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ERIC Number: EJ834640
Record Type: Journal
Publication Date: 2009-Mar
Pages: 5
Abstractor: ERIC
Reference Count: 0
ISSN: ISSN-0037-7724
The Crash of 2008: Causes and Lessons to Be Learned
Gwartney, James D.; Connors, Joseph
Social Education, v73 n2 p63-67 Mar 2009
The headlines of 2008 were dominated by falling housing prices, rising default and foreclosure rates, failure of large investment banks, and huge bailouts arranged by both the Federal Reserve and the U.S. Treasury. The wealth of many Americans has been substantially reduced and concern about a lengthy and severe recession is now widespread. All of this turmoil has come on the heels of more than 20 years of solid growth and unprecedented economic stability. What caused this crisis? In this article, the authors takes a look at four factors that underlie the rise and fall of housing prices and the conditions that eventually culminated with the crisis of 2008. These factors are: (1) Declining lending standards; (2) Federal reserve interest rate policies; (3) Excessive leverage; and (4) Increased household debt. The authors also discuss the lessons to be learned from the current crisis. (Contains 2 figures and 2 notes.)
National Council for the Social Studies. 8555 Sixteenth Street #500, Silver Spring, MD 20910. Tel: 800-683-0812; Tel: 301-588-1800; Fax: 301-588-2049; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Evaluative
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A