In November, as confidence continued to erode, Paulson abandoned plans to buy troubled assets under TARP and instead launched a plan to recapitalize financial firms, mostly by purchasing preferred shares of banks.
The Fed also pledged another 0 billion to shore up distressed mortgages, provided billion in assistance to Citigroup, and vowed further cuts to already-low interest rates.
The two most traumatic experiences in the nation's history were the Civil War (1861-65) and the Great Depression of the 1930s.
During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions.
Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade deficits, and stagnation of family income in the lower economic groups. share of the Great Lakes: 3,675,031 sq mi (9,518,287 sq km). Political unrest caused by British colonial policy culminated in the American Revolution (1775–83) and the Declaration of Independence (1776). Boundaries extended west to the Mississippi River, excluding Spanish Florida. fought the War of 1812 against the British and acquired Florida from Spain in 1819. In response, Congress approved an economic stimulus package that provided a 0 cash rebate for most persons filing income-tax returns.Victory in the Mexican War (1846–48) brought the territory of seven more future states (including California and Texas) into U. By the end of the 19th century, it had developed foreign trade and acquired outlying territories, including Alaska, Midway Island, the Hawaiian Islands, the Philippines, Puerto Rico, Guam, Wake Island, American Samoa, the Panama Canal Zone, and the Virgin Islands. In March, Bear Stearns, a venerable New York City investment bank, neared collapse and was sold in a fire sale backed by billion in Federal Reserve funds. Bush signed a bill designed to shore up mortgage lenders by guaranteeing up to 0 billion in new fixed-rate mortgages.In July, Indymac Bancorp, the largest thrift institution in the Los Angeles area, was placed in receivership. The measure was ineffectual, however, and on September 7 the federal government essentially nationalized both Fannie Mae and Freddie Mac, which together owned or guaranteed half of the country's trillion mortgage market.At the same time, they face higher barriers to entry in their rivals' home markets than the barriers to entry of foreign firms in US markets. and the United Kingdom attacked Iraq and overthrew the government of Saddām Ḥussein, which they had accused of aiding terrorists and possessing and developing biological, chemical, and nuclear weapons. In 2004 Bush narrowly defeated Democratic challenger John Kerry to win a second presidential term.US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment, although their advantage has narrowed since the end of World War II. led a coalition of forces against Iraq in the First Persian Gulf War (1991), sent troops to Somalia (1992) to aid starving populations, and participated in NATO air strikes against Serbian forces in the former Yugoslavia in 19. Bill Clinton became only the second president to be impeached by the House of Representatives; he was acquitted by the Senate in 1999. in 2001 destroyed the World Trade Center and part of the Pentagon, the U. attacked Afghanistan's Taliban government for harbouring and refusing to extradite the mastermind of the terrorism, Osama bin Laden. With the long-developing subprime-mortgage crisis as the proximate cause, the United States led the world into a historic economic recession in late 2008.The week of October 6–10, however, proved to be the worst one on Wall Street in at least 75 years, with the Dow Jones Industrial Average (DJIA) down 18%.