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What do you think?

The economy is in bad shape where do you think it came from who do you think is responsible and do you think it can be fixed before we ARE in a FULL depression, if so, how?

 
kbishop8688

Asked by kbishop8688 at 9:51 AM on Apr. 16, 2009 in Money & Work

Level 16 (2,730 Credits)
This question is closed.
Answers (3)
  • I was given a copy of a ltr writtn years ago by my company. It was taking about the housing industry & sub-prime loans. That ths wld be the first to fold if something drastic like a recession wuld hit the U.S.
    If U really look bck, George Bush took over the "beginning" of the recession. I remember completely how the economy was when he came into office, then the war which increased our debt, the stick tht broke the back was the "future trader" on the oil & gas. Whn they did that to our economy ~ it all tumbled. Who cld afford $4.00 a gallon and a sub-prime mortgage, utilities, food etc. . The price per barrel affected "everything" and in turn sent everything down hill.
    gr-mom2

    Answer by gr-mom2 at 10:52 AM on Apr. 16, 2009

  • I think it all started with the greedy greedy banks. They gave out mortgages and car loans to people who shouldn't have qualified. People took these loans because, hey, the bank offered it to them and they want to keep up with the Jones'. Then it all started back firing. All those loans with low starter interest rates, changed their rates in accordance to the terms. The people who accepted the loans were still unable to re-finance because they didn't use the time they had to better their credit and pay off debt. The price of gas and food started going up and wages were staying the same and it all came crashing down for those in a precarious situation as it was. Then in the midst of all that, companies started downsizing and letting people go....well you know the story. It is the greedy banks that started this mess.
    slw123

    Answer by slw123 at 12:48 PM on Apr. 16, 2009

  • Speculation.

    It's the same thing that crashed the economy in the 20's. People thought they could tell the future and it blew up in their faces. Ultimately I believe the government is responsible. I can't remember for sure but ?Clinton? passed some laws making it easier for "every family to have a home" or get a loan for a home anyway. people just figured that the market would keep going the way it would and everything would be cool but it didn't and it wasn't. Also, most businesses have to turn in quarterly reports to the government. This "crisis" did not happen over night people in the business world have seen it coming for years so why didn't the guys that we supposed to be looking at those quarterly reports catch this 8 years ago? I dunno it confuses me too but I seriously think somebody dropped the ball and that we should really examine who should have seen it coming - government wise and make them accept responsibility
    AlexEss

    Answer by AlexEss at 1:36 PM on Apr. 16, 2009