Skip to main content
  1. Life
  2. Society & Culture
  3. Social Issues

When did the Great Recession start?

See also

It impacted different sectors at different times. Most real estate developers in California agree that it began in 2005, and most software engineers in Silicon Valley say that it began when the dot com boom went bust during the late 1990's, which was later compounded by the World Trade Center attack in September 2001. It was further compounded by the Iraq war, the Afghan civil war, Hurricane Katrina in 2005, and by adjustable-rate mortgages because they ballooned. Finance professionals who work in the inter-bank credit/lending business say that it started in 2007. In 2008 The National Bureau of Economic Research said that it began in December 2007.

The Great Recession actually started during the 1980's, which I'll explain in a moment. The dot com and real estate booms during the mid to late 1990's were a flash in the pan. 1991 was a very bad year. Silicon Valley grew during that period but the rest of the Bay Area suffered. The East Bay was in financial crisis. Contra Costa County was in such grave condition during the early 1990's that the residents had to commute to other counties. They worked in San Francisco, Alameda County and Santa Clara County. At that time the president was George Herbert Walker Bush, but the Great Recession started even before he entered office in 1989.

During former President Ronald Reagan's tenure, the nominal national debt rose from $900 billion to $2.8 trillion, largely due to the Cold War between the U.S. and the Soviet Union (the "U.S.S.R."). The tension was so bad that every time Americans walked outside they halfway expected to see a mushroom in the sky, and Reagan did what he had to do in order to prevent it from happening. He was a commander in chief who was forced to spend whatever it took to keep Americans safe on domestic soil, and if he hadn't done it then we'd all be dead. Also, Iran was holding Americans hostage when he entered office. And Japan was taking market share away from the American auto industry and consumer electronics such as televisions, stereos and computers.

It seems to indicate that the U.S. economy has been in gradual, slow decline since at least 1980, with short term economic boosts such as the dot com and real estate booms, and the inevitable outcome was The Great Recession.

Advertisement

Life

  • Dead babies found
    Seven dead babies were found in Utah resident Megan Huntsman's old home
    Video
    Shocking Discovery
  • Kendall Jenner
    Get the Coachella looks: Kendall Jenner’s nose ring, green hair and edgy nails
    Camera
    Coachella Look
  • Dog's Easter basket
    How to fill your dog’s Easter basket with the perfect toys
    Easter Basket
  • Rabbit owners
    Bringing home the bunny: Important information for rabbit owners
    Camera
    7 Photos
  • Haunted island
    The world’s most haunted island may soon be the most haunted luxury resort
    Haunted Resort
  • Sunken ferry
    Search continues for missing passengers after a ferry sinks off the South Korean coast
    Video
    Sunken Ferry

Related Videos:

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!