US faces worst recession in 26 years Essay Example for Free

US faces worst inlet in 26 years EssayThe United States is once again experiencing a time out uniform to what happened in 1982. The Treasury and plyeral Reserve Offices are caught in surprise as they did not stock the rescue to take such a fast and dramatic collapse as it has been doing for the past months. As a result, there has been a slowing down of retail sales as consumer confidence collapses. bulk are not spending as much as before. They are not using their trust cards and making loans as often. Home prices are going down. Foreign demand is also weakening.Alan Blinder, a professor at Princeton and reason Fed vice-chairman, is certain that the country will face a recession worse than in 2001 or 1990 but the concern now, according to him, is making sure that this recession is slight deep and less long than the 1982 recession. The government has put into action the $100 billion rescue political platform to stabilize the banking system and hopes that it will improve things in the next few weeks. Columbia professor and former Fed governor, Frederic Mishkin, believes that in spite the bailout, the damage has been done already so that the future still looks uncertain.In the meantime, the possibility of rising unemployment rates threatens to deepen the housing slump, depress mortgage rates and increase non-payments of consumer loans. Nevertheless, Fed officials continue to look for ways and options to improve the economic outlook of the future. I agree with the writers views that the economic recession exists and that it is bound to get worse even as Fed officials are doing as much as they quarter to at least soften the blow of the crisis.No one can deny it as we feel it everyday through stories of friends or their parents who got laid-off, who have to move because they cannot pay their fellowship mortgages anymore or those who could not pay their credit card interests anymore. However, the economic recession that the country is experiencing no wadays can be looked upon as just another financial problem for the United States. In the chronicle of modern America, the country has undergone one economic crisis after another, but is still able to rise above each one.For years before every economic downturn, the country has grown and improved. One cannot always be moving up. One has to fall sometimes. The crisis today is a good wake-up call to Americans who have become overly comfortable with being citizens of a rich country so that they simply buy things on credit, assured that they would always find the means to pay for them because salaries would occur increasing and their standard of living would only keep improving.A recession makes the people sensible of their spending habits and maybe this is why after a while, the economy grows again. When all of America learns to be more conservative about their spending and become more conscious of how they manage their money, the economy would improve.Reference Guha, Krishna. (1 9 October 2008). US faces worst recession in 26 years, The Financial Times. rifle updated on October 19, 2008. Accessed from http//www. ft. com/cms/s/0/232eb4de-9e20-11dd-bdde-0077b07658. html? nclick_check=1