The Overall State of the Economy

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The overall state of the economy

M r. President! It is with due respect that I would like to express my gratitude for the invitation. Owing to the major issue at hand, we are aware that most countries are still grappling as a result of the after effects of the Economic crunch that has been taking place. The meltdown has mainly been triggered by our banking system liquidity crises which resulted to the collapse of large financial institutes in a short span of time. The housing market suffered tremendous losses; this lead to increased cases of eviction mostly experienced by the middle class (Miller, 2010). Our capitalistic nature makes it had for resources to be shared equally. This has resulted to increased joblessness as many strive to make ends meet. In history, this is considered our worst economic situation after the great the great depression of 1930s. In as much as this has been so we thank your government for implementing the stimulus package to caution our economy.

This presents us with a different dimension to the situation, when dept is encouraged the need arises to beg for support from bodies such as the IMF which may not be forthcoming. By doing so, we only aggravate the situation further. We ought to analyze the fundamental issues so as to get a clear picture of the existing structural factors as well understanding competing strategies with the world in attempts to caution our nation from the slump. (Miller, 2010)

Who pays for the crises?

The housing market incurred bad debts mainly from housing loans. Before the slump properties were valued highly than they are, this investments were carried out in anticipation that the prices were likely to raise thus get huge profits in return. It didn’t turn up as expected...

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...rade. Your government should therefore practice good policy reforms; at this may not come by easily. (Bacevich, 2009).

Conclusion

A bird in hand is worth more than a thousand in flight, lets harness the resources we have. These are the building blocks of a better tomorrow; a better tomorrow will lead to a better world with peace and prosperity. Though going through turbulences, turbulent times calls for drastic solutions. I hope you will stand for what we believe in and see the realization of a better world.

Reference

Bacevich, A.J. (2009). The Limits of Power: The End of American Exceptionalism. New

York: Henry Holt and Co.

Bergsten, C. F. (2005). The United States and the world economy: foreign economic

policy for the next decade. Washington DC: Institute for International Economics.

Miller, D. A. (2010). The U.S. Economy. New York: Greenhaven press

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