According to CNN NEWS the secretary of the US treasurer, Tim Geithner said on Monday, March 23, that the government will invest alongside private parties in funds that will buy troubled loans and securities from banks.
Plus, the government will also lend the buyers money.
Throughout all these financial problems, the government should pay the banks and somehow persuade the citizens of America to start spending money, so we can go back to normal where everybody had jobs and were happy with their lifestyle.
According to the UCLA Anderson Report, the economy will continue to falter for the rest of this year, but may start to see some relief by next year.
To solve this problem, citizens need to start spending money so that the banks will start making more money.
The UCLA Anderson School of Management's quarterly economic forecast states that right now we are at 6.8% for real gross domestic product in the first quarter, 4.5% in the second’s quarter and 1.7% in the third quarter.
owever, according to CNN News, in 2010 we should be at an average 2.7%. The gas prices have been increasing since late November, according to a motorist’s group daily survey on March 26.
What’s more, CNN Money said that the unemployment rate has increased in every state since December last year.
Finally, during the past nine months the drop in household wealth has been larger than anything on record in the post-World War 2 periods.
If the unemployment rate keeps rising and with college tuition costs, I think the society will stop spending money and will start saving more.
In my country, Romania, the economy has been mentioned a various estimate of times. A several number of banks believe that there should be taken monetary measures among which VAT (value added tax) reduction for some major problems, even in the fields of home construction.
The financial crisis raised in 2007-08, driven in part by strong consumer charge and high wage growth, moving up energy costs, a nation-wide dry season affecting food prices, and a relaxation of economic development.
Romania's strong gross domestic product growth changed completely in the last quarter of 2008 as the country began to feel the effects of a global downturn in financial markets and trade, and growth is expected to be much weaker in 2009.
Romania hopes to adopt the euro by 2014.
Some citizens here are just making a big deal out of all of this. As long as people do not stress out and keep on wisely spending money, then eventually the market will go back and everything will be as expected, as well as Romania does the same thing by keeping track of every penny.
If everyone will start cooperating with each other and working together on this, I think that everyone will keep their jobs and students will be more careful about what they spend money on.