Financial Crisis

Amid recent recession talks, the haunting memory of the 2008-2009 Great Recession reemerges in the public consciousness. This era was marked by the loss of over 8 million jobs and a gut-wrenching 50% plunge in the S&P 500®. However, Fidelity’s Asset Allocation Research Team (AART) suggests a comforting outlook, projecting that the potential upcoming recession is likely to be relatively short-lived and milder in contrast. The reasons behind this optimism center on the four crucial sectors of the economy—banks, labor, housing, and household and corporate finance—all of which are in…

All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only.  The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions.  This report and the information herein should not be considered investment advice or the results of actual market experience. In what might have been the last rate hike of the current monetary policy tightening cycle, the Federal Reserve (Fed)  raised interest rates to 5.125% on May 3.  Through the cycle that…

Introduction The United States has experienced several financial crises throughout its history, each leaving indelible marks on the nation’s economy and financial landscape. This article will review and recall some of the most significant financial crises in US history, offering unique analyses of the factors that contributed to their development, the measures taken to address them, and the lessons learned from each event. The Panic of 1907 The Panic of 1907, also known as the Knickerbocker Crisis, was triggered by a combination of factors, including a stock market crash, a…

The United States has been facing a significant debt crisis in recent years, with the national debt approaching $31.4 trillion as of Jan 2023. One of the most pressing issues in this crisis is the approaching debt ceiling, which is the limit on the amount of debt the government can incur. The debt ceiling has been a contentious issue for decades, with lawmakers frequently raising it to avoid defaulting on the country’s debt. However, with the debt ceiling fast approaching, it is crucial that steps are taken to avoid defaulting…

The Great Depression, which lasted from 1929 to 1939, was one of the most devastating economic downturns in history. Millions of people lost their jobs, their homes, and their savings. But despite the widespread poverty and suffering, the Great Depression was also a time when many people were able to build wealth and achieve financial success. One of the reasons why the Great Depression was a good time for wealth accumulation is that it was a time of great economic opportunity. During the 1930s, the stock market was at an…

Recessions, like any other large scale economic event, can be difficult to predict, but they can still have a significant impact on individuals and businesses. As the world slowly recovers from the last recession, it’s important to make sure that you are prepared for the next one. Here are some tips on how to prepare for the next recession, so you can stay financially secure during the difficult times. Understanding the Different Types of Recessions The first step to preparing for a recession is to understand the different types of…

With the stock market enjoying an unprecedented period of growth, many investors are asking whether we could be heading for a 2023 crash of great magnitude. The possibility of a financial crash is a real concern for investors, as it could have a devastating impact on the global economy. But is a 2023 crash a realistic possibility, or just a fear mongering tactic used by some to try and capitalize on people’s fears? To answer these questions, we must first examine what the future holds and what could lead to…