In December 2007, the United States entered the longest post–World War II recession,[129] which included a housing market correction, a subprime mortgage crisis, soaring oil prices, and a declining dollar value.[130] In February, 63,000 jobs were lost, a five-year record.[131][132] To aid with the situation, Bush signed a $170 billion economic stimulus package which was intended to improve the economic situation by sending tax rebate checks to many Americans and providing tax breaks for struggling businesses. The Bush administration pushed for significantly increased regulation of Fannie Mae and Freddie Mac in 2003,[133] and after two years, the regulations passed the House but died in the Senate. Many Republican senators, as well as influential members of the Bush Administration, feared that the agency created by these regulations would merely be mimicking the private sector’s risky practices.[134][135] In September 2008, the crisis became much more serious beginning with the government takeover of Fannie Mae and Freddie Mac followed by the collapse of Lehman Brothers and a federal bailout of American International Group for $85 billion.[136]
Posted on: Mon, 21 Oct 2013 09:47:22 +0000
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