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What was the first factor that crashed the US economy?
By Rose | April 1, 2008
Hermes asked:
Isn’t it the high gas price was the first cause of the US economy downfalls because it crashed the automobile industry? And then many people lost their job, so they couldn’t pay for their mortgage which leaded to another crash in the real estates industry in the US (Wall Street is next). Therefore, if the US economy goes down then it will affect the world economy as well. So, the reason why the US economy is close to recession today was because of the high gas price? (Iraq war is indirect effect as well) ^_^
Abner
Isn’t it the high gas price was the first cause of the US economy downfalls because it crashed the automobile industry? And then many people lost their job, so they couldn’t pay for their mortgage which leaded to another crash in the real estates industry in the US (Wall Street is next). Therefore, if the US economy goes down then it will affect the world economy as well. So, the reason why the US economy is close to recession today was because of the high gas price? (Iraq war is indirect effect as well) ^_^
Abner
Topics: US Economy | 2 Comments »
April 4th, 2008 at 6:13 pm
The question is reasonable, but then you supply a confusing set of answers none of which is the real one. The first factor that caused the US economy to crash was the amount of speculation in real estate as encouraged by the banks with their loans and mortgages, for which coverage was only possible through their selling price. For reasons too involved to describe here, the value of real estate is not stable and sometimes goes down as well as up, and when this occurs its like the collapse of a house of cards.
April 7th, 2008 at 8:49 pm
war is the 1st downfall, then the stock market,3rd the creed of the politicians of unbalance economy to lined there pockets, and investing govt. money to other places other then the economy in this country such as housing,jobs,soc sec.,welfare,unemployment these things are ignore or on the bottom of the list as less important.