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, <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 declared that identified the peak of the last expansion took place in December 2007, and ; the overall 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> It is believed the economic difficulties will meet the definition of a [[recession]] when the next The quarterly data is released and will undoubtedly show a second quarter of negative growth will be seen. <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 vitually every other sectors. In recent months governments across the world have spent huge sums sector of money to reverse the crisiseconomy. Consumer spending has plunged, but thus far the results and banks have been inconclusive and the declines continuevery reluctant to loan money. The U.S. government provided cash bailouts of several hundred billion dollars Major banks and long-term loan guarantees of over $7 trillion dollars (compared to a GDP of $15 trillion a year in the U.S.). Conservatives corporations have been as dismayed and baffled by the crisis as everyone elsegone bankrupt.
The recession is worldwide. 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. Rush Limbaugh, for example, blames Obama.
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]].