Jan. 1--Foreclosures, job cuts, stock market instability and frozen credit made 2008 the year of the financial crisis.

The year started with a housing slump and tightening credit. By summer, gas prices that neared $4 a gallon and soaring food prices were feeding fears of a serious economic slump. Those fears were realized as the recession deepened in the last few months.

Nationally, more than 20 banks have failed, employers shed 533,000 jobs in November and the unemployment rate increased to 6.7 percent. In Boulder County, unemployment ticked up three-tenths of a percentage point in November to 4.8 percent.

Local publicly traded companies such as Sun Microsystems Inc., Crocs Inc., Level 3 Communications Inc. and AeroGrow International suffered hits to their earnings and laid off employees. Privately held home-builder McStain Neighborhoods closed its home office, cut its staff and went virtual in an effort to avoid bankruptcy.

Seeing sales tax revenue starting to dry up, cities such as Boulder and Broomfield are trying to prepare budgets so essential city services will remain.

And, area residents living on the financial edge also are struggling.

Boulder County experienced double-digit increases in foreclosures in 2008.

Nearly 950 homes in Boulder County have been foreclosed on by banks and other lenders so far this year, and officials say that now, at the end of the year, it's likely the total has topped 1,200.

The demand at local food banks is up about 20 percent over last year. About 20 percent more families in the county also have requested food stamps, though only about 12 percent of those are being approved, since strict federal income standards apply.

Boulder County's Low-Income Energy Assistance Program, or LEAP, also has seen about 20 percent more applications than at this time last year. Emergency applications, for households with disconnect notices from a utility, are up 35 percent.

The Community Foundation Serving Boulder County has seen a marked drop in giving to local nonprofit agencies. In a survey taken by the Community Foundation about a month ago, nonprofits' reported donations were down between 10 and 50 percent from last year, officials said.

Donations to basic-needs organizations -- those that provide food, shelter and clothes -- remain strong. Community Food Share collected about 20 percent more food at its holiday food drive this year over last. But agencies dedicated to the arts, education, the environment and civic engagement are having a tough season.

It's unclear how long the recession will last. Some economists and bankers say it could cease before the end of 2009, others say it could take longer.

Gary Horvath, managing director of the business research division at CU's Leeds School of Business, said it appears Colorado will see negative job growth in 2009. The only segment of the economy likely to perform well in the coming year is health care, he said.

He said the national economy could start to rebound by the end of 2009 or start of 2010, but it's tough to pin down because there are so many variables, from housing markets to consumer confidence to financial markets.

"A year ago, no one expected us to be where we are now," he said. "It could take more time than we think."

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