Overdose: The Next Financial Crisis

Journeyman Pictures uses an odd metaphor to portray our economical problem. In 2001 chairman scrubbing decided to use federal reserves to encourage slew to aliveness shopping and circulating the economy. By drugging the the great unwashed with a virtuoso percent circumvent rate, banks can loan out more money and question greater risks. It its successful, they will keep the profit. If not, they will be braid through by the disposal. Home equity loans boomed, and Fannie May and Freddie mackintosh was born. commonwealth expected to get rich by purchasing a home and wandering it at a higher(prenominal) price. The paygrade agencies kept the house prices high, so that more citizenry would keep buying them. If they put bad ratings on them, they wouldnt sell! But they level offtually couldnt keep them high. once the ratings went down, people couldnt pay off their loans. They use the doctrine of analogy of babbles for economic problems. We chip in and now we attain t he bailout bubble. Stimulus tracts were put to death in hope to keep the economy going. Unfortunately, both president Bush and Obama put the money from the stimulus package. On book binding of that, they kick downstairs the bubble by lowering come to rates even lower! But now we rescue this giant bubble.

Its not a small bubble that we can good burst and clean up the shrapnel this one is so large it engulfs the entire world. Its a abundant problem to articulate the least. If the United States, the place with the highest economic rating, were to have their economy scare then others would start falling as well. I gaint know what to say, and I have no estimation what the US econo my was to do. The stimulus package seems lik! e a good idea, but no president seems to use it correctly. If the governing just stands back, then less people would use banks more than less when the government is so removed in debt. As they say in the end: The government can have the banks, but who will save the governments?If you inadequacy to get a full essay, order it on our website: OrderEssay.net

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