Todays economy is in more trouble then it has ever been. Like what happened on September 15 the Lehman Brothers had announed that it had lost a lot of money because they had bad loans and had to close. Many investors began to lose money because the U.S stock market fell 504 points. In a few days of September 15 many other banks closed and were taken over by a few banks. Back then things got really bad for them that that they were really in trouble or as President George W. Bush told the nation on September 24 “We’re in the midst of a serious financial crisis. Our entire economy is in danger.”
The reason this happened was that many buisnesses and people as well borrowed so much money that they couldn’t pay them back. Resulting in in financial crisis. Many people didn’t pay back their prime morgages that their own homes were taken away. Then when the banks tried to resell those homes they were sold less than the loans itself.
In early September, The federal National Martgage Association and the Federal Home Loan Corp. were so close to failing because of all the bad loans that they had that the government had to take over the two companies.
Then the U.S Treasury Secretary Paulson asked the government for $700 billion dallars to apperently save the economy, and save many banks and people as well and lend money more freely.
Today the money has increased tremendously ever since that week in September. It has increased to over $10 Trillion. Now we are in even more in trouble then before.
2 comments:
Nice summary, I like the fact that you summarized using your own words. You wrote 271 words and part of the assignment was to write 200 which is okay, but try to stick to the assignment requirements.
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