I think this article I read about sums it up. http://www.associatedcontent.com/article/1078557/did_greed_cause_the_us_economy_to_fall.html?cat=3 The current U.S. economy has fallen and people are wondering how this happened and what caused the economy to fall. One reason the U.S. economy is unstable is because of greed. Banks became too greedy and gave loans to people that couldn't afford them. And consumers became too greedy and bought homes, cars and things on credit cards they couldn't afford.
As a result of this, the Stock Market is unstable. And the financial news is causing it to increase or decrease whenever something good or bad happens. Several banks are filing for bankruptcy and some banks are being bought by other companies so they can avoid bankruptcy.
One of the main industries that is being affected by the current economy is the real estate industry. So many home buyers were given a chance to own a home through the subprime loans. These loans gave people the false impression that they could afford a home that was out of their price range. But as soon as the rates and payments for the loans increased, these owners began to see that it was a bad idea to have a subprime mortgage. Many homeowners have lost their homes because of this. The subprime loans are one the reasons why so many homes have gone into foreclosure.
Another example of people being greedy in the real estate industry is the home builders. Before the housing market declined, home builders were building so many homes and believed they could make a profit from every home they built. When the housing market declined, home builders realized they built too many homes and they were going to have a hard time selling them. The current economy has forced home builders to cut the prices of their homes and lose profits.
The car industry is another example of an industry that has also been greedy. Several car manufacturers, mainly the U.S. automakers, have ignored the idea of making more fuel efficient cars and have continued to make gas guzzling vehicles. Because of the wrong choices they have made the U.S automakers are losing money. ****************************************************************** The housing crash, however, did not happen overnight. A number of factors contributed to the housing crash resulting extensive foreclosures and plummeting housing prices to their all time low. One of the main cause for the housing crash lies in the fact that banks and financial institutions were lending mortgages at 5 to 10 times the annual incomes of people, which was way above the safe value of 3 to 4 times. These financial powerhouses used aggressive terms and conditions but did very little scrutiny while providing mortgages. This led to an easy cash flow in the market which fueled the housing prices as well. The US economic meltdown also played a major role in the housing market crash world over. Foreign investors who had invested in the real estate market in US had to declare bankruptcy owing to massive loss. The housing crash is expected to cost the banking system a whooping $2 trillion dollars.
Read More : <a href=" http://www.housingnewslive.com/housing-market-crash-in-us.php">http://www.housingnewslive.com/housing-market-crash-in-us.php</a>
The US economy fell into a financial crisis in 2008 due to a combination of factors. These included the bursting of the housing bubble, which led to widespread defaults and foreclosures on mortgages, leading to financial institutions facing significant losses. Additionally, a lack of regulation and oversight in the financial sector allowed for the creation and trading of complex and risky financial derivatives, which further exacerbated the crisis. The collapse of Lehman Brothers in September 2008 served as a catalyst, causing widespread panic and leading to a global financial meltdown.
The Great Depression
The First Bank of the United States.
Terrible, they asked the US for financial assistance.
Troubled Assets Relief ProgramThe program is run by the Treasury's new Office of Financial Stability. This is the name of the program that will be taking care of infusing the much needed stability & liquidity into the markets.Purpose of TARP:1. To Stabilize the economy2. Improve Liquidity3. Improve Investor Confidence4. Reduce the impact of the financial crisis on the US Economy and GDP.
The Subprime Crisis is an economic problem that happened in the United States. It cannot be explained in a paragraph or so. In short, it happened due to uncontrolled lending in the US Financial Markets. Some of the reasons for this crisis are: 1. The US Real estate market crash 2. High default rates on Subprime loans & 3. Subprime Mortgage backed securities
The US Subprime financial crisis, caused a massive void in the country's economy and the liquidity in the markets was affected badly. Nobody has gained any benefit because of this. Everyone is suffering because of the crisis.
This is probably the US financial and mortgage crisis.
The Reasons for the Bailout Package: 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
As Mr Obama said himself: YES, HE CAN.
according to my point of view the us economy wont be co big in the future because of the present conditions and currency crisis of USA
The Great Depression
to the us to have a bad economy for a while
1. The banks and financial institutions in US 2. The US Economy 3. The world Economy In short - All of us.
The 1973 Oil Crisis.
Its HUGE for ANY economy and if MORE people were one the financial problem would be no more!
It is because the US economy is under a severe crisis and without the stimulus from the government's bailout package much more financial institutions would declare bankruptcy. Already the economy is in a state of recession and if left uncontrolled it would end up in a depression.
none