Changes

The '''Financial Crisis of 2008''' is an ongoing worldwide financial crisis that 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>  It is believed the economic difficulties will meet the definition of a [[recession]] when the next quarterly data is released and a second quarter of negative growth will be seen.  The first two quarters of the year showed positive growth, with the second quarter registering at 2.8% increase in GDP, but the third quarter saw a drop of -0.5% and it is widely believed that the fourth quarter will show a larger negative drop.  

The '''Financial Crisis of 2008''' is an ongoing worldwide financial crisis that 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>  It is believed the economic difficulties will meet the definition of a [[recession]] when the next quarterly data is released and a second quarter of negative growth will be seen.  The first two quarters of the year showed positive growth, with the second quarter registering at 2.8% increase in GDP, but the third quarter saw a drop of -0.5% and it is widely believed that the fourth quarter will show a larger negative drop.  

Unlike crises in the mid 1970s and early 1980s, this one began in the financial sector with devastating effects on many very large financial companies worldwide.  The negative effects by October began spreading to all other sectors of the economy, and forecasts for the next year show little likely of a quick recovery anywhere.  

Unlike crises in the mid 1970s and early 1980s, this one began in the financial sector with devastating effects on many very large financial companies worldwide.  The negative effects by October began spreading to all other sectors of the economy, and forecasts for the next year show little likely of a quick recovery anywhere. For the effects on the broader economy (outside of finance and autos) see [[Recession of 2008]].

 

[[Image:CRASH08.JPG|thumb|300px|Oct 11, 2008 editorial; cartoon by Horsey stresses the global collapse]]

[[Image:CRASH08.JPG|thumb|300px|Oct 11, 2008 editorial; cartoon by Horsey stresses the global collapse]]

==See also==

==See also==

*[[Henry M. Paulson]]

*[[Henry M. Paulson]]

*[[Paper loss]]

*[[Paper loss]]