Is America Going into a Recession?
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Is America going into a recession?
Well first what exactly is a recession? In its simplest form, it means at least two consecutive quarters when the economy shrinks or fails to grow. Now that you know what a recession means, yes, America is on the brink of a recession if not already in one. What does this mean for Americans? It will mean more unemployment, bankruptcies, foreclosures, and lower wages and profits. I think this all began with people and their greed. From political leaders, financial companies, and the American people themselves.
Political leaders were involved with their involvement of constant support of the war and supplying funds over and over again with supplemental bills. Which is basically refinancing the previous war debts with more cash out, with no honest disclosure on how they plan to repay this war debt? Politicians also played a role with allowing US companies to relocate jobs overseas and also opening our markets to free foreign competition. This allowance means loses on collecting taxes on all those US job positions that have been moved overseas and also of foreign competition profiting.
Financial companies played a big role by creating the credit crisis that we have today. Wall Street greed and policy failures to limit financial companies to who they can borrow and limitations on loans that were given to consumers have now affected us all. Millions of unlucky homeowners were mislead into low-interest “teaser” rates. Which means their low interest rates they were given at the time they signed for mortgage was only good for at most, 5 years. Than their interest rate doubled which in turn doubled their total mortgage payment. Millions of those people were not able to pay their new double payments, and the banks began foreclosure proceedings to take back the house and sell to payoff mortgage debt. Many of these people were given homes with 100% financing, meaning no money down, so a lot of them walked away