Wall Street Blues (u.s economy in crisis)

Melanie Horseherder
Oct. 15, 2008
2nd Hour

-The Wall Street Blues-
The Wall Street Blues is about the U.S Economy in Crisis.
The people of the U.S had borrowed lots and lots of money and did not payback what they had promise to payback. So they had created the financial crisis that triggered them all in the bank work area. This had all happened September 15 in the morning. Also one of the nation’s biggest investment bank’s, announced that it had lost so much money because of the bad loans that it had to close. The Treasury Secretary Henry Paulson proposed a $700 billion bailout of U.S banks and other struggling financial institutions. The President George W. Bush quoted “We’re in the midst of a serious financial crisis” and bush also told the nation on September 24, “Our entire economy is in danger.”
People of the U.S had wanted homes that they could not afford. Well they bought the house anyway. I guess, people of the U.S don’t pay for their loans as much as they want to get something. Because that money that people are borrowing, other people can’t get money because the people aren’t paying off their loans that they had borrowed.
The Federal National Mortgage Association, also known as Fannie Mae, and The Federal Home Loan Mortgage Corporation, or Freddie Mac. Were on the brink of failing because of all the bad loans they were carrying. Federal officials said they could not let Fannie and Freddie fail, so the government took over the two companies and poured $200 billion into fixing them. On September 23, Ben Bernanke, the chairman of the Federal Reserve, warned Congress to act fast. He also said it would soon become harder for everyone to borrow money and get credit. Bernanke said, "If no one is willing to end them money, the U.S economy could stop growing. He also said, "The government had to clean up the mortgage mess for good.
U.S Treasury Secretary Paulson asked federal government to give him $700 billion to rescue the nation’s troubled banks. The national debt was nearly $10 trillion before the bailouts. It’s higher now, and taxpayers will have to pay it off. Everyone, from banks to governments to individual borrowers, needs to be more responsible, says Mayor Michael Bloomberg. “We’ve got to understand that we’re all in this together.”

The main point i learned was to save at all causes and pay back what you had borrowed soon so you can have as much cash as you would want. and borrow money at a fair price so you won't have to pay back the entire cash you owe. Be very responsible about what you woul get with the money you are borrowing from the U.S economy. Also know that people otu there are wanting to use the money you borrowed. People might need it bad, even more then you. So just think about what other people need and to see if they do need it.