Politicization of Accounting in the 2007 Recession

The Great Recession began towards the end of 2007, and ended in mid-2009. It brought about a drastic decline in the economy of the United States. It was characterized by a high rate of unemployment and a decline in the GDP. The crash of the stock market occurred as a result of the Recession. It was caused by the negligence of banks and financial institutions in applying accounting principles and lending money, thus exposing themselves to a high risk of failure.