What is its relationship between the Great Recession to the financial crisis? | 2022

The Great Recession of 2008

Please write what you believe is an important event that should be included in the timeline, along with your reasoning. Provide some specifics. What is the significance of this event or choice in the timeline? What is its relationship to the financial crisis? Please send a link to any useful Web resources or documents that could be included in the timeline.
What were some of the important events in the summer of 2007 that suggested the "house of cards" was about to fall?

Bear Stearns: What became of Bear Stearns? What were the critical decisions? When did they happen? When did "Bear Stearns Day" occur?

The FOMC: What were some key decisions by the FOMC during this period--which policy decisions made history, so to speak?

Fannie Mae and Freddie Mac: in 2007 and 2008, what were some key events and policy decisions related to these?

Overview

The Great Recession was a dramatic drop in economic activity that occurred in the late 2000s. It is regarded as the most severe decline since the Great Depression. The term "Great Recession" refers to both the US recession, which lasted officially from December 2007 to June 2009, and the subsequent global recession in 2009.

The economic downturn began when the housing market in the United States swung from boom to bust, causing enormous sums of mortgage-backed securities (MBS) and derivatives to lose considerable value.

The phrase "Great Recession" is a pun on the phrase "Great Depression." During the 1930s, there was an official depression with a more than 10% drop in GDP and an unemployment rate that reached 25% at one time.

While no formal criteria exist to distinguish a depression from a severe recession, analysts agree that the late-2000s slump was not a depression. During the Great Recession, the United States' GDP fell by 0.3% in 2008 and 2.8% in 2009, while unemployment briefly surpassed 10%.

However, this is without a doubt the worst economic downturn in the intervening years.

The Roots of the Great Recession
According to the Financial Crisis Inquiry Commission's 2011 report, the Great Recession could have been avoided. The nominees, who included six Democrats and four Republicans, listed a number of important contributing factors to the slump.

First, the report addressed the government's failure to control the banking industry. This regulatory failure included the Fed's inability to rein in hazardous mortgage lending.

Following that, there were far too many financial firms taking on much too much risk. The shadow banking system expanded to rival the conventional banking system but was not subject to the same scrutiny or regulation. When the shadow banking system broke, the flow of credit to consumers and companies was disrupted.