The 27 scariest moments of the financial crisis (2024)

FAQs

What group was the hardest hit by the 2008 financial crisis? ›

17951), co-authors Hilary Hoynes, Douglas Miller, and Jessamyn Schaller find that the impacts of the Great Recession (December 2007 to June 2009) have been greater for men, for black and Hispanic workers, for young workers, and for less educated workers than for others in the labor market.

The Great Depression of 1929–39

Encyclopædia Britannica, Inc. This was the worst financial and economic disaster of the 20th century. Many believe that the Great Depression was triggered by the Wall Street crash of 1929 and later exacerbated by the poor policy decisions of the U.S. government.

The Carnegie Endowment for International Peace reports in its International Economics Bulletin that Ukraine, as well as Argentina and Jamaica, were the countries most deeply affected by the crisis. Other severely affected countries were Romania, Ireland, Russia, Mexico, Hungary, the Baltic states.

Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers on September 15, 2008, and a subsequent international banking crisis.

As presented in this paper, data for both the current and previous financial crises reveals that young people are indeed hit hardest as reflected by rising unemployment rates, which persist long after the economy is growing again.

The result? When the market rebounded, Getty was a rich man, thanks to his action when the economy appeared to be at its worst. The same thing happened to people like Warren Buffett, Jamie Dimon, and Carl Icahn during the Great Recession of 2008.

The Federal Reserve's policymaking committee of 19 officials released a new set of economic projections last week, showing that they now expect economic growth in 2024, 2025 and 2026 to be even stronger than they previously thought.

As prices eventually come down, so do wages, leading to an economic depression. Economic collapse could lead to a full-scale depression—few jobs and little pay.

In its Global Economic Prospects report in January, the World Bank said risks of a global recession in 2024 had receded thanks to the US economy performing better than expected in 2023.

What Happens To Your Mortgage Rates & Payments? If you have a fixed-rate mortgage, then your monthly payments will remain the same, which can be beneficial in a high-inflation environment. However, if you have an adjustable-rate mortgage, expect your payments to increase.

How does a recession affect the average person? ›

Increased stress all around. One of the most prevalent ways that recessions affect the average person is simply that stress goes up. It doesn't matter if you're comfortable in your job security and have a hefty financial cushion, or if you're struggling to make ends meet and have $100 in your savings account.

Recovery From the Great Recession

Following these policies, the economy gradually recovered. Real GDP bottomed out in the second quarter of 2009 and regained its pre-recession peak in the second quarter of 2011, 3½ years after the initial onset of the official recession.

The US Department of Treasury building seen in March 2023. US government debt is nearing $35 trillion.

Home prices fully recovered by late 2012. If someone bought a house at the very peak of the recession in 2007 and held the property for 5 years, they made money in appreciation after 2012. It took 3.5 years for the recovery to begin after the recession began.

The bounce-back from the 2008 crash took five and a half years, but an additional half year to regain your purchasing power.

The Hit to Minorities

Another commonly held perception is that minority and low-income households bore the brunt of the fallout of the subprime lending crisis. “The problem is that the most vulnerable households to recession are minority and low-income households,” Wachter said.

Two industries hit hardest by the recession -- financial services and construction -- also are the two industries that arguably were the biggest beneficiaries of the bubble. The financial industry has lost 628,000 jobs.

Communities of color are also typically hardest hit by recessions and job losses, he said. During the Great Recession, the unemployment rate reached a peak of 10 percent, but the peak for white workers was about 9 percent while the peak for black workers was 16 percent.