Reasons for Drop Down in the US Economy - Essay Example

The paper observes the issue of mortgage and housing crisis gripping the US and other developed nations. This made headlines for all the wrong reasons and it resulted in the economy going down drastically. The jobs were cut, the taxes were estimated to be increased and the inflation touched new heights. Such was the case within the economy that even the rich had sleepless nights since they were losing out on their profit-making regimes. The economy thus had a lot of negatives with itself which essentially had the basis for its downfall.

The investors, both big and small have not had confidence in the economy and its future, even though they knew beforehand that this dropdown is for a very short time period. (Schnurr, 2008) If they could have sustained the pressure, the world would not have suffered so much. The oil prices are back to normal, from where they started and now the need is to have a check and balance mechanism over their proper understanding and implementation within the global market regimes.