Day 1 Reasearch

I would like to begin by posting some similarities of recessions:
1. decline in employment
2. decline in production
3. inflation

Some unique characteristics of our current recession are:
1. significant decline in home prices
-measured by median sales
2. proactive response by policy members

Beings that I am researching the United States, I have a lot of information to share so I will highlight some things I think are important.
*Our current recession started in December 2007
*Of the past 6 recessions (7 including this one) in 40 years, this will be the longest.
*There has been tightening of credit, declines in asset prices, and bank failures.
*Government spending will increase the debt burden, but will actually reduce the debt by growing the economy and increasing tax revenue.
*U.S. is the largest economy in the world
*GDP (Gross Domestic Product) was about 14 trillion for 2007
*AIG and Credit Default Swaps

There are 4 government agencies that are active in the response to the financial crisis:
1. FHFA (Federal Housing Financing Agency)
-they oversee the secondary mortgage market and they were the ones who nationalied Fannie Mae and Freddie Mac
2. Federal Deposit Insurance Corp (FDIC)
-they maintain financial stability by insuring deposits and they have currently raised the insurance limit from $100,000 to $250,000
3. Federal Reserve (FED)
-they are supposed to maintain a sound banking system, they were the ones who gave AIG $85 billion in loans
4. Treasury Department
-$700 billion stabilization package (AKA: TARP=Troubled Asset Relief Program)

United States Economic Statistics (that I have found so far)
*Unemployment rate=9.4%
*Inflation=.74% (I somewhat question that so I am not for sure)
*GDP=$13.8 trillion
*Median Household income=$50, 233

Well that is all I have so far that I find important.

Works Cited: "This Is Not Your Father's Recession...Or Is It" By Charles S. Gascon