The Crisis of the Banks

To sum up the problem with the banks I would say this: the earth is doomed so take out your life insurance. In the past we have had a nice stable economy. Where both banks and consumers have had a nice balance.  Now, now were in trouble. Banks all around us are in trouble they have lent too much money to people. Also people who shouldn’t have been trusted with loans took them and are currently crashing the economy. People are currently in an insolvent, owing more money than they own, and it’s starting to cause a problem.

 Banks have lent money to different people all around, but the problem is they have lent so much money and people don’t have the jobs to pay it back. They no longer have the source where they got their money to pay. The banks can’t get rid of the mortgages they have because people can’t afford to buy it. Prices in things are sky rocketing but heading for a crash landing instead of breaking out of the atmosphere. Houses, T.V.’s Computers, the one thing that isn’t crashing is the gas prices! How do the banks stay afloat when everybody who loaned can’t pay the loan and nobody else is doing things that need loans. And other banks all around are knocking on their doors trying to get their money they loaned to the banks back.

The thing is the banks wanted to sell houses, so they could get the money from the payment, but people who qualified for  a good loan had already got what they wanted. But people are idiotic for money and so they lent money to people who wouldn’t be responsible for a loan. Now the economy is in trouble because the banks are stuck with houses that they went in dept to get and the economy is frozen.

The problem with are economy isn’t just in the United States or Canada it’s all over the world. Everybody is in so much dept it is insane! What are we going to do when everyone owes money and more money? It’s a chain reaction people owe money the bankers, who owe to the investors and what happens to the stock market when everybody can’t buy the value of things is dropping. The supply and demand concept is working like mad. Everyone is stuck from  each other.

The government is trying to help they really are but dumping more money into the banks is not the way I would do it. I know that the U.S. is very important in the economy. They are very stubborn what is the problem of letting the government take over the banks until they are up on their feet? To socialist? Everyone is suffering from this. They need to swallow their pride because this isn’t just their problem. It’s not like they are still getting a profit from buyers. I think that they can let the government  take over even if it is only for a little while.