Well, here it is. I will be more than happy to add corrections or suggestions to this given how I am pretty inexperienced in this. I've taken this from various sources, so expect bias and feel free to suggestion potential corrections.
The Great Recession (2009-2014) Examination Pt. 1
The Great Recession refers both to the American Recession starting in late 2009 and continuing onto the global stage for years to come. The Recession was caused in part by the housing bubble burst, the issues of the banks and other significant issues on the global economy. It would come to define as the starting point of the new Tens, the new political movements and cultural movemenets as a result of such.
Causes
Various causes were linked to the Recession though the Recession's pattern and influence by outside forces also lent to do this. First was the identified failure on the part of the government to regulate the financial industry. This failure to regulate included the Fed’s inability to curb toxic mortgage lending. While the polices long predate this, examining the Gore and McCain administrations in this gives evidence. The Gore administration attempted to lower federal interest rates to try and increase home ownership, especially among the lower class. However, the controversial nature of the election led to such plans and discussions going nowhere and then being shelved indefinitely as events such as 9/11 and the Exxon-Mobil Scandal occurred. The lower interest rates did not kick in until 2006 though they were modestly lower. The growing economy and prosperity involved encouraged home ownership to go up. Additionally, financial innovations such as new types of
subprime and
adjustable mortgages allowed borrowers, who otherwise might not have qualified otherwise, to obtain generous home loans based on expectations that interest rates would remain low and home prices would continue to rise indefinitely. However, the interest rates were lowered significantly more over in the McCain Administration once they ended up taking hold.
Addtionally, there were too many financial firms taking on too much risk. The
shadow banking system, which included investment firms, grew to rival the depository banking system but was not under the same scrutiny or regulation. When the shadow banking system failed, the outcome affected the flow of credit to consumers and businesses. The shadow banking system as it was called was ignored by both liberals and conservatives though may indiciate more prominent left-wing politicians showed skepticism and concern about it.
Of course, over time, new elements added to the Recession, such as the Arab Spring. What started as a gradual decline would grow into a rollar-coaster of economic turmoil.
Approach
Bear Sterns... Lehman Brothers... they were the big names signifying the cascade effect. The collapse of the banks began leading into the downspiral of problems for the United States and for the world at large. Trillions of dollars were being lost as people also began losing their jobs from layoffs. To many, this would be seen as the McCain Administration's opportunity to try and tackle such economic problems. However, the approach done by President McCain and Vice President Romney would end up prolonging the Recession for the United States and begin causing a greater effect over as a result. American and European banks would be undergoing free-fall and the effects everywhere were massive, to where Iceland even would virtually shutdown the current government and force in a new one in the upcoming months, an event that caught fire amongst social media and more and more young people and people slighted by the Recession.
As 2010 rolled in and the new decade started off with large concerns and many nations going into problems, the question was asked on what to do with the economy. While there was the initial consensus of hoping the economy would end up resolving itself, the escalating global problems began trying to force the government to look into solutions while also causing colossal tears and holes into the two political parties and then some. The Libretarian Party would see a drain of supporters as their calls of deregulation would be seen as counterintuitive and in fact, the cause of such problems in the first place. The Republicans were being torn by the deficit hawks, people calling for increased government spending temporarily and of course some who were insisting on blaming Gore and Clinton. The Democrats were relatively more united in the need for a stimulus package to be resolved, but there would be a growing consensus among the more left-wing regarding on how to deal with the banks and the crisis, signifying the true beginning between the neoliberals and a new form of New Dealers and social democrats rising.
McCain adviser Martin Feldstein advocated for the stimulus package, namely for infrastructure and for the military. Meanwhile, Glenn Hubbard, an advisor who was put in at the request of Mitt Romney was
pushing for a government program to lower mortgage rates. And of course, there was the classic Republican administration approach of tax cuts aimed at high earners and corporations in the hopes that it would put more money for investors to hire people or to slow down the rate of layoffs. Democrats meanwhile advocated more for tax cuts at the middle and lower classes along with investment in other areas. One big sticking point was the Glass-Steagall Act; many have pointed that Clinton's repealing of it was a cause behind it. However, such critics of the Clinton administration would be shot also with the results showing that more Republicans than Democrats voted in support of the repeal of the Glass-Steagall Act both in the House and Senate.
Eventually, after many painful months of debate and the fear and panic of the American populace, the McCain stimulus was passed, creating a large stimulus package over for the build-up in the military, albeit under more regulation to avoid the clusterfuck brought by the Pentagon audits years ago along with infrastructure stimulus. It also cut taxes for a portion of high earners and corporations in the hopes of restimulating the economy. While the solution brought some relief for the people, it would not be long before the calm set in, people looked at what happened and the growing rage at the McCain Administration would grow...
As for the stimulus itself, it called for regrowing and modernizing the military. Among an agreed consencus was an influx of cash for beefing the cybersecurity in the public and private sector. This was brought about as a result of Google revealing the Chinese hacking in "Project Aurora" over in January of 2010. Better software was subsidized, greater defensive regulations were tightened and there was a call for greater internet awareness and safety, especially how the lax defense of Google contributed to the hack, even after prior warnings from the Gore Administration a couple years prior. Meanwhile, the influx of building up forces seemed contrary though many would see it as a response to the growing global turmoil. Best seen in the Honduran Restoration, where the US provided support to Central American nations to restore Zeluya back as Presidency and showed surprising cooperation with Venezuela on the matter. Under normal circumstances, such a thing was highly unlikely, but the concern over US reaction on with the Zeluya coup led to the aggressive approach being taken, even regarding the opposing politics. Unsurprising, this would be seen as a bright spot for McCain in restoring democracy as well as overseeing the next election over in 2011, though the conditions being that Zeluya should not run again (a discussion held between McCain and Zeluya, noting the latter's controversey could unstablize the nation further.)
However, the forces would end up becoming vital in an international occurring later down the year...
Mwehehehe.
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