouts of several hundred billion dollars and long-term loan guarantees of over $7 trillion dollars (compared to a GDP of $15 trillion a year in the U.S.). Conservatives have been as dismayed and baffled by the crisis as everyone else.
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