The United States is in a period of adverse economic downfall because, in some time back, they spent much money in wars which could not give them any returns other than experiencing great losses. Like the war in Iraq, which drew much criticism from around the globe. Therefore there is a need to help bring back the U.S economy to a steady rise so as to be able to secure the investment and investors, and also the improved economy will improve the banking system, thus a decline in the withdrawal of some banks from the market.
The diminishing economic state of affairs can be traced back to the one source that caused it, and that is home mortgages. People blame the homeowners who bought more than they could pay back, while others accused the creditors who gave out more than they could receive. Believing that both sides are at fault boils down to an overabundance of trust that lenders put into their buyers and vice-versa so that every person would want to strike it rich and also daydream about their expected million-dollar homes and sugarcoat these rich dreams with views of diamonds and pearls. That’s all they are, but dreams and the American people recently have been dreaming way very much, leading to the hellish economic nightmare that the people are faced with today.
With the ongoing historical Presidential Election heating up, the fervor and the enthusiasm of each candidate are pulled back by the magnifying crisis surrounding the U.S. economy, and like for the past few weeks, the U.S economy has been consistently dropping, leading to more and more banks claimed to be bankrupt, and people are handed out the pink slips freely like candy. This is not just a national disaster, but it is an absolute huge emergency that will certainly affect the future generation.
By having Americans put money into stocks, savings, and penchants, and then having that money redistributed to loaners who thought they could give back what they borrowed, the money that once was there is now gone. And that is the core of the problem that Americans are facing. A lack of money supply causes the credit in the economy to the crunch, ultimately affecting small businesses, causing them to close down, and erasing retirement money that Americans have put into their accounts for future use, and so far, more than a quarter of all penchants for retirement within the United States have disappeared. Well, with a decaying economy and a shaky bailout plan that ideally will serve as a buffer to boost back the economy, though it seems unlikely in the near future, we can say goodbye to our own retirement plans.
This economic crisis has shaken up Americans and caused them to grow not only weary of banks but also be paranoid of future economic failures. I believe that people of my age should definitely think twice before putting their money into any kind of financial institution. We will be the ones who will have to face the aftereffects of the horrible economic situation that the U.S. is currently in, and it will be up to us to bounce our economy back. However, the saying goes that history often repeats itself, yet from history, we learn our mistakes. Since the United States had gone through a huge depression before and overcame that dip in economy and spirits, I have faith that our current economic predicament can eventually be solved somehow and that we will once again gain the confidence we need to restore our economy back to its original state of success.
In helping this situation, there is a necessity to get viable businesses on their foot again. Thus, there is a necessity to help those overwhelmed by the crisis and the desire to instill changes to the global financial architecture so as to keep this from occurring again, also the desire for the United States to act its part that is by funding the IMF and maintaining the markets to run. Transformed growth is the recovery and can lift millions of citizens around the world back to the global middle class. This growth cannot stand alone; ways must be found so as to talk about the force of globalization on the worldwide financial system. Thus, opportunity waits, but not without challenges; therefore, greater intelligibility and accountability which is a predominant topic.
The National authorities could enlarge the intelligibility of foreign exchange reserves stands. International financial organizations such as the worldwide Monetary Fund could make public most of their policy papers, program reviews, reports. The private sector could also make and put into practice internationally acknowledged principles for accounting. These facts are mechanisms of restored self-confidence and reduced risks and therefore are necessities for economic recovery.
The people in government must help restore the market’s self-belief through a strengthened macroeconomic strategy by giving out the regulatory pattern for capital markets and through helping to take it slow over rough spots. But there is deep lifting as well for the private zone on how to bring out this crisis and heading off future crises consequently must manage better its risks and assume better responsibility in the workouts countries which are responsible for adjusting and reorganizing their economy thus one caution is that no measure vis-à-vis the international arrangement is a replacement for hard work by each economy to center its structural weaknesses or macroeconomic disproportion.
Capital controls, on the other hand, cannot be replaced for specific procedures like reinstating macroeconomic steadiness and to strengthen domestic financial status. Therefore capital market liberalization must be done in a gradual, orderly, and well-sequenced method and must be finished hand-in-hand with strengthening countries’ capacity to maintain its penalty, but the whole system is in jeopardy when individual countries try the pathway of financial autarchy.
There is hope too that leaders will endorse the call for improved economic governance together with corporate governance, whereas they are maybe cautious in what they say no one will overlook that the countries that are moving ahead best in their efforts tore organization and thus reform economically and by those with broad accepted political support. Thus there is a need to accelerate technical backing of activities planned in partnership with the International Fasteners Institutes so to help economies create stronger financial sectors.
There is also an interest in how to boost private sectors involvement in creating these technical help opportunities. It might therefore be probable to support organizations structures such as the Financial Services Volunteer to give a hand to help develop programs in the U.S. Going beyond financial system reform; there is a need that people ought not to forget that extra market opening and liberalization are important positive signs to investors that the U.S. is still at large for doing business. On the other hand, an important goal of trade for the APEC was the successful conclusion of the APEC Early Voluntary Sectoral Liberalization (EVSL) initiative. There is, therefore, progress in the rising of the nine Priority Sectors since APEC leaders decided in the majority to pursue this liberalization approach, therefore, advancing EVSL which is seen to help rebuild U.S. markets confidence. There is also a need for people to understand that success in EVSL will help the economy of the U.S.
In conclusion, there is a multitude of facts that led to the mess which the U.S is in, and there is a belief that AIG should straight away use the money for some type of retreat and therefore request more than they can receive. Taxes will also help this situation, and several measures are needed, like to put more finances in self-governing agencies to help assess whether a personality can afford mortgages and the required education.