Title : The effect of the U .S . Economic recession on the Bahama s economyNameUniversityCourseTutorDatea ) The unify States economy has been daunted to be impulsion for a recession owing to the rising unemployment rate and the sharp put in lodging . Allan Greenspan , the former chair of the Federal harbour had predicted that the US economy had a 33 chance of heading to into recession (Economics Help , 2007 . There are several reasons that are indicative of an impending recession in the US The United States of America had several old age of a booming housing market . Prices for housing have been falling during the past years . When digest prices fall people go away no nightlong re-mortgage so as to have extra capital for expenditure . This has a significant impact on consumer spending Considering the house prices to earnings ratios , the average US house prices have been overvalued for a long time .
For the house prices to earnings ratio to enter to normal , the prices have to drop down further plausibly by 18There have been high record levels of default on sub-prime mortgages adds the Economic Help (2007 . This has led to many mortgage lenders waiver out of business . This has changed other financial markets military position towards risk of exposure . This trend has made other financial markets to change their attitude to risk . As a result investment will be slower and consumer spending will drop considerablyThe US has had a current account deficit of about 6 .5 of the...If you want to get a full essay, order it on our website:
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