Opinion: Recession, Not Depression

As you all may know, our economy is in a great slump.

Stocks prices are tumbling down, foreclosures are rising significantly, and with every minute, more people are getting laid off from their jobs.

Without their jobs, more and more people lose their homes because of foreclosure. Without excessive money, nobody invests in stocks, which makes the stock market lose more points every minute.

And without the stock traders, businesses fail everyday.

Homeowners are losing their houses due to foreclosure and failure to pay their mortgage off. Records show that millions of American has lost their jobs due to the downfall economy.

Most jobs come from failing companies like car industry and banks. The number of jobs lost met a record high since 1945 and will probably exceed past that record. If our economy does not improve, there will be more foreclosure signs on our properties.

The United States is not the only nation in trouble, countries overseas are in need of help also. Most of the foreign stock funds have declined because many U.S. investors have stopped trading their stocks.

Precious metals have lost over 30% and natural resources lost about a 49% profit. Gas has also dropped significantly. In the last few months, gas prices around the United States had dropped from $4 to about $2.

When gas prices were high and expensive, most car companies lost their profits. Well-known car companies, such as Chevy, Ford, and Chevrolet are asking the government for bailouts which may help their companies. But not only are car companies failing, so are banks.

Bad loans, which are what started this entire mess, are causing banks to merge or file for bankruptcy. Big bank companies like Countrywide, Indy Mac, Washington Mutual, Wachovia, Downey, Bear Stern and Merrill Lynch have already merged or filled for bankruptcy leading to laying off thousands of people.

Our economy is already in a huge debt, but our government cannot do anything about it, so they print more money in order to try to decrease the deficit.

However, some companies are taking advantage by asking for bailouts. They ask the government for money because they need to save their own companies. So the government gives money to car companies, big banks, and most importantly, AIG. This may not affect us now, but throughout the rest of our lives, we have to pay it back with tax increases.

Even thought our economy may be in a slump, we still have one hope. Newly elected president, Barack Obama, hopes to make a new change to our economy. Even though we are going through a recession, we can be glad it is not another depression.

 

This opinion was written by Vincent Wei. The views of this author do not reflect the views of the Temple City Voice or its staff. It will be published in the Temple City Voice on Friday, January 16, 2009.

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