The 2008 global recession is a great global economic decline that started in 2007 and took a sharp downward turn in 2008. Since The Great Depression of the 1930s, there have been no economic recessions that have affected economic production, circulation of capital and input like the 2008 global recession. The 2008 Great Recession affected the whole world economy, affecting some countries more than others.
Several causes of 2008 global recession have been proposed. According to U.S. Senate’s Levin–Coburn Report, the crisis was caused by “high risk, intricate financial products; hidden conflicts of interest; the failure of government, the credit rating agencies, and the market to rein in the excesses of Wall Street. “ Some people think that that credit rating agencies and investors did not correctly value the risk involved with mortgage-related products and governments failed to adjust their regulatory practices to control 21st-century financial markets.
In 2009, Business Week reported that global political instability was rapidly rising due to global financial crisis. In the same year, Dennis Blair, the US Director of National Intelligence, said that economic weakness could cause political instability in many nations. Particularly, the government in Iceland called elections two years early after mass protests in the country due to the government’s handling of the economy. The Great Recession also caused secession movements to increase in Spain.