After several years of sluggish economic performance and a response on the part of the Federal Reserve by way of a consistent reduction in interest rates, a number of factors have conspired to produce market bust. Precipitated at its base by an irresponsible level of homeowner loaning at a subprime rate, the market's current condition is one of marked pressure upon banks to collect on debts which a great many owners cannot afford to resolve.
As a result, the last six months have seen a tumultuous unfolding of market events, with the housing economy taking the biggest hit. With few buyers in the possession of real assets and banks now wary to lend to all but the most resource-wealthy of borrowers, the Federal Reserve has intervened once again. Consistent with its response to flagging market conditions throughout the Bush tenure, "the Fed has also lowered its benchmark rate six times since September to 2.25% from 5.25%, and traders anticipate it will cut by at least another quarter point this month to cushion the economy's downturn." (Brinsley, 1) in the midst of this, a major U.S. bank, Bear Stearns declared insolvency this past month, requiring the Fed to step in an intervene with a multi-million dollar bailout. To this end, "Fed Chairman Ben S. Bernanke last month agreed to lend against Bear Stearns securities, paving the way for JPMorgan Chase & Co. To buy its Wall Street rival." (Brinsley, 1)
In the face of the current and overwhelming market condition challenges such as the collapse and merger of major banks, this appeal to monetary policy has been a largely reactionary economic device, ill-equipped to provide opportunities for growth. Instead, it has served as a preventative measure to further decline and the downward spiral of diminished dollar value.
Even in this capacity though, it has been considerably nullified in its protection of the economy by the significance of the impact which inflation is now having on the ability of borrowers to attend to their loans.. While monetary policy can be utilized as an immediate stabilizer in times of recession or contraction, it is nonetheless dependent upon the sound propriety of tax policy and discretionary spending in order to functionally serve a market economy. The dependence of both interest rate levels and expansion rates upon a collective of investment means that any policy which is detrimental to that end may likely have a composite effect of contracting the economy.
The subprime mortgage crisis is perfectly indicative of the danger with which the Reserve has flirted throughout the reckless tenure of the current presidential administration. Under the thumb of inflation, dramatic rises in gas prices and associated commodities and the continued decline of the dollar's value relative to foreign currencies, average borrowers cannot afford to repay their home ownership loans. The outcome is today's recession, which if continued unchecked by poor presidential policy will spill over into outright depression. The Federal Reserve has spent the past six months intensifying a strategy which had only narrowly averted economic disaster across seven years. By this year, that aversion had defaulted officially, bringing about an end to obscuring our true economic state.
Just this week, it was reported that "the unemployment rate rose to 6.7%, a total of 10.3 million, which is 2.7 million more than the start of the recession in December 2007. Unemployment has steadily worsened since its low point of 4.4% in October 2006. (Source: BLS, Employment Situation Summary)" (Amadeo, 1) Now it has become clear that we are experiencing a real and undeniable recession.
And we can see through the consideration of the monetary policy, that idea of a culture of ownership has been crushed under its own weight, with no real prosperity to give it girding. Certainly, middle class Americans have historically taken the perspective that while opportunity and wealth are theirs to gain, the burden of risk which gives foundation to this system is to be taken on by those wealthy enough to invest in the development of a small business, stakeholding in a large organization or presiding ownership over varying stocks and properties of fluid value. The ownership and investment which are the lifeblood of the American economy have been seen to offer simultaneously the greatest opportunity and the most significant load to bear in the event of unforeseen recession or personal misfortune. Today, however, due to an increasingly unstable economy and a degree of exploitation which appears to pit the rich against the already dramatically disadvantaged poor, the risks once reserved for those with the means to go out and seek them are now becoming a common experience...
Inspector General One of the most important aspects of government is trust. This is because the people rely on administrators to do the right thing and always take their well-being into consideration. The Inspector General has the power to investigate and indentify problems with various labor laws and the Department of Labor. A recent study uncovered major problems when it came to employee pension plans. To fully understand what is happening
The UK needs to build good economic relationships with emerging markets even more than with its EU neighbors. China is already highly competitive in manufacturing and is gaining competitiveness in high-technology manufacturing. India is a leader in Information Technology and, being an English speaking country, also has the ability to be globally competitive in Professional Services. Latin American and Southeast Asian economies, such as Brazil or Indonesia, will become increasingly
Muhammad Ali in Egypt and the Influence of Napoleon Services and Mission of Muhammad Ali Pasha Reforms under the Regime of Muhammad Ali Pasha Societal Reforms Education Reforms Westernization Economic Reforms Agricultural Reforms Political Reforms Political Reforms Economic Strengthening Activities to Make Egypt Self Sufficient Muhammad Ali the Father of Modern Egypt AFU Armed Forces Union CGS Chief of the General Staff CUP the Committee of Union and Progress Dev-Sol Revolutionary Left Dev-Yol Revolutionary Way D-SK Confederation of Unions of Revolutionary Workers DP Democrat Party EEC or EC European
" The withdrawal was supposed to aid the Communists in controlling the areas vacated by the Japanese, who had succeeded in controlling vast portions of Manchuria. Stalin's efforts were aimed at forcing "the GMD [Guomindang or Chinese Nationalist Party] to make economic concessions, to prevent a united China from allying with the United States, and to placate Washington on the international arena by giving in to American demands for withdrawal," but in
In your explanation, compare and contrast domestic and international terrorism. Also, please indicate whether either type of terrorism is subject to defeat. or, in a free society such as ours, must we simply learn to live with the annoyance and tragedies of ideological, political, and/or religiously-motivated violence?) Domestic terrorism is much more statistically common than foreign terrorism, as those who feel they have cause to be angry enough to act
In some ways, the men who practice violence against women and attempt to control them to the degrees that the Taliban has decreed are simply carrying out the violence and the repression that was practiced against them; though it serves no constructive purpose and is indeed highly detrimental both to women and to the country as a whole, the Taliban's action against the women is at least partially a
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now