PolEconAnalysis

The financial crisis of the late 2000s can be considered the worst one since the Great Depression in the 30s. Its effects were felt by economies worldwide with huge companies being forced to shut down, banks declaring bankruptcy, and with the international stock market collapsing. Consumer activity rapidly declined as banks were no longer offering loans, which led to mass unemployment for long periods of time. All this quickly led to a global economic recession in 2008 and its effects can still be felt today.

The financial crisis that stared in mid-2007 and took a turn for the worse in 2008, has affected economies worldwide and some of the wealthiest countries were forced to spend huge amounts of money to bailout essential companies. Some have been bought by the competition due to the decrease in value and price while others had to shut down. The taxpayers didn’t agree with the fact that their hard earned money was used to save the ones responsible for this situation. Just in U.S. there has been a total of $9.7 trillion used for bailout packages and plans. Similar amounts have been used for European countries such as U.K. that spent almost $2 trillion to get companies out of trouble.