Bryce Weblog

The State of the American Economy

September 24, 2008

By Bryce Little

Banks going under, mortgages foreclosing, the dollar in a downward spiral, what has happened to the American Economy? To try and stop this falling market and help investors regain confidence in the American economy the Bush administration will be asking the congress this week to pass a $700 billion bailout plan that would provide temporary financial security to some of the nations most troubled, and influential financial firms.

AIG, Meryl Lynch, and Lehman Brothers have all lost substantial profits in the past several weeks leaving the economy without some of its most dominant institutions.  This downturn was not a surprise to many economists and development firms. The creation of subprime loans and the falling price of houses have caused many banks to become careful with their spending, which could make it harder for the average American to take out a loan or pay off a credit card.

“The way the financial institutions are now, they are going to be conservative.” Says Keystone Corp. Vice President, Reid Tyler. “This has been underway for probably a year and a half. It’s a downward spiral.”

Keystone Corp., which is a development firm based out of Raleigh, has seen some loss over the past weeks, but according to Tyler, the true impact of this crisis will not be known for months to come.

“They got greedy and overconfident.” Says Jennifer Platania, an associate professor of economics at Elon University. “If home prices continued to go up and up and up this would not be a problem, but clearly they did not so they issued these securities like they (the price of homes) would.”

To the average Americans this will mean that it will be harder for anyone to take out a loan or a mortgage, which in turn will make the prices of homes go down.  As this crisis is happening the price of your house is depreciating in value.

One Response to 'The State of the American Economy'

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  1. Janna said,

    Nice job on the reporting, Bryce! You have a good lead and some solid direct quotations. I don’t see three, so you must have run out of time. But what you got is expert opinion from two extremely good sources, so BRAVO anyway. Now you need to study up on how to punctuate the attribution. You can see how to do it right by looking at any newspaper or magazine, online or in print. Look at where the commas and periods are used in the areas where there are quotation marks and learn how to do it; it’s simple once you figure it out. AP Style on under way is to use two words. And the way you used it in the lead, bailout should be one word.

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