The Great Recession was a period of marked general decline (recession) observed in national economies globally that occurred between 2007-2009. The scale and timing of the recession varied from country to country. At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression https://www.vidypedia.com/post/the-great-depression The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2006. When housing prices fell and homeowners began to walk away from their mortgages, the value of mortgage-backed securities held by investment banks declined in 2007–2008, causing several to collapse or be bailed out in September 2008. This 2007–2008 phase was called the subprime mortgage crisis https://www.vidypedia.com/post/subprime-mortgage-crisis . The combination of banks unable to provide funds to businesses, and homeowners paying down debt rather than borrowing and spending, resulted in the Great Recession that began in the U.S. https://www.vidypedia.com/post/united-states officially in December 2007 and lasted until June 2009, thus extending over 19 months. As with most other recessions, it appears that no known formal theoretical or empirical model was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecasted probabilities, which were still well under 50%. 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 severe, sustained recession, many more recently developed economies suffered far less impact, particularly China, India and Poland, whose economies grew substantially during this period – similarly, the highly developed country of Australia was unaffected, having experienced uninterrupted growth since the early 1990s. Reference: Wikipedia https://creativecommons.org/licenses/by-sa/3.0/ please note this license do not imply Wikipedia endores this video https://VidyPedia.com is the Youtube of Wikipedia, every topic is simply explained in a short video (typically 3 minutes long). If you like our video please like, share and subscribe to our channel for more videos like this, please also leave us a comment below and tell us what topics you want us to cover next https://www.vidypedia.com/post/the-great-recession