...for $40,000.00? Why are foreclosures at the highest rate in US history? Maybe the question to ask is what has caused all of this? There are so many questions to be answered when it comes to the economic conditions in the United States. How did it get into the current condition? What were the signs of slipping into the crisis (economic indicators)? Whose actions were responsible? Was the responsible party also guilty of unethical behavior (big issue) or was it accidental. How long will it take for the economy to get back to being productive? In the past, America has been a very productive, successful country. There have been other recessions and a depression that have affected the U.S. but for some reason this current crisis was started by a completely different chain of events. What was the chain of events that triggered this current catastrophe? There are so many questions that need to be answered for the people of America and this student is now on a mission to give the United States and the world an explanation about the crisis and possible solutions to getting out of the crises. After this catastrophe started in the United States, the rest of the countries in the world suffered the same fate. This is because the...
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...Carla Hill Speech 108 Teacher – Ms. Margot Williams Homelessness in America To inform To inform the audience about the homeless crisis in America Homelessness in America I. Introduction Individuals nationwide are experiencing homelessness. Even the most educated people have joined the homeless. The major contributing factor of homelessness is the recession that our nation is experiencing. The country’s economical status is in a very critical state, causing numerous corporations and businesses to close. Our economical downturn based on documented statistics show there are high unemployment rates across the country. There are also other contributing factors that play a role in homelessness. II. Body The major reason for the homelessness in America is the recession. According to, The National Alliance to End Homelessness it is estimated that the recession will force another 1.5 million people into homelessness over the next two years. The second reason for the homelessness in America is high unemployment rates worldwide. This is a trickle down effect that has caused the recession. With the nation’s economy in such a critical state of downturn, numerous corporations and businesses around the world have either down-sized in the amount of employees on staff or closed altogether. There are other factors for homelessness in America: 1. Unaffordable housing is the result of individuals who have lost their jobs or simply...
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...Nick Shepard 2/10/2014 Individual Assignment #1 Summary The United States of America’s economy has found itself on the tail end of a recession that supposedly ended four years ago according to some economists (MSN). Though America may be out of the recent recession, there are many factors in the United States economy that powers its members into believing that the recession is still clouding the air. A significant example of such an influential aspect of the economy is the manufacturing sector of America. Living through the unpleasant time of the recession, America saw a nearly doubled unemployment rate from 2008 to 2010. Figure 1 (Floating Path) shows a timeline of the most recent recession in U.S. history with unemployment moving from 8% to about 16% in a one and a half year timespan. As of a few years ago, the jobs lost in the recession had not come back until recently where the current unemployment rate is about 14%. Figure 1 Companies have increasingly continued to outsource most of their work to countries all over the world. China is a large provider of goods that have been outsourced from the United States because of lower wages paid to their workers resulting in a much cheaper production. The production companies have not been able to keep up with the efficiency of production companies overseas in China for many years which has resulted in the struggling manufacturing sector of the United States. Not only is China taking jobs away from Americans in the...
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...and free trade agreements. CANADIAN TRADING HISTORY Initially, Canada was in no shape to manufacture goods, the natives hunted and bought their needs by supplying fish and furs for trade. This basically established the link between Canada and Europe, and was the initial face of free trade. The connection of Canada and America trade established quite late, but USA became the most significant partner of trade with Canada. After WWII, the face of trading changed for entire world. Canada established strong connections with Japan, and with Pacific Rim Connection the Japanese industrialisation started, international trade with many countries of pacific region. In 1993, Canada signed NAFTA (North American Free Trade Agreement), with America and Mexico to remove trading hurdles. This agreement was basically devised by Americans, who already had a strong business tie with Mexico, but this also benefited Canada in a great manner. Mexico has a very diverse and big consumer demand, which benefits Canada a lot. Canadian businesses also benefit from the low cost of labour in Mexico. This agreement opened new gates for the Canadian market to south and Central America. With the success of NAFTA, many other nations were interested in having business ventures with Canada....
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...Recession One of the most commonly used term nowadays is “recession”. We read about it in newspapers an year ago, then heard about it in television 3-4 months back and now we are getting a feel of what exactly it is. Recession is not a new phenomenon, it last happened in America during 2002-2003 and many times before that also. But what makes this recession so fearsome is its magnitude and the countries which are being affected by it. What started out as a bursting of housing bubble soon crippled the American Banks, then Its economy and now the pinch of it is being felt all over the world except, of course, Antarctica which is least affected by it due to obvious reasons. Many factors lead to recession, which economists believe will lead to depression. There’s no absolute definition of depression or recession as such with various economists publishing their own theories and definitions of these terms which are usually different in meaing from each other. Most widely used definition of recession is “Whenever a country witness decrease in GDP growth in consecutive 2-4 quarters, we say that the respective country is in recession” whereas “if there’s a decrease in GDP growth for more than 4 consecutive quarters, we say the respective country is in depression”. My friends over here will be mentioning the obvious points like subprime crisis, bankruptcy of investment banks like AIG, Lehmann Brothers, Freddie Mac, faltering of mortgage loans and some other common points. I, on the...
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...Is Lack of Jobs in the United States the cause for recession since 2007? Is Lack of Jobs in the United States the cause for recession since 2007? As per John Fitzgerald Kennedy former president of The United States of America (1961-1963): “The American, by nature is optimistic. He is experimental, an inventor, and a builder who builds best when called upon to build greatly”. Although this great democratic country has had bleak periods in its economic history timeline because political, money, and wars through-out time. However, Americans recuperate their path back to brilliant and fascinating rich economy. It is not easy to do so, to get back into good economical shape, however it is feasible. In the 20th century, ending of the 1920’s a severe worldwide economic depression ever experienced in the industrialized force. Although the Great Depression commenced in the United States, it spread over to 15 countries to say the least. Causing gargantuan unemployment rates ever recorded in America and Europe. Moreover, it stroked partially Japan and Latin America. The devastating economy deficiency went on to reach its peak point until 1933, which marked the year that America started to recovery, but went on for almost 7 more years. Approximately lasting till 1939. After this awful period, another, but not as large compared to the Great Depression. In the early 1980’s the country experienced another recession causing yet again employment lack and GDP (gross domestic price) to rise...
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...The United States is often referred to as the richest and most powerful country in the G8 and the world. So one would wonder how the U. S. A. could be in debt for billions. The current state of events has most citizens asking, where did all the money go? The U. S. economy has suffered blows in the past, like the Great Depression in the 1930’s and a list of other recessions and panics. But for a country to prosper and grow as America does, where could all of the money have went, how is the American currency value less than the Euro? Inflation and other misuses of the money could be the answer to the problem. Or is it a lot deeper than just that? Some might suggest or suspect that it is a conspiracy; others might feel as if the money was not wasted or misused. This paper will help determine who’s right and who’s wrong, and most of all, where all the money has gone. Today, we are currently in a recession brought on by the irresponsibility of the Bush-Chaney administration. But if you take a deeper look, are Bush and his incompetent administration to blame for the current recession? The United States is well known for its consumption of resources and “big spending”. The “American Dream” is to have a big house, two cars, beautiful wife or handsome husband, and of course the 2.5 children. When in reality, that is almost impossible for every American citizen to achieve. There are just not enough resources and wealth for everyone to have an even portion. Someone has to suffer in order...
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...economic downfall of America has an effect on everyone in many obvious ways. The Great Depression and the recession in the present day would demonstrate America struggling through its most difficult times. According to Federal Reserve Chairman Ben Bernanke, he said the current economic situation bears “no comparison” to the much deeper crisis of the 1930’s Great Depression. As the current recession continues, many people are starting to think that this economic situation may be similar to the one of the 1930’s or could be even worse. The economy holds a vital role in the way America balances its society and there way of life. Both of these economic situations brought difficult times for America. During the Great Depression, many people were unemployed and had to find alternatives on providing for their needs. Banks were closing down because the banks were unable to pay off depositors. The rate of unemployment during this time was at 25% just for the nation. A great number of businesses failed and farm owners suffered from foreclosures all across the nation. Natural disasters during this time also made it difficult for farm owners to maintain their farmlands causing them to lose the land. By 1933, it was estimated that America had roughly over 13 million unemployed citizens. However, with today’s recession, the numbers of unemployed are very similar. The current unemployment rate is around 8.1% and many people are still getting laid off in the US today. As the recession continues, there...
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...America’s most recent recession was from December 2007 through June of 2009. A recession is a period of economic decline, one of the most recognized indicators of how an economy is performing is the unemployment rate. Leading up to this recession the unemployment rate had been at or less than 5% for 30 months in a row. In October 2009 the unemployment rate had risen to 10% the last time the unemployment rate had been that high was in 1982. Another way to see how the economy is doing is real gross domestic product which is the output of goods and services produced by labor and property in the United States. Looking at real GDP in the 2nd quarter of 2009 GDP decreased by .7% which is much better compared to the 1st quarter where GDP decreased...
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...a GDP (purchasing power parity) of 15.08 trillion dollars in 2011.” (www.cia.gov/worldfactbook). The economy of the United States is continually growing, at present it has a “GDP growth rate of 1.8%.”(www.cia.gov/worldfactbook). Though, the economy is still in recovery from the recession, in my opinion, it is doing far better now than it was in 2007 and 2008 because of the recession. “Currently the unemployment rate in the U.S is estimated to be 9%.”(www.cia.gov/worldfactbook). Which is still high when compared to previous years, but that is due to the current economic situation in the country. However, according to the National Bureau of Economic Research website, the recession began in December 2007, and was spurred by “sharp downturns in U.S. stock, housing and labor markets” (http://www.nber.org). As a result of the economic recession in America, there were not only ramifications for the United States economy, but for the people as well, and ultimately the global economy. The recession led to staggering home foreclosures, high rates of unemployment, increases in inflation, decreased consumer confidence, contraction of the economy and much more. Interest rates played a role in the economic recession; for instance, it was due to low interest rates offered by banks, that many people decided to take advantage and buy houses they could not afford, leading them to...
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...In over half a century since the World War II ended ten recessions succeeded it. However, The Great recession of 2007 was the longest, deepest, widest and most severe of them all, as it lasted from December 2007 through June 2009. The collapse of the housing market in America, which is known as the Sub-prime mortgage crisis was determined to be the main cause of the great recession of 2007. This sub-prime mortgage crisis drastically affected millions of Americans as it increased unemployment, which led to an increase in poverty, thus prompting the government to respond. Mr. Claude Gerald, Retired Economics Lecturer at the Montserrat Community College, stated “The Financial Crisis of 2007 and 2008 in North America was the main cause of the recession.” He further mentioned that the year 2007 initiated an era of turmoil as the financial crisis in the United States housing market began, which led to one of the worse financial meltdowns since the great depression in 1929. Mr. Gerald explained that In the housing market, persons who wished to purchase a house but unfortunately have a credit score typically below 620 would have been issued Sub-prime mortgage loans, as they may not have been able to acquire finance otherwise considering that sufficient collateral and a healthy credit history is required. These mortgages however were affiliate with high interest rates due to the likelihood of lenders being unable to acquire repayments in full as these persons have a history of making...
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...The social views and economic policies regarding the standard of living for Americans in the 1920s directly led to the Great Depression, which was extremely similar to the economic policies which led to the Great Recession in modern times. In this paper, I will be comparing and contrasting both of these major events. Firstly, I will be comparing and constrasting economic policies. Secondly, I will be comparing and constrasting social views. Thirdly, as well as lastly, I will be comparing and constrasting consquences. First off, the Great Depression and Great Recession had econonomic policies. The Great Depression had a severely negative impact on society as a whole. According to Better Homes Movement by Commerce Secretary Herbert Hoover,...
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...Chapter 1: America, Land of Plenty? The Times Are Changing Even before immigrants came to Ellis Island looking for a new life filled with bountiful opportunities, the United States of America had declared itself the “land of the free, home of the brave, land of plenty,” and was residence to some extremely successful entrepreneurs. Since then, individuals and families such as the Johnson family (Johnson & Johnson), Sam Walton, Jimmy Dean (Jimmy Dean Sausages), Mary Kay Ash (Mary Kay Cosmetics), Martha Stewart, Leslie Wexner (Limited Brands), and Ralph Lauren have built their consumer product empires from the ground up. These individuals exemplified the American dream: that anyone could become successful and wealthy. People throughout the world believed that once they reached America, this dream could be a reality. One caveat, that was before September 11, 2001. On that day, the unspeakable happened. The United States experienced the worst case of terrorism in its history. It was made even more horrific by being televised on every national and international news channel twenty-four hours a day. The images were ingrained in consumers’ brains. It felt like the beginning of the end. American consumers experienced the end of feeling safe, the end of feeling secure, and definitely the end of prosperity. September 11 changed the landscape of the American consumer. Do we have confidence in the economy? Consumer confidence is critical to the wellbeing of an economy. The more...
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...Tragedies that happen in America are influential on the rest of the world. The shockwaves of the Great Depression were not only felt in America, but all across the world. Without the Great Depression, many nations would not have learned what not to do during a time of crisis. The most influential aspects of the Great Recession are unemployment, drought and mass migration. The actions that occurred during the Dust Bowl and the Great Recession are still seen influencing America. The vast amount of unemployment that occurred during the 1930’s was one of the most significant ways the Great Depression influenced America. As the amount of manufactured goods began to go down after the recession, so did the number of jobs, “the response was to lay off workers, [cut paychecks and] reduce production.” (Text...
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...The Bank of America - Capital Structure GB 550-01 Financial Management TABLE OF CONTENTS The Bank of America Abstract I. Introduction History of the Bank of America A. Corporate Structure B. Bank Ranking C. Impact from Recession II. Financial Markets A. Domestic Markets B. Global Markets C. Mergers and Acquisitions III. Capital Structure A. Growth Opportunities B. Business Risks C. Tax Position IV. Conclusion V. Summary VI. References Abstract This paper explores the turmoil the banking industry has faced during this current economic recession focusing primarily on the Bank of America, the role they played during the recession and their focus to conquer the global market to become the largest financial institution in the world. The Bank of America is operating in over 150 countries with over 6,000 retail banking offices and over 18,000 ATMs in the United States. During this recession, the Bank of America’s ranking fell considerable and were forced to lay off over 100,000 employees. The Bank of America operates offices in more than 20 global countries including Asia, Europe, the Middle East, Africa, Latin America and Canada. A critical move for the Bank of America is investing their attention to the growth of their overseas operations. Currently, the Bank of America owns a minority stake in China Construction Bank. The Bank’s interest in growing overseas is motivated by opportunities...
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