Info: Facing the biggest crisis since the Great Depression. In the 90's, the Government pushed for more home ownership and home values went up tremendously. Mortgages for those houses were given to people who couldn’t really afford them and people continued to borrow money they didn’t have as loans were far more available to get a hold of those houses. They couldn’t pay off these loans and resulted in financial crisis, thus affecting import and export on trade with foreign nations and stopped circulation of money and banks started to collapse. Impact: Financial Crisis cost U.S. an estimated $648 Billion, real estate wealth lost $3.4 Trillion, and 5.5 million American jobs were lost. Also, there were social and economic consequences. The Financial Crisis was the biggest economic downturn since the Great Depression and in the Great Recession right afterwards, there were multiple effects: poverty in suburbs increased more than a third, murder rates went up 15%, family structures changed; including declines in academic achievements, delays in marriage age, budget cuts in education increased, health outcomes changed with increased rates of heart attack and stroke and anxiety and depression. Women were studied to have more stress experienced than men because they were more likely to be the financial managers of their households. Because of such Economic crisis, Obama resorted to massive spending in an attempt to create more jobs to lower unemployment rates and thus help stabilize the economy. |