Late 2000s recession
• Late 2000s recession in Africa
• Late 2000s recession in the Americas
• Late 2000s recession in Asia
• Late 2000s recession in Australasia
• Late 2000s recession in Europe
Countries in official recession (two con-
Countries in unofficial
recession (one quarter)
economic slowdown of more than 1.0%
Countries with economic slowdown of
more than 0.5%
Countries with economic
slowdown of more than 0.1%
with economic acceleration
2007 and 2008, as estimates of December 2008 by the
International Monetary Fund)
The great asset bubble:
1. Central banks gold reserves - $0.845 tn.
2. M0 (paper money) - - $3.9 tn.
3. traditional (fractional reserve) banking
assets - $39 tn.
4. shadow banking assets - $62 tn.
5. other assets - $290 tn.
6. Bail-out money (early 2009) - $1.9 tn.
Since October 2008 a global financial crisis
led to the bankruptcy of many financial insti-
tutions in the USA and European countries,
threatening the global financial system.
In 2008–2009 much of the industrialized
world entered into a deep recession sparked
by a financial crisis that had its origins in
reckless lending practices involving the ori-
gination and distribution of mortgage debt
in the United States. Sub-prime loans
losses in 2007 exposed other risky loans and
over-inflated asset prices. With the losses
mounting, a panic developed in inter-bank
lending. The precarious financial situation
was made more difficult by a sharp increase
in oil and food prices. The exorbitant rise in
asset prices and associated boom in econom-
ic demand is considered a result of the exten-
ded period of easily available credit, inad-
equate regulation and oversight, or in-
creasing inequality. As share and housing
prices declined many large and well estab-
lished investment and commercial banks in
the United States and Europe suffered huge
losses and even faced bankruptcy, resulting
in massive public financial assistance. A glob-
al recession ha