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November 20, 2008 – A new President and an old nightmare – The Great Recession of 2008, as it came to be known. On this day the country was reeling from a 400 point drop in the Stock Market the day before and the downward spiral was showing no signs of letting up, leading many analysts to remark “it’s like a train-wreck in slow motion”. The three major indexes were at their lowest level in about five years, and there was very little incentive for people to jump into the market. Trading volume had been quite low for weeks, and there was no compelling reason to buy stocks. Likewise, Asian and European markets have fallen in the face of new recession fears overseas. Financial advisers were telling nervous investors to “sit tight”.
The Great Recession stemmed from the collapse of the United States real estate market in relation to the financial crisis of 2007–2008 and the subprime mortgage crisis, though policies of other nations contributed as well. According to the nonprofit National Bureau of Economic Research (the official arbiter of U.S. recessions), the recession in the U.S. began in December 2007 and ended in June 2009, thus extending over 19 months. The Great Recession resulted in a scarcity of valuable assets in the market economy and the collapse of the financial sector (banks) in the world economy; some banks were bailed out by the U.S. federal government.
The recession was not felt equally around the world; whereas most of the world’s developed economies, particularly in North America, South America and Europe, fell into a definitive recession, many more recently developed economies suffered far less impact, particularly China, India and Poland, whose economies grew substantially during this period.
In other news, the auto Industry loan to Detroit was all but dead in Congress, leading many to ponder worst-case scenarios already on top of worst-case scenarios.
And there was much speculation as to who would be cast in the role as adviser to the new President.
All that, and so much more, for this November 20, 2008 as presented by The CBS World news Roundup.