Great Recession (2007–8)

The Great Recession was a period of global economic decline that began in the United States in 2007 with a subprime mortgage crisis, then spread to other countries because of the interconnectedness of global finance and economic trends. As home foreclosures became widespread in the United States, resulting losses on mortgage-related investments created a crisis of liquidity and credit. Central banks had to intervene by injecting money into the financial sector to prevent a complete banking system collapse and ensure the availability of credit.

The global recession was characterized by high unemployment, decreased home and other asset values, failure and reorganization of many financial institutions, and swelling government debt from increased expenditures and decreased revenue. Low-income individuals and families were especially impacted by the Great Recession ...