Broken and Battered Economy: The Truth Behind the Collapse

M stary dried up. Jobs vanished. Stocks argon plummeting. Housing foreclosures everywhere. What a advocate to start the new year of 2009. With history being release before our eyes, as the first Afri raft Ameri thunder mug enceinte male is sworn in as president of the joined States of America, one thing looms in the back of everyones mind. What has happened to our disunite preservation? Many people are worried around the economy slipping into another Great Depression, but forecast goody this go away be prevented with the help of prexy Obamas new bailout plan. When assay to solve a problem, sometimes its helpful to pull in how the problem came about. subsequently doing some research, I just exigency to explain how we got into this satisfying mess because I know that some people are baffled by this horrific event. As Moolanomy.com reported, along with many a(prenominal) other sources, the key contributor to our new crisis is GREED. Our economy is ground on cree d, and cite is used in many imperative ways. Credit helps people start businesses, which way more jobs; and its how people buy business firms and cars. However, if used improperly, credit can hit very negative effects, as we have seen in our current situation. Prior to the economic collapse, the use of credit saying very little regulation. Banks became pretty lax on who could modify for loans.

People were being approved left and mightily for loans that they rattling couldnt compel payments on. Banks love giving loans because they make their gold off of the interest, so the more people they can approve, t he bettor off they are. Furthermore, if the! se people default on their foretoken payments, for instance, Oh hearty! the bank will just cease the house as a foreclosure and sell it, usually resulting in amplification because of the flourishing housing market, at the time. Investors and many others began to take payoff of the favorable economy and incredibly low interest rates, by flipping houses for profit, or even just sitting on the berth darn it appreciates. As cashmoneylife.com says,...If you want to get a full essay, club it on our website: OrderCustomPaper.com

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