Description

2008 was an extraordinary year, as the fallout from the mortgage business nearly crippled U.S. financial systems. The financial sector underwent a massive
restructuring, with Lehman Brothers filing for bankruptcy, the government seizing control of Fannie Mae and Freddie Mac, the government bailing out AIG, Goldman Sachs and Morgan Stanley reorganizing as bank holding companies, and Bear Stearns, Merrill Lynch, Wachovia, and WaMu, among others, ceasing to operate as independent entities.

Financial sector instability and mark-to-market losses almost froze the credit market, leading to cash flow problems for both businesses and consumers. A Zillow.com report estimates that American homeowners will collectively lose more than $2 trillion in home value by the end of 2008. Meanwhile, the U.S. auto industry sits on the verge of bankruptcy without a government bailout.

All of these events significantly impacted the overall economy, and we are facing the worst recession since the ’70s