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Housing Bubble-Savings Defecit
the “housing bubble” bursts, setting in motion the subprime mortgage crisis and the Great Recession. Congress begins to recognize the emergence of the “shadow banking system” and the failure of the regulatory system. Once again the banking system faces a crisis. -
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Economic Timespan
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TARP-Trade Defecit
The Federal Reserve rescues some of the nation’s largest investment firms, including Bear Stearns and AIG, but allows Lehman Brothers to collapse. President George W. Bush and the Congress pass the Troubled Asset Relief Program (TARP) to purchase assets and equity from ailing institutions. Beneficiaries include General Motors and Chrysler, which avert bankruptcy. -
ARRA-Leadership Defecit
President Barack Obama and the Congress pass the American Recovery and Reinvestment Act (ARRA), providing tax cuts and federal funds to create new jobs, save existing jobs, and spur economic growth. The country’s debt rises to a new height at $11 trillion. while the deficit rises to $1.4 trillion. -
Health Care Reform Bill-Savings Defecit
Congress passes the Health Care Reform Bill, aimed at providing affordable, quality healthcare for all Americans. It planned to cover 32 million Americans who were uninsured. -
Financial Regulations Bills-Savings Defecit
Congress passes the Financial Regulations Bill, aimed at preventing the risky behavior and regulatory failures that brought the economy to the brink of collapse and cost millions of Americans their jobs and savings. -
Increase in US debt-Leadership Defecit
Congress votes for and the president signs a bill authorizing an increase in US debt. The debt ceiling is to be raised in a multistep process, as Republicans and Democrats continue to debate over tax cuts, raising revenue, and cuts to entitlement programs such as Medicare, Medicaid, and Social Security.
