Current+Emilyl

http://money.cnn.com/2008/09/24/news/economy/Roubini_on_bailout/index.htm?postversion=2008092412 Emily and Taylor Americas economy has gone into a ression and it is expected to last for about a decade. This is the worst ression since the Great Depression. The financial stituation is going to sink and stay sunk. The governments has given a 700 billion dollars in bailout money to aid the failing companies. The financial problem is affecting house value. Many house values have decreased by 25% already and are expected to decrease by another 10%. This is really hurting people with morgages on their houses. “More people will walk away from their homes," he said. "Even if only one in five walks away, that adds up to a $400 billion loss. If half walk away, it would be a trillion," ( Roubani). This also means that less people are interested in buying houses. The national economy depends on consumer spending which is going down. It makes up 70% of the economy and has been going down in the past months. The bailout plan most likely will help the problem, but not fix it. A better way for the government to have constucted this plan would have been to buy stocks in the failing companies, so that when the companies were back on the rise the government would have gotten money back. Questions:   ·   Is there any immediate solution to this problem?   ·   What companies received the 700 billion dollars?   ·   How will this crisis affect later generations?

http://www.loewak.nl/2008/09/21/a-700-billion-dollars-rescue-package/

The United States was in a debt of $10.6 trillion dollars before the financial decline, when they decided to give $700 in bail out money to the failing companies we became $11.6 trillion dollars in debt. This is putting the american people in further in dept and the dept per person is now at 45200 dollars per citizen in debt. I think that lending the $700 billion to the companies may have been nessicary, but there may have been other ways to save the companies. I also believe that the government should be considering a way to get rid of the past and new dept fairly quickly to improve our financial situation.

Questions:
 * Was giving away the 700 billon dollars nessicary?
 * What would have happened if the companies were all allowed to fail?

http://money.cnn.com/2008/09/23/news/companies/freddie_mac_exec_comp.ap/index.htm?postversion=2008092318 This article states that the CEO of Freddie Mac, a failing morgage company, was earning $900,000 a year. The employees of these companies are earning huge amounts of money each year, and if these salaries were cut down then the companies would be able to support themselves, while also paying their employees a decent amount. This financial resesion is really hurting the less wealthy people living in the United States, because of the morgaging issue, and the money that they loose from their houses. The very rich people arnt getting as hurt as the less wealthy people because they dont have morgages on their houses and have been able to completely support themselves without any debt.

Questions:
 * What are the details on the Morgage problem?
 * How will this financial resscion hurt the average person?