Credit Cards and the Foreclosure Crisis Essay

Credit Cards and the Foreclosure Crisis Essay

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This economic turmoil started with home loans and the credit card industry. We have a generation that never understood how to use credit properly and we now have higher claims of bankruptcy than we have ever had as a nation. The recession started because our nation was growing too fast for itself, people were taking out loans for homes they could not afford and the banks were letting them. We also have had a huge credit issue lately; I have even seen it personally with my parents, their interest’s rates have all gone up. Real credit cards, not debit with a credit logo, are a huge responsibility, which many people have proven they cannot handle. If a million teens default on a $500 payment at 22% interest, which is $610,000,000 that is put off onto the credit industry this in turn puts pressure on both the market and the companies taking the debt. This process started the national economies suffering. According to the US census, there are about 21,500,000 teens. So the million I have just mentioned is only about 5% of the teenagers in America. So, while the home loans devastated the banking industry, the credit industry was also becoming under fire. In the end, it all came back to the Stock Market, which lead to the recent collapse. When the debt hit the stock market and the companies, investors saw what was happening and pulled their funds, and thus the businesses tanked.
The market and housing collapse happened because banks were giving out over-generous loans that were only maturing and never reimbursing the banks back and inflating housing costs, this put pressure on the banks and weakened their stock, so everything began to slowly spiral downward. As the banks felt the pressure of all these old, they had to ra...

... middle of paper ... to charities and pretend that these charities accomplish because of their efforts. We spend our days emulating knowledge we took two decades or more to learn. Yet somehow, we still have no passion to leave a legacy and become great. I think our future is bleak, the dreamers are disappearing, innovations are slowing down, and the world is slowly crumbling before us. We can change our destinies and find a brighter future, but if we lack the passion to search for a new horizon, we will never have this chance. It is not the distance traveled that we will remember; it is the steps taken to get there. Until we all take personal responsibility for our fiscal situations, big business and the wealthy will continue to reign over us. I bring this up simply because we are not just nations, we are humanity and we are all scared of what is to come and only unity can save us.

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