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English 2010
July 19, 2016
If you were to conduct any research into the recent Great Recession of 2008, you would
find a lot of opinionated information criticizing the Federal Reserve leaders and their handling of
the recession. As you might already know, the recent Great Recession of 2008 was the toughest
economic times this country has faced since the Great Depression of the 1930s. However, most
members of the general public do not know how close this country, and much of the world was,
to falling back into depression era numbers and how much farther down we wouldve fell if not
for the bold and immediate actions the Federal Reserve leaders took during those tough times.
The Great Recession can trace its beginnings all the way back to the early 2000s and late
1990s during eras of strong economic output and federal de-regulation of financial institutions.
This deregulation made it easier for banks to lend large amounts of money, take eon much more
risk, make riskier investments, and in-turn during strong financial times take home
unprecedented amounts in bonuses and profit. However, as any high school physics student can
tell you, what goes up must come down. This principle is not only applicable to the study of
physics, but it applies heavily in the world of finance. Though the stock markets long-term trend
has always been an upward one, history tells us that short term spikes are almost always met with
a downward correction.
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This is what a lot of the general public today is unaware of, just how close we were to
falling right off of that cliff. The general public only sees the big bailouts for business who's soul
purpose to make money. After these big bail outs, the general public was left asking, wheres the
money for me, the little guy, about to loose his house. As valid of a point as that is, John Q. Public
was not aware that had these bail outs not been made, he really wouldnt have a job in the future
to even make rent payments on. (Sorkin)
Making the decisions that Ben Bernanke and Hank Paulson had to make leading up to
those crucial moments in finical history were not easy, nor were they the popular ones. However,
they were completely necessary for the betterment of the future of our financial institutions and
markets. Today, the countries financial markets have recovered to full strength. We truly have the
leadership of the Federal Reserve to thank for the health of todays economic times.
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Bibliography
Havemann, Joel. "The Financial Crisis of 2008: Year In Review 2008." Encyclopedia
Sorkin, Andrew Ross. Too Big to Fail. New York: Viking, 2009. Print.
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