It appears like this past year was a year in which virtually every last thing has gone awry financially. Consequently putting our normally strong US economy into the pits and pushing us towards what more than likely end up becoming the next depression. This is very bad for the majority of us US residents and is quite sad that it has reached this point of no return.
This large fiasco started in the subprime mortgage corner of finance. There were dirtbag brokers issuing out loans to pretty much anybody, you didn’t even have to prove you had the money to actually pay the mortgage all you had to do was have an average credit score and you were getting a home. And in most cases a home which you had no business living in.
What was then done with these loans is they were bundled into these security investment packages and sold to oversea investors who were looking to earn a killing. Well for them this turned out terribly and they are all going under and losing their shirts. The greed of these already unnaturally wealthy individuals had gotten the best of them. Consequently they will endure the bad problems that are to come.
As a result now we have virtually all the big investment firms on Wall Street either closing their doors or being bailed out by our desperate government. This has resulted a drastic effect on our now current economic epidemic, placing millions out of work and costing the tax payers of the United States billions in an attempt to downplay how terrifying this state of affairs has become.
This ripple effect has then gone and infected the NASDAQ and we have seen an erratic market ever since. Large amounts of Americans are now scared to invest their incomes in fear of losing everything. You could almost say this is somewhat of a domino effect on our market and is causing severe suffering and heartbreak to the standard US family. Let’s hope there is something that can be done to save this country.
When I started to think it couldn’t become any worse the retail markets are being extremely negatively effected as well. With such a large number of Americans losing their careers and income not a soul is hitting up the stores and spending cash on consumer merchandise which is the strength of a solid economy. Huge sums of small businesses are feeling the effect from dire situations and will be slamming their doors in new year as a result.
Adding to our already large problems this explosion to our economy has now crippled the automobile market. And we are going to see GM in need of a earth shattering bailout in order to maintain this American auto market alive and sustainable. If the car market does not survive there goes millions more jobs that will be gone placing yet one more huge dent into an already weak economy this will negatively effect millions.
As a consequence to all this madness we are now experiencing a credit crunch, which in turn will keep the recession at a stand still, no small businesses will get loans to help them get through these times no one is obtaining home loans unless you have perfect credit. Numbers of creditors are worried that their state of affairs will get all the worse and simply are just not issuing out credit.
And finally by far the worst issue for the standard US consumer is unsecured credit card debt. We have hit a record high with unsecured credit card debt. So many families can’t even budget to be on time with their monthly minimum payments and have been going into default in schools. This will tighten the credit crunch and kill people’s finances completely once and for all.
One of the best solutions for the standard American who is trapped in debt is debt negotiation. This process will help the debtor to save close to fifty percent of what they now owe their creditor and assist them in getting out of debt within a few short years. This is to the point on what the majority of the United States is in desperate need of right now in such hard times.
Steve Bis is a credit card debt analyst with the USCA, which practices in credit card debt reduction.
- Steve Bis
This entry was posted on Monday, October 26th, 2009 at 8:10 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
