USA economic crisis

Running head : ECONOMIC CRISIS

Economic Crisis in the United States

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Economic Crisis in the United States

The economic crisis experienced in the United States is the result of the subprime mortgage and credit crisis that happened in the year 2007 This crisis has blown up into what is now considered as the worst crisis of the U .S . economy since the Great Depression . Major investment banks and financial institutions crumbled , closed , declared bankruptcy and restructured themselves after hundreds of billions in mortgage-related investments

, especially within the housing industry which is one of the industries that suffered worst . These companies and institutions were either seized by the government or availed of the government 's bail-out package . The crisis of the major financial institutions and investments banks directly affects the people through mass lay-offs of thousand of workers and closure of small and medium enterprises throughout the country . In response to the economic crisis , the federal government implemented a 700 billion bail-out and economic stimulus package . This package aims to restore confidence in the market and allow credit and finances to start flowing again . However , the crisis still continues and is now spreading within European and Asian countries

Reference

The New York Times (2009 . Credit Crisis : The Essentials . Retrieved April 2 , 2009 , from

http /s .nytimes .com /s /reference /timess /subjects /c /credit _crisis /index .html ?scp 1-spot sq financial 20crisis st cse

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