In 2008, the United States experienced a serious financial crisis which led to the most serious recession since the Second World War.  The downturn in the U.S. economy spread to many foreign nations, resulting in a global economic crisis.

On September 15, 2008, Lehman Brothers, one of the largest investment banks in the world, failed.  Over the next few months, the US stock market plummeted, liquidity dried up, successful companies laid off employees by the thousands, and for the first time there was no longer any doubt a recession was upon the American people.

Eleven months after the fall of Lehman Brothers, the U.S. remains in a state of limbo. Proposals for stimulus packages and other bailout plans have provided some relief, but it seems the most effective remedy thus far has been time.

This page points to our analysis of the US financial crisis, the US recession, and the impacts of each on the rest of the world.  It is not a summary of events, but rather an attempt to explain the main features of the financial and economic disturbance we are currently experiencing.

The analysis was written to be read in the order shown below, but we have split it into chunks so one need not read the entire document if one doesn’t wish to.

The US Financial Crisis

The US Recession