Events

2007 to 2009 Recession

2007 to 2009 Recession

Full Name
2007 to 2009 Recession
Event Type
Parent Event

The 2007 to 2009 Recession originated in the United States and turned into the worst financial crisis since the Great Depression

Other Names:
  • Also referred to as the 2008-09 Great Recession
  • Deepest downturn since the Great Depression of the 1930s
  • Shallowest recovery after since the 19302



Impacts From The 2007 to 2009 Recession
  • Significant stock market panic/crash
    • The DJIA fell almost 55% between 2007 and 2009
  • Significant increase in unemployment (up ~10% from ~4.5%)
  • Businesses implemented restructuring plans
    • 6 Million jobs lost 
    • slashed inventory (10% / 150 Billion)
    • unloaded facilities and assets at firesale prices
  • 25%+ drop in home prices
  • The Russell 2000 (RUT) lost all the gains it had made since the previous bear market low in 2002
    • 60% drop
  • Household equity values dropped by $6 Trillion
  • Spread beyond the United States





Long-Term Impacts
  • Put psychological fear in investors mind - many didn't participate in forthcoming bull markets
  • Much of the US populous lost faith in the financial system

Notable Bankruptcies & Near-Bankruptcies


Other names commonly used