The Economic Crisis: The Problems With The Economic Crash - Essay Example

The Economic Crisis: The Problems With The Economic Crash Everywhere across America is the same consensus – the economic crisis is not going to end soon. There are many that are questioning and reconsidering the problems with the economy crash that began in 2008 as well as what the future will bring in terms of financial stability for both themselves and their children. The worry that is now beginning to proceed from those who have entered into the economic crisis is coming from the after math of 2008. The initial change began with the break down in real estate which began to ripple into bank institutions not having enough money to cover the debt in the economy. This led to a recession that began to not only affect those across the country but also across the globe. In 2009, it was stated that the crisis was over; however, the effects of the economy and the slow repair have led most to an understanding that the conditions are no better than the Great Depression and continue to lead into a downward slope of finances. The changes which have occurred not only are seen in the after effects most are feeling, but also have led to the statistical information that shows the lack of relief from the changes in the economy. The housing bubble has accumulated to over 124% in less than 4 years, the deficit has risen to over $650 billion by a rise of 5.8% and debt burden in households has risen by 127%. The decline is continuing with the shadow banking system being seen for the first time and shutting down across the country, stock market prices falling lower than before and credit markets reducing in their capability to recover with individuals paying finances and with retrieving lost money from the debt (Norris, 2011). The results are not only showing in the statistics and changes, but are also reflective in the everyday lives of individuals that are now going through the economy. According to most, there is the belief that the crisis was bound to happen because of the shadow banking system and because of the functions that were leading to inflation and imbalance of the economy. According to physical trainer, Alan Linn, “The government and financial institutions should have seen the crisis coming. The rising prices and the corrupt functions of the shadow banking system can only continue so long before it falls.” The question which many are now asking is how the crisis could have been prevented as well as why and how those involved in the economic system allowed for the crash when it could have been prevented. The understanding of why the economic crash happened and what has occurred has been furthered with the feelings that are behind the crash. The loss in jobs, loss in the ability to spend comfortably and the strains which have occurred are causing many to lose hope in the potential outcomes that are available. According to student, Ruth Silva, those behind the problems with the economic crisis are to blame for everyone else’s suffering. “I’ve seen a loss of jobs, lack of income and endless suffering because of the crisis. But I still don’t find actions to resolve the problem while the tension with finances continues in everyone’s personal life.” This attitude is one that many are looking at, specifically with demands for change to occur with the economy but little to no resolution to the main problem. The persistence of the problem is also leading to most who believe that the conditions are out of control. When asking a group of participants about the foundation of the problem, all pointed to both the government and financial institutions. It is also to this particular viewpoint that most are expecting a resolution to come. According to Casey Young, small business owner, “We can only wait until the government and economic powers decide to change the system that an agreement can be reached. They are the ones that allowed the problem to happen before stopping it, now they can only find the solution.” This particular attitude is one which most have found as a pressure that needs to be confronted with the government and financial institutions, while those working in the economy can only continue to try to find ways to balance their financial life. With the problems that have occurred in the economy are also several problems that have persisted in the crisis. Job loss and a lack of financial capabilities is one of the main factors that most have faced. Louis Sutton, computer engineer, was one who immediately saw the changes. “Before the crisis, I was in a safe job that wouldn’t be altered for years. After it hit, I was immediately threatened for a job loss.” While Sutton remains in his job, he has noted the number of layoffs that have occurred and only hopes that he is not signing in for unemployment in the weeks to come. Others hold the same fear as Sutton as a main problem that is a part of the inability to recover from the crisis. The other affects of the crisis are also beginning to change the reactions and capabilities of those in the economy. Most are using the word cut back to describe the changes which have been made. The cut backs include stopping the financial extras and only staying with the easiest and cheapest solutions for living. Others have decided to cut back by selling homes and to avoid the foreclosure which began in 2008. The large cut backs are also incorporating into leaving out the entertainment and other ideal ways of spending as a past time. These cut backs are an agreeable point of most groups of all ages as all are finding newer and free ways to manage the financial needs that continue to arise as well as the lack of money that is available. Even though most are trying to find individual ways to cut back on spending and to work around the lack of finances, most are also noting that they don’t see a solution becoming available soon. The belief that the government and financial institutions need to find an alternative is making most skeptical about the future and the possibility for recovery. “We voted for Obama because we believed that he would make change. That’s what he promised. For four years we are waiting for the change and nothing has been resolved. They may have said that the economic crisis is over, but that isn’t what my pocket book or my changing lifestyle is saying,” says Nichol Caron, customer service representative. This attitude is one which is prevailing with most, specifically because the economic debt is continuing to rise, along with inflation, with little to no answers for the many problems which have occurred. The attitudes which have arisen among most is also leading to the wish that something else should be done; however, most don’t have a solution. Instead, there is only pressure about what needs to change with recognition that the economic crisis is not over yet. This is leading to most having a pessimistic belief in the economic future and the ability for the economy to rise. According to Internet business owner, Rosalie Shaw, there is no answer or future. “Yes, I believe that the economy will continue to move forward. But, we have lost being an American power that has the ability to accumulate wealth. We have lost the potential to grow with prosperity and to build a strong economy. It will take years of recovery, if it ever progresses to that point.” This belief is one which most are now seeing, specifically because no drastic actions or solutions have been in place, with most leading to an accumulation of more problems. The attitudes of the economy are one which most continues to remain pessimistic about and which is leading to a loss of what to do for the future. Most want to keep a sense of hope alive so they can get through the turmoil and into something new. However, the signs that most are seeing don’t look as welcoming for future prospects. According to student, Paul Wegner, “all we can do is hope. Right now, the future is looking dim and I hope that there is something out there for me by the time I’m ready to join the work force. But as of now, I see a lot of people suffering because of the economic crisis and the inability to recover. If it doesn’t change, then there will be a question of where the future can go.” This attitude is one which prevails among most because of the need to have changes in the economy with little that is manifesting among those who are involved with the financial situation. The changes in the economy turned suddenly for the American economy in 2008 and continue to prevail with an outcome that is slow to recover. Those that are involved are looking at the current and future situation as one that is not only pushing toward a change in lifestyle, but also with the wish that solutions would continue to be found and assist those in the environment. The question that each holds is where the economy will turn next and what this will mean with stronger financial capabilities for America. References Brooks, David. (2008). “The Behavioral Revolution.” The New York Times (October 28). Norris, Floyd. (2011). “Crisis is Over, but Where’s the Fix?” New York Times (March 10). Sidel, Robin. (2011). “FDIC’s Tab for Failed Banks Nears $9 Billion.” Wall Street Journal (May). Read More