JULY 1990 – MARCH 1991 (8 months)
The early 1990s recession was caused by a lot of different adverse financial stimuli on the economic environment of the early 90s United States. Black Monday, which occurred in October of 1987, caused a stock market collapse that cut 22.6 percent off of the Dow Jones Industrial Average.
While the economy did well bouncing back from this trial, long term effects definitely took hold. For instance, the savings and loans began collapsing, putting millions of dollars, which was made up of American savings, in danger of being lost.
The recession that followed this initial panic was sharp, and not only affected America, but the countries closes to it as well. These countries included Canada, the United Kingdom, and Australia. The economies of Japan and Europe were also affected, but not as badly. Some believe that this recession is the reason Japan’s economy has perhaps bypassed even the U.S. economy in the world scale.