Late 2000's Financial Crises

Lehman_brothers.jpg
The Lehman Brothers were one of the victims that collaspe during the 2007 to 2008 economic crisis.


The economic crisis of the late 2000s is around 2007 to 2008. There were collaspes of huge financial institutions and many bailouts that were made from the government to save the banking systems. Stock markets from all the world crashed and it was a similar but more minor situation like the Great depression in 1929. Job unemployment increased, GDP decreased because people can't get jobs. However, this time the goverment was more prepared and it didn't go on for too long. Currently the economic situation has stopped worsen and there are expectation of recovery.
This is related to the ebb and flow of the liberal economics because people would have to once again resort to the government in saving the economy. Obama was the president that is in charge of the recovery and he used government intervention to stop banks from going bankrupt. Classical liberalism is not useful in all situations and Reaganomics is discarded to the new Obamanomics (which is simliar to Blair's third way).

Reference:
2008, S. (n.d.). Late-2000s financial crisis - Wikipedia, the free encyclopedia. Wikipedia, the free encyclopedia. Retrieved March 19, 2012, from http://en.wikipedia.org/wiki/Late-2000s_financial_crisis

File:Lehman Brothers Times Square by David Shankbone.jpg - Wikipedia, the free encyclopedia. (n.d.). Wikipedia, the free encyclopedia. Retrieved March 19, 2012, from http://en.wikipedia.org/wiki/File:Lehman