Nearly one year ago today is when the financial crisis hit the United States. On September 7, 2008, the United States government took control over Fannie Mae and Freddie Mac. The takeover along with the collapse of Lehman Brothers led to the worst financial crisis since the Great Depression.
Over the past year, economic conditions have had severe impacts on Americans. Banks have become reluctant to make loans, investors are taking their money out of the stock market and economic activity has slowed down. Most importantly, people have lost confidence in big companies. In their mindset, they feel if big corporations like Lehman Brothers and Merrill Lynch can’t make it, then neither can small businesses.
The current recession has lasted for a year thus far and there are no signs that it will be ending anytime soon. Economists are certain that it will take a long time before the economy begins to shape up and especially for jobs to be created. When President Barak Obama commented on the current financial crisis, he expressed his feelings on how he inherited it from President George Bush. In February, he announced his plan to buy toxic bank assets. Although it hasn’t been carried out as of yet, it will be launched within the upcoming months but will be smaller that it was originally foreseen.
References
http://www.washingtonpost.com/wp-dyn/content/article/2009/09/05/AR2009090502645.html
http://www.npr.org/templates/story/story.php?storyId=112614703
http://www.voanews.com/english/2009-09-07-voa32.cf
I didn't realize its only been a year. It feels like this has been going on way longer. I hope that Obama is able to start moving forward with his plans to help this country successfully recover from this reccession whitout hurting us even more. Great timing for this article.
ReplyDeletethe above comment was posted by, Meredith Anderson
ReplyDeleteThe continuation of this crisis is starting to bring a strong lack of hope to all. One of the big things that needs to happen is consumer and investor confidence to help get us out of this economy. As we all know that is a lot easier said than done and hopefully the economy will turn around before the 2nd anniversary.- Sara Sindelar
ReplyDeleteI think it is interesting how we are leaving the crisis up to politicans to solve when they are part of the problem in the first place. Clinton was the one who was promoting giving mortgages to the poor to promote the economy. -Nicole Nelson
ReplyDeleteI can't believe it has been one year already. From reading this blog, I feel we are slowly recovering to the economy we once were.
ReplyDeletePosted by Lily Mei