There are many dates we remember in history. September 11, 2001 the day the towers fell. April 19, 1995 the day the Oklahoma City bombing occurred. December 26, 2004 the day the Indian Ocean tsunami killed thousands of people. April 20, 1999 the day the Columbine killings happened. But, does anyone remember what happened on October 6, 2008?
The week of October 6, 2008 is known as the "black week" for that year because this is when the stock market began to crash. At this time, banks began to realize that they gave out loans to people with very poor credit that may not be able to pay them back. The retail value of many houses was declining, so people were beginning to realize that their homes were now worth less than the loan they took from the bank. When people comprehended this, they thought that perhaps they would get no penalty from the bank if they did not pay their loans.
Why would a bank foreclose on a house that was worth less than the amount they gave the person? This mistake on the end of the financial institutions resulted in many bank failures, and the depreciation in the value of stock. During the "black week" the Dow Jones industrial average fell over 1874 points. Soon the "black week" became the "Panic of 2008."
Since many of the students on campus may still live with their parents and don't own a large amount of stock, it may have taken a little longer to see the results that this crash had on our economy. But, we all have now seen its effect on our everyday lives. We have noticed the lack of jobs, the giant layoffs, and the hours cut for workers. We have heard of stimulus packages, cash for clunkers, and first-time homebuyer's grants.
The real question now is whether or not the economy is finally improving. I have worked in retail for almost a year now, and I remember the months after this stock market crash. The mall was a graveyard, stores were closing left and right, people were afraid to buy, even more people were afraid to open credit, and people I knew were filing for bankruptcy. More and more people were keeping it cheap for Christmas last year, they were only buying necessities, or keeping their gifts under a hundred dollars.
However, just these last couple months I have definitely seen a change. More and more people are spending money, they are buying things they want instead of only what they need, and they are no longer afraid to apply for credit.
The mall is starting to become busy and full of people again. Hopefully this is a sign of better things to come, and hopefully we have seen the worst of this economic crisis. If more people start spending their money again, this can only result in more jobs, and more hours for people in their current positions - which in turn can only boost our economy.
Through the cash for clunkers program car dealerships through the nation profited almost 3 billion. Many people who were not thinking about buying cars that year (almost 250,000) bought them anyway because of the incentive. This can only be good for our economy, watching large companies do better business, and cash for clunkers gave people the extra push they needed to purchase cars.
The stock market is also doing better, just recently the DOW industrials was lifted above 10,000. This was thanks to a couple of businesses that are doing much better, such as AT&T, and McDonalds.
According to CNN.com, fewer people are using unemployment benefits, the number has dropped and economists only see it dropping more in the future.
We are hiking back up the hill now, and see the apex in view; just a little further and things will again be back to normal, but we are on the right track.
The week of October 6, 2008 will always be remembered as the "black week" of that year. Now, only one year later it is still fresh in our minds. But, like every other important date in history, it will soon become only a memory; something horrible that once happened in the past, but somehow we overcame.
is a member of the 
1 comments
And as far as the housing problem - The blame for THAT debaucle lies SQUARELY on the Democratic congress that passed the legislation that REQUIRED banks to make loans they knew would not be repaid... because "everyone has the right to a house"... yeah, if you have the income to pay for it and the credit score to qualify!!!