What economic event marked the years 2007 to 2009?
John Thompson
Published Mar 26, 2026
The Great Recession
The Great Recession began in December 2007 and ended in June 2009, which makes it the longest recession since World War II. Beyond its duration, the Great Recession was notably severe in several respects.
When did the 2009 crash start?
The International Monetary Fund estimated that large U.S. and European banks lost more than $1 trillion on toxic assets and from bad loans from January 2007 to September 2009.
What is the recession of 2007 2009 called?
Great Recession
The term Great Recession applies to both the U.S. recession, officially lasting from December 2007 to June 2009, and the ensuing global recession in 2009.
What caused 2008 stock market crash?
The stock market crash of 2008 was as a result of defaults on consolidated mortgage-backed securities. Subprime housing loans comprised most MBS. When the housing market fell, many homeowners defaulted on their loans. These defaults resounded all over the financial industry, which heavily invested in MBS.
How long did 2009 stock market crash last?
The US bear market of 2007–2009 was a 17-month bear market that lasted from October 9, 2007 to March 9, 2009, during the financial crisis of 2007–2009.
December 2007–June 2009 Lasting from December 2007 to June 2009, this economic downturn was the longest since World War II. The Great Recession began in December 2007 and ended in June 2009, which makes it the longest recession since World War II.
How long did the 2007 2009 recession last?
19 months
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. officially in December 2007 and lasted until June 2009, thus extending over 19 months.
Why Did House Prices Fall in 2008?
The 2007–08 Housing Market Crash Low interest rates, relaxed lending standards—including extremely low down payment requirements—allowed people who would otherwise never have been able to purchase a home to become homeowners. This drove home prices up even more. This, in turn, caused prices to drop.
