It began in 2007 with a crisis in the subprime mortgage market in the United States, and developed into a full-blown international banking crisis with the collapse of the investment bank on September 15. The stock market crash of 2008 occurred on September 28th when, the Dow Jones Industrial average fell 777.68 points, the most in any single day in history. Americans lost 17,000 jobs. The American economy is built on credit. Credit is a great tool when used wisely. For example credit can be used to start or expand a business, which can create jobs. It can also be used to purchase expensive items such as houses or cars. But credit went unchecked in our country, and it got out of control. Risky mortgages became commonplace packaging these bad mortgages with other mortgages and reselling them as “investments.”Thousands ofpeople took out loans larger than they could afford in the hopes that they could either flip the house for profit or refinance later at a lower rate and with more equity in their home which they would then leverage to purchase another “investment” house. It's been 11 years since the recession.
The loss of more than eight million jobs, half the value of the Dow and the S&P 500, and trillions of dollars in retirement accounts and household wealth. Lives and businesses were ruined and whole neighborhoods emptied out, as banks took back homes bought on badly underwritten credit. The American economy has recovered in many ways. Employers have been steadily adding jobs since early 2010, the stock market is booming and home prices have reached new all-time highs. But in other ways there is still so to say “scars” of the recession. One of the greatest aspects of america's rebound is the unemployment rate. It sunk to a 16-year low of 4.1% in October, with some industries like trucking, construction, and oilfield services are having difficulty finding workers. In 2016, the Federal Reserve found that 70% of adults reported living comfortably or doing okay financially, up from 62% when they began asking the question in 2013.Will we see another market crash in the future? Most of the time, successful investing is a waiting game. Just as there are bad times to sell your stocks, there are bad times to buy them as well, and sitting on money while you wait for a better opportunity is often one of the best investing decisions that you can make. Prices are so high in the market right now, according to the Shiller PE prices have only been this high twice in the past 140 years. The first time they got this high was in 1929. The second time was in 1999. Want more information on the recession check out this youtube video