$$Economics in the 2000's$$
$$By:Ava, Peyton, Anjali, Justin and Ana$$
Presidents:
In 2000 George W. Bush was elected. In 2004 he was elected again. In 2008 Barack Obama was elected. He created Obama Care.
9/11
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
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. :(
Lets Reveiw!!!!
Whach this video on money for extra info!!$$$$
SchoolHouse Rock Where The Money Goes