The US Economy the current credit crisis and the potential impacts

The instructions for the project were as follows:

Write and essay on The U.S. Economy, the current credit crisis and the potential impacts.

(a) Discuss the current economic environment and credit crisis in your introduction;
(b) Discuss the factors that led to the current situation;
(c) Relate you discussion to Govt. Policies Real and Ideal concerning:
Efficiency
Competition
Problems with Real Markets
The focus of policy in terms of Markets
Market structure
Conduct
Performance
Selection of policy instruments
Political performance
Cost benefit analysis
Antitrust actions
(d) How do these policies relates to current issues?
(e) Need for regulations in the markets
(f)Conclusion

About the Solutions
The final essay was 1500+ words of which the first few paragraphs are reproduced below for your review. If you wish you can hire an economics expert to work on a similar project or purchase this one for your use.

Introduction
The key issue that has developed to what is being called a crisis situation by analysts such as Essen (2008) is the result of the subprime mortgage investments made by various financial and lending institutes in America. Not only has that caused a panic in the credit market, Wall Street also felt the effects of this crisis and the stock markets saw tremendous erosion in terms of the capital values of stocks triggered by rapid selling.

In essence, the present situation is the combined results of risky decisions and rash actions that were undertaken months ago by investors seeking to get huge returns. At the same time, the government appears to have remained blissfully unaware of the developing situation until it came to a point where massive injections into the economy had to be made in order to prevent a total collapse. Even these injections such as the $700 billion approved by the senate and the congress may not be enough to reverse all the damage (Skillings, 2008).

Background
The financial crisis that is presently in the American economic system began as a result of the subprime lending issues. At the present, the crisis appears to be in full swing as major banks, long established financial institutes and even insurance companies have failed to keep their commitments. Local and international investors seem to be panicking since no one is sure how the economy will come out of the mess and how long it would take for total recovery. Essen (2008) suggests that the panic and the crisis can be attributed to the lack of checks and balances created for the lending market that the government is supposed to regulate. Less regulation and greed have led to a situation where the investments made by banks in the housing market are not good for any of the stakeholders except those who wanted to see short term results.

The Situation
This is certainly troubling situations since the finance sector is perhaps the most heavily regulated sectors of the economy. However, it seems that wherever the financial magicians can find a loophole, they would exploit it. The subprime market was seen as virgin territory which could lead to great returns but the risks were perhaps underestimated. In fact, the risks were perhaps even ignored altogether and that has brought the American economy to a point where individuals are openly calling it the “worst financial crisis since the Great Depression (Essen, 2008, Pg. 1)”.

Other Details about the Project/Assignment
Subjects: Economics -> US Economy
Topic: The US Economy the current credit crisis and the potential impacts
Level: College / University
Tags:

The US Economy, the credit crisis, potential impacts, politics

Price: $1.95

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Mike Carver
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Project Details

Subjects: Economics -> US Economy
Topic: The US Economy the current credit crisis and the potential impacts
Level: College / University
Tags:

The US Economy, the credit crisis, potential impacts, politics

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The US Economy the current credit crisis and the potential impacts

The US Economy, the credit crisis, potential impacts, politics

The US Economy, the credit crisis, potential impacts, politics