business economics

2008 FINANCIAL CRISIS : Impact of the US 700 Billion Bailout and Federal Reserve Policies

Introduction

The economic problems that are plaguing the United States economy at the present are numerous to say the least . Since the collapse of the Housing market , the United States has experienced what some have come to call an economic recession . While it remains to be seen if the United States economy is really undergoing a recession at this point in time this situation can be used as a great opportunity to point out the current struggles

of the American economy

The fundamental flaws and structural weaknesses of the American economy are not only more visible now but also more potentially damaging . The current weakness that the American currency is experiencing coupled with the exponential increase in oil prices may have arguably not placed the country into recession but have brought its economy pretty close to it As such , this brief discourse will try to examine what brought about this economic collapse by identifying the present economic threats to the United States namely , Pension Underfunding , Public Debt Overbuilding in Calamity prone areas , Retirement and Social Security and Energy . This will be done in the light of the effort of the Federal Reserve to address the this issue and will be accompanied by an assessment of the effects of these policies on the current financial situation

Efforts of the Federal Reserve

The current economic crisis that has rocked the global economy has prompted many countries to take...