Several financial events have occurred this decade, it became a huge difficulty to pick the top 4. Ten years were packed with significant financial events not only in the United States but also around the globe. All of which affected small businesses.
Here are the top 4 financial events of the decade.
The Collapse of Wall Street and the Global Economic Recession (2007-2009)
On September 2008, storms of elements combined to spark the economic decline in not only the United States but around the world, since the Great Depression. Investment banks towering on Wall Street started to crumble after the subprime mortgage calamity and grave corporate fraud.
During the concluding months of the Bush administration, the government volunteered to pull out associations to keep the country’s financial system out of difficulty.
Bernard Madoff and the Largest Ponzi Scheme (2008)
The owner and founder of an investment advisory firm, Bernard Madoff was the ex-chairman of the NASDAQ stock market. During this year, Madoff confessed to managing a big Ponzi scheme where he reimbursed investors with revenues from the investments of his other clients. Ultimately, it collapsed and he could not perform his responsibilities. It is among the biggest investment fraud schemes in the history of Wall Street. He embezzled roughly $18 billion from his investors, earning him 150 years in prison.
Subprime Housing Disaster and the Housing Bubble (2007-2008)
In the beginning of the 21st century, the housing market in the United States was booming. Subprime lending emerged. Individuals and families who formerly could not qualify for a mortgage became eligible for adjustable-rate mortgages which include low or zero down payment and low opening interest rates.
As the interest rates heightened and their adjustable rate loans got more costly, they were not able to make their loan payments. Not long after, big financial institutions were holding portfolios of mortgages that were valueless. This resulted to the “credit crunch”.
Hurricanes Rita and Katrina (2005)
On the 25th of August 2005, the Category 3 Storm Katrina hit the Gulf Coast of the United States. Hurricane Katrina swiftly became the biggest natural calamity in the country’s history, nearly wiping out New Orleans due to intense flooding.
Not long after, Rita followed Katrina that made matters worse. Both hurricanes caused $200 billion worth of damages. Hundreds of thousands of jobs were lost and another hundred of thousands of homes wiped out. Most of these jobs and homes were never to redeem. Thousands of people were forced to leave their homes, a thousand of people were killed and more were missing.