Stock Market Crash of 2007
By Kaytlin Petty & Christian Pesina
Downfall of 2007
- The Dow Jones Industrial Average reached a peak on October 9, 2007. 14,164.53 & 10,365.45.
- The S&P 500 had lost 55% of its value
- Unemployment rose up to 10 percent
- Stock market lost more than half of its value
- Believed this happened from housing.
- The housing market helped create wealth and provide a secure asset that people could borrow money to help the economy grow. There was a lot of financial innovation at the time which included all sorts of new lending types such as interest adjustable loans, interest only loans and zero down loans.
- DJIA lost over 50% of its value.
- People blamed the economy, the George W. Bush administration, and the Barack Obama administration.
- Job loss started in 2008, but the stock market declined in 2007.