U.S. and Recession: Will it ever go away?

Re-Publish this Article

<h1>U.S. and Recession: Will it ever go away?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Yossarian Smythe.aspx'>Yossarian Smythe</a></strong><br /><p>Honeymoon phase is over for Barack Obama’s presidency as number of disgruntled and unhappy Americans continue to grow. Months after the historic election that catapulted him into power, a lot of Americans remain pessimistic about the financial setting of the United States. With lay-offs being done left and right, bankruptcy issues, undisclosed number of foreclosures, and never-ending credits, many are starting to think that recession is here to stay for awhile. U.S. Doubts Obama's Capacity to Erase Recession According to an online poll, most Americans believe that a 787-billion pay-out has not made any difference in the economic status of the country. Majority even believe that the said stimulus package made no improvement at all but just the exact opposite. Amidst worsening economic problems, a whopping 57 percent believe that the stimulus package made the recession worst and only 41 percent believes otherwise. With the promise of change remains undelivered, and the country trying to diminish a trillion mark deficit a lot are wondering if America will ever recover from indebtedness. Great Depression the Second Time Around? In the 1930's, U.S. suffered a severe recession caused by debt inflation, inequality in the distribution of income and wealth, unwise investments and overspending. This also affected many countries around the world, and recovered only after the aftermath of World War II. Other economists also point to loss of confidence, money hoarding, debt liquidation, panic selling, diminishing value of stocks and net worth of properties, and pessimism. Not much any different from what America is experiencing today. During this present time, the scenario is no different. The recession in the United States have spread all over the world leaving thousands jobless or underemployed due to massive lay-offs. Today, the recession is being blamed on the Federal Reserve stating that it made interest rates too low, leading people to invest in unnecessary things. Such caused the country to liquidate assets that does not bear any profit. Another reason is that banks accumulate bad mortgage debts and loaning money to people who did not have the capacity to pay their debts. As such, many companies were investing in useless investments and the non-payment of the loans caused the housing market to crash. Banks then were repossessing homes far much lower than its original market value. Growing Number of Skeptics Despite criticism, Obama preceded with the stimulus plan aimed at reviving the country's economy. Half of this 787 billion was allotted for healthcare, infrastructure and aid for the cash-strapped states. Senior citizens were even given a social security check worth $250. However, after eight months this plan seemed to have backfired. Sixty eight percent of Americans view the stimulus plan as nothing but a waste. A lot even view the prospects of the financial status of the country in the long run as getting worst. Real estate problems and unemployment rate continue to rise. The numbers of those who oppose Obama's proposals have increased from 42% to 46%. Most Americans today have also lost confidence in Obama's health insurance plan as many now wonder if the country, in its ailing economic state, can afford it. From an impressive 72% of Americans believing he can save the nation from economic depression, the number slumped to only 56 percent last July. As this numbers start to rise, Obama's plan to salvage millions of jobs at risk seems to become dimmer by the day. Will recession ever go away? During this point in time, and as shown by the story of the ages, only time can ever tell. GP</p><strong>About the Author:</strong><br />Wilson Field are specialists in <a rel="nofollow" href="http://www.wilsonfield.co.uk/individual/iva.htm">IVA</a>’s and can help individuals with deal with their debt problems. If you have taken out a loan you may have been <a rel="nofollow" href="http://www.realclaims.co.uk/ppi-agreements.asp">mis-sold PPI</a> and Real Claims can aid you in your claim.<p> Article Source: <a href='http://www.articleseen.com/Article_US-and-Recession-Will-it-ever-go-away_6142.aspx'> http://www.articleseen.com/Article_U.S. and Recession: Will it ever go away?_6142.aspx</a></p>

Article Source : http://www.articleseen.com/Article_U.S. and Recession: Will it ever go away?_6142.aspx

Keywords : IVA, mis-sold PPI, Wilson Field, Wilson, Field, Personal, Financial, Solutions, business recovery, insolvency, practioners, i,

Category : Finance : Finance