how did economic crisis began in USA
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THE U.S. economy is currently experiencing its worst crisis since the Great Depression. The crisis started in the home mortgage market, especially the market for so-called “subprime” mortgages, and is now spreading beyond subprime to prime mortgages, commercial real estate, corporate junk bonds, and other forms of debt. Total losses of U.S. banks could reach as high as one-third of the total bank capital. The crisis has led to a sharp reduction in bank lending, which in turn is causing a severe recession in the U.S. economy.
This article analyzes the underlying causes of the current crisis, estimates how bad the crisis is likely to be, and discusses the government economic policies pursued so far (by both the Fed and Congress) to deal with the crisis. The final section makes recommendations for more radical government policies that the left should advocate and support in response to this crisis.
This article analyzes the underlying causes of the current crisis, estimates how bad the crisis is likely to be, and discusses the government economic policies pursued so far (by both the Fed and Congress) to deal with the crisis. The final section makes recommendations for more radical government policies that the left should advocate and support in response to this crisis.
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As and when the Economic crisis began, on a single day thirteen million shares were sold as people became frantic to sell their shares. Various factories were shut down, leading to reduced imports and reduced employment opportunities in the market.
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