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The Great Recession of 2007

What caused the downfall?

The Great Recession of 2007 – 2009 is actually still going on in 2012. I know they say it’s a double-dip recession, but quite frankly, it’s more like a depression even if the economists aren’t saying so. Recessions typically “last 6 months or more” (McConnell, Brue, & Flynn, 2012, p. 527), but this so called recession has been going on for 5 years now, and it’s really getting old!

I think it all began with the housing market. People who should have never qualified for loans were encouraged to purchase homes far outside their budget limit. Entranced with low monthly payments, these people could no longer afford their mortgages once their flexible interest rate began to rise. “As real estate prices plummeted and mortgage defaults unexpectedly rocketed, the securitization and insurance structure buckled and nearly collapsed” (McConnell, Brue, & Flynn, 2012, p. 528). Mortgage defaults had a ripple effect throughout the country, and even beyond into the global economy. We are still sitting on the brink of disaster with a President more interested in being a super-star than in leading this country back into prosperity.

My husband lost his job due to The Great Recession. The company he worked for closed their Oregon Coast plant, and there’s nothing around here for him. He’s been in physical positions all his life, but he’s not a young man anymore, and that kind of work kills him. He collected unemployment until it ran out, then was forced into an early retirement in order for us to continue to meet our financial responsibilities.

We’re still feeling the long term ramifications of The Great Recession. Unemployment is higher that it has been in a long time. We’re dealing with inflation all around with prices increasing on everything except our paychecks. I have true concerns for the future of this country, and have thoughts of moving back to Canada if the current administration is not replaced come November. Time will tell, but four more years like the last four years will ruin this country, possibly beyond repair.


McConnell, C., Brue, S., & Flynn, S. (2012). Economics principles, problems, and policies. New York, NY: McGraw-Hill Irwin.