1. Global recession: The GFC triggered a global recession that lasted for several years. Many countries experienced a sharp decline in economic growth, high levels of unemployment, and a decline in trade and investment.
2. Financial regulation: The crisis led to a rethinking of financial regulation, with many countries introducing new regulations to prevent a similar crisis from occurring in the future. This included the introduction of new rules around bank capital requirements and risk management.
3. Government intervention: Many governments intervened in their economies to try to mitigate the impact of the crisis. This included measures such as stimulus spending, bailouts of banks and other institutions, and the implementation of monetary policy to keep interest rates low.
4. Debt levels: The crisis led to a sharp increase in government debt levels, as many countries borrowed heavily to fund stimulus measures and bailouts. This has had long-term implications for the global economy, as some countries continue to grapple with high levels of debt.
5. Shift in economic power: The crisis accelerated a shift in economic power away from Western countries and towards emerging markets such as China and India. These countries were less affected by the crisis and have since become major players in the global economy.
The crisis had a lasting impact on the global economy and led to significant changes in the way that many countries approach economic policy and regulation.
Average Americans saw job loss, wage stagnation, the foreclosure crisis, shrinking retirement savings and more. Many Americans have not yet recovered from this crisis.
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