$$Economics in the 2000's$$

$$By:Ava, Peyton, Anjali, Justin and Ana$$


In 2000 George W. Bush was elected. In 2004 he was elected again. In 2008 Barack Obama was elected. He created Obama Care.


On Sep. 11 2001, 4 passenger planes were hijacked. 2 for the twin towers, 1 for the Pentagon and 1 suspected for the White house that crashed in a field in Pennsylvania. After these terrorist attacks many airlines shut down immediately. About 3,000 people were killed in the attack. Many panicked and were very scared about what would happen next. Right after the attacks the bush administration launched war on terrorism and Iraq. 9/11 cost about 1.7 billion dollars.

Hurricane Katrina

  • Hurricane Katrina was one of the 5 worst storms in US history, and the worst hurricane of the 2005 season. It was also the country’s most expensive natural disaster at a cost of 60 billion dollars.The hurricane formed over the Bahamas and gained strength in the Gulf of Mexico. It affected the states along the gulf, from Florida to Texas, but most notably Louisiana, before continuing up the east coast. Between 23 August and 31 August, when it dissipated, Hurricane Katrina actually made landfall three times, in Florida and in Louisiana. In total, it affected an area of about 90,000 square miles.Hurricane Katrina was the strongest hurricane recorded in the Gulf region, at that time. At one point, the winds were measured at close to 175 mph.Over 1,800 people died as a result of the storm. Hundreds of other people were forced to move to other cities.Hurricane Katrina directly caused massive amounts of property damage to the state of Mississippi, whereas Louisiana was devastated by flood waters as its levee system failed.This took place after the storm had moved further inland.New Orleans was one of the areas most affected, with about 80 percent of the city flooded, and 900,000 people without electricity. The cost of the hurricane in Louisiana and Mississippi was more than $150 billion.The storm surge from Hurricane Katrina was so great that it reached 12 miles inland. In Biloxi, a floating casino barge was washed up on top of a hotel by the rushing waters.The storm also caused a lot of debris to be piled up. If all the debris was stacked together in an area the size of a football field, it would make a pile 10 miles high.In preparation for the hurricane, the first ever mandatory evacuation of New Orleans was ordered. About 26,000 residents sheltered in the huge Louisiana Superdome, where they were given food and water. After the hurricane hit, over 60 countries around the world promised money to help with rebuilding. The biggest contribution came from Kuwait, which pledged $500 million.
  • The Housing Crisis

    The Housing Crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009.It was triggered by a large decline in home prices after the collapse of a housing bubble. Many people lost their jobs and homes. It was a close second under the Great Depression for worst financial crisis.From 1997 until 2006, people bought expensive houses, even though they did not have enough money for it. Since the money had come from other countries, it was easy to have good credit. People used this credit for expensive home loans. This created an economic bubble which caused the houses' prices to raise. Because they had a lot of money, the loaning companies made it easier to get a loan, even if the borrower didn't have a good credit history. These loans are known as subprime loans. However, the housing companies built too many houses. This caused the price of housing to decrease beginning in the summer of 2006. The value of many homes dropped below the value of the remaining mortgage debt, so the owners were unable to sell and move away. This is called negative equity. About 8.8 million homeowners in the U.S. had zero or negative equity by March 2008. This caused the number of foreclosures on homes to increase, meaning that many people lost their homes. During 2007, almost 1.3 million U.S. homes could be foreclosed on. The number of houses for sale continued to increase, which made the prices decrease. The homeowners with subprime loans left their houses with less value than they had when they were bought, which meant that the loans were worth more money than the house. The loaning companies were not able to make money from these houses. It was a very sad time. :(

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