What was net net effect in 2008 of the bursting mortgage bubble? In all of 2008, employers announced 1,223,993 job cuts, which was the largest number of job cuts announced in a year since 2003, when employers announced 1,236,426 job cuts. The economy continues to sour, and with less spending power homeowners are guarded when it comes to expenses.
The annual number of job cuts was a 59% jump from the year prior, when employers announced 768,264 job cuts. If you remember, 2007 was not a very good year. It was in the summer of 2007 when subprime made headlines, and a full 12 months before investment banks went broke and disappeared from the American financial landscape.
How badly did the deflated mortgage bubble effect the rest of the world? A second suicide made the news this week. German billionaire Adolf Merckle, whose family holding company amassed about 5 billion euros ($6.7 billion) in debt, committed suicide as bankers proceeded with a plan to start breaking up his business empire.