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The '''Financial Crisis of 2008''', also known as the '''Obama Recession'''<ref>[http://www.rushlimbaugh.com/home/daily/site_110608/content/01125107.guest.html]</ref> 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<ref>NBER is a private organization that follows its own standards as set by eminent economists such as [[Milton Friedman]]; its dating of business cycles is widely accepted by conservatives.</ref> has identified the peak of the last expansion in December 2007; the U.S. 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 quarterly data will undoubtedly show a second quarter of negative growth.<ref> 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.</ref>

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.

Negative economic news has spread outward from financial institutions to depress housing, construction, automobiles, retail sales, state and local government, and vitually every other sector of the economy. Consumer spending has plunged, and banks have been very reluctant to loan money. Major banks and corporations have gone bankrupt.  

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]].

 

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, especially in September 2008.  The negative effects by October 2008 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]].