Cause & Effect

Essay by mariahshaeeCollege, UndergraduateA, October 2014

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Cause and Effect

If I had to choose one event that will have significance in my life after ten years, it would have to be "The Great Recession". The economic turmoil that started in early 2008 by the fall of Bearn Stern the fourth largest Investment Banking firm in the U.S. followed by the collapse of Leman Brothers in September of 2008 has led to the worst recession since the World War II and has been called The Great Recession. The reason it will still have significance in my life even though I'm at such a young age is because of the fact that I, like many other college students living on their own is finding out how truly hard it is, and most of that is because of The Great Recession.

Every catastrophe has in its official response an unspoken official clarification of why the catastrophe began.

As he took office at the start of the Great Depression in 1933, President Franklin Roosevelt banned the private possession of gold. In doing so, he gave weight to his argument that gold "hoarding" had played a major role in the downfall in customer spending that had appeared to the economy during its movement up over the previous four years. In our own Great Recession, we had Dodd-Frank. This collection bill of summer 2010 carpeted the financial business with rules. The very being of Dodd-Frank has allowed its supporters in Washington to believe that a lack of rules caused the panic of 2008.

Some of the effects of the Great Recession include real estate, banking, and education. Niall Ferguson pointed out, "The result was a bubble; at its peak, average U.S. house prices were rising at 20% a year. Then - as bubbles always do - it burst.