Current+Taylor

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. ===

How will this crisis affect later generations?
http://www.loewak.nl/2008/09/21/a-700-billion-dollars-rescue-package/ === Controversy has surfaced in recent days since the 700 billion dollar rescue package has been approved. Many people are upset about it because it will put them even more in debt, since they must contribute to the rescue package. People are expecting the coming months, and maybe even years, to be the next great depression. Mamy are blaming the Bush administration and congress for the possible sour turn on the 700 billion dolar package. It is very obvious that rough times are ahead, but I think that instead of pointing fingers we should try to solve the problems and make a better plan. ===

How should people prepare for “the rising depression”?
http://money.cnn.com/2008/09/23/news/companies/freddie_mac_exec_comp.ap/index.htm?postversion=2008092318

=== This article is about the CEO of Freddie Mac (the failing morgage company) and his current financial troubles. The employees were once being paid a nice amount of money, but since the company is failing and also the upcoming recession their pay is being cut. This means not as many of the employees can support themselves. The rising financial crisis is hurting many people in America, and in the next few months it will be hurting even more. ===

COMMENTS ON WEBCAST:
I think it is interesting that at one point there was trouble producing binds because they were in such a high demand. They literally couldn't make as many as were called for. I also found it interesting that some morage back bonds information was messed up because the data used was old, from the years past. It is sad that hundreds of thousands of people in the US have lost their jobs.