In 2008, several factors converged to create the “perfect storm” of economic conditions leading to the recession we now face. Some of the key reasons are:

1. A credit crisis, created by risky lending standards that encouraged unrealistic mortgage burdens for homeowners
2. The creation of complex debt securities on Wall Street, which ultimately turned out to be much riskier than investors realized, leading to bank and insurance company failures
3. The price of a barrel of oil exceeding $140 in the summer of 2008, creating pain at the pump for consumers spending over $4 per gallon of gas
4. Plummeting consumer confidence, as Americans grew increasingly unsure of their job security and cut back on their spending, leading to less and less demand for goods and services

As a result of these events, the stock market declined dramatically. Layoffs increased significantly, causing a sharp rise in unemployment. If you haven’t felt it already, as a college student you may soon experience some of the consequences of this recession. In particular, it may affect you in the following areas: