Lisa Simpson
Jan 8,2010
In: Finance

The Year of Failures, is Drawing to a Close

2009 – The year of failures, scandals debts and limping recovery is drawing to a close. It saw the economy being dragged back from the edge of depression. Unemployment touched a whopping 10% although the layoffs slightly eased. General Motors and Chrysler fell into bankruptcy but emerged from it – albeit slimmer and shorter. The industrial average of Dow Jones swooned to the lowest point in 12 years but somewhat recovered partly.
For having lived beyond its means America was being paid back in 2009.

All were under a cloud from bankers in Wall Street to the man in the street living in unaffordable houses saddled with mortgages they failed to understand.
The year saw fingers being pointed at each other for the worst recession ever since the last World War. The people kept on wondering how long it would take to come out of the dark cavern and start living life again with dignity. The governments worried over balance sheets and the lack of confidence among the electorate.

New phrases came to be coined in 2009 – ‘new frugality’, ‘new normal’ and ‘green shoots.’ It came to epitomize the frail recovery of USA that has just begun to sprout. The wild ride of the American economy was voted to be best business story of the year. Second place was given to catastrophe of the automobile industry and house foreclosures came to rank third.
During the first quarter of the year the economy suffered the worst in 27 years. The Federal Reserve had already hacked interest rates to all time low now ploughed dollars into the economy in innovative manner to contain the crisis.
After four running quarters of decreases the economy began to limp back during the third quarter marking the close of the longest and deepest recession since the 30’s. The comeback is halting, being fed entirely upon government assistance tempting the people to purchases houses and cars. Meanwhile unemployment reached 10% – it being the second time after World War II.

Currently 15.4 million people are jobless. Work openings continue to remain rare. The recession had erased 7.2 million jobs. According to the apprehensions of the Federal Reserve it would take nearly 5 to 6 years before the labour market returns to normal levels.There is a mood of hope but experts say that it would be years before the scars are healed. During the last quarter net worth increased by 5% but it is far below the peaks reached prior to the recession.

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