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Bursting of the Technology Bubble (Dot.com)
-entrepreneurs saw potential
- new economy (internet driven economy) -investors were getting rich -
Period: to
Personal Finance
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September 11 Terrorist Attacks
-helped shaped the financial events of the decade
-after this, economic climate was to never be the same again
-only the third time in history that the New York Stock Exchange was shut down
-economic loss cannot be estimated
-estimated about $60 billion in insurance costs
-catastrophic financial loss -
Enron, the Emergence of Corporate Fraud and Corporate Goverance
-one of the top energy companies at this time
-caught in a corporate fraud scandal that led to the bankruptcy of Enron
-had billions of dollars in debt from shareholders, failed deals and projects
-shareholders lost more than $60 billion in the scandal
-led to the passage of Sarbanes-Oxley Act of 2002 which expanded penalties for accounting fraud
-shook the securities markets and investor confidence -
Stock Market Crash
-after 9/11 stock market started going down hill again
-market hasn't reached these lows since 1997 and 1998
-fraud scandals were contributes to the loss of confidence in the stock market -
War on Terror and Iraq War
-after 9/11
-war was launched in Afghanistan
-Iraq war was launched in 03
-cost of these wars is ongoing to date
-Congressional research service has approved about $944 billion for the operations overseas
-incredible financial drain on the economy
-impossible to actually know the final cost -
China and India Grow as World Financial Powers
-economists estimate that these nations can grow at the rate of 7-8% for decades to come
-china alone has grown about 9.6% in the past two decades
-together they account for 1/3 of the worlds population
-other countries started getting China and India to do work because of cheaper labor (no longer a thing). Kept their work in the country because talent and innovation in high tech fields
-a million scientists and engineers are trained here each year -
Hurricane Katrina and Rita
-August 25, 2005, hurricane Katrina hit the gulf coast of US, category 3 storm
-quickly became the biggest natural disaster in US history
-nearly destroyed New Orleans
-hurricane Rita followed Katrina only to make it worse
-between both, more than $200 billion in damage was caused
-400 000 jobs were lost and 275 000 houses were destroyed
-1000 people were killed, more were missing -
Sub-prime Housing Crisis and the Housing Bubble
-US housing market was booming
-housing values were high
-anyone who wanted to buy, could
-phenomenon called sub-prime lending arose
-banks made mortgage loans to anyone
-interest rates increased, people could not make their payments
-loans became worthless to large financial institutions (creating the credit crunch) -
Bernard Madoff and the biggest Ponzi Scheme in History
-he owned his own investment advisory firm was a former chairman of the NASDAQ
-he admitted to running a huge scheme where he paid his investors with proceeds from the investments of other clients (tragic)
-he could no longer meet his obligations
-one of the largest investment fraud schemes in Wall Street history
he defrauded his investors
-he was sentenced to 150 years in prison -
Billions in Bailouts
-two people asked Congress for the largest bailout package since the Great Depression
-then, the Senate passed the 700 billion bailout Bill, now known as the Troubled Assests Relief Program
-program was designed to purchase toxic mortgages from banks -
Global Recession and the Collapse of Wall Street
-investment banks on Wall Street began to collapse because of Sub-prime mortgage and fraud crisis
-during the last month of Bush administration, Federal gvnmt, stepped in to bail out some institutions in order to keep US financial system afloat
-Obama admin reached the White House in 09, the recession had taken hold
-at the end of 09, their were signs of recovery -
Japanese Tsunami and Nuclear Disaster
-March 11- 9.0 magnitude earthquake and 100ft high tsunami took on North Eastern shorelines
-At least 28000 people died or went missing
-over 465 000 were displaced
-waves damaged the Fukishima power plant creating radioactive leaks
-triple disaster wrecked Japanese Economy
-Japanese suppliers shut down with global economy
still recovering from the crisis -
Obama Care Adds Coverage 20 Million
-Affordable Care Act expanded coverage to 20 million people
-received low cost preventive care for chronic illness
-rise in health care costs, lowed
-US received a better score from the World Health Organization
-in 2016, the US health care costs were the highest. Infant mortality rates were growing. -
China Emerges as the Worlds Largest Economy
-American union was second
-US third
-china is the largest holder of US debt owing 1.2 Billion
-US uses that as leverage -
Greek Debt Crisis
-Greece almost defaulted on its debt
-triggered the Euro zone debt crisis causing fear of a global financial crisis
-it was resolved
-questioned the viability of the European Union -
Hurricane Harvy Costs 180 Billion
-category 4 storm that hit Texas in August
-highest natural disaster in US history
-needed 125 Billion in federal relief
-affected 13 Million ppl -
Cost of War on Terror Escalates US Debt
-9/11 attacks increased defense spending first in Afghan and second In Iraq
-2006- War on Terror increased the defense budget creating an annual budget defficiant of 500 Billion per year
-2007 debt almost doubled
-2018 added 2 trillion to the debt