These can include the stimulus package, though, because the Obama Administration is still offering stimulus dollars to banks and other companies that need help and cannot take care of their customers in the way that they used to and preferred to.
Figure 1: How Severe is the Subprime Mess?
Obviously, the subprime mess is a serious concern for everyone. The stimulus package was designed to help the banks and the people who borrowed from them with the fact that they could not pay for the debts that they had created for themselves. That was true for the people who had mortgages, and also true for the banks that loaned money to these people. The stimulus package was designed to help them both out so that they could take care of their debts and move forward again. However, the economic stimulus package has not fixed everything that was hoped. There are still problems with the economy, and the package is not moving things forward as fast as people would like, especially where working with banks to keep homes is concerned.
Figure 2: Subprime Mortgage Crisis
As for opinions about the stimulus package and what it does or does not do for banks and other lenders as well as the people who borrow from them, there are a lot of different thoughts on the matter. Clearly, the economic stimulus package was a good idea from the standpoint of trying to help people pay their bills and keep their homes. It was designed to get the country moving again, but recent news reports have shed light on the fact that the stimulus money may not be moving into the areas where it is really needed as much as it is supposed to -- and that some of the money may be going to places that technically do not even exist. A lot of Congressional Districts that allegedly were handed a lot of stimulus money are nonexistent, and that leaves the American people wondering where that money actually went. That is especially worrisome for people who are losing their homes and wondering if that 'missing' money could have helped them.
By bailing out banks and lending institutions, the government also sent a message that it would step in and be a 'parent' when people or companies got into trouble in a big way. It is very hard to say whether that is a good message or not, because it implies that there is always a safety net -- at least if the business is big enough to affect the national economy. For small-time people and businesses, though, there is no safety net. There are still many people who are in foreclosure, and who are losing their homes. There are still banks who are refusing to work with good people who have lost their jobs and ended up with some credit problems that they now must try to tackle and get through. These banks have the power to help these people get through...
government is facing. There has even been talk of a second stimulus, and the homebuyer tax credit is also being discussed. Extending and expanding it would entice more people to buy homes, which would be good for the economy. However, if banks keep credit and lending so tight that people cannot get homes, the homebuyer tax credit and other stimulus package 'deals' will not be helpful. In addition, if banks do not work with homeowners who already have homes to help them avoid foreclosure, these people will have their credit ruined for years and will not be able to take advantage of any kind of homebuying incentives that may be offered in the near future.
While banks certainly have to have rules and they cannot just give money away to people, it is very important that the banks also see the value in working with consumers. The government worked with the banks, and the American people want to see that same courtesy extended from the banks to them. There are some banks, like the ones discussed above, that are generally doing what they can to help their consumers, but there are other banks that are not very interested. They assume that there will always be more customers, so they do not need to bend any rules to help out the customers that they have. While this is unfortunate, especially in light of the stimulus package, there is only so much that can be done about it. Consumers will continue to struggle to some degree if they do not have much money or if their credit is lacking, and that means that other companies and businesses will struggle because those consumers are not spending much money. That hurts the economy overall, negating some of the positive effects that the stimulus package would have otherwise had on the American economy. While the economic stimulus package is still a good thing, there are problems with the way that it is being executed. Until those are fixed, it can never do all that it was intended to do to help the American people.
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The theory was that by giving consumers tax rebates, aggregate demand could be increased. This in turn would, along with the corporate tax cuts, give firms more confidence to increase their own spending. When the bill was being drafted, the economy was not yet in a state of total devastation, but there were signs of a pending recession. By drafting a bill that would increase aggregate demand, it was
Stimulus Bill Political Communication Political Communication during the Stimulus Bill Debate In times of economic uncertainty and national emergency, the government has the capacity to make decisions that it believes will aid the country in its time of need. Such a time of need occurred in 2009 when the country continued to face an existence of dire economic circumstances involving national cash-flow and jobs. In order to set economic recovery into motion,
These include: the European Union, China, India, and Japan. Clearly, what many Americans perceive to be simply an economic problem in the United States, has far reaching effects around the globe. Works Cited Barba, R. "Centra Returns TARP Money." American Banker 173(65) 6 Apr 2009: p. 4. Business Source Complete. EBSCOHost. University of Phoenix, Phoenix, AZ. 27 Apr 2009 . Crain, K. "It's All About Saving an Industry." Automotive News. 83(6348) 23
Economic Crisis Policies US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans
Economics Define economics Economics is defined as the study of how society allocates limited resources and goods (Encyclopedia Britannica, 2009). Resources include inputs such as labor, capital, and land and are used to produce goods. Goods include products such as food and clothing, as well as services such as those of barbers, doctors, and firefighters. Often goods and resources are deemed scarce because of society's demand for them vs. their availability (Stapleford,
Economics While the U.S. is only showing the first signs of recovery from the global economic crisis, other nations such as Australia and China have recovered much more quickly. There are a number of factors that have contributed to the disparity in economic performance in the past three years in these different nations. In particular, three factors will be considered. The first is the situation in each country at the outset